Three more sentenced in fake drugs conspiracy trial

In sentencing, Judge Price said, "This is a case of greed motivated by immense profits. (Which are yet to be determined.) These sentences are designed to deter others from becoming involved in the lucrative business. The scale of enterprise was truly global and conducted with a total and cynical disregard for consumers."

In sentencing of Gary Haywood, Judge Price said, "You were a deceitful, unscrupulous, determined and manipulative individual. You are not a man of hither to good character. You were heavily and actively engaged in what proved to be a very lucrative criminal enterprise. I have no doubt that had the raid on your premise not taken place, you would have continued in the business."

In sentencing Ashwin Patel, Judge Price said, "You knew full well the potential consequences of your behaviour and were prepared to reap the financial benefits."

In sentencing the absent Zahid Mirza, Judge Price said, "You were rightly described by the prosecution as a key player in this business."

Mick Deats, Head of Enforcement at the Medicines and Healthcare products Regulatory Agency (MHRA) said, "This is the biggest drugs counterfeiting case to be brought by the MHRA to date.  The conviction of these individuals sends a clear message to those engaged in such criminal activity, which puts peoples' lives at risk that we will not hesitate to use the full force of the law against them.

"We continue to remind the public that self prescribing of medicines via the internet is not only risky to their own health but is ultimately lining the pockets of criminals who are selling goods which have totally by-passed the legitimate supply chain and have the potential therefore at the very least to be ineffective and at worst they could kill".

ENDS

Notes to editor:

1. See previous press release http://www.mhra.gov.uk/home/idcplg?IdcService=SS_GET_PAGE&useSecondary=true&ssDocName=CON2032385&ssTargetNodeId=389

2. An overview of each defendant's involvement in the conspiracy and the charges are outlined in Annex A.

3. All names, addresses, occupations and dates of birth were provided by the defendants at the time of questioning/arrest.

4. Confiscation hearings will take place in due course

5. The retrials of George Patino, Rajendra Shah, Ketan Mehta, Alpesh Patel, the other defendants on whom the jury failed to reach a decision,  will commence in 2008

6. The MHRA will be hosting a major international conference about counterfeit medicines on 22 November 2007 at the Hilton London Metropole. It will bring together key organisations, high-profile international speakers and strategic ideas on the problem of counterfeit medicines. The event will focus on international co-ordination efforts and the UK strategy and response to this issue.

7. The MHRA is the government agency responsible for ensuring that medicines and medical devices work, and are acceptably safe. No product is risk-free. Underpinning all our work lie robust and fact-based judgements to ensure that the benefits to patients and the public justify the risks. We keep watch over medicines and devices, and take any necessary action to protect the public promptly if there is a problem.

8. Where appropriate the MHRA will use the Proceeds of Crime Act 2002 to determine whether or not benefits were accrued through criminal activity and will recoup illicit earnings if the individual is found guilty.

Annex A

Gary HAYWOOD is 59 years old [dob:16 March 1948, of 63 Waterfall Way, Barwell, Leicester] like Mr HALAI was a pivotal conspirator. He promoted himself as a qualified pharmacist with extensive experience in the pharmaceutical industry. One of his many bogus claims was that he had been a prominent Pfizer employee. He like Mr HALAI used a variety of company names to cover his tracks. Mr HAYWOOD used off-shore bank accounts to hide his money. He also used forged documents to further the conspiracy. He was the intermediary who dealt with the counterfeiters abroad and in particular a counterfeiter based in China who readily supplied "made to order" fakes which would then be smuggled into the UK. The contents of these parcels would be disguised using false descriptions e.g. "sample C&E vitamins" "Sample of fishprotein" "calcium for kids" and "Sample of Protein for Dogs"- so as not to attract attention by the authorities. In this way over some 6 months HAYWOOD smuggled into UK about 500,000 fake Viagra tabs. In July 2003, MHRA officers seized over 120,000 fake Viagra tabs including packing material, fake product leaflets etc. Mr HAYWOOD left the country before MHRA investigators could interview him, a warrant for his arrest was issued and he was arrested at Heathrow airport in March 2006 disembarking from a flight from Singapore.  He has since remained in custody.

Ashwin PATEL 25 years old [dob: 01 March 1982, of 196 Chamberlayne Road, London NW10] is the youngest of the conspirators and HALAI is his brother-in-law in what is considered to be a close knit family. PATEL became HALAI's "right-hand" man and was a trusted member of the conspiracy. Mr Ashwin PATEL was instrumental with others in the supply of counterfeit Cialis through a company named IMPERAZO

Zahid MAHMOOD MIRZA, 46 years old [dob14 August 1960, of 17 Milverton Gardens, Ilford, Essex] is based in Pakistan.
Mr MIRZA was a key player in the supply of counterfeit Viagra from Pakistan and through a bogus UK company fake Cialis in the UK. He was the sole Director of a UK company named IMPERAZO; the only real trade it did was in counterfeit medicine. Mr MIRZA is also linked to foreign companies that have been involved in the sale of counterfeit Viagra in the UK.

Gary Haywood (58) (In custody) Charged & found guilty on all 11 counts listed
Salesman
63 Waterfall Way
Barwell
Leicester

Ashwin Patel (24)                             Charged counts 1 to 9    
University graduate                          Found guilty counts 1,2, 3, 4, 6, 7,8  
196 Chamberlayne Road                  Found not guilty counts 5 & 9   
London NW10 

Zahid Mirza (45)                               Charged counts 1,2,3,4,7,8    
Businessman                                     Found guilty counts 1,2,3,4,8   
17 Milverton Gardens                        Found not guilty count 7   
Ilford      
Essex 
   
COUNT 1
Conspiracy to evade the prohibition on the unauthorised use of a trade mark in relation to goods, contrary to section 92 (1) of the Trade Marks Act 1994 and section 1(1) of the Criminal Law Act 1977.
  
Between 1st January 2002 and 12th October 2005 conspired together with ASHISH HALAI and with other persons known and unknown to offer or expose for sale goods, namely medicinal products, which bore, or the packaging of which bore, the manufacturer's trademark sign "Viagra" and with a view to gain for themselves or others, or with intent to cause loss to another, and without the consent of the proprietor,

COUNT 2
Conspiracy to place a medicinal product on the market, contrary to Schedule 3(1) of the Medicines for Human Use (Marketing Authorisations etc.) Regulations 1994 and section 1(1) of the Criminal Law Act 1977.

Between 1st January 2002 and 12th October 2005 conspired together with ASHISH HALAI and with other persons known and unknown to place a relevant medicinal product, namely Sildenafil Citrate in tablet form, on the market without holding a Community or United Kingdom marketing authorisation in respect of that product.

COUNT 3
Conspiracy to evade the prohibition on the unauthorised use of a trade mark in relation to goods, contrary to section 92 (1) of the
Trade Marks Act 1994 and section 1(1) of the Criminal Law Act 1977.
 
Between 1st January 2002 and 12th October 2005 conspired together with ASHISH HALAI and with other persons known and unknown to offer or expose for sale goods, namely medicinal products, which bore, or the packaging of which bore, the manufacturer's trademark sign "Cialis" and with a view to gain for themselves or others, or with intent to cause loss to another, and without the consent of the proprietor.

COUNT 4
Conspiracy to place a medicinal product on the market contrary to Schedule 3(1) of the Medicines for Human Use (Marketing Authorisations etc.) Regulations 1994 and section 1(1) of the Criminal Law Act 1977.

Between 1st January 2002 and 12th October 2005 conspired together with ASHISH HALAI and with other persons known and unknown to place a relevant medicinal product, namely Tadalafil in tablet form, on the market without holding a Community or United Kingdom marketing authorisation in respect of that product.

COUNT 5
Conspiracy to evade the prohibition on the unauthorised use of a trade mark in relation to goods, contrary to section 92 (1) of the Trade Marks Act 1994 and section 1(1) of the Criminal Law Act 1977.

Between 1st January 2002 and 12th October 2005 conspired together with ASHISH HALAI and with other persons known and unknown to offer or expose for sale goods, namely medicinal products, which bore, or the packaging of which bore, the manufacturer's trademark sign "Propecia" and with a view to gain for themselves or others, or with intent to cause loss to another, and without the consent of the proprietor

COUNT 6  
Conspiracy to place a medicinal product on the market contrary to Schedule 3(1) of the Medicines for Human Use (Marketing Authorisations etc.) Regulations 1994 and section 1(1) of the Criminal Law Act 1977.
 
Between 1st January 2002 and 12th October 2005 conspired together with ASHISH HALAI and with other persons known and unknown to place a relevant medicinal product, namely Finasteride in tablet form, on the market without holding a Community or United Kingdom marketing authorisation in respect of that product.

COUNT 7
Conspiracy to evade the prohibition on wholesale dealing, contrary to section 8 (3) (a) and section 45(1) of the Medicines Act 1968 and section 1(1) of the Criminal Law Act 1977

Between 1st January 2002 and 12th October 2005 in the course of a business conspired together with ASHISH HALAI and with other persons known and unknown to sell, or offer to sell, a medicinal product, namely a quantity of Sildenafil Citrate in tablet form, except than in accordance with a wholesale dealer's licence.

COUNT 8
Conspiracy to evade the prohibition on wholesale dealing contrary, to section 8 (3) (a) and section 45(1) of the Medicines Act 1968 and section 1(1) of the Criminal Law Act 1977

Between 1st January 2002 and 12th October 2005 in the course of a business conspired together with ASHISH HALAI and with other persons known and unknown to sell, or offer to sell, a medicinal product, namely a quantity of Tadalafil in tablet form, except than in accordance with a wholesale dealer's licence.

COUNT 9
Conspiracy to evade the prohibition on wholesale dealing, contrary to section 8 (3) (a) and section 45(1) of the Medicines Act 1968 and section 1(1) of the Criminal Law Act 1977

Between 1st January 2002 and 12th October 2005 in the course of a business conspired together with ASHISH HALAI and with other persons known and unknown to sell, or offer to sell, a medicinal product, namely a quantity of Finasteride in tablet form, except than in accordance with a wholesale dealer's licence.

COUNT 10
Concealing, disguising, converting, transferring or removing the proceeds of criminal conduct, contrary to section 93C of the Criminal Justice Act 1988

Between 1st January 2002 and 24th February 2003 knowing or having reasonable grounds to suspect that property, in whole or in part, represented the proceeds of his criminal conduct did conceal, disguise, covert, transfer or remove such property from the jurisdiction for the purpose of avoiding prosecution for an offence to which this Part of this Act applies or the making or enforcement in his case of a confiscation order.

COUNT 11
Concealing, disguising, converting, transferring or removing the proceeds of criminal conduct, contrary to section 327 of the Proceeds of Crime Act 2002
Between 25th February 2003 and 21st March 2006 knowing or suspecting that property, in whole or in part, represented the proceeds of his criminal conduct did conceal, disguise, convert, transfer or remove criminal property from England and Wales.