Canadian Man Pleads Guilty to Selling Counterfeit Cancer Drugs

Tuesday, Hazim Gaber, 22 of Edmonton, Canada, pleaded guilty to selling counterfeit cancer drugs over the internet. Gaber admitted selling what he falsely claimed was the experimental cancer drug sodium dichloroacetate, also known as DCA, to at least 65 victims in the United States, Canada, the United Kingdom, Belgium and the Netherlands between October and November 2007. According to the plea agreement, Gaber charged $23.68 for 10 grams of the purported DCA, $45.52 for 20 grams or $110.27 for 100 grams, plus shipping.

DCA is an experimental cancer drug not yet approved for use in the United States or Canada. DCA is an odorless, colorless, inexpensive, relatively non-toxic experimental cancer drug that is highly sought after by cancer patients. A doctor at the University of Alberta in Canada published a report in early 2007 summarizing the results of a study, which showed that DCA caused regression in several cancers, including lung cancer, breast cancer, and cancerous brain tumors.

Gaber sold the counterfeits through a website named DCAdvice.com, which falsely claimed that it was the only authorized representative to sell DCA and was affiliated with the University of Alberta. Further lab analysis determined that the substances sold contained starch, dextrin, dextrose or lactose, and contained no DCA.

Gaber faces a maximum prison sentence of 20 years on each of the five counts of wire fraud to which he pleaded guilty. Gaber also faces maximum fines of $250,000 per count. As part of the plea agreement, Gaber agreed to forfeit or cancel any website, domain name or Internet services account related to this fraud scheme.


XStream System applauds all the regulatory and enforcement agencies involved in the capture of this counterfeiter: Criminal Division’s Computer Crime, Intellectual Property Section, Assistant U.S. Attorney Peter Sexton of the U.S. Attorney’s Office for the District of Arizona. the Edmonton Police Service, the Alberta Justice Office of Special Prosecutions-Edmonton, the Competition Bureau of Canada, the U.S. Postal Inspection Service, the Federal Trade Commission and the Alberta Partnership Against Cross Border Fraud, The Criminal Division’s Office of International Affairs and the Phoenix FBI Cyber Squad.

To view the Dept of Justice Press Release visit: www.justice.gov.

To view information regarding counterfeit detection solutions visit: www.xstreamsystems.net.

Canadian Charged In Online Cancer Drug Scam

Karen Kleiss in an article that appeared in the March 30th edition of the Edmonton Journal and Vancouver Sun writes a piece about a Canadian man who is accused by the U.S. Federal Bureau of Investigation of selling fake experimental cancer drug treatments via a website he operated.

The 21 year old Edmonton resident Hazim Gaber is charged with five counts of wire fraud for his role in operating www.DCAadvice .com that was reportedly selling a fake version of the experimental cancer drug dichloroacetate also know as DCA directly to patients.

According to authorities the international fraud duped dozens of desperate cancer patients around the world who came to the website after the patients discovered that in many cases they could no longer legitimately buy the experimental drug that they needed for their treatments. Court records indicate many of the victims had their cancer treatments interrupted or delayed because of Mr. Gaber’s fraudulent scheme.

The accused, Mr. Gaber, apparently operated his website and illegal operation in the home that he shared with his parents.

Highlights from Ms.Kliess’ story include:

· Edmonton police initiated an investigation on Nov. 14, 2007, after a local woman who purchased drugs from the site lodged a complaint.
· She told police she turned to the online store when she learned she could no longer buy the experimental tumor-shrinking drug from the United States. When her first shipment arrived in a spice bottle and looked nothing like the DCA she had been receiving from the United States, she went to police.
· Testing showed the white, coarse, sweet-smelling powder she had been sent was not DCA. Later analysis showed some of the shipments patients received were made up of milk sugar, artificial sweetener, starch and talcum powder.
· Investigators eventually discovered that the so-called drugs had been shipped to at least 67 customers in Canada, the U.S., Belgium, Netherlands and the United Kingdom. The website claimed to have served more than 1,000 patients and recorded tumor shrinkage in 80 to 90 per cent of them.
· On June 30, 2009, the FBI laid charges against Mr. Gaber in an Arizona court and arrested him at the airport in Frankfurt, Germany. He was later extradited to the U.S. and he is now in jail in Phoenix.
· On July 25, 2009, Edmonton police searched Mr. Gaber's home and found 58 drug orders and receipts for arrowroot powder, dextrose and bromelian powder. Last week, an Edmonton judge agreed to let the local police share their findings with the U.S. authorities.
· Mr. Gaber's trial is scheduled to begin June 1 in Arizona. In the United States, the maximum sentence for wire fraud is 20 years in prison.

This story appears to be a classic case of a relatively unsophisticated individual taking advantage of and preying on the frantic needs of sick with bogus drugs being peddled over the internet. His global scheme was aided by the relative anonymity and world wide access of the Internet which allowed him to market and sell his fakes to the desperately ill.

Unfortunately this tale is not an isolated occurrence but something that happens all over the world on a daily basis. This appalling crime is being perpetrated by far more sophisticated and nefarious criminals who take advantage of people’s frantic need for healthcare and kill millions each year.

To learn more about supply chain solutions that combat fake drugs, visit: http://www.xstreamsystems.net/.

Read Ms. Kliess’ entire story online at: http://www.vancouversun.com/news/Edmonton+behind+online+cancer+drug+scam/2744675/story.html.

Counterfeit Drugs are No Joke - Counterfeit and Substandard Cancer Drugs Sold to Consumers in India

Counterfeit drugs have a serious impact on the public’s health. As those who produce the spurious drugs have become more sophisticated and organized, they have stepped up their inventory to include life-saving medications, thus intensifying the dangers to the consumer.

Reported in The Times of India this week, The State Health Department in India has uncovered a counterfeit drug ring where crucial anti-cancer drugs have been illegally manufactured, re-bottled, and sold after their expiration dates.

The initial investigation has proved that these products have reached the public and have been consumed. Officials involved in the investigation have not determined yet if any deaths have resulted in the distribution of these spurious drugs due partly to the expanse of their distribution.

Officials have stated that the criminal ring posed as at least four legitimate manufacturing facilities and those manufacturers have denied any part in the production of these medicines.

The investigation is ongoing as officials examine the numerous outlets that sell anti-cancer drugs.