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.

Ministry Plans Ban on Re-export of Medicines

The UAE is taking measures to combat counterfeit drugs. One of those measures is to ban re-exportation of medication.

An article published this week in Khaleej Times quotes prominent industry and regulatory leaders on the scope of the counterfeit drug trade in the Middle East, the challenges, and current initiatives to combat it.

Below are some key fact listed in the article:

The scope of the counterfeit drug trade and seizures in the Middle East

• Nearly one per cent of the fake medicines detected in the European Union comes from the UAE, said Dr Amin Al Amiri, CEO, Medical Practice and License at the UAE Health Ministry


• During the first five months of 2008, Dubai Customs seized and destroyed 293 tonnes of counterfeit medical products.


• During 2006-2008, the UAE ranked sixth in the region with 36 numbers of raids in which counterfeit medicines were seized. Israel topped the list of 10 countries with 162 raids. “Four other incidents in the UAE discovered goods that were being diverted to another country,” said Ashley How, regional director for Pharmaceutical Security Institute.


• In 2008, $3.1 million worth of Pfizer counterfeit drugs were seized in the region. “It is not only expensive drugs that are duplicated but even common ones such as Ponstan,” said Steve Allen, Pfizer’s senior director for 
Global Security. “This is because people would prefer buying a drug from a known company rather than an unknown,” he said, adding that 30 of the company’s well known drugs including Viagra, Ponstan, Xanax and weight loss drug Lipitor had 
been copied.

Dependence on imports are a challenge

• The expanded volume of imported medical products and medicinal ingredients is a challenge for the country, said Dr Mohammed Abu Elkhair, Head of Pharma/Medicine and Medical Products Regulation Section, Health Authority of Abu Dhabi.


• Only 20 per cent of the medicines needed in the UAE are manufactured locally, thus increasing a chance of counterfeit trade. “Only increased penalties as proposed in the law can help curb the trade,” he said.


• Quoting a recently held study in Abu Dhabi, Dr Elkhair said only 40-50 per cent of the registered medicines are available in the country.

Current Initiatives

• The UAE will soon end re-exporting of medicinal drugs from its ports to curb a growing regional trade in counterfeit products, according to a senior health official.


• The Health Ministry has also increased raids and inspections and toughened punishments against violators. “Two doctors have recently been blacklisted GCC-wide while in 2008 we closed two factories. This year, 35 pharmacies have been shut down for selling fake drugs,” said Dr Amin Al Amiri.


• Other measures taken by the ministry include quality control analysis, inclusion of new technologies to identify fake medicines, tougher imports control, and advertisement control.

To view the article in its entirety, visit: www.khaleejtimes.com.

Drug Authentication Evolves to Use Molecular Screening to Combat Fake Drugs

Life Science Leader, a magazine for key executives in the life science industry, recently published an article "Molecular Screening: It's Time to Stop Thinking Outside the Box with Counterfeit Drugs" by Brian Mayo, President and CTO of XStream Systems.

In the article, Mr. Mayo discusses the advancement of analytical methods as they have moved from the lab setting to the next generation of authentication by allowing screening of the product itself throughout the pharmaceutical supply chain.

By putting this non-destructive screening method in the hands of non-scientific personnel the industry has evolved it’s protection services from merely deterrents for diversion and counterfeit drugs to real authentication of the product “inside the box”.

It’s so simple and it makes sense that we spend so much money and time developing the drugs themselves – shouldn’t our authentication be centered on them as well.

To view more on molecular screening technology, please visit www.xstreamsystems.net

To view more on Life Science Leader…

Law Enforcement Examiner: Operation CYBERx

In yet another fascinating article from Jim Kouri at the Law Enforcement Examiner, the September 23, 2009 issue spotlights a recent DEA-led investigation targeting the e-trafficking of drugs within the United States.

The investigation, which is part of a larger initiative named Operation CYBERx was conducted by the DEA and other law enforcement agencies. This collaboration targeted internet pharmaceutical drug traffickers, operating within the United States that pose as legitimate pharmacies which in fact are peddling dangerous narcotics and prescription drugs, many of which are counterfeit.

Here are some of the highlights from the article:

• Recognizing that criminals are facilitating more drug-related crimes through the use of 21st century technology, the DEA, along with their law enforcement counterparts recently arrested 18 people for allegedly selling pharmaceutical drugs illegally over the Internet. Those arrested include the ringleaders of more than 4,600 rogue Internet pharmacy websites.


• The alleged drug dealers who operated these rogue internet pharmacies received prescription orders for controlled substances over the Internet, which were then shipped to the doors of many US citizens — sometimes without any prescription needed. These alleged criminal pharmaceutical drug traffickers averaged more than $50,000 a day in profits from their illegal Internet based enterprise.


• Operation CYBERx is part of the DEA's "Virtual Enforcement Initiative (VEI)." This new DEA cyber initiative acknowledges that criminals in the drug trade are embracing the use of state-or-the-art technology to peddle their narcotics and dangerous drugs into US communities, all with an air of respectability.


• DEA Administrator Karen P. Tandy said, "Operation CYBERx puts out of business alleged cyber criminals who [are] selling powerful narcotics without legitimate prescriptions to anyone with a computer and cash. These high-tech drug dealers were fueling addictions by selling the very drugs intended to prevent and treat ailments — not inflict them. Just as important, this Operation makes more Americans aware that buying prescription drugs from these rogue websites is illegal and dangerous."


• The VEI concept was realized last April when DEA led Operation "Cyber Chase," which resulted in more than 20 arrests in eight US cities and four foreign countries; shutting down an organization that ran over 200 web sites illegally selling what were identified as pharmaceutical drugs. This year-long investigation targeted international Internet pharmaceutical traffickers operating in the United States, India, Asia, Europe and the Caribbean. These e-traffickers also distributed drugs world-wide using rogue Internet pharmacies.

XStream Systems endorses the efforts of the DEA in cracking down on the illegal trafficking of prescription drugs and narcotics. This effort highlights the vulnerabilities of the pharmaceutical supply chain in the 21st century and XStream encourages all members of the supply chain to utilize material screening to verify, authenticate and protect their inventories. XStream also encourages health care consumers to only buy prescriptions from licensed, known pharmacies within your area and always use health care professionals (physicians, pharmacists) when taking medications.

To read Mr. Kouri’s Law Enforcement Examiner article in full, follow the following link: http://www.examiner.com/examiner/x-2684-Law-Enforcement-Examiner~y2009m9d23-Health-care-crime-Combating-rogue-Internet-pharmacy-operations

To learn more about XStream Systems visit us at: http://www.xstreamsystems.net/.

COMBATING THE SPREAD OF FAKE DRUGS

In the June 28, 2009 Online Issue Daily Policy Digest, the National Center for Policy Analysis highlights a very relevant policy document titled, "Keeping It Real: Combating the Spread of Fake Drugs in Poor Countries" by Julian Harris, Philip Stevens and Julian Morris of the International Policy Network.

XStream endorses the primary assertion that one of the most effective ways in combating this international problem is for the private sector of the pharmaceutical supply chain to take advantage of its innovative capacity to experiment with various technological solutions that enable it to protect the identity of its products. Members of the pharmaceutical supply chain need to utilize a variety of technologies, like XStream’s XT250 solution which allows the end user to verify and authenticate medications inside its sealed manufacturer’s unit of sale container without destroying or degrading the material.

The text of the Daily Policy Digest review on "Keeping It Real":

Counterfeit and substandard drugs are a serious and growing problem around the world -- especially in less developed countries. These fake drugs pose three direct threats to patients: failure to provide effective treatment; adulteration with toxic chemicals, often leading to death or injury; and if a drug contains some active ingredient but too little to kill all the disease agents, it can lead to the emergence of drug resistant strains of disease.

These problems are caused in large part by a combination of defective legal systems and government-imposed distortions of the pharmaceuticals market, say researchers at the International Policy Network:

Poor countries tend to have highly inefficient, slow and expensive legal systems, which makes it very difficult for people to be assured of the quality of the medicines they purchase.

Lack of enforceable trademarks and civil liability are instances of a wider problem; in such an environment, legal decisions tend to be arbitrary and designed to benefit the elite.

Price control measures, like tariffs, on imported medicines are very common in poor countries and drive up the price of high quality medicines creating opportunities for suppliers of fakes, who can then more easily undercut them.

Tariffs can also lead to unnecessary delays in ports, where improper storage conditions can cause drugs degrade.

However, bolstering the rule of law is a long term process in many countries. In the short-term, the private sector should take advantage of its innovative capacity to experiment with various technological solutions that enable it to protect the identity of its products. Governments, meanwhile, should reduce those interventions which undermine the supply of quality drugs, such as taxes, tariffs, price controls and other arbitrary regulations, say researchers.

Source: Julian Harris, Philip Stevens and Julian Morris, "Keeping it Real: Combating the spread of fake drugs in poor," International Policy Network, 2009.

The National Center for Policy Analysis (NCPA) is a nonprofit, nonpartisan public policy research organization, established in 1983. The NCPA's goal is to develop and promote private alternatives to government regulation and control, solving problems by relying on the strength of the competitive, entrepreneurial private sector.

To read the entire piece by Harris, Stevens and Morris, follow the link below:
http://policynetwork.net/uploaded/pdf/keeping_it_real_2009.pdf

Fake Drugs More Deadly than Terrorism?

Since 911, we are well familiar with the deadly effects of terrorism, but are you aware there is another danger lurking that has silently killed hundreds of thousands of individuals worldwide?

I am speaking of counterfeit medications, which have been a growing problem in underdeveloped countries for years and are now showing a steep increase in developed countries as well.

According to The Observer, British intelligence has found that criminal gangs (mostly out of China) have shifted away from selling “lifestyle” drugs like Viagra and have switch to “life-saving” medications. These drugs have infiltrated the regular supply chain in Britain and are threatening the health of millions of their citizens.

In fact more the ₤3M of these fake “life-saving” medications for ailments such as heart disease and cancer were seized in the first 10 months of 2008. Some of these medications were found within the official healthcare supply chain. These included Zyprexa, 40,000 doses of Casodex, a hormone treatment for men with advanced prostate cancer, and Plavix, a blood thinner.

Graham Satchwell, the former head of Scotland Yard’s organized crime group believes a significant number of patients may have died already, but it has not been attributed to counterfeit drugs. “They may have less of the active ingredient, meaning people could die because they are not receiving their life-saving treatment. Even now, though, healthcare professionals never assume it is the drug. No one asks whether deaths are attributable to fake medicines,” said Satchwell.

Interpol recently revealed it is investigating reports that profits received from counterfeiting activities are being used to fund terrorist groups such as al-Qaida. And these profits can be huge – as much as ₤1M for the shipment that successfully penetrates into the normal supply chain.


These criminals prey on the most vulnerable: “The counterfeiters target the weakest members of our societies – the young, the sick, the economically disadvantaged, and it is our obligation to take action,” said Ronald Noble, Interpol’s secretary-general.

While the European commission is considering several anti-counterfeiting methods, most are tied to the packaging rather than the drug itself. History has shown that such deterrents such as holograms are only temporary solutions as they themselves are usually copied within a few months. What is needed is verification of the drug itself – such authentication would act as a firewall to make the legitimate supply chain immune from threats.