Canadian Man Sentenced to 33 Months in Prison for Online Cancer Drug Scam

This week, Hazim Gaber, 22, of Edmonton, Canada, was sentenced in Phoenix by U.S. District Court to 33 months in prison for selling counterfeit cancer drugs using the Internet. He was ordered to pay a $75,000 fine, as well as $53,724 in restitution, and to serve three years of supervised release following his prison term.

Garber admitted to selling counterfeit 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.

DCA is a highly sought cancer drug for its reputed ability to shrink tumors in lung cancer, breast cancer and brain cancer. However, the drug is experimental and not yet approved for use in either the United States or Canada.

The white powdery substance that Garber supplied to the victims was later determined through laboratory tests to contain starch, dextrin, dextrose or lactose, and contained no DCA. The packages also contained a fraudulent certificate of analysis from a fictitious laboratory and instructions on how to dilute and ingest the bogus DCA.

The sentencing is part of a larger department-wide effort led by the Department of Justice Task Force on Intellectual Property (IP Task Force) to combat the growing problem of IP violations and to protect the health of American consumers.

The case was prosecuted by Trial Attorney Thomas S. Dougherty of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Peter Sexton of the U.S. Attorney’s Office for the District of Arizona. Significant assistance has been provided by 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 provided assistance in this case. The case was investigated by the Phoenix FBI Cyber Squad.

XStream Systems applauds the IP Task Force and the FBI Cyber Squad for bringing this criminal to justice and cautions consumers against buying medications from questionable sources.

This story appears to be a classic case of a relatively unsophisticated individual taking advantage of and preying on the frantic needs of the 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 is 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.

For more information visit:

US. Justice Department at http://www.justice.gov/opa/pr/2010/August/10-crm-958.html

“Canadian Man Charged in Online Cancer Drug Scam” at SecurePharmachain Blog

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.