1 / 22

Organized Crime and Counterfeit Medicines

Organized Crime and Counterfeit Medicines. Zagreb, 4th june 2013 IRACM, Ambassade de France en Croatie Eric Przyswa Associate Researcher MINES ParisTech Crisis and Risk Research Center e ric.przyswa@mines-paristech.fr. Plan. I . Organized crime and counterfeit medicines

zoey
Download Presentation

Organized Crime and Counterfeit Medicines

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Organized Crime and CounterfeitMedicines Zagreb, 4th june 2013 IRACM, Ambassade de France en Croatie Eric Przyswa AssociateResearcher MINES ParisTech Crisis and RiskResearch Center eric.przyswa@mines-paristech.fr

  2. Plan I. Organized crime and counterfeitmedicines I.1. Small Organized crime (two to five people). I.2. « Medium- Sized » Organized crime (aroundten people) I.2.a. Wuppertal case I.2.b. Bellavoine case I.2.c. Peter Gillespie case I.3. Transnational organized crime I.3.a. RxNorth case I.3.b. The «Jordanian-Chinese » and « Avastin» organisations I.4. China : Kevin Xu case II. Cybercrime II.1. Crisis case II.2. Glavmed, SpamIt III. Summary about organized crime Conclusion

  3. I.1. Small Organized crime (two to five people). - Example : Mimi Trieu, Philadelphia USA - BetweenOctober 2008 and May 2009, importedfrom China and sold cheap fakepills for diet. - Shesold1 750 000 pills, value 245 000 dollars, claimingthat the pillswere made in Japan. In fact the pillshaddangerousingredients (sibutramine). - Suchlittle business can have strong impact.

  4. I.2. « Medium- Sized » Organized crime (aroundten people) 1.2.a. Wuppertal case, Germany 2007 « Grand banditisme » Business organization. Logistics, Ecommerce, finance. 1.2.b. Bellavoine case. « Business Opportunity » Since 2004 more than 4 tonnes of counterfeitmedicines made in China distributed in UK, Germany, Belgium, Switz., UAE… Partners in USA and France (Nice).

  5. I.2. « Medium- Sized » Organized crime (aroundten people) 1.2.c. Peter Gillespie case, UK - Betweendecember 2006 and may 2007, this pharma distributorimported 72 000 packages of counterfeitmedecines more than 2 millions dosesof counterfeitmedecines. - Profit : around 5 million dollars. - Importedfrom China via Hong Kong, Singapore and Belgium. Packaged as French medicines. - 25 000 packaged of counterfeitmedicines have been sold to the official pharma networks and hospitals in UK.

  6. I.3. Transnational organized crime I.3.a. RxNorthcase - June 2006, Bahamas police investigation  PersonalTouchPharmacy, distribution center of RX North. - 3 millions doses of counterfeitmedicines and 13 pharma companiesinvolved. - Counterfeitmedicines value: 3,7 million dollars. - On line Pharma, RX North (Andrew Strempler).

  7. Free Trade Zones Ease Passage of CounterfeitDrugs to U.S.Source : Walt Bogdanich, TheNew York Times, 17 décembre, 2007

  8. I.3. Transnational organized crime I.3.b. The « Jordanian-Chinese » and « Avastin » organisations - US invasion Irak 2003. - Smuggling: Syria and Jordania IrakianmedicinesdistributorKimadia. - JordanianWajee Abu Odee, Sky Park Hong Kong. - Between 2003 and 2007 traffic in 7 countries : Irak, Syria, Jordania, Lebanon, Egypt, UEA, Palestine. - 2007-2009 : trafficisgrowing in the Middle East.

  9. 2007 Middle East Distribution NetworkSource : Roger Bate, Phake:The Deadly World of Falsified and SubstandardMedicines, The AEI Press, 2012, p. 219.

  10. CounterfeitMedicines2009 Middle East Distribution Network Source : Roger Bate, Phake:The Deadly World of Falsified and SubstandardMedicines, The AEI Press, 2012, p. 221.

  11. CounterfeitAvastin NetworkSource: Benoit Faucon, Jeanne Whalen, « FakeAvastinTookMurkyPath to U.S. » , TheWall Street Journal,  5 avril 2012.

  12. Network distribution between UK and USASource: Christopher Weaver et Jeanne Whalen, « Drug DistributorisTied to Imports of FakeAvastin », TheWall Street Journal,  7th march 2012.

  13. I.4. China: transnational traffic, Kevin Xu case - Kevin Xu, Orient Pacific Oriental - Production capacity: 200 000 boxes, one million pills for one delivery. - Focus more and more on « high-value » counterfeitmedicines and on the USA market(with 29 products). - Marketing approach. - Xu wasalsoinvolved in legalactivitieswithChinesehospitals(genericmedicines).

  14. II. Cybercrime II.1. Crisiscases • July 2009: H1N1 crisis, in the UK 1 400 % growth of research on Internet, many Internet users russiancybercrimewebsites. Source : Graham Cluley, « Swine flu fears making millionaires out of Russian hackers, Naked Security Blog », Sophos, 16 novembre, 2009. - March 2011, Fukushima nuclear accident, counterfeitmedicinesold online (Premium Zeonite).

  15. II. Cybercrime II.2. Glavmed, SpamIt - Igor Gusev, Chronopayco-founder - Both networks were the leadingcriminalorganizations. - Concept : affiliated network of illicit pharmas on line - SpamItwas in charge of « darkactivities » (spam) for illicit pharma on line (Canadian Pharmacy). - Glavmedwas more the « honorable window » for affiliated pharma programmes.

  16. II. Cybercrime II.2. Glavmed, SpamIt - SpamIthad 1,5 millions of ordersfrom 800 000 customersbetween May 2007 and June2010. - Most « successful » SpamItaffiliatedcouldearnmonthlybetween 5 000 dollars and 50 000 dollars. - 2 500 affiliatedwere part of Glavmed network. - Glavmed profit: 1 million dollars in 2011.

  17. SummaryOrganized Crime • CybercrimeOrganization - Someorganizations are fullydedicated to cybercrimeactivitieswith agressive techniques searchengines manipulation / (Glavmed), someothers use more Internet has a distribution toolin connectionwith transnational logistics networks (RX North, Wuppertal…). - Fragmentation of crime on Internet - Democratization of cybercrimetools - Independent cells on Internet - Link between « low-profile » criminals and « high-profile » criminals - Automatization of illicitprocess on Internet

  18. SummaryOrganized Crime  Mafia question - Involved in counterfeit - Involved in healthindustry - No real evidence of Italian mafias involved in counterfeitmedicines - Typicalmistake of analysis: a. To consider transnational organized crime as a scapegoat of globalization and have a static vision of it. b. To have a conspiracy vision of suchorganizations.

  19. SummaryOrganized Crime 3. Links between « virtual » and « real » organized crimes - Difficult to analyzesuch links, « meeting points » ? - It seemsthatthereis no transnational criminalorganizationmerging « virtual » and « real » networks in a stable way. - Ironicallyitismore easy to watchorganized crime involved on Internet that the onesinvolved in « real » traffics

  20. Conclusion • Lack of vision of about criminal networks  a need to rethinktraditionalfrontiers of criminology (marginality, new kind of white collar crime…). • Not to focus anti counterfeiting actions on traditionalorganized crime but to also focus on licitactors supplychain audit. 3. There is a need for more variousscholarsinvolved in analysis, Michigan University (Anti-Counterfeiting and Product Protection Program). • Intelligence Information needs to be more centralized Innovation : Dynamiccartography, psychological profiles of counterfeiters ? 5. Holistic vision, cooperative actions.

  21. Conclusion • Norms on Internet, to involveconsumers in action. 7. UK/US references: flexibility and independence avoidbureaucracy and routine reflex of investigation. 8. Politicalwill.

  22. “Our sensesenable us to perceiveonly a minute portion of the outside world” Nikola TeslaWork in progress…Thankyou. eric.przyswa@mines-paristech.fr AssociateResearcher MINES ParisTech Crisis and RiskResearch Center

More Related