The five businessmen, accused of Europe’s largest-ever fake pharmaceutical plot, which involved importing bogus Chinese-manufactured life-saving drugs, are all vastly experienced in the industry and knew what they were doing, a jury were told.
Charges were brought following a two-year investigation by the Medicines and Health Care products Regulatory Agency, part of the Department of Health into Consolidated Medical Supplies Ltd. (CMS).
The company, of Unit 14, Sherrington Way, Lister Road, Industrial Estate, Basingstoke, had its Wholesale Dealers Licence revoked by the MHRA on January 8, 2008.
The charges relate to 'Casodex', used to treat advanced prostate cancer, 'Plavix', a drug prescribed to prevent blood clots and prevent heart attacks for angina patients and 'Zyprexa' a anti-psychotic drug prescribed to schizophrenic and bipolar patients.
The five defendants are: Ian Gillespie, 58, of The Green, Marsh Baldon, Oxford; Peter Gillespie, 64, of High Street, Bovingdon, Hemel Hempstead; Ian Harding, 58, of Lower Westwood, Bradford-on-Avon, Wiltshire; James Quinn, 69, of Holloway Drive, Virginia Water, Surrey and Richard Kemp, 61, of School Lane, Y Waen, Flint Mountain, Clwyd.
Croydon Crown Court was told Kemp ran a pharmaceutical company called ‘Kemco’ from his Flintshire home and an Irish company ‘Kemco Pharmaceutical Ltd.’ of 29a Dartry Road, Rathgar, Dublin.
Both companies held wholesale dealers’ licences to supply therapeutic drugs.
“Richard Kemp knew these products were coming from Singapore at the very least,” prosecutor Mr. Andrew Marshall told the jury.
“He obtains the medicines and sends them to the Irish outfit,” added Mr. Marshall.
The Irish company provided “storage and logistics” and it’s bookkeeper confirmed Kemp was the only employee.
“Richard Kemp is very experienced in the pharmaceutical trade,” said Mr. Marshall. “We are not dealing with novices here.”
Quinn is linked to the plot through his ownership of Camberley-based World Medical Ltd., of Unit 6, Stanhope Road, Camberley Business Centre, the court was told.
The company was also the holder of a wholesale dealers’ licence and together with Peter Gillespie, Quinn established an Internet pharmacy and was taking steps to set up a Liberia-based firm with a Swiss bank account.
Peter Gillespie, his brother Ian and Harding worked together to open CMS, which rose from the ashes of ‘Discpharm’ – wound-up in 2005.
“Peter Gillespie has many years experience in the pharmaceutical industry,” Mr. Marshall told the jury. “He is a clever man who has sought to operate in the outer reaches of the industry.
“He wants to make a profit to live a comfortable life of some luxury and seems to allow very little to get in his way to get what he wants.
“He is well versed in every devise to protect his position.”
‘Discpharm’ – run by Peter Gillespie - was an approved parallel importer of drugs from abroad and Ian Gillespie handled the sale ledger side and controlled the stock.
Harding was also a senior manager within the company until the Royal Bank of Scotland placed it into administration with “large debts” and Peter Gillespie made bankrupt.
However, Peter Gillespie continued to live a lavish lifestyle, driving Bentley’s, Ferrari’s and top-of-the-range Mercedes owned by a Luxembourg-based company.
“It was his secret off-shore confidential company,” explained Mr. Marshall, who told the jury Peter Gillespie hid assets in the company to dodge creditors.
Less than a month after Discpharm’s demise CMS was formed on June 13, 2005.
“Peter Gillespie was behind it, but it was not in his name,” said Mr. Marshall. “CMS were able to buy back the machinery owned by Discpharm.”
This machinery allowed the plotters to re-label the bogus medicines for the U.K. market, the jury were told.
Ian Gillespie guaranteed two loans, which bought nearly £50,000 worth of equipment and Harding was a director of CMS.
“It was Peter Gillespie who organised CMS through a number of people so there would be no record of his involvement,” explained the prosecutor.
All five have pleaded not guilty that between January 1, 2006 and June 30, 2007, they conspired together and with others to defraud pharmaceutical wholesalers, pharmacists, the public and holders of Intellectual Property Rights in pharmaceuticals by dishonestly distributing for gain counterfeit medicines.
They also deny two counts each of selling or supplying the three drugs without authorisation and selling or supplying counterfeit goods, namely the three medicines, between January 1, 2006 and June 30, 2007.
Peter Gillespie alone denies one count of breaching a company director disqualification order between July, 2005 and June, 2007, following his bankruptcy.
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