The "Dirty Business" Of The Fake-Medicine Five

Five businessmen accused of plotting to sell fake Chinese-manufactured medicines in a multi-million pound scam were determined to "protect their dirty business" despite the risk to public health, a jury were told today.

In his closing speech, after over three months of evidence, prosecutor Mr. Andrew Marshall told Croydon Crown Court the defendants continued importing the fakes - even after a respected drug wholesaler raised concerns that eventually contributed to their downfall.

They are: Accountant Peter Gillespie, 64, of Carey Close, Windsor, Berkshire; Pharmaceutical wholesaler Richard Kemp, 61, of School Lane, Y Waen, Flint Mountain, Clwyd; Peter's accountant brother Ian Gillespie, 58, of The
Green, Marsh Baldon, Oxford; Salesman Ian Harding, 58, of Lower Westwood, Bradford-on-Avon, Wiltshire and pharmaceutical wholesaler James Quinn, 69, of Gillespie House, Holloway Drive, Virginia Water, Surrey.

Medicine watchdogs ordered a Class One recall of all suspected drugs -taken by heart and cancer patients and the mentally ill - resulting in shelves cleared in pharmacies all over the country and half of the 73,000 fake packs recalled.

AAH Pharmaceuticals told Kemp the medicines he supplied were "tatty" and "well travelled" as the defendant tried to rush the deal through, Mr. Marshall told the jury.

"The urgency Kemp showed only heightened their concern. That is what put them on guard," said the prosecutor. "Why was Kemp so keen to get approval so quickly and get them through?

"This business, Kemp's second business, this bent business is never offered to AAH again to avoid scrutiny. This is their first close shave.

"Their priorities were to protect their dirty business and continue to sell counterfeit pharmaceuticals."

Mr. Marshall told the jury it was obvious Kemp knew the drugs purchased by Basingstoke-based Consolidated Medical Supplies, (CMS) which he funded, were from the Far East.

"He did know their source and he was prepared to lie to you," the prosecutor told the jury. "He saw the Air Singapore stickers and the invoices to Mauritius-based Multiscope.

"He has got no honest basis to say these products had been on sale in France and knew the source was Multiscope in Mauritius, which could never have had an official wholsesale dealers licence."

Kemp cancelled the purchase initially because the stock - anti-psychotic drug 'Zyprexa' - arrived in a Brussels warehouse water-damaged, but happily sold them once they were re-packaged, Mr. Marshall told the jury.

"The damaged stock was now being brought in by Peter Gillespie and Harding via the Eurotunnel. This was the first run and they wanted to make sure they got through and smooth out any wrinkles."

CMS's unsuspecting pharmacist had told the jury this first batch of imported medicines were re-packaged by the Gillespie brothers and collected by Kemp, who drove them away in the back of his car.

"They all knew each other going back years," said Mr. Marshall. "They spent so much time together in production and must have deliberately kept quiet and must have had an understanding to say nothing to make sure it did not leek out.

"That first production run was driven away by Kemp. That in itself is extraordinary and not the usual way of doing things.

"It shows Kemp physically handled the boxes containing the property, the labelling and packaging he had paid for."

Mr. Marshall dismissed the defendants attempts in the witness box to distance themselves from the scandal.

"None of them want to admit ownership of the goods. It is a real hot potato amongst them, but the drugs have got from China and in some cases to patients and there are a lot of steps on the way to ensure that.

"There has in this courtroom been a desperate last-ditch attempt to explain something that cannot be explained," added the prosecutor.

The second Brussels run -again by Peter Gillespie and Harding - was to collect a shipment of heart drug 'Plavix'.

"All the time Kemp caries on funding CMS and is keeping the company going," said Mr. Marshall.

Eventually AAH became so suspicious they sent a drug-sample for testing at an NHS lab at the same time another company - OTC - tested the sixth importation.

Approximately 100,000 doses of fake medication ended up in the hands of patients.

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.

All five defendants 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.

The drugs were manufactured by the notorious Chinese pharmaceutical counterfeiter Lu Xu aka Kevin Xu, currently serving a prison sentence for a similar scam in the United States.