Fake viagra dealer fined £14m

Southwark Crown Court has ordered a man who sold counterfeit medicines online to pay £14.4m in fines. As reported by the BBC, the man, who lived in Manchester, was sentenced to two years in jail after a six-year investigation by the Medicines and Heathcare products Regulatory Agency (MRHA) and the North West Regional Asset Recovery Team revealed the scale of his operation, funding a lavish lifestyle involving luxury cars and houses.

Such stories demonstate the huge scale of counterfeit pharmaceutical operations. There is no control over the safety of counterfeit pharmaceuticals which means that many people are putting their health at risk by buying the fake and/or unlicensed items. This recent successful prosecution illustrates how various agencies are working hard to combat the problem but law enforcement freely admits that as soon as one rogue pharmacy is dismantled, another one appears somewhere else.

Fraud costs UK £73 billion every year

The National Fraud Authority has issued its latest fraud report, estimating that the total annual cost of fraud to the UK at £73 billion. Changes to the NFA’s methodology mean that their estimate of UK fraud has almost doubled from their 2011 estimate of £38bn.

Fraud in the private sector accounts for the majority of UK fraud at £45.5bn, while fraud in the public sector costs £20.3bn.

Due to the enormous figures involved, even a small dent fraud losses could save UK organisations significant sums of money. UK organisations – public and private sector – need to consider how they are currently tackling fraud and what can be done to improve their investigation and enforcement processes.

Download the National Fraud Authority’s Annual Fraud Indicator.

Intellectual Property Crime Report 2010-2011

The Intellectual Property Office has published its annual IP Crime report, showing that the sale and distribution of counterfeit and pirated goods over the internet has increased over the last year. It cites a number of major counterfeiting cases including an £11m confiscation order secured by Enfield Trading Standards in May 2010 and the jailing of six men who used high-tech equipment to produce 24 fake bottles of vodka a minute.

The report highlights that counterfeiting is a continuing problem for brands in a wide variety of industries and that much more needs to be done to prevent the production, import and sale of counterfeit goods.

New website aims to combat the rise in online counterfeits

A new website has launched which seeks to reduce the impact of counterfeit goods being sold online by providing a trusted place to find websites selling genuine products. An Organised Crime Task Force study in 2005 found that 13% of people in the UK had bought fakes thinking that they were real. The new website, www.brand-i.org, is one way of reducing this figure but the problem of counterfeits is likely to continue unless they are stopped at the source.

UK Bribery Act 2010

I’ve just uploaded an article about the UK Bribery Act – view it at http://www.abmsoftware.com/News-and-Media_Articles_UK-Bribery-Act-2010-software.html

It is important that businesses make sure they have adequate policies and procedures in place to manage suspected cases of bribery – if they fail to do this, the business may be subject to an unlimited fine.

Investigation management software like Intellicase can be used to help address this.

UK Confidential Informant case law

Police Oracle have just posted an excellent article on case law surrounding Covert Human Intelligence Sources (CHIS) or Confidential Informants in the United Kingdom. Most importantly, the case law covers the extent to which CHIS can/cannot encourage others to participate in criminal offences. According to R v Mealey (1974) it is unacceptable for a CHIS to entice another person to commit an offence which he/she would not otherwise have committed. The article goes on to cite Teixeira de Castro v Portugal (1999) and R v Moon (2004) in which the accused were encouraged to take part in illegal activity.

In America, entrapment by Confidential Informants is often used by defence lawyers.  Examples include a case of dog fighting charges in Indianapolis and a case of robbery in Texas in September 2010, the Florida case against John Nicholas Coors in a murder-for-hire plot in April 2010 and the August 2010 New York terror trial.

Confidential Informants – Where is it going?

Much is being written about the ‘Confidential Informant‘ culture in the US and it is fair to say that in many ways this is positive.  However, as is normally the case, the negative has to be reported and inevitably it is this, which receives the most airtime.  Of course, using informants is not just an activity adopted in the US, it is without doubt a global culture.

The difference is the rules that determine how you use informants, particularly when it comes to managing and regulating them.   More important is how the risk assessment is considered and measured along with the individual’s rights and welfare.  Officers and supervisors have to ensure they have done what is possible to mitigate any risk.  The clear documentation of this is important, because if things do go wrong, and a positive trail of management can be followed, it will protect all participants; informants and officers alike.

In the UK the regulation of informants, or sources, is very robust. There is not only legislation, but very clear guidelines on the use and management of sources.  In the US, the recent introduction of ‘Rachel’s Law’ is being written into all Florida Police Departments’ standard operating procedures and of course, this brings more transparency and management. Other countries are also following suit.

What I have found interesting is that the use of informants is generally to achieve an objective; to prevent and detect crime.  Whether this is simply to record intelligence that can then be fed into the bigger picture, or indeed intelligence that a crime is about to be committed, the means to the end is just the same. Many officers who deal with informants are dedicated professionals with a high level of training. Unfortunately, I suspect where it can fall down, is the lack of ability to accurately record all the details when dealing with an informant. This is important because if clear data and structured information can be recorded and maintained when dealing with informants, the added protection not only to the informant but the officer is incalculable. This is reinforced by a firm but accountable management structure that would come with this type of regime.

It is becoming very obvious that the simple use of a spreadsheet or in-house Access database is not sufficient to manage all the information and requirements asked of officers involved in the handling of informants.  A move to a more robust and professionally developed electronic system is going to be necessary. In addition to this, the providers of these systems will also need to have knowledge not only of the electronic system requirements, but a strong awareness of the practicalities of handling informants and the infrastructure that supports the activities along with good comprehension of the business process. Strong and knowledgeable Consultants are going to be the key for this type of task along with the ability to ensure the product to process fit is exact.

21st Century Policing Procurement

It is interesting that the second phase of the UK Government’s consultation process around 21st Century Policing moves on to the subject of procurement. Following Phillip Green’s articles in the paper this morning reporting the significant waste in public sector spending resulting from a lack of intelligent bulk buying, you end up agreeing that local buying is not the way to gain financial benefit as you would in a large multinational. However, those on the other side of the argument will state that “one size does not fit all” and that centralisation of buying tends to discriminate against small local companies that often provide a better quality product at cheaper cost.

So where is the happy medium in this? The recent consultation paper around police buying seems to try and find the middle position, with the introduction of “Procurement Frameworks” utilising the current OGC frameworks. This approach seems fine in principal, but again there are downsides. Firstly, these current large scale frameworks are notoriously difficult to get on to, with most dominated by the larger System Integrator companies, leaving many current suppliers off the radar. Secondly, if you are a small sized company, you can operate through a framework company to provide your products and services, but there is an administrative mark up by the Framework company, which necessarily reduces value for money for the buyer. It is also apparent that due to the value of some of the contracts that go through Frameworks, some of those Framework suppliers find that they do not make enough mark up (which is capped) to make it worth their while.

So what is the solution? Well, Frameworks are a good way of tackling the issue, but at the same time they need to be more open to the types of products and services which the police need and use. There also needs to be a better education programme for Procurement Departments across the country about what options they have on their procurement menu. So many times have we seen that procurement departments have no idea what is available from the Frameworks that are currently in place.

So in principle, Frameworks are the answer, but not in their current form……

SOCA continue to disrupt the cocaine pipeline

The UK’s Serious Organised Crime Agency (SOCA) announced today that they have stopped another gang of drugs smugglers. The five gang members were caught after 80kg of cocaine (with a street value of £25m) was found in Dover in 2009. SOCA officers replaced the cocaine with flour allowing them to arrest the men when they came to collect it. It is believed that 30 similar deliveries had already been received by the gang, with an estimated total street value of £500 million.