Gang’s £10m worldwide scam selling fake viagra through mail order fishing tackle firm

TWELVE members of a counterfeit drug ring – including six from the Grimsby area – raked in more than £10 million selling fake Viagra under the cover of a mail-order fishing tackle business.

The UK-wide conspiracy offered cheap erectile dysfunction pills to online and face-to-face customers around the world.

The northern branch was led by Thailand-based Stephen Laverick, but his ex-wife Catherine Laverick, 47, of Ulceby, was in charge of day-to-day operations in the UK.

Family members from the Grimsby area were recruited to assist with the massive criminal enterprise.

They used a series of “front” companies claiming to sell jewellery, fishing tackle and cosmetics to accept the electronic payments and laundered the proceeds through more than 100 bank accounts both in the UK and offshore.

Huge sums of money were transferred between the conspirators, sent offshore, or withdrawn in cash in the UK or abroad. The money laundered or obtained through fraud by all of the defendants totals £8,444,896.

“This case is not about wanting to distribute good medicines cheaply, but rather the motivation was greed, with an utter disregard for patient safety,” prosecutor Gillian Jone told the Old Bailey.

The court heard the conspiracy lasted eight years from 2004 and continued even after the gang were arrested on September 20, 2011, following an investigation by the drugs regulatory body, MHRA.

“The medicines that were seized which were purported to be Viagra and Valium, in fact, turned out to be counterfeit.

“This was big business. The proceeds of the supply of these medicines via websites which have been traced to various merchant facilities is in excess of £10 million – that is not the real figure. Not all bank accounts have been identified.”

The money was transferred into bank accounts held by members of the conspiracy or their relatives before being withdrawn in cash or used to sustain the business, the court heard.

Miss Jones said: “They purported to be trading fishing tackle, cosmetics or jewellery but they were just a front to hide the real merchandise which was unlicensed medicines.

“As demand grew, the customer database widened to countries including Sweden, France and Germany.”

When banks started raising concerns, the gang opened accounts offshore in Belize and Panama where fewer questions were asked.

Catherine Laverick, 47, of Coronation Road, Ulceby, was in control of the northern operation, sourcing stock, distributing medicines to customers, organising the banking and laundering the proceeds. She admitted conspiracy to supply unlicensed medicines and money laundering in the UK and abroad and was jailed for three years and 10 months.

Hugh Adair, 37, of the same address in Ulceby, helped with the day-to-day running as well as facilitating payment for the purchase of medicines. He pleaded guilty to conspiracy to supply unlicensed medicines and fraud and was given a 12-month jail term, suspended for two years and ordered to carry out 200 hours’ unpaid work.

Catherine Laverick’s daughter Sarah Laverick, 26, also of the same address, set up the fake fishing tackle company to help with buying medicines and laundered money through numerous bank accounts. She admitted fraud and money laundering and was given a 16-month jail term, suspended for two years and ordered to carry out 200 hours’ unpaid work.

Her brother Thomas Laverick, 24, set up the fake company Shore Catch to buy medicines and launder money. He also admitted fraud and money laundering and was given a 14-month sentence, suspended for two years.

Donna Denton, 40, of Donnington Street, Grimsby, set up a Cardnet facility, which she falsely claimed was for the sale of jewellery. She admitted fraud and was sentenced to eight months’ imprisonment, suspended for 18 months and given a three-month curfew requiring her to stay at home between 7pm and 6am.

Daniel Nilsen, 26, of Brunel Close, Grimsby, set up a Cardnet facility, which he falsely claimed was for the sale of fishing tackle by mail order. He also admitted fraud and was given a four-month jail sentence, suspended for a year.

The other six defendants were involved in the southern branch, based in East Sussex.