The Cornerstone Report: Volume 2, Issue 1

Stopping The Flow Of Counterfeit Drugs

Driving a silver Porsche 911 and dining on $1,000 dinners with his girlfriend, Mark Kolowich of San Diego presented himself as a savvy businessman who had made a fortune selling Viagra and other prescription drugs over the Internet.

But in reality, he was the organizer of one of the nation’s largest criminal operations for trafficking in counterfeit pharmaceuticals.

On January 21, 2005, a federal judge in San Diego sentenced Kolowich to serve 51 months in prison and to forfeit substantial cash proceeds associated with his criminal enterprise.

A total of 16 defendants from California, Florida, Mexico and the Bahamas were charged as the result of a cooperative investigation involving ICE and a number of other federal and local agencies.

This case illustrates that counterfeit pharmaceuticals have emerged as a big business—and one which criminal organizations are prepared to exploit for profit.

These sales represent a serious liability for the pharmaceutical industry and its investors, as well as to the American people, who contribute millions of tax dollars each year to research, develop and test new drugs.

Furthermore, patients also are potential victims of this dangerous form of counterfeiting crime, since fake drugs don’t adhere to standards for safety and effectiveness. The quality and potency of these fake drugs—often produced in overseas facilities that aren’t regulated by U.S. health and safety standards—isn’t guaranteed.

The bottom line is that while the U.S. pharmaceutical supply remains the safest in the world, the infusion of counterfeit drugs into the supply line could serve to compromise consumer safety. Consumers, health care professionals and business leaders should be aware of the threats posed by fake drugs.

For more on ICE intellectual property investigations, visit us online at www.ice.gov.

Back to Top

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ICE Cracks Massive Drug Trafficking, Money Laundering Scheme

Stopping The Flow Of Counterfeit Drugs

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ICE Agents Honored For IPR

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Cornerstone Calendar

Cornerstone is U.S. Immigration and Customs Enforcement's (ICE) comprehensive investigative initiative for fighting financial crime, trade fraud and intellectual property crime.

The Cornerstone Report is a quarterly bulletin highlighting key issues related to ICE financial and trade investigations.

The Cornerstone Report covers a broad range of topics related to financial investigations and potential vulnerabilities in the financial and trade sectors.

We strive to present clear thinking by knowledgeable observers that can be read with ease and pleasure by both professionals and a general audience, and we’re happy to review unsolicited submissions for potential publication in the newsletter.

If you would like to submit an article for publication or simply find out more about how you can participate in the Cornerstone initiative, drop us an e-mail at tripwire@dhs.gov.