August 31, 2007

New Hampshire corporation pleads guilty in counterfeit drug importation case

CONCORD, NH - United States Attorney Tom Colantuono and Bruce M. Foucart, special agent-in-charge of U.S. Immigration and Customs Enforcement's (ICE) Office of Investigations in Boston, reports that a New Hampshire Company, Vee Excel Drugs & Pharmaceuticals, Inc., 15 Sutton Place,Londonderry, NH, pled guilty on Thursday, August 30th, to charges that it had conspired to traffic in counterfeit drugs and to introduce misbranded drugs into the United States.

At the change of plea hearing, held before Chief Judge Steven McAuliffe, Narendra Bansal, who is a director and who spoke on behalf of the corporation, admitted that the corporation conspired with an Indian corporation of the same name as well as with Vipin Bansal, a citizen and resident of India, to ship counterfeit Cialis tablets into the United States in packages fraudulently identified as containing chlorine tablets. Cialis is a prescription drug that has been approved by the Food and Drug Administration for distribution within the United States by Eli Lilly and Company.

In October of 2004, Eli Lilly and Company learned of a seizure of counterfeit Cialis tablets in Israel. Their subsequent investigation led to an Indian company named Vee Excel Drugs, and one of its principles, Vipin Bansal. Eli Lilly conducted its own investigation and then referred the matter to the Department of Homeland Security, Immigration and Customs Enforcement (ICE) and the Food and Drug Administration's Office of Criminal Investigations (FDA). ICE and FDA conducted an undercover operation during which Vipin Bansal and the Indian company shipped several thousand counterfeit Cialis tablets to ICE undercover agents in the United States. All purchase proceeds were made by wire transfer into a Citizens Bank account in New Hampshire held in the name of Vee Excel Drugs & Pharmaceuticals, Inc.

As part of the plea, the corporation agreed to forfeit all moneys held in its bank account, and when sentenced on November 29, 2007, faces a fine of up to $500,000.

This case was investigated by the Department of Homeland Security, Immigration and Customs Enforcement and the Food and Drug Administration's Office of Criminal Investigations.

-- ICE --

U.S. Immigration and Customs Enforcement (ICE) was established in March 2003 as the largest investigative arm of the Department of Homeland Security. ICE is comprised of five integrated divisions that form a 21st century law enforcement agency with broad responsibilities for a number of key homeland security priorities.

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