News & Current Affairs

September 18, 2008

India drug firm turns to Giuliani

India drug firm turns to Giuliani

Rudolph Giuliani

Mr Giuliani’s firm will advise on compliance

Indian drug firm Ranbaxy has hired ex-New York City Mayor Rudolph Giuliani as an adviser, the company says.

The move comes a day after the US Food and Drug Administration (FDA) banned the import of more than 30 generic drugs made by the drug firm.

The FDA said it imposed the ban after it found manufacturing quality problems at two Ranbaxy factories in India.

Ranbaxy said Mr Giuliani’s consulting and investment firm will advise it and look into compliance issues.

Ranbaxy has said it is “very disappointed” with the decision of US drug authorities.

The import ban affects some popular generic versions of antibiotics and cholesterol medicines.

Key documents

In July, US prosecutors had alleged that Ranbaxy, India’s largest pharmaceutical company, deliberately lied about the quality of its low-cost drugs, including those for HIV.

The US Department of Justice wanted the firm to hand over key documents relating to drug testing procedures.

The firm was paid millions of dollars by the US government to provide low-cost HIV drugs for President Bush’s emergency plan for Aids relief, which was set up to help Aids patients in 120 countries around the globe.

Defending the reliability of its drugs, Ranbaxy had said the US Food and Drugs Administration had tested over 200 random samples of its products and found them “complying with all the specifications”.

In June the Japanese pharmaceutical company Daiichi Sankyo agreed to pay more than $4bn (£2bn) for a controlling stake in the firm.

The US government has been investigating Ranbaxy since February 2006 when the FDA issued a warning letter over what it said were manufacturing violations found at a Ranbaxy factory in India.

Since then Ranbaxy has been trying to resolve the issue with US regulators.

Last year, US officials seized documents from Ranbaxy’s US headquarters in New Jersey.

In July, Justice Department prosecutors alleged that the company had systematically lied about the makeup of its generic drugs, which include a cheaper version of US drug maker Merck’s cholesterol pill Zocor.

Ranbaxy has denied any wrongdoing, saying the allegations were baseless.

The FDA will only approve cheaper generic drugs if they can be shown to be equivalent to the original drug.

US investigators had also alleged that Ranbaxy has used unapproved ingredients in its drugs.

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August 7, 2008

US claims informant is fraud boss

US claims informant is fraud boss

TJMaxx strore in California

TJX, which owns TJ Maxx, was one the firms whose records were hacked

A former informant of the US secret service has been accused¬† of being the ringleader in the country’s biggest and most complex identity theft case.

The US Department of Justice claims that Albert “Segvev” Gonzalez and 10 others stole, and then sold more than 40 million bank card numbers.

They allegedly got the data by driving around, finding vulnerable internet networks, and accessing shop records.

Prosecutors said the alleged fraud was an “international conspiracy”.

“During the course of the sophisticated conspiracy Mr Gonzalez and his co-conspirators….hacked into wireless computer networks of major retailers,” said the US Department of Justice.

The method, known as “wardriving”, involves tracking down vulnerable internet wireless signals and using systems to decipher credit and debit card information from a retailer’s system.

While technology has made our lives much easier it has also created new vulnerabilities
Michael Sullivan,
US secret service director

The Department of Justice said that companies affected included TJX Companies, BJ’s Wholesale Club, Boston Market and Barnes & Noble among others.

MasterCard spokesman Chris Monteiro told the BBC: “If a cardholder is concerned at all about the security of their account they should immediately contact their issuing financial institution.”

‘New vulnerabilities’

While the Department of Justice has not put a price on the scale on the scam it says it is the largest and most complex identity fraud to date.

“While technology has made our lives much easier it has also created new vulnerabilities,” said US secret service director Michael Sullivan.

“This case clearly shows how strokes on a keyboard with a criminal purpose can have costly results,” he added

He urged consumers, firms and governments worldwide to develop further ways to protect sensitive personal and business information and detect those that “conspire to exploit technology for criminal gain”.

Perry Tancredi, senior product manager for fraud detection at payment security company VeriSign said that: “Regardless of how strong the security measures, and how vigilant, the weak part of the chain is there is always a human who is responsible and who has overall control over the information.”

Charges

Mr Gonzalez of Miami has been charged with computer fraud, wire fraud, access device fraud, aggravated identify theft and conspiracy.

Mr Gonzalez, who is in New York in pre-trial confinement, now faces a maximum penalty of life is prison.

Charges were also listed against Christopher Scott and Damon Patrick, both of Miami.

The other named individuals in the case were Maksym “Maksik” Yastremskiy of Kharkov, Ukraine, Aleksandr “Jonny Hell” Suvorov of Sillamae, Estonia.

Charges were also levelled against Hung-Ming Chiu and Zhi Zhi Wang, both from China, and someone known only by the nickname “Delpiero”.

Sergey Pavolvich, of Belarus, and Dzmitry Burak and Sergey Storchak, both of Ukraine, were also charged.

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