by NADEEM BADSHAH
CALLS TO STOP C0MPANIES CHEATING VULNERABLE PEOPLE WITH EXPENSIVE FAKE HEALTH PRODUCTS
TOUGHER laws are needed to stop rogue firms being established which rip off the elderly by charging them inflated prices for health products, experts in the UK have said.
Nine companies that sold supplements to around 36,000 victims at extortionate prices have been closed down by the government, which has been highlighted to mark Scams Awareness Month in June.
The firms, mostly based in India, cheated vulnerable people out of an estimated £10.6 million by selling supplements. They bought lists of people who have health issues such as arthritis or heart problems and bombarded them with calls, sometimes pretending to be linked to GPs.
Victims of the nine health supplement firms were duped into spending up to £500 on vitamin bottles that often did not contain the ingredients claimed or may be contaminated with pollutants.
Tarique Ghaffur CBE, a former Metropolitan Police assistant commissioner, told Eastern Eye: “During my time I have seen many abuses of the elderly by Asian-based organised crime gangs including offering spiritual healing and so-called natural remedies. Fake drugs are commonly sold on the web.
“The problems lie in the way companies are able to register in the UK with ease. It is great on this occasion that the authorities have acted, but much more grassroots education needs to take place to avoid vulnerable people falling prey to these criminals.”
The government said companies including Greenlife Wellness Ltd and Naturecare Wellness Ltd bought data lists containing details of over-65s who suffer with joint pain and used offshore call centres to make cold calls.
The two companies were put into compulsory liquidation following a petition by the secretary of state last year. Two bosses – Nitesh Prakash Dhawan and Virendra Singh Thakur – have been banned from directorships in the UK for 14 years each.
In another case, Healthspring Wellness Product Ltd, contracted a call centre in Mumbai to sell health supplements to people aged 55 and over. Following an Insolvency Service investigation, it was wound up in the high court last year. Director Vidjan Wasta was disqualified from running companies for 11 years.
Khalid Mahmood, Labour MP for Perry Barr in Birmingham, told Eastern Eye: “Once they get them into a conversation about cures, it’s easy to intimidate them into buying expensive products. It’s disgraceful that this continues. More local health authorities and Trading Standards should provide information, councils should offer more consumer protection.
“Five hundred pounds is a lot of money for people living off their pensions. As councils have done with similar issues like Hajj and Umrah packages fraud, we need leaflets to raise awareness. They need to up their game.”
Fredy Fernandes and Salvador Rodrigues, from Hertfordshire, were jailed last year for four years each after conning 2,000 people out of around £350,000 by flogging bogus vitamins at inflated prices.
Experts say bringing crooks to justice is rare as many scam supplement firms operate from India. And it is estimated that only around five per cent of scams are reported to the authorities.
Consumer minister Andrew Griffiths said he wanted to encourage victims to report their experiences. He added: “These shocking supplement scams are targeting thousands of the most vulnerable people in our society.”
