Charity Cash Used to Launder Millions from Fake Viagra and Slimming Pills
Edward Cohen, 67, has been locked up for nearly a decade after cashing in on a massive scam selling counterfeit erectile dysfunction and slimming pills. The crook laundered millions through charity bank accounts linked to his charity empire, Chabad UK.
Nearly £11 Million Laundered Through Charity Accounts
- Cohen was sentenced to a total of nine years and nine months for money laundering, theft, and benefit fraud.
- He stole over £165,000 by trafficking fake meds across Europe, targeting Austria, Germany, Switzerland, and France.
- From 2012 to 2014, nine Chabad-related companies processed over £10.3 million, with only a tiny fraction going to legitimate charity work.
- More than £8.6 million was moved overseas and £1.6 million to money service bureaus, with some funds ending up in Cohen’s personal accounts.
Charity Accounts Masked Criminal Activity
Investigators found a spike in transactions and refund claims (“chargebacks”) linked to faulty counterfeit drugs from March 2012. Cohen used the charity’s bank accounts to hide the dirty money. His role as the charity’s administrator gave him control over the finances.
The scam was uncovered after complaints from legitimate pharmaceutical companies. Police seized evidence from multiple properties in 2014, including account books and computers showing links to the fake med operation.
Benefit Fraud and Family Cleared of Most Charges
- Cohen was also convicted of benefit fraud relating to a property scheme where he pocketed housing benefits while paying a mortgage through a company he controlled.
- He was found guilty of funneling charitable donations into personal accounts to cover rent and expenses.
- His son, David Cohen, 38, was cleared of money laundering and supplying false info to the Charity Commission, though he received a suspended sentence for an unrelated £15,000 fraud.
Detective Sergeant John Nagle said: “Edward Cohen set up a pan-European operation selling dangerous counterfeit medication to thousands of unsuspecting people, pocketing millions of pounds in the process.”
“He hid his ill-gotten gains behind the facade of a legitimate charity and stole from donations given in good faith. This complex case shows no one can hide from law enforcement.”
