Richmond BC-based retail pharmacy chain London Drugs has been at the centre of a significant internal theft case that was recently in criminal court. A former employee of the company, 34-year-old Carlos Santos, has been sentenced to two years in prison for orchestrating a theft scheme that resulted in the loss of approximately $2 million worth of merchandise over a five-year period.
According to court documents, Santos, who worked at London Drugs’ Richmond distribution centre, primarily targeted high-value electronics such as laptops. The thefts began just four months after his employment started in February 2017 and continued undetected until January 2022. During this time, Santos managed to steal an estimated 245 items, including 52 that were taken while he was under company surveillance.
The method employed by Santos was described by Judge Nancy Phillips as “unsophisticated” yet remarkably effective. The court heard that Santos would simply remove laptops from their packaging, conceal them under his shirt, and transfer them to his backpack in the staff locker room before leaving at the end of his shift. He would then list the stolen items for sale on various social media platforms, generating between $750,000 and $1 million in illicit profits.
In her sentencing decision, Judge Phillips noted the severity of the crime, stating, “The difference here is that the quantum or the economic loss to London Drugs is much greater.” The judge emphasized the “staggering” and “clearly deliberate” nature of the scheme, which continued even as the company began to investigate the losses.
Interestingly, Santos, who had no prior criminal record, confessed to police that his actions were partly motivated by dissatisfaction with his employer. He cited unhappiness with the company’s wages and work pace as factors that led him to initiate what he described as “a bit of an act of vengeance against his employer.”
The impact on London Drugs was significant in terms of financial loss and investigative resources. A company investigations manager provided a victim impact statement detailing the hundreds of hours spent unraveling the extent of the thefts.
As part of his sentence, Santos has been ordered to pay $750,000 in restitution to London Drugs and to submit a DNA sample to the court.
The case has shed light on the vulnerabilities within retail distribution centres and the potential for substantial losses due to employee theft.
Founded by Sam Bass in 1945 as a small drugstore at 800 Main Street in Vancouver, the company was named after the English city of London. Over the decades, London Drugs has evolved from a single pharmacy into a diverse retail chain offering a wide range of products beyond traditional pharmacy items.
The company’s growth accelerated after its acquisition by the H.Y. Louie Group in 1976, under the direction of President Tong Louie. This marked the beginning of London Drugs’ expansion beyond British Columbia into other Western Canadian provinces. The company introduced innovative services such as one-hour photo finishing in 1981 and a computer department in 1983, setting it apart from traditional drugstores.
Today, London Drugs operates 79 stores across Western Canada, with a significant presence in British Columbia, Alberta, Saskatchewan, and Manitoba. The retailer recently announced that it would be opening its second store in Winnipeg at the CF Polo Park shopping centre.
London Drugs serves more than 45 million customers each year, offering a diverse product range including cosmetics, small appliances, electronics, cameras, toys, and food, in addition to its core pharmacy services.
