Defendants Allegedly Imported Fentanyl Precursors into the United States and Worked with Mexican Cartels to Manufacture and Distribute Fentanyl in the United States.
Bronx, New York – Two indictments that allege criminal schemes by businesses and workers based in China to produce and distribute fentanyl in the United States were unsealed earlier this week at the federal courthouse in Brooklyn. This case is one of the first in American history to accuse Chinese chemical manufacturers of exporting to the US precursor compounds needed to create fentanyl.
Anhui Rencheng Technology Co. (Rencheng), Ltd., Anhui Moker New Material Technology Co., Shutong Wang, and Shifang Ruan are accused of conspiring to produce and distribute fentanyl as well as other connected offenses in the first indictment. The indictment also accuses the same defendants—Xinyu Zhao and Yue Gao—of illegally hiding their actions, including through customs fraud and the introduction of misbranded pharmaceuticals into the American market. Additionally, the indictment accuses Rencheng, Wang, and Ruan of conspiring to distribute the restricted drug butonitazene.
The second indictment charges Hefei GSK Trade Co., Ltd, also known as “Hebei Gesuke Trading Co. Ltd.” and “Hebei Sinaloa Trading Co., Ltd.”, and Ruiqing Li with similar offenses, including conspiracy to manufacture and distribute fentanyl, manufacture of fentanyl, conspiracy to distribute a List I chemical, distribution of a List I chemical, customs fraud conspiracy, introducing misbranded drugs into interstate commerce, and distribution of metonitazene, a controlled substance.
Merrick Garland, United States Attorney General, Breon Peace, United States Attorney for the Eastern District of New York, Lisa O. Monaco, United States Deputy Attorney General, and Anne Milgram, Administrator, Drug Enforcement Administration (DEA), Keechant, L. Sewell, Commissioner, New York City Police Department, and Steven A. Nigrelli, Acting Superintendent, New York State Police, announced the charges.
“As alleged, the defendants knowingly distributed the chemical building blocks of fentanyl to the United States and Mexico, even providing advice on how they should be used to manufacture this dangerous drug which inflicts untold tragedy in New York City, Long Island and across the nation,” stated United States Attorney Peace. “This prosecution shows that the companies and individuals who fuel our nation’s deadly opioid epidemic—wherever they are located—will be found and prosecuted to the full extent of the law.”
“When I announced in April that the Justice Department had taken significant enforcement actions against the Sinaloa Cartel, I promised that the Justice Department would never forget the victims of the fentanyl epidemic,” said Attorney General Merrick B. Garland. “I also promised that we would never stop working to hold accountable those who bear responsibility for it. That includes not only going after the leaders of the Cartels, their drug and gun traffickers, their money launderers, security forces, and clandestine lab operators. It also includes stopping the Chinese chemical companies that are supplying the cartels with the building blocks they need to manufacture deadly fentanyl.”
“Today’s announcement is a down payment on our pledge to use every tool in the government’s arsenal, in every corner of the globe, to protect American communities,” said Deputy Attorney General Lisa O. Monaco. “The Justice Department will not rest or relent in investigating and prosecuting every link of the fentanyl supply chain, including the PRC companies and executives who produce and export vast quantities of the precursor chemicals the drug cartels need to peddle their poison. There can be no safe haven.”
“Today’s announcement is a considerable step forward in our unrelenting fight against fentanyl, targeting the threat where it starts,” said DEA Administrator Anne Milgram. “These companies and individuals are alleged to have knowingly supplied drug traffickers, in the United States and Mexico, with the ingredients and scientific know-how needed to make fentanyl – a drug that continues to devastate families and communities across the United States, killing Americans from all walks of life. Targeting entire criminal drug networks, from the source of supply to the last mile of distribution, is critical to saving American lives. DEA will not stop until this crisis ends.”
“Today’s charges are further proof of the unceasing, wide-ranging efforts the New York City Police Department will undergo to rid our city of illegal drugs,” stated NYPD Commissioner Sewell. “No matter where or how this poison is manufactured and distributed, we are united with our local, state, federal, and international law-enforcement partners in the fight against drug traffickers. To that end, I thank and commend the U.S. Department of Justice, the Office of the U.S. Attorney for the Eastern District of New York, the U.S. Drug Enforcement Administration, the New York State Police, and everyone else involved in this case for their exceptional work.”
Attorney General Merrick B. Garland.
“The prosecution of these criminals reinforces that we will continue to be vigilant in stopping the flow of dangerous, illegal 3
New York State Police Acting Superintendent Nigrelli
drugs into our country. The manufacturing and distribution of these highly addictive drugs perpetuates a cycle of substance abuse which poses a significant threat to safety and quality of life within our communities. Drug trafficking organizations of any kind will not be tolerated. I thank the U.S. Attorney’s Office for the Eastern District of New York and our law enforcement partners for their continuing commitment to identify, arrest and prosecute anyone who attempts to infiltrate these dangerous drugs into our nation.”
One of the worst drugs the United States has ever faced is the result of the misuse of fentanyl, a Schedule II prohibited chemical. It is a synthetic opioid that is extremely addictive and roughly 100 times more strong than morphine and 50 times more potent than heroin.
According to the allegations in the indictments, the defendant firms sent precursor chemicals to a number of countries, including Mexico and the United States, with the knowledge that they would be used to produce fentanyl. On social media channels, the defendant companies brazenly promoted their items all over the world, including in Mexico and the United States. They used both public and private international mail and package carriers to send their chemical products to the United States and Mexico by boat and by air. The defendant corporations used dishonest and illegal methods, such as mislabeling containers, fabricating customs forms, and making false declarations at border crossings, to avoid detection and interception of chemical items at the borders. All the ingredients required to create fentanyl were supplied by the defendants in the substances they distributed.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The Defendants:
ANHUI RENCHENG TECHNOLOGY CO., LTD.
Hefei City, Anhui Province, China
ANHUI MOKER NEW MATERIAL TECHNOLOGY CO.
Luyang District, Hefei City, Anhui Province, China
HEFEI GSK TRADE CO., LTD, also known as “Hebei Gesuke Trading Co. Ltd.” and “Hebei Sinaloa Trading Co., Ltd.”
Shushan Economic Development Zone, Hefei City, Anhui Province, China
SHUTONG WANG, also known as “王书通”
China
SHIFANG RUAN, also known as “Eva” and “阮世芳”
China
XINYU ZHAO, also known as “Sarah” and “赵新”
China
YUE GAO, also known as “Ellie” and “高悦,”
China
HEFEI GSK TRADE CO., LTD, also known as “Hebei Gesuke Trading Co. Ltd.” and “Hebei Sinaloa Trading Co., Ltd.”
China
RUIQING LI, also known as “李瑞青”
China
