WASHINGTON, D.C. - The Department of Justice (DOJ) announced that a Chinese chemical company, its director, and three of its senior employees have been indicted on charges of manufacturing and distributing fentanyl precursors and xylazine.
According to WFLA, the company, Hubei Aokas Bio-Tech Co. Ltd., is based in Wuhan, China, and is accused of fueling the fentanyl crisis in the United States. The federal grand jury indictment charges the company with several offenses, including conspiracy to manufacture and distribute fentanyl and the introduction of misbranded drugs into interstate commerce.
Federal prosecutors allege that from November 2016 to November 2023, the Chinese company sold significant amounts of fentanyl precursors to customers in the United States. These chemicals were often mislabeled and imported as items such as furniture parts and makeup in an effort to evade detection. Some of the shipments were intercepted by U.S. agents, who were posing as buyers.
Hubei Aokas is also accused of selling xylazine, an animal sedative commonly referred to as "tranq," which has saturated the streets of big cities like Los Angeles and is known for its effect of causing flesh to rot. The properties in the chemical and its effects have led to law enforcement calling xylazine a "flesh-eating zombie drug."
Four individuals tied to the company, including the company's sole director, Xuening Gao, 38, and senior employees Guangzhao Gao, 36, Yajing Li, 30, and an employee identified as "Jessie Lee," have also been named in the federal indictment. The DOJ said that the Ministry of Public Security in China arrested the defendants and dissolved the company following a parallel investigation.
In a statement, U.S. Attorney Martin Estrada said, "This indictment alleges a corporation, its director, and sales manager reaped financial benefits by knowingly exporting materials that helped fuel the fentanyl crisis in our nation. Synthetic drugs such as fentanyl have wreaked devastation in our country, and it is therefore critical that we hold accountable those behind the crisis."
According to the indictment, Xuening, the company's sole directed, has been charged with two conspiracy counts; Guangzhao, operator of the company's cryptocurrency wallets used for fentanyl precursor sales, has been charged with a total of six felonies, including four distribution-related counts; Yajing, the company's sales manager, has also been charged with six felonies; and the fifth defendant, also a sales manager, has been charged with two conspiracy counts.
The DOJ said that Hubei Aokas exported chemicals to at least 100 countries, including the United States, and advertised online and through various social media platforms. The company claimed that fentanyl precursors were most popular in Mexico and sold them in 25-kilogram fiber drums, each of which can produce 10 million fentanyl pills. Those drugs were then likely transported illegally across the southern border, which thanks to lax border policies by the Biden administration, were pushed into many communities across the United States.
If convicted, the defendants face a mandatory minimum sentence of 10 years and up to life in federal prison. The case was investigated by the Drug Enforcement Administration (DEA), the IRS Criminal Investigation, FDA Office of Criminal Investigations, Homeland Security Investigations, and the U.S. Customs and Border Protection, among others.
According to WFLA, the company, Hubei Aokas Bio-Tech Co. Ltd., is based in Wuhan, China, and is accused of fueling the fentanyl crisis in the United States. The federal grand jury indictment charges the company with several offenses, including conspiracy to manufacture and distribute fentanyl and the introduction of misbranded drugs into interstate commerce.
Federal prosecutors allege that from November 2016 to November 2023, the Chinese company sold significant amounts of fentanyl precursors to customers in the United States. These chemicals were often mislabeled and imported as items such as furniture parts and makeup in an effort to evade detection. Some of the shipments were intercepted by U.S. agents, who were posing as buyers.
Hubei Aokas is also accused of selling xylazine, an animal sedative commonly referred to as "tranq," which has saturated the streets of big cities like Los Angeles and is known for its effect of causing flesh to rot. The properties in the chemical and its effects have led to law enforcement calling xylazine a "flesh-eating zombie drug."
Four individuals tied to the company, including the company's sole director, Xuening Gao, 38, and senior employees Guangzhao Gao, 36, Yajing Li, 30, and an employee identified as "Jessie Lee," have also been named in the federal indictment. The DOJ said that the Ministry of Public Security in China arrested the defendants and dissolved the company following a parallel investigation.
In a statement, U.S. Attorney Martin Estrada said, "This indictment alleges a corporation, its director, and sales manager reaped financial benefits by knowingly exporting materials that helped fuel the fentanyl crisis in our nation. Synthetic drugs such as fentanyl have wreaked devastation in our country, and it is therefore critical that we hold accountable those behind the crisis."
According to the indictment, Xuening, the company's sole directed, has been charged with two conspiracy counts; Guangzhao, operator of the company's cryptocurrency wallets used for fentanyl precursor sales, has been charged with a total of six felonies, including four distribution-related counts; Yajing, the company's sales manager, has also been charged with six felonies; and the fifth defendant, also a sales manager, has been charged with two conspiracy counts.
The DOJ said that Hubei Aokas exported chemicals to at least 100 countries, including the United States, and advertised online and through various social media platforms. The company claimed that fentanyl precursors were most popular in Mexico and sold them in 25-kilogram fiber drums, each of which can produce 10 million fentanyl pills. Those drugs were then likely transported illegally across the southern border, which thanks to lax border policies by the Biden administration, were pushed into many communities across the United States.
If convicted, the defendants face a mandatory minimum sentence of 10 years and up to life in federal prison. The case was investigated by the Drug Enforcement Administration (DEA), the IRS Criminal Investigation, FDA Office of Criminal Investigations, Homeland Security Investigations, and the U.S. Customs and Border Protection, among others.
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