Leaders of China-based chemical company accused of role in fentanyl crisis

LOS ANGELES, California. (KCTV) – A China-based chemical company has been dissolved, with its leaders behind bars and facing federal charges related to millions of fentanyl pills sold across the United States.

U.S. Attorney’s Office for the Central District of California Hubei Aoks Bio-Tech Co. Ltd. and its leaders for allegedly fueling the fentanyl crisis through the production of “tranq” – fentanyl precursor chemicals and xylazine.

Judicial authorities stated that the Wuhan-based chemical company was charged with the following crimes:

Conspiracy to manufacture and distribute fentanyl and distribute chemicals listed for the production of fentanyl
Conspiracy to distribute listed chemicals for import
Two distribution numbers for import of listed chemicals
Two counts of distribution of chemicals listed for manufacture into controlled substances
Seven incidents in which misbranded drugs were introduced into interstate commerce

“This indictment alleges that a company, its executive, and its sales executive obtained financial benefit by knowingly exporting materials that helped fuel our nation’s fentanyl crisis,” said U.S. Attorney Martin Estrada. “Synthetic drugs like fentanyl have wreaked havoc on our country, and that’s why it’s critical that we hold those behind this crisis accountable. Rest assured, we will have no patience for those who profit from this poison and see our youth as collateral damage.”

Law enforcement officials stated that the following leaders were also charged along with Hubei Aoks:

Xuening Gao, 38, sole director of Hubei Aoks, faces 2 conspiracy charges
Guangzhao Gao, 36, the operator of Hubei Aoks cryptocurrency wallets used for sale, faces a total of 6 felonies, including distribution-related charges
Yajing Li, 30, sales manager of Hubei Aoks, faces 6 charges including conspiracy and distribution of a listed chemical
The fifth defendant, who used an alias “Jessie Lee”, is a Hubei Aoks sales manager who also faces two conspiracy charges

“This company, its owner, and criminal agents engaged in a deadly game of knowingly manufacturing parts that lead to a destructive whole,” said Special Agent in Charge of Operations Matthew Allen. War on Drugs administration (DEA) Los Angeles Field Division. “DEA will continue to focus on identifying the most prolific manufacturers and distributors of fentanyl precursor chemicals, and these indictments are testament to our unwavering commitment to bringing these criminals to justice. The talent and skillful collaboration of our investigators and all of our partners made a difference. I couldn’t be more proud.”

Ministry of Public Security of the People’s Republic of China It informed the Justice Department that its own parallel investigation resulted in the dissolution of the Chinese company and the arrest of all four people charged.

“Today’s announcement demonstrates the government’s ongoing investigation into companies and individuals who circumvent federal law by importing and distributing drugs and pharmaceutical ingredients for illegal purposes,” said Special Agent in Charge Robert Iwanicki of the Los Angeles Bureau of Criminal Investigation’s Office of Food and Drug Administration. “The FDA is committed to pursuing and bringing to justice those who endanger public health and profit from the sale of illegal and potentially dangerous products.”

The department also noted that he planned two of several chemicals the defendants are accused of distributing in the indictment — xylazine and 3,4-MDP-2-P Ethyl Glysidate. Both were unplanned at the time of the investigation but have since been added to the list.

“Companies like Hubei Aoks continue to knowingly contribute to the fentanyl crisis in the United States while disguising their illegal activities as legitimate business operations,” said Special Agent in Charge Tyler Hatcher. IRS Criminal InvestigationLos Angeles Field Office. “This indictment underscores our commitment to partnering with other law enforcement agencies to combat this epidemic. IRS Criminal Investigation is the best in the world at tracking money, whether in traditional banking systems or through cryptocurrency platforms, and we will tirelessly pursue the necessary evidence to bring suspects to justice .”

The indictment alleges that the Gaos sold controlled substances and precursor chemicals to customers across the United States for more than a decade. Both are reportedly linked to chemical companies in China, including a company that sells fentanyl and acetyl-fentanyl imported to the United States since the 2000s. We are way behind by 2015.

“HSI is committed to stemming the flow of fentanyl and the precursor chemicals needed to produce this poison entering our communities,” he said. Homeland Security Investigations Los Angeles Special Agent in Charge Eddy Wang. “Today’s charging announcement is a warning to those who seek to profit from the sale of these precursor chemicals used in the production of fentanyl and other manufactured narcotics.”

Judicial authorities noted that Hubei Aoks exported chemicals to at least 100 countries, including the United States, and advertised online through social media. Sales representatives tailored their recommendations to the geographic market and suggested alternatives if the chemical was not available.

Investigators said the company claimed its fentanyl precursors were most popular in Mexico and sold them in 25-kilogram fiber drums, each capable of producing 10 million fentanyl pills. Representatives claimed profit sales were worth the risk.

“This enforcement action reflects: US Customs and Border Protection (CBP) is a whole-of-government effort to predict, identify, mitigate and disrupt illicit synthetic drug manufacturers, suppliers and traffickers,” said CBP Director of Field Operations in Los Angeles, Cheryl M. Davies. “This comprehensive approach helps CBP combat the illicit synthetic drug trade.” “He brings his unique, formidable and far-reaching capabilities and authority to combat and build capacity and collaboration with our domestic and international partners to ensure the safety of the American people.”

Law enforcement officials stated that from at least November 2016 through November 2023, Hubei Aoks sold and imported into the United States 11 kilograms of fentanyl precursors that could be produced into millions of fentanyl pills. Xylazine, a tranquilizer used by veterinarians to calm cattle, horses and other large animals, was also imported.

The chemicals were mistakenly imported as furniture pieces, vases, makeup and other items and delivered to a person the conspirators believed was a fentanyl smuggling customer when they were actually an undercover agent, the department said.

“Sending dangerous substances, such as fentanyl precursor chemicals, through the US Mail is helping fuel an epidemic that is affecting many Americans today,” said the Inspector General of Law Enforcement. United States Postal Inspection Service Matt Shields in Los Angeles. “Precursor chemicals are extremely hazardous substances and pose a serious threat to the health and well-being of our society. “The U.S. Postal Inspection Service proudly stands alongside our federal law enforcement partners as we continue to fight to protect the U.S. Postal Service and Americans from illegal and dangerous items.”

Sometimes, law enforcement officials said, company sales representatives tried to entice the undercover agent with additional chemicals they claimed would sell well, as well as gifts and guarantees of successful imports.

The Ministry stated that if convicted, each defendant would face a minimum of 10 years in prison and a maximum of life imprisonment.

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