A joint investigation resulted in charges for Hubei Aoks Bio-Tech Co. Ltd., a chemical company based in Wuhan, China, its director and three senior employees in U.S. federal court Nov. 7, for allegedly selling fentanyl precursor chemicals and xylazine — known as “tranq” — globally.
This Homeland Security Investigations (HSI) Los Angeles investigation was worked collaboratively with Southern California Drug Task Force, with significant contribution from DEA, Food and Drug Administration, U.S. Customs and Border Protection (CBP), U.S. Postal Inspection Service, and the California Department of Justice.
“HSI is dedicated to disrupting the flow of fentanyl, and the precursor chemicals necessary to produce this poison, entering our communities,” said HSI Los Angeles Special Agent in Charge Eddy Wang. “Today’s announcement of charges is a warning to those who seek to profit from the sales of these precursor chemicals used to manufacture fentanyl and other manufactured narcotics.”
The company is charged with one count of conspiracy to manufacture and distribute fentanyl and to distribute listed chemicals for the manufacture of fentanyl, one count of conspiracy to distribute listed chemicals for importation to the United States, two counts of distribution of listed chemicals for importation, two counts of distribution of listed chemicals for manufacture into controlled substances, and seven counts of introduction of misbranded drugs into interstate commerce.
Also charged in the recently unsealed indictment are:
- Xuening Gao, 38, Hubei Aoks’ sole director, who is charged with two conspiracy counts;
- Guangzhao Gao, 36, the operator of Hubei Aoks’ cryptocurrency wallets used for fentanyl precursor sales and who is charged with a total of six felonies, including four distribution-related counts;
- Yajing Li, 30, a Hubei Aoks sales manager who also is charged with six felonies, including conspiracy and distribution of a listed chemical; and
- A fifth defendant who uses the alias “Jessie Lee,” a Hubei Aoks sales manager charged with two conspiracy counts.
The People’s Republic of China’s Ministry of Public Security took law enforcement action against the defendants by dissolving the indicted Chinese company and arresting the four indicted Chinese national subjects. The Chinese Ministry of Public Security is further coordinating with the Department of Justice on the investigation.
“Companies such as Hubei Aoks disguise their illicit activities as legitimate business operations yet continue to knowingly contribute to the fentanyl crisis in the United States,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “This indictment highlights our commitment to partnering with other law enforcement agencies to combat this epidemic. IRS Criminal Investigation is the best in the world at following the money, whether it be within traditional banking systems or via cryptocurrency platforms, and we will tirelessly pursue the necessary evidence to bring suspects to justice.”
According to the indictment, for more than a decade, Xuening Gao and Guangzhou Gao have sold controlled substances and precursor chemicals, including fentanyl precursors, to customers throughout the United States. Both men are linked to chemical companies operating in China, including one that sold fentanyl and acetyl-fentanyl that was imported into the United States as far back as 2015.
Hubei Aoks exported chemicals to at least 100 countries, including the United States, and advertised online and through various social media platforms. Hubei Aoks sales representatives tailored their precursor recommendations depending on the customer’s geographical market and would suggest alternative chemicals if one was not available. Hubei Aoks 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. Representatives claimed that their profit on precursors sales to Mexico was worth the risk.
From at least November 2016 to November 2023, Hubei Aoks sold and imported to the United States 11 kilograms of fentanyl precursors, capable of producing millions of fentanyl pills, along with two kilograms of xylazine, a tranquilizer, used by veterinarians to sedate cattle, horses, and other large animals. As part of an undercover investigation, the chemicals were falsely imported into the United States as furniture parts, vases, makeup, and other items.
“This enforcement action reflects CBP whole-of-government effort to anticipate, identify, mitigate, and disrupt illicit synthetic drug producers, suppliers, and traffickers,” said Cheryl M. Davies, CBP Director of Field Operations in Los Angeles. “This comprehensive approach brings the unique, formidable, and wide-ranging capabilities and authorities of CBP to bear on the illicit synthetic drug trade and build capacity and collaboration with our partners – domestic and international – to ensure the safety of the American public.”
“The shipment of dangerous substances like fentanyl precursor chemicals through the U.S. Mail helps to fuel a pandemic that affects many Americans today,” said Inspector in Charge of the United States Postal Inspection Service in Los Angeles, Matt Shields. “Precursor chemicals are extremely dangerous substances and pose a serious threat to the health and well-being of our society. The U.S. Postal Inspection Service stands proudly with our federal law enforcement partners as we continue to fight to protect the U.S. Postal Service and Americans from illegal and dangerous substances.”
The original announcement can be found here.