The US department of Justice has charged 2 India-based companies Raxuter Chemicals and Athos Chemicals Pvt. Ltd. (Athos Chemicals) and Bhavesh Lathiya, a founder and senior executive of Raxuter Chemicals, with criminal conspiracies to distribute and import fentanyl precursor chemicals to the United States.
Lathiya was arrested on Jan. 4, in New York City and was ordered detained pending trial.
Raxuter Chemicals and Lathiya are charged with conspiracy to distribute and import a listed chemical, distribution and importation of a listed chemical knowing it would be used to manufacture fentanyl, smuggling, and other related offenses. Athos Chemicals is charged with similar offenses, including conspiracy to distribute and import a listed chemical and distribution and importation of a listed chemical.
As alleged in court documents, the defendants supplied precursor chemicals to the United States and Mexico, among other places, knowing they would be used to manufacture fentanyl. They also sent their chemical products to the United States and Mexico using international mail and package carriers. The chemicals distributed by the defendants included all the materials necessary to manufacture fentanyl via the most common methods or pathways. To prevent detection and interception of chemical products at the borders, the defendants employed deceptive and fraudulent practices, such as mislabeling packages, falsifying customs forms, and making false declarations at border crossings.
“The Justice Department is targeting every link in fentanyl trafficking supply chains that span countries and continents and too often end in tragedy in the United States,” said Attorney General Merrick B. Garland. “We allege these companies, and a company founder and senior executive who is now in custody, conspired to distribute and import fentanyl precursor chemicals from India to the United States and Mexico. We made a promise that the Justice Department would never forget the victims of the fentanyl epidemic, and that we would never stop working to hold accountable those who bear responsibility for it — that is what we have done, and that is what we will continue to do.”
Fentanyl, a Schedule II controlled substance, is the deadliest drug threat currently facing the United States. It is a highly addictive synthetic opioid that is approximately 50 times more potent than heroin and 100 times more potent than morphine. Fentanyl is designated as a Schedule II controlled substance while various precursors that can be used to produce fentanyl are included on the controlled substance schedules List I and List II.
For example, on or about June 29, 2024, a package shipped by Raxuter Chemicals was delivered to an address in the Eastern District of New York. The package had a false manifest that listed its contents as Vitamin C. In truth, the contents were a List I chemical, 1-boc-4-piperidone, an unlawfully imported fentanyl precursor.
On or about Oct. 2, 2024, and Oct 15, 2024, Lathiya appeared on a video call to discuss sale of fentanyl precursor chemicals with an Homeland Security Investigations (HSI) undercover officer. After being told by the undercover officer that his “clients in Mexico were very happy with the quality of what you sent me” and with “the yield they got of the final product,” Lathiya agreed to sell 20 kilograms 1-boc-4-piperidone, which is a List I chemical used in fentanyl synthesis. Lathiya also proposed mislabeling the chemical as an antacid. The undercover officer replied and asked if it would be easier to ship the product to Mexico, stating “This is a very controversial product … Because like you said it’s banned and in Mexico I think it could be easier but there’s so much pressure on them because of fentanyl.” On or about Nov. 23, 2024, Raxuter Chemicals and Lathiya shipped approximately 20 kilograms of 1-boc-4-piperidone to the Eastern District of New York. The package was mislabeled as an antacid.
If convicted, Lathiya faces a maximum penalty of 53 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
HSI New York investigated the case. The Justice Department’s Office of International Affairs and U.S. Customs and Border Protection’s New York Field Office provided assistance.
HSI New York investigated the case. The Justice Department’s Office of International Affairs and U.S. Customs and Border Protection’s New York Field Office provided assistance.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
