US Charges India Companies with Importing Fentanyl Precursor Chemicals to US and Mexico

"Socalj" for Borderland Beat

Two pharmaceutical companies based in India have been accused of illegally trafficking chemicals used in the production of the synthetic opioid fentanyl into the United States and to other countries, including Mexico.

Raxuter Chemicals and Athos Chemicals, both operating out of Surat in Gujarat, India, are alleged to have supplied materials and precursor chemicals necessary for fentanyl production, federal prosecutors for the Eastern District of New York said.

Bhavesh Lathiya, the 36-year-old founder and executive of Raxuter Chemicals, was arrested in New York following the indictment.

Raxuter Chemical offices in India

In a statement, Attorney General Merrick Garland emphasized the Justice Department’s commitment to addressing the fentanyl crisis. “We have pledged to never forget the victims of fentanyl and to hold accountable those responsible for this epidemic. That is what we are doing, and that is what we will continue to do,” Garland said.

Smuggling Methods

The indictment alleges that the two companies used deceptive methods to avoid detection of the illegal chemicals.

This included the falsifying of customs forms, mislabeling packages, and providing false declarations at border crossings.

Prosecutors claim that chemicals supplied by the two Indian companies were utilized by drug cartels, including Mexico’s Sinaloa cartel, to manufacture highly addictive synthetic drugs in clandestine laboratories.

"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," reported Garland.

Bhavesh Lathiya, founder of Raxuter Chemicals was arrested in New York.

Undercover Operation of Raxuter Chemicals

One incident listed in the indictment involved a shipment sent by Raxuter Chemicals to New York in June 2024. Labeled as containing Vitamin C, the package concealed chemicals used in the production of fentanyl.

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.

In early October, 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 November 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.

The second charge is because of knowing the chemical would be used in the production of fentanyl in Mexico as well.

Raxuter's website is currently down as of this writing. But their products are still shown on various trade/online sales markets. It is not known if any of these are connected or if any of the chemicals listed were some of those used in supplying the cartels.

Raxuter Chemicals advertised themselves as being among the "top" suppliers of active pharmaceutical ingredients in the world, with a quality control staff and highly qualified production team.

Athos Chemicals

Athos Chemicals is charged with similar offenses to Raxuter, including conspiracy to distribute and import a listed chemical and distribution and importation of a listed chemical.

On February 20, 2024, Athos Chemicals agreed to sell 100 kilograms of 1-boc-4-piperidone to a known drug trafficker in Mexico who was making fentanyl in association with a drug trafficking organization. The trafficker is only listed as Mexican Buyer 1 in the indictment.

In March of the same year, the HSI agent posing undercover as a buyer contacted Athos Chemicals and recieved a small amount, 100 grams of the chemical shipped to an address in New York. Months later, a 2 kilogram shipment of the precursor was shipped to New York as well.

Athos maintained public product listings but hid their advertising of fentanyl precursor chemicals. Instead, they relied on solicitations on an Indian e-commerce platform for 1-boc-4-piperidone chemicals.

Mexican drug trafficking organizations, including but not limited to the Sinaloa Cartel, have increasingly availed themselves of the fentanyl precursors developed and distributed by companies like the defendants.

The chemicals provided by the defendant companies have enabled such cartels and other drug trafficking organizations to produce fentanyl in clandestine laboratories in Mexico on a massive scale for subsequent distribution in the United States and elsewhere.

The production of fentanyl in local labs is something that the current administration of President Claudia Sheinbaum denies taking place in Mexico.

Sources DOJ

Categories: fentanyl, india