Chinese Chemical Company and Executives Indicted for Allegedly Fueling Fentanyl Crisis in Los Angeles
U.S. DOJ Charges Hubei Aoks Bio-Tech and Executives With 13 Counts
A federal grand jury has indicted Hubei Aoks Bio-Tech Co. Ltd., a Wuhan, China-based chemical company, along with its director and three employees, on charges of selling fentanyl precursor chemicals and the animal tranquilizer xylazine, commonly known as "tranq," the Department of Justice announced. The indictment, which includes 13 counts, alleges that the company's actions contributed significantly to the fentanyl crisis in the United States.
Hubei Aoks Bio-Tech Co. Ltd. is charged with conspiracy to manufacture and distribute fentanyl, distributing precursor chemicals for fentanyl production, and introducing misbranded drugs into interstate commerce. Four employees, including director Xuening Gao and several senior staff members, are also named in the indictment for their roles in the alleged conspiracy.
While there is a belief that fentanyl is being imported through undocumented migrants from Mexico, it is clear that a major source of key ingredients used for the manufacture and distribution of fentanyl and importation of the "zombie drug" xylazine or "tranq", which was flooding the streets in 2023, as noted by Los Angeles' Public Health Department, was allegedly from China. Xylazine is mixed with other drugs as a filler.
Xylazine can cause gruesome wounds in people who take it as their flesh begins to rot, causing open sores and abscesses hence the name "zombie drug." Taken in combination with fentanyl and other opiates, the drug can depress respiration and lead to overdoses and deaths. Even worse, while Narcan or naloxone, can be used to revive people who have overdosed, it is ineffective against xylazine.
The People's Republic of China's Ministry of Public Security has dissolved Hubei Aoks Bio-Tech Co. Ltd. and arrested the four employees named in the indictment, working in cooperation with the U.S. Department of Justice. The Ministry has also recently scheduled the two chemicals—xylazine and 3,4-MDP-2-P Ethyl Glycidate—that the company allegedly distributed.
"This indictment alleges a corporation, its director, and its sales managers reaped financial benefits by knowingly exporting materials that helped fuel the fentanyl crisis in our nation," said U.S. Attorney Martin Estrada. He emphasized that the Department of Justice is committed to holding accountable those who profit off fentanyl's devastating effects in the United States.
DEA Special Agent in Charge Matthew Allen stated, "Our focus remains on identifying the most prolific manufacturers and distributors of fentanyl precursor chemicals." He praised the collaborative efforts among multiple law enforcement agencies, which have worked together on this investigation.
According to the indictment, Hubei Aoks Bio-Tech Co. Ltd. has supplied fentanyl precursors for over a decade, allegedly targeting U.S. customers. The company's chemicals have been linked to Mexico, where representatives reportedly said the chemicals were most popular, and they allegedly marketed these precursors online and through social media channels. U.S. officials believe the company's exports have enabled the production of millions of fentanyl pills, often disguised as everyday products to evade detection.
The investigation into Hubei Aoks involved several U.S. agencies, including the Drug Enforcement Administration, Food and Drug Administration Office of Criminal Investigations, IRS Criminal Investigation, and others. If convicted, the defendants could face a minimum of 10 years to life in prison.
The Southern California Drug Task Force (SCDTF), a DEA-led multi-agency team, led the investigation, with support from the Los Angeles High Intensity Drug Trafficking Area (HIDTA) program.
Assistant U.S. Attorneys Brittney M. Harris and Jenna G. Williams are prosecuting the case.
