LOS ANGELES
Law Enforcement in People’s Republic of China arrested defendants.
A chemical company, its director, and three senior employees face federal charges in a 13-count indictment for allegedly selling fentanyl precursor chemicals and xylazine, or “tranq,” worldwide, contributing to the U.S. fentanyl crisis, the Justice Department announced Thursday.
Hubei Aoks Bio-Tech Co. Ltd., based in Wuhan, China, is charged with:
- Conspiracy to manufacture and distribute fentanyl
- Conspiracy to distribute fentanyl precursors for import to the United States
- Distribution of fentanyl precursors for import and manufacturing into controlled substances
- Introducing misbranded drugs into interstate commerce (seven counts)
Also charged in the indictment returned on May 10 and announced today 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 recently informed the U.S. Justice Department that it arrested the four Chinese nationals involved.
The Justice Department appreciates the Ministry’s assistance and cooperation.
Additionally, the Justice Department acknowledges the Ministry’s efforts to regulate two chemicals central to this case: the adulterant xylazine and the precursor 3,4-MDP-2-P Ethyl Glycidate. These chemicals were unscheduled in China at the start of the investigation but have now been placed under regulation.
“This company, its owner and criminal operatives have knowingly been involved in a deadly game, manufacturing parts that led to a destructive whole,” said Matthew Allen, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Los Angeles Field Division. “DEA will continue to focus on identifying the most prolific manufacturers and distributor organizations of the fentanyl precursor chemicals and these indictments are proof of our unwavering determination to bring these criminals to justice. Our investigators and all our partners’ capabilities and skillful collaboration have made a difference. I couldn’t be prouder.”
The indictment states that for over a decade, Xuening Gao and Guangzhou Gao have sold controlled substances and precursor chemicals, including fentanyl precursors, to customers across the United States. Both are linked to chemical companies in China, including one that sold fentanyl and acetyl-fentanyl imported into the U.S. as early as 2015.
Hubei Aoks, another company involved, exported chemicals to at least 100 countries, including the U.S., advertising online and on social media. Sales representatives from Hubei Aoks tailored their precursor recommendations to the customer’s location and suggested alternatives if a chemical was unavailable.
The company noted that fentanyl precursors were especially popular in Mexico, selling them in 25-kilogram drums capable of producing 10 million fentanyl pills. Representatives indicated that the profits from sales to Mexico outweighed the risks.
From November 2016 to November 2023, Hubei Aoks sold and shipped 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 for sedating large animals like cattle and horses.
These chemicals were falsely labeled as items like furniture parts, vases, and makeup and were delivered to someone the conspirators believed to be a fentanyl trafficker—but who was actually an undercover agent.
At times, Hubei Aoks representatives tried to entice the undercover agent by offering additional chemicals they claimed would sell well, providing gifts, and guaranteeing the successful import of their products into the U.S.
If convicted of all charges, each defendant would face a mandatory minimum of 10 years in prison and a maximum penalty of life in prison. Defendants are presumed innocent unless proven guilty.
The Drug Enforcement Administration; the Food and Drug Administration Office of Criminal Investigations; IRS Criminal Investigation; Homeland Security Investigations; United States Customs and Border Protection; and the United States Postal Inspection Service are investigating this matter, with assistance from the California Department of Justice.
This investigation was led by the Southern California Drug Task Force (SCDTF), a DEA-led multi-agency task force within the Los Angeles High Intensity Drug Trafficking Area (HIDTA) Program.
Assistant U.S. Attorneys Brittney M. Harris of the International Narcotics, Money Laundering, and Racketeering Section and Jenna G. Williams of the Corporate and Securities Fraud Strike Force are prosecuting this case.