LOS ANGELES, Cali. (KCTV) – A China-based chemical company has been dissolved as its leaders are behind bars and facing federal charges related to millions of fentanyl pills sold in the U.S.

The US Attorney’s Office for the Central District of California announced that charges have been filed against Hubei Aoks Bio-Tech Co. Ltd. and its leaders as allegedly fueling the fentanyl crisis through the production of “tranq” – precursor chemicals to fentanyl and xylazine.

Judicial officials indicated that the Wuhan chemical company was accused of:

• Conspiracy to manufacture and distribute fentanyl and to distribute listed chemicals for the manufacture of fentanyl
• Conspiracy to distribute listed chemicals for importation
• Two counts of distribution of listed chemicals for importation
• Two counts of distribution of chemicals listed for manufacture into controlled substances
• Seven counts of introducing the wrong drugs into interstate commerce

“This indictment alleges that a corporation, its executive and sales manager obtained financial benefits by knowingly exporting materials that helped fuel our nation’s fentanyl crisis,” said U.S. Attorney Martin Estrada. “Synthetic drugs like fentanyl have wreaked havoc on our country, so it is critical that we hold those behind this crisis accountable. Rest assured that we will have no patience for those who profit from this poison and treat our youth as collateral damage.”

Law enforcement officers noted that along with Hubei Aoks, the following leadership was charged:

• Xuening Gao, 38, the sole director of Hubei Aoks, faces two counts of conspiracy
• Guangzhao Gao, 36, operator of Hubei Aoks cryptocurrency wallets used for sales, faces a total of 6 crimes, including distribution charges
• Yajing Li, 30, the sales manager of Hubei Aoks, faces 6 offences, including conspiracy and distribution of a listed chemical.
• “Jessie Lee,” a fifth defendant using a pseudonym, also a Hubei Aoks sales executive who faces two counts of conspiracy

“This company, its owner and criminal agents were knowingly engaged in a deadly game, producing parts that led to a destructive whole,” said Matthew Allen, Special Agent in Charge of Drug use Of the administration (DEA) Los Angeles Field Division. “The DEA will continue to focus on identifying the most prolific manufacturers and distribution organizations of the precursor chemical fentanyl, and these charges are proof of our unwavering determination to bring these criminals to justice. Our investigators and all our partners’ capabilities and skillful collaboration made the difference. I couldn’t be prouder.”

The Ministry of Public Security of the People’s Republic of China informed the Department of Justice that its own parallel investigation led to the dissolution of the Chinese company, as well as the arrest of all four defendants.

“Today’s announcement demonstrates the government’s continued scrutiny of companies and individuals who undermine federal law by importing and distributing drugs and drug ingredients for illicit purposes,” said Special Agent in Charge Robert Iwanicki, Los Angeles Bureau of Criminal Investigation, Food Administration and Medicines. “FDA remains committed to pursuing and bringing to justice those who endanger public health and profit from the sale of illegal and potentially dangerous products.”

The ministry also indicated that it has scheduled two of the most chemicals the indictment accuses the defendants of distributing — xylazine and 3,4-MDP-2-P ethyl glycidate. Both were not scheduled at the time of the investigation, but have since been added to the list.

“Companies like Hubei Aoks disguise their illicit activities as legitimate business operations, but continue to knowingly contribute to the fentanyl crisis in the United States,” said Special Agent in Charge Tyler Hatcher. IRS criminal investigationLos Angeles Field Office. “This indictment highlights our commitment to working with other law enforcement agencies to combat this epidemic. IRS Criminal Investigation is the best in the world at tracking money, whether it’s through traditional banking systems or through cryptocurrency platforms, and we will tirelessly pursue the evidence necessary to bring suspects to justice.”

The indictment alleged that for over a decade, the Gao’s sold controlled substances and chemical precursors to customers in the US. Both are linked to chemical companies in China, including one that sold fentanyl and acetyl-fentanyl that had been imported into the US since 2015.

“HSI is dedicated to disrupting the flow of fentanyl and the precursor chemicals needed to make this poison into our communities,” said Homeland Security Investigations Los Angeles Special Agent in Charge Eddy Wang. “Today’s announcement of charges is a warning to those seeking to profit from the sales of these precursor chemicals used to make fentanyl and other manufactured narcotics.”

Judicial officials noted that Hubei Aoks exported chemicals to at least 100 countries, including the US, and advertised online through social media. Sales representatives tailored their recommendations based on the geographic market and would suggest alternatives if a chemical was not available.

Investigators said the company claimed fentanyl precursors were most popular in Mexico and sold them in 25-kilogram drums of fiber, each of which could produce 10 million fentanyl pills. The reps claimed that their profitable sales were worth the risk.

“This enforcement action reflects US Customs and Border Protection (CBP) government-wide effort to anticipate, identify, mitigate and disrupt the manufacturers, suppliers and traffickers of illicit synthetic drugs,” said Cheryl M. Davies, director of CBP Field Operations in Los Angeles. “This comprehensive approach brings CBP’s unique, formidable and comprehensive capabilities and authorities to bear on the illicit trade in synthetic drugs and to build capacity and collaboration with our partners – domestic and international – to keep the American public safe.”

From November 2016 to November 2023, law enforcement officials indicated that Hubei Aoks sold and imported 11 kilograms of fentanyl precursors into the US, from which millions of fentanyl pills could be produced. Xylazine, a tranquilizer used by veterinarians to calm cattle, horses, and other large animals, was also imported.

The department said the chemicals were falsely imported as furniture pieces, vases, makeup and other items before being delivered to a person the conspirators believed to be a fentanyl-trafficking customer, however, they were actually an undercover agent.

“Shipping dangerous substances like fentanyl precursor chemicals through the US Mail is helping to fuel a pandemic that affects many Americans today,” said Inspector General United States Postal Inspection Service in Los Angeles, Matt Shields. “Chemical precursors are extremely dangerous substances and pose a serious threat to the health and well-being of our society. The U.S. Postal Inspection Service is proud to stand 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.”

At times, law enforcement officials said the company’s sales representatives tried to lure the undercover agent with additional chemicals they claimed would sell well, as well as gifts and guarantees of successful imports.

If convicted, the Department indicated that each defendant faces at least 10 years in prison with a maximum of life behind bars.

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