Zhao is also facing one count of attempt to tamper with evidence, and both companies were charged with one count of providing material support and resources to a foreign terrorist organization.
“We are going after the entire chain of supply for these deadly drugs, from Mexican cartels and Chinese pharmaceutical companies to the high-level distributors on our streets in the Southern District of Ohio,” said U.S. Attorney Dominick S. Gerace II.
The businesses allegedly sold precursor chemicals and substances and mixing agents — also known as cut — to manufacture fentanyl and to increase its potency.
Zhao, Yanpeng, Yi, Zhaolan and Chunhai reportedly help facilitate the sale and export of the substances to drug traffickers in the U.S.
The Shandong companies openly marketed, sold and delivered different chemical precursors and cutting agents to the U.S. that were indented for domestic and foreign drug traffickers, according to the indictment.
Zhao promoted the substances to purported drug traffickers, including the Cártel del Golfo — a Mexican cartel involved in drug trafficking, kidnapping, human smuggling and other illegal activities, according to court records.
“Zhao, on behalf of the Shandong companies, caused hundreds of kilograms of these materials to be shipped to Mexico and the U.S., including southern Ohio, via international cargo ships, international freight and domestic common carriers,” the indicted stated.
The companies accepted cryptocurrency from the alleged drug traffickers and used crypto wallets and bank accounts held by Yanpeng, Yi, Jian, Zhaolan and Chunhai until the funds could be converted into foreign currency, according to court documents.
“The FBI is aggressively pursuing individuals and companies in China that are selling dangerous narcotics and working with terrorist organizations,” FBI Cincinnati Special Agent in Charge Jason Cromartie said. “We will continue to use innovative approaches to investigate those peddling lethal drugs as we work to protect our communities.”
In September, 29 defendants — including four Chinese companies, a Tipp City couple and 22 Chinese individuals — were indicted in a similar drug trafficking and money laundering scheme.
The case is still pending in federal court.
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