Indian Chemical Companies Indicted for Supplying Fentanyl Precursors to the U.S. and Mexico

Two Gujarat-based chemical companies, Athos Chemicals and Raxuter Chemicals, have been indicted by the U.S. Department of Justice for allegedly supplying precursor ingredients used in the production of fentanyl, a highly addictive synthetic opioid. The charges, announced Monday, include distributing and conspiring to distribute these ingredients in the United States and Mexico.

Charges and Arrest

Raxuter Chemicals and its senior executive, Bhavesh Lathiya, 36, face additional charges of smuggling and introducing misbranded drugs into interstate commerce. Lathiya was arrested in New York on Saturday and remains in custody after being deemed a flight risk and a significant danger to the community.

“The Justice Department is targeting every link in fentanyl trafficking supply chains that span countries and continents and too often end in tragedy in the United States,” said U.S. Attorney General Merrick Garland in a statement.

Lathiya's federal public defender declined to comment, while Athos and Raxuter have not yet responded to requests for statements.

Fentanyl is approximately 50 times more potent than heroin and 100 times stronger than morphine. According to the U.S. Centers for Disease Control and Prevention, opioids, including fentanyl, accounted for approximately 82,000 deaths in the United States in 2022, a tenfold increase compared to 1999.

Allegations of Misconduct

Prosecutors allege that since February 2024, the defendants knowingly supplied precursor chemicals for fentanyl production, disguising their activities through falsified customs forms, mislabeled packages, and deceptive border declarations.

In one indictment, Lathiya is accused of agreeing to sell 20 kilograms of the precursor chemical 1-boc-4-piperidone during video calls with an undercover agent posing as a fentanyl manufacturer. Lathiya reportedly suggested labeling the chemicals as antacids and acknowledged positive feedback from clients in Mexico regarding the quality and yield of the fentanyl produced.

Another indictment alleges that Athos Chemicals agreed to supply 100 kilograms of the same precursor chemical to a known Mexican drug trafficker affiliated with a drug trafficking organization.

If convicted, Lathiya faces a maximum prison sentence of 53 years. The charges mark a significant escalation in U.S. efforts to dismantle global supply chains contributing to the fentanyl crisis.

The Justice Department's actions underline its commitment to combating the trafficking of fentanyl precursors, which fuel an opioid epidemic causing widespread harm across the United States.