Executive of Indian Chemical Company Pleads Guilty to Distributing and Smuggling Fentanyl Precursor Chemicals

Earlier today, in federal court in Brooklyn, Bhavesh Lathiya pleaded guilty today to distributing and smuggling fentanyl precursor chemicals to the United States. Lathiya was the leader and founder of Raxuter Chemicals, a company based in Surat, India, that illegally sold and smuggled more than 50 pounds of chemicals commonly used to manufacture fentanyl. This guilty plea marks the first felony conviction of an India-based supplier of fentanyl precursor chemicals. Today's proceeding was held before United States District Judge Pamela K. Chen. When sentenced, Lathiya faces up to 40 years' imprisonment.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, and Michael Alfonso, Acting Special Agent in Charge, Homeland Security Investigations, New York (HSI New York), announced the guilty plea.

"The defendant admitted supplying the essential ingredients to make fentanyl, knowing just what they would be used for," stated United States Attorney Nocella. "Our Office is committed to targeting every link in the fentanyl supply chain. We will continue to vigorously prosecute these purveyors of poison, both here and abroad, who are responsible for fueling our nation's opioid epidemic without any regard for the extreme harm they are causing. The Administration, mindful that fentanyl is the leading cause of death for American ages 18 to 45, has prioritized protecting our communities from this lethal scourge."

Mr. Nocella thanked the Justice Department's Office of International Affairs for its assistance.

"Fentanyl has devastated countless families and communities across our country. Homeland Security Investigations is using every available resource to dismantle the drug trafficking networks that smuggle this poison into our country. Today's landmark plea demonstrates HSI's unwavering commitment to identifying, disrupting, and dismantling the fentanyl supply chain at every level, both at home and abroad. HSI and its partners will continue to pursue those responsible and will hold the individuals and organizations driving this crisis accountable," stated HSI New York Acting Special Agent in Charge Alfonso.

Fentanyl is the deadliest drug threat currently facing the United States. It is a highly addictive synthetic opioid that is approximately 50 times more potent than heroin and 100 times more potent than morphine. Fentanyl is designated as a Schedule II controlled substance and various precursor chemicals that are used to produce fentanyl are included on the schedule's List I and List II.

As set forth in court filings, Lathiya supplied precursor chemicals to the United States and Mexico, among other places, despite knowing they would be used to manufacture fentanyl. Lathiya and his company also sent their chemical products to the United States and Mexico using international mail and package carriers. The chemicals distributed by the defendant included all the materials necessary to manufacture fentanyl via the most common pathways. To prevent detection and interception of chemical products at the borders, the defendant employed deceptive and fraudulent practices, such as mislabeling packages and falsifying customs forms.

For example, on or about June 29, 2024, a package shipped by Raxuter Chemicals was delivered to an address in the Eastern District of New York. The package had a false manifest that listed its contents as Vitamin C. In truth, the contents were a List I chemical, 1-boc-4-piperidone, an unlawfully imported fentanyl precursor.

On October 2, 2024 and October 15, 2024, Lathiya appeared on a video call to discuss sale of fentanyl precursor chemicals with an HSI undercover officer. After being told by the undercover officer that his "clients in Mexico were very happy with the quality of what you sent me" and with "the yield they got of the final product," Lathiya agreed to sell 20 kilograms of 1-boc-4-piperidone, which is a List I chemical used in fentanyl synthesis. Lathiya also proposed mislabeling the chemical as an antacid. The undercover officer replied and asked if it would be easier to ship the product to Mexico, stating "This is a very controversial product … Because like you said it's banned and in Mexico I think it could be easier but there's so much pressure on them because of fentanyl." On or about November 23, 2024, Raxuter Chemicals and Lathiya shipped approximately 20 kilograms of 1-boc-4-piperidone to the Eastern District of New York. The package was mislabeled as an antacid.

Mexican drug trafficking organizations, including but not limited to the Sinaloa Cartel, have increasingly availed themselves of the fentanyl precursors developed and distributed by companies like the one owned by the defendant, including in India and China. This guilty plea follows the Office's pathbreaking indictments of three Chinese chemical companies and three employees in United States v. Anhui Rencheng Technology Co. (Rencheng) Ltd et al and United States v. Hefei GSK Trade Co. Ltd, et al, charging them with similar offenses, including conspiracy to manufacture and distribute fentanyl, conspiracy to distribute a List I chemical, distribution of a List I chemical, and customs fraud conspiracy.

This prosecution is part of the Homeland Security Task Force initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of U.S. law enforcement towards identifying, investigating and prosecuting the full spectrum of crimes these organizations commit, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF New York comprises agents and officers from HSI; the FBI; DEA; the New York City Police Department; IRS Criminal Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Marshals Service; U.S. Postal Inspection Service; U.S. Secret Service; with the U.S. Attorney's Office for the Eastern District of New York leading this prosecution.

The government's case is being handled by the Office's International Narcotics and Money Laundering Section. Assistant United States Attorneys Adam Amir, William P. Campos, Chand Edwards-Balfour, and Katherine P. Onyshko are in charge of the prosecution with the assistance of Paralegal Specialists Cleon Thomas and Zoubida Bicane.

The Defendant:

BHAVESH ranCHHODBHAI LATHIYA (also known as "Bhavesh Patel," "Bhavesh Bhai" and "Bhavesh Lathia")
Age: 37
Surat, Gujarat, India

E.D.N.Y. Docket No. 24-CR-525 (S-2) (PKC)