Indian CEO arrested, indicted for distributing fentanyl chemicals

Federal authorities arrested chemical company executive Bhavesh Lathiya in New York City over the weekend for allegedly supplying and distributing precursor chemicals used to make fentanyl, the Department of Justice said Monday. Lathiya and his India-based company Raxuter Chemicals face several charges, including smuggling and conspiring to knowingly import into the United States a chemical listed as being used to manufacture fentanyl. Authorities also indicted another Indian chemical company, Athos Chemicals, on similar charges, according to a DOJ statement.

Fentanyl is a highly addictive synthetic opioid that triggered thousands of overdose deaths across the United States in recent years. The drug is 100 times more potent than heroin and is used as a cheaper alternative to opioids. The Schedule II substance is now the deadliest drug in America, accounting for more deaths than cocaine or stimulants like methamphetamine, according to the U.S. Centers for Disease Control.

How can a company be held responsible when buyers misuse their product? Federal prosecutors allege the companies and Lathiya supplied the chemicals to the United States and Mexico knowing they would be used to make fentanyl. Defendants sent the products through international mail systems in mislabeled packages and used false customs forms to avoid detection, the DOJ added.

Lathiya even appeared on a Zoom call to discuss the sale of fentanyl precursor chemicals with an undercover Homeland Security officer in October, telling the agent he planned to label the next shipment as antacids. If convicted, Lathiya faces up to 53 years in prison. However, the DOJ added that an indictment is merely an allegation and all suspects are presumed innocent until proven guilty.

Dig deeper: Read my report on Chinese President Xi Jinping’s 2023 agreement to crack down on fentanyl-linked exports.