Texas Border Business
US Department of Justice
A federal grand jury in the Western District of Texas charged a Chinese national with two counts related to alleged distribution of pill press equipment that can be used by criminals to manufacture illegal drugs laced with fentanyl.
Department of Homeland Security agents arrested the defendant, Xaiofei Chen, at a trade show in Las Vegas on Oct. 29. According to the criminal complaint supporting her arrest warrant, Chen sold pill press machines that can be used with molds, stamps or dies mimicking commonly prescribed controlled substances to produce counterfeit pills that appear indistinguishable from legitimate pharmaceutical drugs. Specifically, the criminal complaint alleges that Chen worked for a Chinese-based company that sold die molds and equipment, and that Chen sold pill press equipment and counterfeit die molds to buyers in the United States. The complaint further alleges that Chen avoided Drug Enforcement Administration (DEA) disclosure requirements by dismantling equipment and shipping parts in separate packages into the United States. This equipment allegedly included counterfeit dies, including M30 dies meant to mimic a common prescription drug but which are regularly used to make fake opioid pills. The complaint alleges that the packages that Chen sent also were mislabeled to conceal the illegal equipment that they contained.
The Controlled Substances Act prohibits the sale of pill press equipment and counterfeit die molds to individuals who intend to use these machines unlawfully and requires reporting of certain equipment sales. Counterfeit pills made on such equipment can be laced with fentanyl and other dangerous drugs. According to the Centers for Disease Control and Prevention (CDC), fentanyl is a highly addictive synthetic opioid that is 50 times more potent than heroin and 100 times more potent than morphine. Fentanyl and related substances have devastated communities across the United States and fuel the ongoing drug overdose epidemic, which the CDC recently estimated killed approximately 107,000 Americans in 2023. Fentanyl overdose is the leading cause of death for Americans ages 18 to 49. In recent years, more than half of counterfeit pills tested have been found to have a potentially lethal dose of fentanyl.
“The fentanyl epidemic has taken hundreds of thousands of American lives, and this case reflects the department’s unwavering commitment to prosecuting every level of the deadly fentanyl supply chain,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will continue to protect Americans by prosecuting those involved in the unlawful sale of parts and equipment that can be used to manufacture counterfeit pills.”
“The defendant allegedly sold equipment that can be used to make dangerous opioid pills harmful to American families,” said Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI). “HSI is proud to work with our law enforcement partners to prevent the distribution of equipment commonly used in the manufacture of these destructive drugs.”
A federal court in Nevada ordered Chen, a foreign national, detained pending her trial in El Paso where the indictment was returned on Nov. 20. The indictment charges Chen with one count of conspiracy to distribute and import a tableting machine used to manufacture a controlled substance and one count of conspiracy to distribute dies designed to imprint and reproduce the trademark, trade name and other identifying mark and imprint of another. If convicted, Chen faces a maximum penalty of four years in prison and a $250,000 fine. A federal district court judge would determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
HSI and Customs and Border Protection are investigating the case.
Trial Attorneys Edward E. Emokpae, Scott B. Dahlquist and Kaitlin Sahni of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys Laura Franco Gregory and Donna S. Miller for the Western District of Texas are prosecuting the case. Attorneys Colin Trundle and Sarah Williams of the Consumer Protection Branch also provided valuable assistance.
An indictment or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Updated December 20, 2024
