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Press Release

International Drug Traffickers Indicted On Charges Of Importing And Distributing Fentanyl And Methamphetamine Precursor Chemicals

For Immediate Release
U.S. Attorney's Office, Southern District of New York
Three Brokers Conspired to Import Ton-Quantities of Fentanyl and Methamphetamine Precursor Chemicals from the People’s Republic of China for Manufacture and Further Distribution in the United States

Edward Y. Kim, the Acting United States Attorney for the Southern District of New York, and Anne Milgram, the Administrator of the U.S. Drug Enforcement Administration (“DEA”), announced an Indictment charging XIANG GAO, OLEKSANDR KLOCHKOV, and IGORS KRICFALUSIJS with conspiring to distribute fentanyl and methamphetamine in the U.S., conspiring to import fentanyl precursor chemicals and a methamphetamine precursor chemical with intent to manufacture fentanyl and methamphetamine in the U.S., importing a fentanyl precursor chemical, and conspiring to commit money laundering.  GAO, KLOCHKOV, and KRICFALUSIJS were arrested in Morocco by Moroccan authorities on April 17, 2024, extradited to the U.S. on December 11, 2024, and made their initial appearances in the Southern District of New York before U.S. Magistrate Judge Robyn F. Tarnofsky on December 12, 2024.

Acting U.S. Attorney Edward Y. Kim said: “Fentanyl and fentanyl analogues continue to wreak catastrophic damage on the lives of New Yorkers.  The defendants are alleged to have aggressively pursued methods to circumvent our ability to stem the flow of the poisons into this country and to bring tons of potentially deadly chemicals to the United States.  This Office will continue to work relentlessly to detect and charge international drug traffickers bringing deadly drugs to our borders and to stop the danger long before it arrives.”

Attorney General Merrick B. Garland said: “Those responsible for flooding our country with fentanyl must answer for their crimes.  These three international chemical brokers are charged with conspiring to send fentanyl and methamphetamine precursor chemicals into the United States -- now they will face justice in an American courtroom.”

Deputy Attorney General Lisa Monaco said: “Today’s actions reflect our commitment to holding accountable those who peddle the poison responsible for fentanyl deaths in our communities, including those who import the precursor chemicals needed to manufacture these deadly drugs.  No matter where in the world these individuals operate, the Department will find them and bring them to justice.”

DEA Administrator Anne Milgram said: “Today’s announcement of charges against three high-level fentanyl chemical brokers highlights DEA’s commitment to attack every part of the global fentanyl supply chain.  The defendants indicted today brokered ton-quantities of fentanyl and methamphetamine precursor chemicals from China, knowing that these chemicals would be used to flood American communities with deadly drugs.  These defendants also coached drug traffickers on how to use different precursor chemicals to make finished fentanyl destined for the United States.  Today’s indictment should serve as a warning to drug traffickers operating across the globe that DEA will stop at nothing to save American lives and bring those responsible to justice.”

As alleged in the Indictment, other court filings, and statements made during court proceedings:[1]

Fentanyl is the single deadliest drug threat that the U.S. has ever encountered. It is the leading cause of death for Americans ages 18 to 49.  Fentanyl analogues, similar in chemical makeup and effect to fentanyl, can be even more potent and lethal than fentanyl.  Fentanyl and its analogues have ruined countless lives, devastated entire communities, and killed Americans at an unprecedented rate.

The manufacture of fentanyl and its analogues begins with raw chemicals, known as precursors.  Today, fentanyl precursor chemicals are principally sourced from China-based chemical manufacturers.  These China-based chemical manufacturers ship fentanyl-related precursor chemicals around the world, including to the U.S., Europe, and elsewhere, where clandestine laboratories use the precursor chemicals to synthesize finished fentanyl and fentanyl analogues at scale, and distribute the deadly narcotics into and throughout the U.S.

Aware of sanctions placed on chemical precursors by the U.S. and other nations, Chinese manufacturers have adapted to create and export fentanyl precursor chemicals that are not yet banned, but that are specifically designed to imitate other prohibited chemicals or that can produce finished fentanyl and other drugs.  The chemists working at such factories pursue chemical modifications to create new chemical compounds not yet subject to controls but capable of producing novel versions of narcotics that are as deadly or more than fentanyl.  These new chemical compounds are marketed to international drug traffickers through broker networks with direct access to the chemical manufacturers, who take custom orders from buyers seeking to create fentanyl and evade customs and law enforcement agencies around the world.

XIANG GAO, OLEKSANDR KLOCHKOV, and IGORS KRICFALUSIJS are international drug traffickers who used their connections with China-based chemical manufacturers to broker deals for fentanyl and methamphetamine precursor chemicals for further distribution in the U.S. and elsewhere.  During this investigation, GAO, KLOCHKOV, and KRICFALUSIJS conspired to sell ton-quantities of fentanyl precursor chemicals; provided more than five kilograms of fentanyl precursor chemicals and more than 50 kilograms of methamphetamine precursor chemicals; and shipped those chemicals to New York, Austria, and Spain, intending that the chemicals would be used to manufacture fentanyl and methamphetamine in New York for further distribution there.

Throughout the course of the conspiracy, the defendants repeatedly offered access to factories capable of producing tons of deadly narcotics precursors at a time, and consistently acknowledged that the precursors were designed to evade sanctions on narcotics importation but were purpose-built to make fentanyl and methamphetamine.  For example, during one meeting, when GAO acknowledged that fentanyl is illegal in the U.S. and China, KLOCHKOV explained that, as a result, fentanyl “must be created, not purchased.”  The defendants further provided instructions, including chemical formulas, to turn the precursors into finished fentanyl destined for distribution throughout New York.

*                *                *

GAO, 35, a Chinese national; KLOCHKOV, 34, a Ukrainian national; and KRICFALUSIJS, 32, a Latvian national, are charged in the Indictment with: one count of conspiracy to distribute fentanyl and methamphetamine, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; one count of conspiracy to import fentanyl precursor chemicals and a methamphetamine precursor chemical with intent to manufacture fentanyl and methamphetamine, which carries a maximum sentence of 20 years in prison; one count of importation of a fentanyl precursor chemical, which carries a maximum sentence of 20 years in prison; and one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.

The minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.

Mr. Kim praised the outstanding efforts of the Bilateral Investigations Unit of the DEA Special Operations Division, the U.S. Department of Justice’s Office of International Affairs, and Moroccan and Spanish authorities for their ongoing assistance.

This case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorney Amanda C. Weingarten is in charge of the prosecution.

The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
 


[1] As the introductory phrase signifies, the entirety of the text of the Indictment and Complaint, and the description of the Indictment and Complaint set forth herein, constitute only allegations, and every fact described herein should be treated as an allegation.

Contact

Nicholas Biase, Shelby Wratchford
(212) 637-2600

Updated December 18, 2024

Topics
Drug Trafficking
Opioids
Press Release Number: 24-387