Suburban Pair Shipped Drugs From China To Sell Online: Feds

CHICAGO — Two north suburban residents accused of illegally selling drugs online were arrested Wednesday in related cases, according to prosecutors. Both have been charged with conspiring to sell controlled substances, including the powerful synthetic opiate fentanyl, fentanyl precursers and "bath salts" through their websites, which authorities have since seized, the Department of Justice announced.

Federal law enforcement officials said the charges resulted from an exhaustive and far-reaching investigation targeting Chinese drug traffickers.

“Powerful pharmaceutical medications, fentanyl and fentanyl-related substances are creating a chokehold on our society,” said Brian McKnight, chief of the Chicago division of the DEA. “Today’s enforcement actions send a clear message to those who utilize the internet to poison our communities: We will find you and you will be held accountable.”

Liangu "Larry" Huang, 53, of Northbrook, sold various illegal drugs over the internet using a company called Ark Pharm Inc., according to a criminal complaint from a U.S. Drug Enforcement Administration agent.

The company, which allegedly moved from Libertyville to Arlington Heights last year, repeatedly sold banned substances to undercover law enforcement agents, according to the agent.

Investigators believe the drugs were sent from China. Between 2013 and 2014, customs agents seized about a dozen packages from China and addressed to Huang's business that tested positive for various controlled substances, including crystal meth.

From January 2016 to February 2017, Ark Pharm made nearly 29,000 shipments, according to the complaint. And in the year prior to March 2018, Huang's bank account received more than $18.5 million in total deposits and wired about $16.25 million to banks located in China.

Huang was arrested Wednesday night after arriving at O'Hare International Airport in Chicago on a flight back from China and charged with one count of conspiracy to knowingly and intentionally possess with intent to distribute, and to distribute, a controlled substance.

The Ark Pharm website included terms that the agent described as common for internet drug traffickers, who post it "on the mistaken belief that the disclaimer absolves them of criminal liability for distributing controlled substances," according to the complaint.

"All of the compounds are intended for laboratory research purposes, and NOT for drug, household or other use," the website allegedly said.

In a related investigation, law enforcement also arrested and seized another online drug marketplace based in Mundelein. Visitors to 1717Chem.com could purchase fentanyl, oxycodone, hydrocodone and other opiates, according to the complaint.

Wei Xu, 52, of Vernon Hills, also known as "Scarlett Hsu," allegedly ran the company and sold thousands of dollars worth of controlled substances to undercover investigators. According the complaint, she told an agent she was "crazy busy" and getting more orders than she could keep up with.

During a May 22 traffic stop, Xu told a law enforcement officer she has a Ph.D and worked at 1717chem importing and exporting pharmaceuticals. She has been charged with one count of knowingly distributing a controlled substance.

Like ArkPharm, Xu's website also had a disclaimer, according to the complaint: “1717 CheMall’s Products are intended primarily for laboratory research purposes and, are not to be used for any other purposes, including but not limited to, in vitro diagnostic purposes, in foods, drugs, medical devices or cosmetics for humans or animals or for commercial purposes.”

According to records filed with the Illinois Secretary of State, the company's registered agent is a Northfield-based attorney who said he had not been contacted by federal investigators and represents between 300 and 400 businesses.

Huang and Xu appeared Thursday before a federal judge who ordered them both to remain in custody ahead of their next court appearance on June 5. If convicted, each faces a maximum sentence of 20 years in prison.

“Synthetic opioids killed 20,000 Americans in 2016 – more than any other kind of drug,” said Attorney General Sessions in a release announcing the charges. “The vast majority of these drugs originated in China and then either shipped through the mail or smuggled across our porous Southwest Border. Under President Trump's strong leadership, the Justice Department has taken historic new steps to target Chinese drug traffickers, and today's indictments are our next step."