On Friday, the federal court in the Southern District of New York continued to hear the case of Hubei Amarvel Biotech Company, accused of illegally transporting fentanyl precursor chemicals to the United States. The court played a video from March 23, 2023, showing an undercover agent named Gil from the U.S. Drug Enforcement Administration meeting with Wang Qingzhou, the owner of Hubei Amarvel, and translator Chen Yiyi in Bangkok, Thailand.
In 2023, Wang Qingzhou and Chen Yiyi became among the first Chinese citizens and business representatives to be prosecuted and extradited for trafficking fentanyl precursor chemicals to the United States. At the time, the federal prosecutor in the Southern District of New York stated that this case marked the beginning of actions against fentanyl operations, targeting the source of the supply chain – Chinese manufacturers producing fentanyl raw materials.
In the opening statement last Wednesday, the prosecution pointed out that any purchase or sale of chemicals intended for manufacturing fentanyl constitutes a federal crime, with the legal focus on the intent of the transaction. The video played in court showed conversations between Gil and Wang Qingzhou, as well as Chen Yiyi, demonstrating that the defendants were well aware of the chemical use during the transaction, supporting the charges of involvement in illegal trading.
During the meeting, Wang Qingzhou referred to Gil, disguised as a customer, as a good client and expressed willingness to meet in Thailand because they knew Mexican clients were good. Chen Yiyi introduced Wang as the company’s boss and mentioned another senior executive, Mr. Xia, in Japan. Wang stated, “This is mainly what we are doing,” and then introduced Gil to Xia via video call, with both parties exchanging greetings.
Gil mentioned three product names provided by the sales representative Anita from Wuhan Jing’ao, explaining that two products were for making fentanyl, and another for making methamphetamine, and inquired about the prices for air and sea shipment of the chemicals. Wang responded that air shipment was faster although more expensive, and asked about the quantity, expressing interest in increasing the order amount after discussing it for two months.
During the conversation, Gil expressed that his investors wanted to establish a laboratory in the United States to mitigate risks and expand distribution. Chen Yiyi relayed this message to Wang, saying that the investors previously produced fentanyl in Mexico but faced seizure issues while entering the U.S.
Wang agreed, emphasizing the importance of reducing the purity of fentanyl to protect customers and maintain steady sales. He mentioned adding more additives or diluting the product to achieve this goal. Additionally, Wang assured that their company could assist in providing technical guidance and solutions to any issues that may arise during their cooperation.
Wang revealed that the company transported “several tons” of chemicals monthly to the U.S. and Canada, with 7 tons shipped in March, including 2 tons to the U.S. and 5 tons to Canada. According to feedback from their customers, the extraction rate of their raw materials into fentanyl end products exceeded 80%.
Furthermore, Wang assured Gil that larger orders would be expedited, mentioning that their transport to the U.S. was relatively safe, with a typical monthly shipment volume to the U.S. and Canada being just below 10 tons. He emphasized the efficiency of their delivery, ensuring that their shipments could reach the destination faster than others due to large quantities and proper handling procedures.
Gil inquired about avoiding seizures, and Wang described a method of labeling different shipments under various product names to track any issues at customs effectively, allowing for swift responses. Wang assured Gil that they had a stable shipping process, and even with additional 3 or 5 tons, the safety measures in place would minimize risks.
Following the meeting, another appointment was set for June 8, 2023, in Fiji, where discussions on additional order placements, logistics, payments, and Gil’s request for “carfentanil” were recorded. The potential dangers associated with fentanyl and the stronger analogue carfentanil were highlighted during the discussions, with assurances from Wang and Chen that Wuhan Jing’ao could supply these products.
While discussing the enforcement action taken by the U.S. government in April 2023 against a Mexican drug cartel and an employee of a Chinese chemical company, Wang and Chen mentioned implementing additional measures to protect their products from being discovered or intercepted to prevent similar legal actions.
As they discussed payment methods via cryptocurrency wallets, Chen mentioned that for security reasons, Wang would provide relevant encrypted information, stressing the need to safeguard personal information due to recent U.S. government seizures of fentanyl precursors and investigations into Mexican drug cartels and Chinese competitors, posing challenges for their operations.
During the meeting, law enforcement officers in Fiji, acting at the request of the U.S. Drug Enforcement Administration, arrested Wang and Chen. They were subsequently extradited to the United States to face charges.
The case is currently undergoing trial, with a court recess scheduled for the upcoming holiday on Monday. It is anticipated that during the court session on Tuesday, the prosecution will present further evidence from the company’s online platforms to expose Hubei Amarvel’s role in the illegal fentanyl supply chain.