Chinese Company, Three Chinese Nationals Indicted for Illegally Importing Pill-Makers

Twitter/Port Director Michael W. Humphries

On Monday, the United States Department of Justice announced the indictments of the company, CapsulCN International Co., Ltd. (CapsulCN), and three Chinese nationals on charges of illegally importing pill presses. This is a medical device, regulated under American law by 21 CFR Part 820, used to press medical formulations into pill form.

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The indictments were returned last month.

A federal grand jury returned a 21-count indictment against a Chinese company and three Chinese nationals for their alleged role in the illegal importation of pill-making equipment, the Department of Justice announced.

According to an indictment returned April 23 and unsealed today, CapsulCN International Co. Ltd. (CapsulCN) and Xiochuan “Ricky” Pan, 40, Tingyan “Monica” Yang, 37, and Xi “Inna” Chen, 30, all of the People’s Republic of China, were charged with smuggling, Controlled Substances Act, and money laundering offenses in connection with CapsulCN’s unlawful import and distribution of tableting machines (also known as “pill presses”), encapsulating machines, and counterfeit die molds capable of producing millions of potentially lethal fake pills. The indictment also charges Pan, CapsulCN’s principal officer and a shareholder, with leading a continuing criminal enterprise. Additionally, four internet domains used by CapsulCN to market and sell illicit pill-making equipment to U.S. customers were seized today in connection with this investigation.

“This indictment and today’s domain seizures send an unmistakable message to criminals in the People’s Republic of China and across the world — the Department will use every weapon in its arsenal to combat those who facilitate the manufacture and distribution of deadly drugs in the United States,” said Deputy Attorney General Todd Blanche.

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There do not appear to be any charges of smuggling any drugs or drug precursors.

Ironically, this announcement is made on the same day as the Trump administration announces some major trade breakthroughs with China, but we should note that the indictment does not name the Chinese government - that is to say, the Chinese Communist Party - as having any involvement with this company.

But then, how many Chinese companies operate without the scrutiny of the Chinese Communist Party?


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The three Chinese nationals were reportedly sales reps for the company, and specifically targeted potential makers of fake pills (emphasis added):

According to court documents, Yang, Chen, and other CapsulCN sales representatives communicated extensively with potential customers in the United States over company emails and encrypted electronic messaging applications. In these communications with customers, Yang, Chen, and others agreed to smuggle pill-making equipment to U.S. customers and assisted customers in selecting die molds that best replicated identified pharmaceutical drugs. Yang, Chen, and other CapsulCN sales representatives also exchanged electronic messages and emails negotiating payment for CapsulCN products that were smuggled into the United States and imported and distributed for use in manufacturing controlled substances. CapsulCN maintained bank accounts in the People’s Republic of China and accounts with online payment services to facilitate the transfer of funds from the United States to China in furtherance of CapsulCN’s criminal activities.

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There's an obvious conclusion to be drawn here: CapsulCN and its employees were aiding and abetting in the production of fake, possibly dangerous drugs in pill form. The machines were smuggled into the United States in defiance of American law. 

So, a win for the United States and the Trump administration, and we can hope that some of the bigwigs at CapsulCN in China will be having some uncomfortable conversations with Chinese Communist Party officials. It's a safe bet that the CCP won't be upset that CapsulCN did this - but rather that they got caught.

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