Chinese chemical engineer sentenced for synthetic drugs

JACKSONVILLE, Fla. – A Chinese man was sentenced
Monday to 50 months in federal prison for conspiracy
to import controlled substance analogues (synthetic
cannabinoids) knowing they were intended for human
consumption, and aiding and abetting the importation
of controlled substances and cathinones, also known
as bath salts. This case was investigated by U.S.
Immigration and Customs Enforcement’s (ICE)
Homeland Security Investigations (HSI), the
Jacksonville Sheriff’s Office, U.S. Postal Inspection
Service ,and the North Florida High Intensity Drug
Trafficking Area Task Force, as part of Project Synergy,
part of the Department of Justice’s Special Operations
Division.
Wei Zhang, aka David Liteng, 36, of Tianjin, China, also
forfeited $1.5 million that had been seized from a
Swiss bank account.
"This international investigation brings the first
U.S. arrests and convictions of Chinese
synthetic drug manufacturers and suppliers,"
said Susan L. McCormick, special agent in
charge of HSI Tampa. "HSI special agents,
working with the U.S. Postal Inspection Service,
the Jacksonville Sheriff’s Office and the North
Florida High Intensity Drug Trafficking Area Task
Force, have stopped these dangerous synthetic
drugs from entering our communities.”
According to court documents, in late 2010, an
individual met with Dan and Kevin Louie, the owners
and operators of Source1Herbs, in Toronto, Canada.
Source1Herbs was a large wholesale business that sold
synthetic cannabinoids and cathinones. This individual
met with the owners and learned that their Chinese-
based supplier was Wei Zhang, aka “David Liteng.” In
October 2010, the individual made contact with Zhang
and discussed ordering chemicals from him directly. In
late February 2011, the individual and his business
partner traveled to China and met with the suppliers,
including Zhang. During these meetings, the individual
and Zhang discussed finding a replacement chemical
for 1-pentyl-3-(1-napthoyl) indole JWH-018, which was
set to be temporarily listed as a Schedule I controlled
substance by Drug Enforcement Administration March
1, 2011. As a result of the meeting, the individual
obtained a more favorable pricing from Zhang for
synthetic chemicals. Zhang, a chemical engineer,
explained the best chemical alternatives for JWH-018
that would give the end user a similar high, including
stimulant and hallucinogenic effects.
On March 1, 2011, Zhang and others exchanged email
communications, including news articles, for specific
chemicals banned that day, which included JWH-018.
One such email from Zhang states, “Hi we know there
will be ban jwh and similar product on 1th (sic) march.
Pls let me know what happen tomorrow.”
When JWH-018 was placed on the DEA’s banned list,
Zhang and others began selling other chemicals,
including AM-2201, JWH-081, JWH-122, JWH-203,
JWH-210 and JWH-250. Zhang routinely shipped large
quantities of those chemicals to customers in the
United States, Russia and Europe, distributing a portion
of the synthetic cannabinoids through mailing facilities
in the Middle District of Florida. From March 2011
through February 2012, Zhang shipped approximately
798 kilograms of these chemicals to the individual. In
addition, he supplied Source1Herbs with large
quantities of synthetic cannabinoids and cathinones.
In July 2013, Zhang and the individual had several
discussions about synthetic cannabinoids, the latest
trends in the worldwide industry, and the controlled
status of certain chemicals, including UR-144, 5F-
UR-144 and RCS-4. Zhang sent the individual various
samples of synthetic chemicals known as 5 Meo Dalt (a
synthetic cathinone), A834, 5F-UR-144, JWH-308, and
WIN48098. Zhang also discussed emerging synthetic
cannabinoids PB-22 and 5F-PB-22, both of which were
controlled substance analogues of JWH-018 at the
time, and then later designated as Schedule I controlled
substances. After receiving a spreadsheet of Zhang’s
inventory, the individual negotiated a purchase deal
with Zhang for large quantities of UR-144, 5F-UR-144,
and RCS-4. The negotiated price for approximately 773
kilograms of chemicals was $265,000, and Zhang
agreed to provide the chemicals on consignment.
Zhang agreed to ship mislabeled parcels containing 2 or
3 kilograms of those substances per parcel to various
mailing facilities within the Middle District of Florida.
From Feb. 3, 2014, through May 16, 2014, HSI received
48 packages containing 144 kilograms of UR-144, 47
packages containing 106 kilograms of 5F-UR-144
(XLR-11), and 8 packages containing 16 kilograms of
RCS-4.  During the receipt of those packages, the
individual further negotiated to pay Zhang $150,000 for
the 266 kilograms of Schedule I controlled substances.
In April 2014, Zhang traveled to the United States to
retrieve $150,000 in cash for the substances, where he
was ultimately arrested.
On May 7, 2014, the U.S. Treasury Department - Office
of Foreign Asset Control used the Kingpin Act to
designate Source1Herbs and Dan and Kevin Louie, both
Canadian nationals, on the Specially Designated
National List. The Kingpin Act permits the imposition of
economic sanctions to preclude a variety of worldwide
economic transactions.
Zhang’s conviction marks the third Chinese national
convicted in the United States for importation of
synthetic drugs. Jin Liu was also prosecuted in the
Middle District of Florida for conspiracy to import 100
kilograms of PB-22, a synthetic cannabinoid.
The Special Operations Division, along with the
Narcotic and Dangerous Drug Section of the
Department of Justice, coordinated Project Synergy to
investigate and prosecute the leaders in the synthetic
drug business both domestically and internationally.
This case was prosecuted by Assistant U.S. Attorney A.
Tysen Duva, from the office of U.S. Attorney, Middle
District Florida, A. Lee Bentley, III.