Justice Department officials said the government would use all weapons in the armory to prevent the production and distribution of deadly drugs.
The three Chinese nationals and the Chinese-based company have been accused of 21 counts of allegedly importing tablet presses and other equipment used to make “fatal fake pills” into the United States, the Department of Justice (DOJ) announced on May 12.
Pan Xiaochuan, Yang Tingyan and Chen Xi have been charged with drug smuggling and money laundering through their alleged role in the import of tablet manufacturing equipment into the US by Capsulcn International Co. The charges were returned last month but were not sealed on Monday.
Federal prosecutors said between December 2011 and April 2025, Capsulcn imported tablet manufacturing equipment into the United States using deceptive packaging and false transport details to avoid detection by habit.
In the charges, prosecutors said Capsulcn is aware that drug traffickers can use equipment to create fake pills mixed with controlled substances such as fentanyl and methamphetamine.
The company has used multiple websites, social media sites and e-commerce platforms to promote its business to customers who are trying to create counterfeit drugs mimicking prescription drugs.
Related Stories
According to the charges, Pan acted as a key executive and shareholder of Kapusulkun and acted as a shareholder, overseeing the company’s operations and staff recruitment. Two other defendants, Yang and Chen, worked as sales representatives for Capsulcn.
Between January 2017 and December 2022, Capsulcn is said to have shipped over 21,000 packages to the United States.
The indictment said the company allegedly received approximately $6.8 million through US payment services from the sale of pharmaceutical equipment and materials.
The defendant has not been assigned to an attorney at the time of reporting.
The Trump administration is working to curb the flow of fentanyl, a powerful synthetic opioid that can be fatal even when ingested in small quantities, and its precursor chemicals are moving towards the US.
Trump said many Chinese-based companies “expend a considerable amount of time to avoid law enforcement and hide illegal substances in legal commercial flows.”
According to the order, companies use resuppers in the US, forged invoices and using deceptive packages to hide the actual contents of the parcel and the actual contents of the distributor.
