Pharmacies Pose as Legitimate Operations to Deceive Buyers
WASHINGTON — Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned two Indian nationals, Sadiq Abbas Habib Sayyed and Khizar Mohammad Iqbal Shaikh, for their role in collectively supplying hundreds of thousands of counterfeit prescription pills filled with fentanyl and other illicit drugs to victims across the United States. OFAC is also designating one India-based online pharmacy for its role in these criminal operations.
“Too many families have been torn apart by fentanyl. Today, we are acting to hold accountable those who profit from this poison,” said Under Secretary for Terrorism and Financial Intelligence John K. Hurley. “Treasury will continue to advance President Trump’s commitment to Make America Fentanyl Free by targeting drug traffickers.”
Fentanyl has been the primary driver of the synthetic opioid crisis, which is responsible for the deaths of hundreds of thousands of Americans. Opioid overdose remains the leading cause of death for Americans aged 18 to 45. Under the U.S.-India Drug Policy Framework, the United States and India continue to work together to fight the devastating impact of illicit drugs and to put an end to the global drug threat by combating drug trafficking, improving public health, and strengthening global supply chains.
Today’s action was taken pursuant to Executive Order (E.O.) 14059, which targets the international proliferation of illicit drugs and their means of production. Today’s action was coordinated with the Department of Justice (DOJ), the Drug Enforcement Administration, Homeland Security Investigations, Internal Revenue Service – Criminal Investigations, and the U.S. Postal Inspection Service.
ROLE OF ONLINE PHARMACIES IN THE GLOBAL ILLICIT DRUG TRADE
In the last few years, online suppliers of controlled substances, including from India, have contributed to the fentanyl crisis by supplying illicit fentanyl and other synthetic opioids, as well as related precursor chemicals, to the United States. Separately, Mexican cartels acquire precursor chemicals from these online suppliers for use in their clandestine fentanyl laboratories.
Today’s action spotlights the role of illegal online pharmacies, some of which are based in India, that are responsible for supplying counterfeit pills to individuals worldwide, including U.S. consumers. These pills frequently resemble brand name and generic medication. U.S. consumers, believing they are purchasing from legitimate pharmacies, fall victim to the dangerous operations of these deceptive pharmacies. Instead of delivering the safe products they are marketing to buyers, these illegal online pharmacies work with drug traffickers to fulfill orders with counterfeit pills, which are often laced with illicit synthetic drugs.
On October 4, 2024, the DEA issued a warning about the dangers of online pharmacies, stating it has seen an increase in illegal online pharmacies selling and shipping counterfeit pills made with fentanyl and methamphetamine to unsuspecting customers in the United States who believe they are purchasing real pharmaceutical drugs such as Oxycodone, Adderall, Xanax, and other drugs from legitimate pharmacies.
SANCTIONING INDIAN DRUG TRAFFICKERS
Based in India, Sadiq Abbas Habib Sayyed (Sayyed) and Khizar Mohammed Iqbal Shaikh (Shaikh) worked with Dominican Republic- and U.S.-based narcotics traffickers to sell counterfeit pills to Americans. Sayyed and Shaikh marketed and sold these pills as discounted, legitimate pharmaceutical products, which were instead filled with illicit drugs like fentanyl, a fentanyl analogue, and methamphetamine. Both Sayyed and Shaikh have used encrypted messaging platforms to conduct their illegal business and market their product to victims. Sayyed and Shaikh were previously indicted in September 2024 on narcotics-related charges by a federal grand jury sitting in the Southern District of New York.
In addition, Shaikh is the owner of KS International Traders (a.k.a. “KS Pharmacy”), a purported online pharmacy used in furtherance of Shaikh’s criminal activities. Even after being exposed for his criminal activity in in DOJ’s 2024 indictment, Shaikh continues to operate KS International Traders.
A screenshot from KS International Traders’ website, indicating their sale of pharmaceutical products, months after the date of the unsealing of the DOJ indictment in 2024
Sayyed and Shaikh are being sanctioned today pursuant to E.O. 14059 for having engaged in, or attempted to engage in, activities or transactions that have materially contributed to, or pose a significant risk of materially contributing to, the international proliferation of illicit drugs or their means of production.
KS International Traders is being sanctioned today pursuant to E.O. 14059 for being owned, controlled, or directed by, or having acted or purported to act for or on behalf of, directly or indirectly, Shaikh.
SANCTIONS IMPLICATIONS
As a result of today’s action, all property and interests in property of the designated or blocked persons described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of blocked persons.
Violations of U.S. sanctions may result in the imposition of civil or criminal penalties on U.S. and foreign persons. OFAC may impose civil penalties for sanctions violations on a strict liability basis. OFAC’s Economic Sanctions Enforcement Guidelines provide more information regarding OFAC’s enforcement of U.S. economic sanctions. In addition, financial institutions and other persons may risk exposure to sanctions for engaging in certain transactions or activities involving designated or otherwise blocked persons. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any designated or blocked person, or the receipt of any contribution or provision of funds, goods, or services from any such person.
The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the Specially Designated Nationals and Blocked Persons List (SDN List), but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, or to submit a request, please refer to OFAC’s guidance on Filing a Petition for Removal from an OFAC List.
Click here for more information on the persons designated today.
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