Feds: California Online Pharmacies Sold Illegal Prescriptions, Laundered Proceeds
Feds arrested Jimmy Fu of West Hills, Calif. on charges related to allegedly laundering illicit proceeds from online pharmacies.
Fu’s arrest comes on the heels of a law enforcement investigation that began in November 2022. That investigation determined two online pharmacies, purportedly operating in the United States, were actually based in India and advertised controlled substances for sale. They allege that Fu was a key player in laundering illicit gains from the pharmaceutical businesses.
If convicted of the money laundering conspiracy, Fu faces a sentence of up to 20 years in prison, up to three years of supervised release, and a fine of up to $500,000 or twice the funds laundered, whichever is greater.
Counterfeit Drugs
The federal investigation showed that online orders placed in the United States at the two online pharmacies were filled in several ways, including by illicit pill press locations operating in the United States as well as via shipments from overseas locations.
They also allegedly found illicit pill manufacturing locations identified as being involved in the shipment and fulfillment of orders, which is illegal under U.S. law.
“Adderall” Might Be Meth, Caffeine Or a Sugar Pill
In an undercover operation, investigators allegedly obtained a variety of counterfeit prescription drugs from the online pharmacies in question. The 18 undercover purchases included a deal for 60 pills labeled “Adderall,” which were found to contain methamphetamine and caffeine. A second “undercover” purchase of 90 pills turned up counterfeit “Adderall” with no pharmacological ingredients.
All 18 undercover purchases were processed by a company doing business as Axson Data, and the payments were deposited into an Axson-controlled bank account. Also going into that account were thousands of checks deposited by individuals from across the U. S., including Massachusetts, where the case is being federally prosecuted. The deposits ranged between a few hundred to thousands of dollars, with some of these payments corresponding with purchases from the network of online pharmacy websites.
Feds determined Axson bank accounts received about $11.5 million from individuals across the U.S. between January 2021 and August 2024.
Fu’s Involvement
Investigators also identified Fu as the operator of Axson Engineering, which does business from Canoga Park, Calif., as Axson Data.
Axson Data allegedly processed customer payments for the online pharmacies and wired the proceeds of these illegal purchases to various overseas businesses. Prosecutors allege that the wired funds were directed to businesses identifying as information technology consulting companies and other non-pharmacy-related enterprises.
Meth, Not Adderall
After issuing a search warrant for an Apple account that Axson used, investigators retrieved a text message that contained an image of a drug test showing a positive indicator for methamphetamine and a message from a dissatisfied customer.
I ordered Adderall . . . I got this . . . it’s pressed meth. I said if they don’t have real Adderall I would take 20mg Ritalin to replace. They refused unless I sent these back (which is highly illegal).
So far, Fu has been arrested for money laundering but has not been convicted.
How to Report Suspicious Pharmacies
If you come across an online pharmacy that operates suspiciously (for instance, sending you meth instead of Adderall), you can report the situation to the Drug Enforcement Agency (DEA).
To make a report, call the DEA’s tipline at (571) 324-6499 or submit online here.
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