Drug Enforcement Administration ("DEA") civil monetary settlements involving listed chemicals that do not include pseudoephedrine are rare. Even more scarce are DEA civil settlements with non-registrants. (By my count there have been only ten since 2000). When one comes along, it is worthwhile to sit up and take notice.
On March 26th the U.S. Attorney's Office for the Western District of Texas announced that IMC Pro International Inc. ("IMC Pro"), a shipping and logistics company based in North Carolina, agreed to pay $400,000, not a significant amount compared to some recent settlements, but not chump change either, to resolve allegations that it violated the Controlled Substances Act for transshipping precursor chemicals.
DEA seized five packages in Eagle Pass, Texas, identifying IMC Pro as the shipper containing 26.4 kgs. of 1-BOC-Piperidone and 138.66 kgs. of (2-Bromethyl) benzene. Both chemicals are used in the illicit manufacturer of fentanyl. 1-BOC-Piperidone is a DEA-regulated List 1 chemical while (2-Bromethyl) benzene is on DEA's longstanding, recently updated Special Surveillance List.
The government determined that the chemicals had been imported into the U.S. from China and transshipped to Eagle Pass for export to Mexico for manufacturing fentanyl.
The government alleged that IMC Pro entered into business agreements with companies operating in China. IMC Pro agreed to provide the Chinese companies with access to the shipping company's accounts for common carriers to generate domestic shipping labels for goods and products the Chinese companies sold or manufactured. IMC Pro did not store or handle the packages nor maintain records about their contents.
IMC Pro took immediate steps to shut down the shipping accounts and terminate the business agreements with the Chinese companies when it learned its domestic accounts were being used to transship fentanyl precursors. IMC Pro is also cooperating to identify other fentanyl precursor transshipments. In addition to the civil penalty, IMC Pro affirmed that it would not engage in similar agreements with foreign-based entities. Interestingly, the affirmation is also binding on IMC Pro's successors in interest.
The IMC Pro civil settlement brings to mind two truths. First, regulated chemicals are DEA's other "controlled" substances and may require registration, recordkeeping and reporting. Secondly, like the old Appalachian proverb says, "Know the one you're dancing with."
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