Indian businessman sentenced to 54 months in US prison for fentanyl precursor smuggling

Indian businessman Bhavesh Lathiya sentenced to 54 months in prison for distributing and smuggling fentanyl precursor chemicals.

An Indian chemical company executive has been sentenced to 54 months in a US federal prison in what the US Department of Justice called the first-of-its-kind case as Bhavesh Lathiya is not an American, he does not operate in America; his company is in Surat. But Lathiya, the founder and leader of Surat-based Raxuter Chemicals, pleaded guilty in April to smuggling and distributing fentanyl precursor chemicals. He was sentenced on September 2 by US District Judge Pamela K Chen in federal court in Brooklyn. Lathiya was also ordered to forfeit $24,560 and will be deported after completing his prison sentence, the US Department of Justice said. Prosecutors said Lathiya and his company illegally sold and shipped more than 50 pounds of chemicals used in fentanyl production to customers in the US and Mexico. The chemicals included materials capable of supplying all the ingredients needed to manufacture fentanyl through commonly used production routes.

Packages disguised as Vitamin C and antacid

According to court filings, Lathiya used deceptive shipping practices to evade customs and law-enforcement scrutiny. Packages containing controlled precursor chemicals were allegedly given false descriptions and accompanied by falsified customs documents. In one case, a shipment from Raxuter Chemicals that arrived in New York on June 29, 2024, was declared to contain Vitamin C. Investigators said it actually contained 1-boc-4-piperidone, a regulated chemical used in fentanyl synthesis.

An undercover agent spoke to Lathiya demanding more supply

The investigation later brought Lathiya into direct contact with an undercover US Homeland Security Investigations officer. During video calls in October 2024, the undercover officer told Lathiya that customers in Mexico were pleased with the quality of chemicals previously supplied and with the amount of final product they had obtained. Lathiya allegedly agreed to supply another 20 kilograms of 1-boc-4-piperidone. He also proposed disguising the chemical as an antacid. The shipment was eventually sent to the US in November 2024, with the package labelled as an antacid, prosecutors said. ‘Source of the fentanyl supply chain’ US officials portrayed the case as significant because it targeted the supply of fentanyl before the drug itself was manufactured. “During a national crisis when hundreds of Americans were dying every day of fentanyl overdoses, Lathiya smuggled and distributed chemical ingredients, including those that were the building blocks for this deadly drug, without any regard for the harm that his conduct would cause,” US Attorney Joseph Nocella Jr said. “With today’s sentence, the message is loud and clear that our Office will hold precursor traffickers like the defendant accountable for their role in the fentanyl supply chain.” Homeland Security Investigations Acting Special Agent in Charge Pete Gizas said Lathiya's activities placed him “at the source of the fentanyl supply chain”. “By feeding the market for fentanyl at its earliest stage, he turned chemical commerce into a direct threat to public safety,” Gizas said. The case was prosecuted in New York, but its alleged supply chain stretched across international borders, with chemicals originating from India and destined for markets including the US and Mexico. Lathiya was arrested in New York City in January 2025.