A California man has been arrested and charged in connection with a huge money laundering operation linked to illegal online pharmacies selling counterfeit and dangerous drugs. Jimmy Fu, 63, from West Hills, California, was taken into custody on October 30, 2024. He faces serious federal charges after allegedly helping launder millions of dollars for criminal operations distributing controlled substances and fake pills through websites.
The Illegal Online Pharmacy Scheme
This case revolves around two online pharmacies that law enforcement believes were operated from India. These websites advertised and sold drugs that are highly controlled by the government, including medications like Adderall, which is used to treat ADHD. However, instead of the genuine medication, these pharmacies were allegedly selling counterfeit pills, some of which contained illegal substances, such as methamphetamine.
The investigation into these online pharmacies started around November 2022. Officials discovered that orders placed by people in the United States were being filled in various ways. Some of the pills were being produced in hidden pill-making locations within the U.S., while others were being shipped from overseas. Law enforcement also purchased drugs from the websites during undercover operations to confirm that these products were, in fact, counterfeit or contained harmful substances. In one case, an order of 60 Adderall pills actually contained methamphetamine and caffeine. In another, 90 pills that were supposed to be Adderall had no active ingredient at all.
Jimmy Fu’s Role in the Money Laundering Scheme
Jimmy Fu, according to the federal authorities, operated a business called Axson Engineering, Inc., also known as “Axson Data,” based in Canoga Park, California. Although his business was supposed to focus on data services, it is alleged that Jimmy Fu used it to process illegal payments for drugs purchased through the online pharmacies. The payments were made by customers in the U.S., and the funds were then wired to businesses overseas, often disguised as payments for other services, such as IT consulting.
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The investigation revealed that Axson Data’s bank accounts had received millions of dollars in deposits, many of which were linked to orders from these dangerous online pharmacies. From January 2021 to August 2024, Axson Data reportedly processed around $11.5 million in payments. The money came from individuals all over the United States, including people from Massachusetts. These payments were often for illegal drugs that had been purchased on the fake pharmacy websites.
Law enforcement even found evidence on an Apple account connected to Axson Data. Among the files discovered was a photo showing a drug test that came back positive for methamphetamine. The photo was accompanied by a message from a customer who had ordered Adderall but instead received pills that contained pressed meth. This message included a conversation about the customer being told they could not return the drugs, which is illegal.
The Serious Charges and Potential Consequences
Jimmy Fu now faces a serious charge of conspiracy to launder money. If convicted, Jimmy Fu could spend up to 20 years in prison. He could also face a fine of up to $500,000 or twice the amount of money laundered, whichever is greater. The sentencing would be determined by a federal judge, who will take into account the U.S. Sentencing Guidelines when deciding on the punishment.
This case is part of a larger effort to crack down on organized crime involving drug trafficking, illegal pharmacies, and money laundering. Law enforcement agencies like the Drug Enforcement Administration (DEA), the FBI, and U.S. Customs & Border Protection played major roles in investigating and gathering evidence for the case. In addition, local police departments in various states have assisted in the operation.
Assistant U.S. Attorneys are handling the prosecution, and the case is being led by the Organized Crime Drug Enforcement Task Forces (OCDETF), which is a program that aims to dismantle the highest-level criminal organizations threatening public safety.
Jimmy Fu’s arrest serves as a reminder of the dangers of buying medication online from unverified sources. While online pharmacies may seem convenient, they can be a front for dangerous and illegal activities that put public health at risk.
