63-year-old Californian man Jimmy Fu was arrested for his alleged involvement in a massive money laundering operation related to an illegal online pharmacy selling counterfeit and dangerous drugs. He made his first appearance in federal court in Boston last Wednesday (November 20). According to the indictment, Fu is accused of processing customer payments for illegal online pharmacies through his company, Axson Engineering, Inc. (operating under the name Axson Data), involving amounts exceeding $11.5 million.
Since November 2022, law enforcement agencies have been investigating two online pharmacies believed to be operating in India, which sell counterfeit drugs containing controlled substances and mislabeled drugs. These websites advertise and sell government-regulated drugs, including “Adderall” used to treat ADHD. However, it is alleged that the drugs sold by these pharmacies are fake, with some containing illegal substances such as methamphetamine.
Investigations revealed that orders from Americans were processed in various ways. Some pills were manufactured at clandestine drug production sites within the U.S., while others were imported from overseas. Law enforcement officers made 18 undercover purchases from these websites to confirm that the products were indeed counterfeit or contained harmful substances.
In one case, an order for 60 Adderall pills actually contained methamphetamine and caffeine. In another case, 90 counterfeit pills passed off as Adderall had no active ingredients at all.
According to federal authorities, Fu operated a company called “Axson Engineering, Inc.” (Axson Data) based in Canoga Park, California. While his company was supposed to focus on data services, Fu allegedly utilized the company to process illegal payments for drugs purchased through online pharmacies.
Investigations found that Axson Data, operated by Fu, handled all payments from the 18 undercover purchases and transferred the funds to overseas companies, often disguised as payments for other services such as IT consulting.
From January 2021 to August 2024, Axson’s bank accounts received approximately $11.5 million in total deposits from individuals across the U.S., with many payments related to orders from online pharmacies. This money came from individuals across the U.S., including those from Massachusetts, often for the purchase of illegal drugs from fake online pharmacies.
Evidence was found on an Apple account related to Axson Data. Among the discovered documents was a photo showing a positive test result for methamphetamine. The photo also included a conversation presumably from a customer complaining about receiving counterfeit drugs, stating, “I ordered Adderall… but got this… this is a pressed meth pill. I said if they don’t really have Adderall, I’d take 20mg Ritalin instead. They refused (to send me Ritalin) unless I send these back (which is highly illegal).”
Fu faces a charge of money laundering conspiracy, which carries a maximum sentence of 20 years imprisonment, 3 years of supervised release, and fines of up to $500,000 or twice the amount of laundered funds (whichever is higher).
This case falls under the Organized Crime Drug Enforcement Task Force (OCDETF) operation plan, aimed at identifying and combatting high-level criminal organizations that pose a threat to the U.S. For more information, please refer to the OCDETF official website.