The US Treasury Department has imposed sanctions on two Indian nationals and an India-based online pharmacy for supplying counterfeit prescription pills laced with fentanyl and other illicit drugs to American customers.
As per a release by the US Department of the Treasury, the Office of Foreign Assets Control (OFAC) has named Sadiq Abbas Habib Sayyed and Khizar Mohammad Iqbal Shaikh for their role in distributing hundreds of thousands of fake medicines. OFAC has also sanctioned Shaikh’s company, KS International Traders, which operated as an online pharmacy.
Counterfeit pills sold as legitimate medicines
According to the release, Fentanyl, a powerful synthetic opioid, has been the biggest driver of the opioid crisis in the US. Overdose remains the leading cause of death among Americans aged 18 to 45.
US authorities said Sayyed and Shaikh marketed their products as legitimate pharmaceuticals but sold counterfeit pills laced with fentanyl, fentanyl analogues, and methamphetamine. They worked with traffickers in the Dominican Republic and the US, using encrypted platforms to sell their drugs.
US Treasury Department said that online pharmacies like KS International Traders are a major source of counterfeit pills. These fake medicines often look like genuine products such as Oxycodone, Adderall or Xanax, making US consumers believe they are buying from legitimate pharmacies.
Inducted by federal grand jury in 2024
Both men were earlier indicted in September 2024 by a federal grand jury in New York on narcotics-related charges. Shaikh, who owns KS International Traders (also known as KS Pharmacy), continued to run the operation even after his indictment, officials said. The online pharmacy was allegedly used to further his drug trafficking network.
Sanctioned under Executive Order 14059
Today Sayyed and Shaikh were sanctioned under Executive Order 14059, which allows the US government to act against individuals and entities contributing to the international spread of illicit drugs. Under the sanctions, all property and interests of the designated individuals and entities in the US are frozen.
American citizens and companies are prohibited from doing business with them. Authorities warned that any person or institution engaging with these designated entities may also face penalties. Any firm that is 50 percent or more owned by the designated individuals is also automatically blocked under OFAC rules.OFAC doesn’t have to prove intent—it can punish on a “strict liability” basis.
John K. Hurley, Under Secretary for Terrorism and Financial Intelligence said that the Treasury will continue to advance President Trump’s commitment to Make America Fentanyl Free by targeting drug traffickers. “Too many families have been torn apart by fentanyl. Today, we are acting to hold accountable those who profit from this poison,” he said.