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The indictment of Lei Jin, et. al. in Operation Raw Deal

Over the past two years, federal law enforcement has taken on a new and multi-headed beast - the international smuggling and domestic distribution of Human Growth Hormone and anabolic steroids for illicit use.

Federal agents and prosecutors from my office have coordinated with our colleagues around the country in Operation Raw Deal, a nationwide, multi-agency initiative. Today, we are simultaneously announcing a wave of indictments, arrests, and seizures across the country. Overall, enforcement actions took place in 27 states. 143 federal search warrants were executed, resulting in 124 arrests and the seizure of 56 steroid labs across the United States. In total, 11.4 million steroid dosage units were seized, as well as 242 kilograms of raw steroid powder of Chinese origin.

The District of Rhode Island has played a pivotal role in this operation. Two years ago, a task force led by the Food and Drug Administration Office of Criminal Investigation began developing evidence about large scale, Internet-based trafficking in performance enhancing drugs, including anabolic steroids and HGH.

We have already seen some of the results of that investigation - two New York doctors and a distributor based in New Jersey have pleaded guilty in Rhode Island to trafficking in steroids through phony prescriptions that were filled in a large compounding pharmacy in Florida. Many of the distributor's customers were in Rhode Island.

Today we are announcing that felony charges have been brought in Rhode Island against one of the major international sources of illicit Human Growth Hormone, against alleged HGH distributors both here and abroad, and against an alleged supplier of kits for converting steroids from powder into injectable forms.

A sixteen-count indictment from the federal grand jury includes charges of illegal drug distribution, smuggling, and money laundering. Upon conviction, the maximum penalty for money laundering is 20 years imprisonment and fine of $500,000 or twice the amount of gain or loss. The maximum penalty for each of the other offenses charged in the indictment is five years imprisonment and a $250,000 fine.

The defendants include Lei Jin, who is the CEO of Genescience Pharmaceutical Company - "GenSci" for short - located in Changchun, China. GenSci is alleged to have manufactured Human Growth Hormone under the brand name Jintropin (jin-TROH-pin). Jin is alleged to have used Web sites and e-mails to market Jintropin for illicit use in Rhode Island, in other U.S. states, and in other countries.

The grand jury has also indicted the GenSci corporation and three of Jin's alleged distributors, who are located in California, Shanghai, and Slovenia. They are Jeffrey Rock, Ander Jaa, and David Garcia. Mr. Rock has been arrested and arraigned in California, and has been ordered to appear in the federal court here in Providence on October 10.

Here is how the operation is alleged to have worked:

• A prospective distributor would approach Jin through an e-mail address obtained from GenSci's website and would guarantee to sell a certain number of kits per month.
• End users, in turn, would approach a distributor either on the distributor's website or through "source sections" of bulletin boards in certain fitness websites - after being "invited in" to the website.
• The distributor would quote a price, and instruct the end user to pay either by Western Union or bank transfer. The money is then picked up by various recipients connected to GenSci or ends up in one of several bank accounts controlled by GenSci.
• GenSci pays the distributor a percentage, or provides the distributor with HGH. Often these distributors would use "remailers" in the United States, in order to further disassociate themselves from the drug shipment.

A critical component of any major drug initiative is asset forfeiture, to take the profit out of the business. Thus far in Operation Raw Deal, a total of $6.5 million has been seized, along with 25 vehicles, 3 boats, 27 pill presses, and 71 weapons.

Again, much of the seizure activity has been centered in the District of Rhode Island. As a result of a forfeiture complaint filed here in Providence, federal agents have seized about $3.4 million from the New York branches of two Chinese-owned banks. The money was traced to electronic transfers allegedly made as payment for HGH shipments from GenSci. This was the first time the U.S. government utilized recently amended seizure and forfeiture laws to seize assets in Chinese entities. In all, Rhode Island has been responsible for more than $4.0 million of the total $6.5 million seized nationwide. In addition, our agents seized 11 weapons and over 100,000 dosage units of HGH.

Also, a federal complaint has been filed in Providence against Thomas Thomsen, of Tampa, Florida charging him with illegally selling drug paraphernalia to a man in Rhode Island. The paraphernalia consists of kits used to convert steroids into an injectable form. Mr. Thompson has also been arrested.

In addition to all of the activity here, agents in the Rhode Island based task force have provided over sixty leads to agents working on Operation Raw Deal in other parts of the country. These leads led to five enforcement actions last week - in New York, New Jersey, Texas, and Missouri. These actions resulted in additional seizures of guns, steroids and other pharmaceuticals.

There has been a good deal of publicity surrounding a number of athletes and celebrities charged or suspected of using steroids, HGH, and other substances. While we cannot comment on any links to other operations, I want to emphasize that the charges that we are announcing today do not directly involve any famous people in celebrity occupations.

There is no doubt that the driving force behind the smuggling and illicit use of performance enhancing drugs such as HGH is false vanity - the desire of some to become artificially younger or stronger through the dangerous use of pharmaceuticals. This illicit use of HGH and steroids is endangering the health of many who are on a fool's errand.

Today's indictments should send a strong message that we will pursue and prosecute these rings just as aggressively as heroin and cocaine rings, because the danger they pose is just as real. Even though their storefront is the internet, rather than the street corner, the people who engage in the smuggling and distribution of these substances are drug dealers, plain and simple, and we will treat them accordingly.

Finally, let me add, the charges we are announcing today are allegations. As in every case, at this stage the defendants are presumed innocent unless and until they are found guilty beyond a reasonable doubt.

Contact: 401-709-5032
Thomas.connell@usdoj.gov

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