A federal grand jury has indicted a Chinese company and three Chinese nationals for allegedly importing pill-making equipment illegally. The Department of Justice revealed the indictment, which was returned on April 23 and unsealed recently. The charges are against CapsulCN International Co. Ltd. (CapsulCN) and individuals Xiochuan “Ricky” Pan, Tingyan “Monica” Yang, and Xi “Inna” Chen from China. They face accusations related to smuggling, violations of the Controlled Substances Act, and money laundering.
The indictment claims that CapsulCN imported tableting machines, encapsulating machines, and counterfeit die molds capable of producing fake pills in large quantities. Pan is also charged with leading a continuing criminal enterprise. Additionally, four internet domains used by CapsulCN to market these illicit products were seized as part of the investigation.
Deputy Attorney General Todd Blanche stated: "This indictment and today’s domain seizures send an unmistakable message to criminals in the People’s Republic of China and across the world — the Department will use every weapon in its arsenal to combat those who facilitate the manufacture and distribution of deadly drugs in the United States."
Acting U.S. Attorney Margaret Leachman for the Western District of Texas emphasized their commitment: "This U.S. Attorney’s Office is focused on bringing the full force of justice to anyone who conspires to poison our communities with fentanyl."
Special Agent in Charge Jason T. Stevens from HSI El Paso Division commented on their efforts: "These indictments against Chinese nationals exemplify Homeland Security Investigations’ unwavering commitment to breaking every link of the global fentanyl supply chain."
According to court documents, between December 2011 and April 2025, Pan led CapsulCN in advertising pill-making equipment online targeting U.S. customers seeking counterfeit pills resembling prescription drugs. In 2020, a new brand named “PillMolds” was created by Pan and Yang for promoting counterfeit die molds.
The indictment alleges that CapsulCN concealed its operations from U.S. authorities using deceptive packaging methods and false manifests while disassembling machines for shipment as separate parts.
Yang, Chen, along with other sales representatives at CapsulCN reportedly communicated extensively with potential U.S. customers via email and encrypted messaging applications about smuggling equipment into America.
The investigation involved multiple agencies including Homeland Security Investigations El Paso Field Office, Customs and Border Protection, IRS Criminal Investigation’s El Paso Office, and U.S Postal Inspection Service.
The case is being prosecuted by attorneys from both the Department of Justice's Consumer Protection Branch as well as Assistant U.S Attorneys from Texas' Western District office under an Organized Crime Drug Enforcement Task Forces (OCDETF) operation aimed at dismantling high-level criminal organizations threatening national security.
It should be noted that an indictment represents allegations only; all defendants remain presumed innocent until proven guilty beyond reasonable doubt within judicial proceedings.