The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on two Indian nationals, Sadiq Abbas Habib Sayyed and Khizar Mohammad Iqbal Shaikh, for their involvement in supplying large quantities of counterfeit prescription pills containing fentanyl and other illegal drugs to individuals in the United States. An India-based online pharmacy, KS International Traders, was also sanctioned for its role in these activities.
“Too many families have been torn apart by fentanyl. Today, we are acting to hold accountable those who profit from this poison,” said Under Secretary for Terrorism and Financial Intelligence John K. Hurley. “Treasury will continue to advance President Trump’s commitment to Make America Fentanyl Free by targeting drug traffickers.”
Fentanyl is a leading factor in the synthetic opioid crisis that has resulted in hundreds of thousands of deaths across the country. Opioid overdoses are currently the main cause of death among Americans aged 18 to 45. The United States and India have continued their cooperation under the U.S.-India Drug Policy Framework to address illicit drug trafficking, enhance public health measures, and strengthen global supply chains.
The action was taken under Executive Order 14059, which targets international efforts to produce and distribute illegal drugs. Multiple agencies were involved in this effort, including the Department of Justice (DOJ), Drug Enforcement Administration (DEA), Homeland Security Investigations, Internal Revenue Service – Criminal Investigations, and the U.S. Postal Inspection Service.
Online pharmacies based abroad have contributed to the spread of fentanyl in recent years by sending synthetic opioids and related chemicals into the United States. Mexican criminal organizations also acquire precursor chemicals from these sources for use in their own operations.
The DEA issued a warning on October 4, 2024 about a rise in illegal online pharmacies shipping counterfeit pills made with fentanyl and methamphetamine to buyers who believe they are purchasing real medications such as Oxycodone or Xanax from legitimate sources.
Sayyed and Shaikh worked with partners based in both the Dominican Republic and United States to sell fake pills marketed as discounted pharmaceutical products but actually containing substances like fentanyl analogues or methamphetamine. They used encrypted messaging services for business communications with victims. Both were indicted on narcotics charges by a federal grand jury in New York in September 2024.
Shaikh owns KS International Traders (also known as “KS Pharmacy”), which served as a platform for his criminal activity even after being named in DOJ’s indictment last year.
According to OFAC regulations, all property belonging to those designated is now blocked if located within or controlled by U.S. persons or entities; transactions involving these assets are prohibited unless specifically authorized by OFAC licenses or exemptions. Entities owned at least 50 percent by blocked individuals are also subject to these restrictions.
Violations can result in civil or criminal penalties under strict liability rules enforced by OFAC guidelines. Financial institutions risk sanctions exposure if they engage with designated persons or entities.
OFAC maintains authority not only through adding names to its Specially Designated Nationals list but also through removing them when justified under law: “The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior.” Information about seeking removal from sanction lists is available through official OFAC channels.
More information on today’s designations can be found at https://home.treasury.gov/news/press-releases/jy1953
