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 counterfeit prescription pills containing fentanyl and other illicit drugs to people in the United States. An India-based online pharmacy was also sanctioned for its role in these operations.
“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 major factor in the ongoing synthetic opioid crisis in the United States, which has led to hundreds of thousands of deaths. Opioid overdoses remain the leading cause of death among Americans aged 18 to 45. The United States and India are working together under the U.S.-India Drug Policy Framework to address the impact of illicit drugs, combat trafficking, improve public health, and strengthen global supply chains.
The sanctions were enacted under Executive Order 14059, which addresses international drug proliferation and production methods. The action was coordinated with several agencies including the Department of Justice (DOJ), Drug Enforcement Administration (DEA), Homeland Security Investigations, Internal Revenue Service – Criminal Investigations, and U.S. Postal Inspection Service.
Online suppliers from India have played a role in supplying fentanyl and precursor chemicals used by Mexican cartels for clandestine production. Illegal online pharmacies based in India have distributed counterfeit pills worldwide that often resemble legitimate medications but contain dangerous substances.
On October 4, 2024, the DEA warned about an increase in illegal online pharmacies selling counterfeit pills made with fentanyl and methamphetamine to unsuspecting customers who believe they are buying real pharmaceutical drugs such as Oxycodone or Xanax from reputable sources.
Sayyed and Shaikh collaborated with narcotics traffickers based in the Dominican Republic and United States to sell these counterfeit pills as discounted pharmaceuticals filled with illicit drugs like fentanyl analogues and methamphetamine. Both individuals used encrypted messaging platforms for their activities. They were indicted on narcotics-related charges by a federal grand jury in New York in September 2024.
Shaikh owns KS International Traders (“KS Pharmacy”), an online pharmacy used as part of his criminal activities. Despite being indicted by DOJ in 2024, Shaikh continues operating KS International Traders.
As a result of these sanctions, all property belonging to Sayyed, Shaikh, or KS International Traders within U.S. jurisdiction is blocked and must be reported to OFAC. Entities owned at least 50 percent by blocked persons are also subject to these restrictions. Transactions involving blocked persons are generally prohibited unless authorized by OFAC.
Violating U.S. sanctions can lead to civil or criminal penalties for both domestic and foreign individuals or entities involved. Financial institutions may face exposure if they engage with designated persons or entities.
OFAC notes that while its authority includes adding names to sanction lists such as the Specially Designated Nationals List (SDN List), it can also remove names consistent with legal standards if behavior changes positively.