August 07, 2020

DOJ Charges American Darknet Suppliers and Costa Rican Pharmacist with Narcotics Sales and Money Laundering

David Brian Pate and Jose Luis Fung Hou were indicted by a federal grand jury in the District of Columbia for illegal sales of opioids on the darknet. The indictment also alleges that Pate’s darknet sales included sending bulk shipments of narcotics in pill form from Costa Rica, concealed in tourist souvenirs, to his co-conspirators in the U.S, who re-shipped the drugs. The re-shippers would make smaller packages of pills and ship them to the customer. Once the shipments were received by the customers, the darknet would send funds in bitcoin, which were held in escrow until the transaction was completed and then transferred to Pates’ darknet account. It was alleged that customers paid Pate over 23,903 bitcoin for sales of narcotics, including OxyContin and morphine primarily provided by Fung.