Chemical Importer to Pay $300,000 in Civil Penalties for Alleged Violations of the Controlled Substances Act

WACO, Texas - Shrieve Chemical Company, LLC, a Drug Enforcement Administration-registered importer and distributor of listed chemicals, has agreed to pay $300,000 in civil penalties to resolve allegations that it violated provisions of the Controlled Substances Act, 21 U.S.C. §§ 801 et seq.

In December 2022, DEA diversion investigators conducted an on-site inspection of a Shrieve Chemical facility in Marlin, Texas. Following the inspection, investigators alleged that Shrieve Chemical violated certain regulatory recordkeeping requirements relating to the importation and distribution of listed chemicals; manufactured gamma-butyrolactone (GBL), a List I chemical, by repackaging and relabeling, without registering as a manufacturer; and made a drop shipment of GBL to a customer without first importing the chemical to Shrieve Chemical's registered location.

Listed chemicals are chemicals designated by the DEA that, in addition to legitimate uses, can be used in the illicit manufacture of controlled substances. List I chemicals are mostly precursor chemicals that serve as key ingredients used to produce controlled substances. List II chemicals are mostly reagents or solvents.

"Companies must be vigilant in following rules meant to ensure that precursor chemicals do not fall into the wrong hands," said U.S. Attorney Jaime Esparza for the Western District of Texas. "My office will continue to investigate and pursue alleged violations involving listed chemicals, even absent evidence of diversion or misuse, to protect the community."

"The accountability of these chemicals is instrumental in ensuring the safety of our citizens," said Special Agent in Charge Daniel C. Comeaux for the DEA Houston Division. "Too often these chemicals are used for the purpose of manufacturing harmful illegal drugs that end up in our communities and neighborhoods."

DEA's San Antonio District Office Diversion Control Unit led the investigation of this matter. Assistant U.S. Attorneys Thomas Parnham and Erin Van De Walle negotiated the settlement on behalf of the government. The claims resolved by the settlement are allegations only and there has been no determination of liability. ##