United States Drug Enforcement Administration

SOUTH BEND, Ind. – On June 10, 2026, Bao Xu, 33, of Los Angeles, was sentenced by U.S. District Court Judge Damon R. Leichty after pleading guilty to conspiring to distribute methamphetamine and cocaine and distributing five grams or more of methamphetamine.

Xu was sentenced to 121 months in prison followed by four years of supervised release.

“The Drug Enforcement Administration is leading efforts to combat cyber and Dark Web-based criminal networks responsible for the surge of controlled substances throughout the United States. These illicit operations pose a significant threat to public health and safety, exploiting vulnerable individuals and fueling addiction within our communities. For more than a year, Xu managed a highly sophisticated, nationwide drug trafficking organization that operated on a mass scale, thus profiting from the suffering of others. Even Indiana was not immune to his illegal and immoral actions. The sentencing of Xu sends a clear message that this type of criminal activity is not welcomed here in our Hoosier state,” said Alfred Cooke, Assistant Special Agent in Charge of the DEA Merrillville District Office. 

“For more than a year, Xu distributed harmful drugs like methamphetamine and cocaine across the country. From his Los Angeles apartment, Xu marketed drugs on the Dark Web, sold them in exchange for virtual currency, and arranged their delivery via mail. This high-tech scheme distributed drugs to every state in the United States, including cities and towns throughout Indiana, averaging more than 260 drug deals and $55,000 in sales per month and ultimately leading to the seizure of more than $2,000,000 in virtual currency. Xu’s sentence makes clear that drug traffickers cannot hide on the Dark Web: They will be tracked down and brought to justice for sending poison to the heartland. This prosecution was brought through the combined efforts of the Drug Enforcement Administration, the Federal Bureau of Investigation, and the United States Postal Inspection Service with assistance from the St. Joseph County Police Department, Mishawaka Police Department, Indiana State Police, New York City Police Department, Los Angeles County Sheriff’s Department, and South Gate Police Department and prosecuted by Assistant U.S. Attorney and NDIN Appellate Division Chief Joseph P. Falvey,” said U.S. Attorney Adam Mildred.

“The FBI is committed to disrupting the flow of illegal drugs into our communities and holding accountable those responsible for distributing them,” said FBI Indianapolis Acting Special Agent in Charge Timothy J. O’Malley. “Today's sentence is the result of strong partnerships and a shared commitment to protecting the public from the dangers associated with drug trafficking.”

Xu’s co-defendant, Jianhua Zhao, is currently scheduled for sentencing on Sept. 3, 2026.

This case was investigated by the DEA, the Federal Bureau of Investigation, and the United States Postal Inspection Service with assistance from the St. Joseph County Police Department, Mishawaka Police Department, Indiana State Police, New York City Police Department, Los Angeles County Sheriff’s Department, and South Gate Police Department. The case was prosecuted by Assistant U.S. Attorney and Appellate Division Chief Joseph P. Falvey.

This prosecution is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States.