DEA New Jersey Diversion Seizes 3,135 pounds of Bulk
OCT 11 -- NEWARK -- Gerard P. McAleer, Special Agent in Charge of the Drug Enforcement Administration (DEA) New Jersey Division announced today that the DEA New Jersey Division “Diversion Unit” seized 3,135 pounds of a List I Chemical pseudoephedrine from Malladi, Inc., at a warehouse located in Kearny, New Jersey. DEA Diversion investigators seized the 3,135 pounds of pseudoephedrine; the largest amount this year in New Jersey pursuant to a civil investigation that disclosed that Malladi, Inc. was concealing the location and the true identity of the bulk pseudoephedrine. If not seized by DEA, the pseudoephedrine could have been diverted into the illegal black market and sold to potential clandestine manufactures of methamphetamine.
“DEA New Jersey’s Malladi seizure takes 3,135 pounds of chemicals out of the hands of criminals potentially producing highly addictive methamphetamine, polluting the environment and leaving a chemical trail throughout New Jersey. This is another law enforcement victory pursuant to the National Synthetic Drug Action Plan announced in August 2005,” McAleer said.
The DEA Office of Diversion Control is an investigative arm of DEA that is responsible for addressing the issues and problems of diversion of controlled pharmaceuticals and regulated chemicals from legitimate channels in which they are manufactured, distributed and dispensed. The mission of the Office of Diversion Control is to aid the pharmaceutical and chemical industries in complying with the Controlled Substance Act (CSA), Domestic Chemical Diversion Control Act (DCDCA), Comprehensive Methamphetamine Control Act (CMCA), and other pertinent acts.
The DEA NJ Diversion Unit has been investigating Malladi, Inc. owned by Prashant Malladi and managed by Manikantan Swaminathan and Sanjay Lanka for over 2 1/2 years. Throughout the investigation the DEA NJ Diversion Group, found 40 violations of the Controlled Substance Act and Malladi Inc. could be subject to $430,000.00 dollars in civil fines.
On April 11, 2005 Malladi, Inc. surrendered their DEA registrations which authorized them to import and export any List I chemicals. During the investigation the DEA NJ Diversion Unit seized the following from Malladi, Inc:
April 8, 2005- 11,440 pounds of pseudoephedrine and ephedrine
April 14, 2005- 44,000 pounds of ephedrine hydrochloride
May 2, 2005- 44,000 pounds of ephedrine hydrochloride
The federal civil investigation is being prosecuted by the United States Attorney’s Office for the District of New Jersey headed by Christopher J. Christie. Rudolph Filko is the Assistant United States Attorney who will represent the Government.