Chemical Importer to Pay $300K for Alleged Violations

Shrieve Chemical Co. 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.

In December 2022, DEA diversion investigators conducted an on-site inspection of the Shrieve Chemical facility in Marlin, TX. They allege 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 US 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.”

In January, The Woodlands, TX-based company acquired TLC Ingredients, a distributor of food ingredients, industrial chemicals, and phenolic resins based in Crest Hill, IL.