The United States Attorney's Office

INTERNATIONAL STEROID ENFORCEMENT ACTION IN HOUSTON SHUTS DOWN
LARGE UNDERGROUND STEROID LAB

  Raw steroid material from China, thousands of steroid pills
and laboratory equipment seized

(HOUSTON, Texas) – United States Attorney Don DeGabrielle and federal law enforcement officials of the Drug Enforcement Administration (DEA), Food and Drug Administration (FDA) Office of Criminal Investigations and the U.S. Postal Inspection Service today announced the culmination of Operation Raw Deal, an International case targeting the global underground market of anabolic steroid, human growth hormone and insulin growth factor.  The investigation also includes significant enforcement of illicit underground trafficking of ancillary and counterfeit medications.

The investigation represents the largest steroid enforcement action in U.S. history and took place in conjunction with enforcement operations in nine countries worldwide.  The Internal Revenue Service (IRS), Immigration and Customs Enforcement, National Drug Intelligence Center and FBI also played key roles in the investigation.

143 federal search warrants were executed on targets nationwide, resulting in 124 arrests and the seizure of 56 steroid labs across the United States.  In total, 11.4 million steroid dosage units were seized, as well as 242 kilograms of raw steroid powder of Chinese origin.  As part of Operation Raw Deal, $6.5 million was also seized, as well as 25 vehicles, three boats, 27 pill presses and 71 weapons.  Enforcement activity took place in 27 states.

In Houston, following the discovery of a huge operating underground steroid lab at a residence on O’Day Road in Pearland, special agents of the DEA and IRS Criminal Investigation arrested Kenneth Hebert, 36,an alleged anabolic steroid manufacturer and distributer, and his common law wife, Leticia Zamora, 36, Thursday, Sept. 20, 2007.  Both are charged with conspiracy to possess with intent to distribute anabolic steroids.

“Clandestine drug labs manufacture adulterated and dangerous products,” Don DeGabrielle stated.  “This case demonstrates the successful efforts of various federal agencies to disrupt the international drug trade that so adversely impacts our society.”

 “The problem of anabolic steroid and human growth hormone abuse is one that seriously endangers the welfare of our youth, athletes and society every day.” said Zoran B. Yankovich, Special Agent in Charge, DEA’s Houston Field Division.  “Operation Raw Deal, both here in Houston and in other major cities across the U.S. and internationally, successfully exposed this insidious industry and significantly disrupted its criminal activities.  DEA, along with its domestic and foreign law enforcement partners will continue to target and eliminate raw material manufacturers and suppliers; the underground steroid labs in the U.S., Canada, and Mexico; and the U.S. based internet websites distributing these materials.”      

"IRS Criminal Investigation realizes the detrimental consequences this type of crime has on our youth and America, in general,” said IRS Acting Special Agent in Charge Vincent C. Williams.  “We will cooperate with all our law enforcement partners in efforts to eradicate this abusive activity.”

According to the allegations of a former customer contained in the criminal complaint filed in the Southern District of Texas Friday, Sept. 21, 2007, Hebert is an alleged large-scale steroid distributor who processes and manufactures raw anabolic material into steroid pills and injectable steroids.   A former customer and another distributer, who both allegedly did business with Hebert, claim they routinely ship raw anabolic material they had obtained from China to Hebert for processing into pills, and send him approximately $40,000 to $50,000 in cash monthly.  The raw anabolic material and the cash was sent via U.S. mail or private carrier to a post office box in Pearland registered to Hebert.   The injectable anabolic steroid was provided in glass or plastic bottles which resembled pharmaceutical quality products with labels bearing the names “TEXSTAR LAB” or more recently “PHALCO” or “PHALCO LABS,” according to allegations in the complaint.  Through additional investigation, agents identified Hebert and Zamora’s residence on O’Day Road.

On Sept. 20, 2007, DEA and IRS Agents executed a federal search warrant at the Hebert/Zamora residence and discovered a clandestine steroid laboratory.  Agents found four pill/tablet presses each standing five feet tall, eight kilograms of raw steroid powders, more than 100,000 steroid pills/tablets, 200 - 10 milligram vials of injectable anabolic steroids, 1 pill cleaner machine, several 50 kilogram drums of (steroid) binder material, hundreds of empty 10 milligram glass vials, a large quantity of labels and a large volume of glassware, vials and bottling supplies.  The complaint alleges the items seized were consistent with a large scale steroid laboratory capable of producing at least 50,000 tablets an hour. 
Both Hebert and Zamora, who have been in custody since their arrest, were scheduled to appear this morning before a U. S. Magistrate Judge in Houston. 

Operation Raw Deal is a four-prong strategy focusing on: (1) raw material manufacturers/suppliers in China and other countries; (2) underground anabolic steroid laboratories in the United States, Canada and Mexico; (3) numerous U.S. based websites distributing materials (“conversion kits”) necessary to convert raw steroid powders into finished product; and (4) Internet bodybuilding discussion boards that are the catalyst for individuals to learn how to illicitly use, locate and discretely purchase performance enhancing drugs, including anabolic steroids.  Many of the underground steroid labs targeted in this case advertise and are endorsed on these message boards.

Operation Raw Deal followed the success of DEA’s Operation Gear Grinder, which culminated in December 2005.  Operation Gear Grinder targeted eight of the largest steroid manufacturing companies in the world (all located in Mexico) and created a void in the supply of steroids on the illicit U.S. market.  This void in the supply of steroids from Mexico cast further spotlight on the rest of the world, specifically China.

According to federal investigators, worldwide manufacturers of the raw materials needed for steroids use websites to market their products and even provide guidance to potential customers.  Steroid Internet message boards and chat rooms also use the latest technology in an effort to keep their business transactions – and those of their customers – anonymous.  These websites, chat rooms and message boards also provide information on how to convert the raw material into finished steroid product and boast of their ability to resist law enforcement scrutiny.  In addition, these sites promote and often sell “conversion kits” that are sent to customers and allow them to convert raw materials into steroids.
Besides steroids, many websites targeted also offered other dangerous drugs and chemicals such as ketamine, fentanyl, ephedrine, pseudoephedrine and GHB.

DEA, FDA Office of Criminal Investigations, U.S. Postal Inspection Service and other federal law enforcement officials collected information on overseas companies who manufacture raw steroid material and do illicit business with customers in the United States and throughout the world.  One example is China, where DEA has provided its law enforcement partners there with information on numerous companies who produce and market steroids and their raw materials worldwide.  Willing law enforcement partners in China have worked with DEA and other federal agencies on this issue as they prepare to host the 2008 Summer Olympics in Beijing.

There is great danger in buying steroids, chemicals and other illicit products on the Internet.  Many companies operating illegally both in the United States and worldwide have no regard for product safety and mislabeling is common – both intentional and unintentional.  Products are often misrepresented, and their safety is not at all guaranteed.  In addition, federal agents report many of the underground steroid labs seized in Operation Raw Deal are extremely unsanitary, further illustrating the danger in buying these products illegally.  For example, recent lab seizures uncovered huge amounts of raw materials being mixed in bathtubs and bathroom sinks.

Steroid abuse comes with a high price.  Potential negative side effects include: headaches, baldness, strokes, blood clots, high blood pressure, heart disease, nausea, bloating, impotence, reduced sperm count, aching joints, aggressive behavior, increased risk of tendon injuries, enlarged prostate, urinary and bowel problems, mood swings, liver damage, breast development and severe acne.  Some young people have even taken their own lives from depression caused by steroid abuse.  Professional and amateur athletes worldwide have experienced the shame and embarrassment of steroid abuse.  Athletic achievements worldwide are often tainted because there is so much speculation about steroid abuse. 

Operation Raw Deal is a Special Operations Division-supported multi-jurisdictional, multi-agency, Organized Crime Drug Enforcement Task Force investigation.  DEA San Diego and DEA New York provided the lead guidance on the case.  In addition to the federal agencies mentioned above, other nations and agencies involved in the success of Operation Raw Deal are: Mexico, Canada, China, Belgium, Australia, Germany, Denmark, Sweden and Thailand.

Assistant U. S. Attorney Peter Mason will prosecute the case pending in the Southern District of Texas.

A criminal complaint is an accusation of criminal conduct, not evidence.  A defendant is presumed innocent unless and until convicted through due process of law.

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