Deputy Treasury Secretary Wally Adeyemo speaks at the Justice Department, Jan. 18, 2023, in Washington. A chemical firm based in Port Coquitlam, B.C., claims Health Canada wrongfully cancelled its licences to make natural health products after being sanctioned by the U.S. Treasury Department for alleged involvement in importing precursor chemicals used in illicit drug production. THE CANADIAN PRESS/AP, Nathan Howard
Vancouver— Chemical Firm Challenges Health Canada License Cancellations Following U.S. Sanctions.
Valerian Labs, a chemical company located in Port Coquitlam, British Columbia, has filed a lawsuit against Health Canada, claiming that the agency wrongly revoked its licenses to produce natural health products. This action followed sanctions imposed by the U.S. Treasury Department, which accused the firm of being involved in importing precursor chemicals for illicit drug production.
In October 2023, the U.S. Treasury announced sanctions against Valerian Labs and its owner, Bahman Djebelibak, also known as Bobby Shah. Just five days later, Health Canada suspended and subsequently canceled the company’s licenses. Valerian Labs contends that these decisions were based solely on a U.S. Treasury news release that implicated the firm in the "international proliferation of illicit drugs."
Wally Adeyemo, Deputy Secretary of the Treasury, highlighted in the announcement that the sanctions targeted a network based in China linked to the manufacture and distribution of fentanyl, which contributes to thousands of deaths in the United States annually. Following the U.S. actions, Health Canada’s Office of Controlled Substances revoked Valerian's registration under the "Precursor Control Regulations," which are designed to regulate substances often diverted for illegal drug production.
Health Canada defines precursor chemicals as substances commonly misused for the illegal manufacture of drugs. Valerian Labs argues that the Canadian agency’s actions were unjust, relying on an unverified foreign press release to make its decision.
The U.S. Treasury Department’s sanctions identified various Chinese companies, including Jinhu Minsheng Pharmaceutical Machinery Co., which was implicated in the production of counterfeit oxycodone pills. The Treasury stated that Valerian Labs was a significant customer of Jinhu Minsheng, reportedly receiving shipments of methylamine hydrochloride—a chemical described as a precursor for methamphetamine and MDMA.
In a response to the allegations, Shah denied any connection to the drug trade but acknowledged purchasing methylamine hydrochloride. He stated that his only error was maintaining the chemical in inventory as a vendor.
Valerian's legal filings, submitted on September 13 in Vancouver's Federal Court, assert that Health Canada has not provided sufficient reasoning to justify the license suspension based on the press release. A spokesperson for Health Canada declined to comment on the specific case, emphasizing that the agency prioritizes the health and safety of Canadians.
Health Canada reaffirmed its commitment to ensuring that health products available in Canada are safe and effective. The agency stressed that any potential health risks would prompt compliance and enforcement actions, along with public communications.
Valerian Labs was previously registered in British Columbia under the name Hollywood Vape Labs. Additionally, Shah and his former wife faced a civil forfeiture lawsuit from the B.C. government, which was ultimately dropped. In 2021, a judge found that police had violated their rights during a separate investigation.
Tragically, Ramina Shah, Bobby's former wife, was murdered in January 2022. The Integrated Homicide Investigation Team is currently investigating her death, but no further comments can be made due to its ongoing nature.
The U.S. Department of the Treasury has not responded to requests for comments regarding the sanctions against Valerian Labs.
