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 that could be used in illicit drug production.

The U.S. Treasury Department announced sanctions against Valerian Labs and its owner Bahman Djebelibak, who goes by Bobby Shah, in October 2023, and five days later Canada suspended and then cancelled Valerian含羞草研究社檚 licenses to make health products.

Valerian is now taking Health Canada to Federal Court, claiming in judicial review applications that the Canadian actions were solely based on a U.S. Treasury news release alleging it was involved in 含羞草研究社渢he international proliferation of illicit drugs.含羞草研究社�

Deputy Secretary of the Treasury Wally Adeyemo had said in a statement at the time that the targets of the sanctions included a China-based network involved in the manufacturing and distribution of fentanyl and 含羞草研究社渙ther substances that take thousands of American lives each year.含羞草研究社�

Health Canada含羞草研究社檚 Office of Controlled Substances also revoked Valerian含羞草研究社檚 registration and certificate under the agency含羞草研究社檚 含羞草研究社淧recursor Control Regulations,含羞草研究社� which it says 含羞草研究社減rovide a regulatory framework that allows Canada to fulfil its international obligations with respect to the monitoring and control of precursors used in the production of illegal drugs.含羞草研究社�

A Health Canada guidance document defines precursors as 含羞草研究社渃hemicals that are frequently diverted from legitimate activities to the illegal manufacture of drugs.含羞草研究社�

Valerian Labs says the Health Canada decisions were unreasonable and unfair, having relied on an uncorroborated 含羞草研究社渇oreign press release.含羞草研究社�

The U.S. Treasury Department含羞草研究社檚 Office of Foreign Assets Control named several China-based companies in the sanctions announcement, including Jinhu Minsheng Pharmaceutical Machinery Co., which sells equipment and materials allegedly used in the production of counterfeit oxycodone pills.

The department含羞草研究社檚 statement said Valerian Labs was a 含羞草研究社渕ajor customer含羞草研究社� of Jinhu Minsheng, receiving shipments of methylamine hydrochloride 含羞草研究社� which it called a precursor used to produce methamphetamine and MDMA.

Reached by phone and text message, Shah denied allegations related to the drug trade but acknowledged buying the chemical.

含羞草研究社淚 have bought Methylimine HCL, I have bought machinery,含羞草研究社� he wrote in a text message.

His 含羞草研究社渙nly mistake含羞草研究社� he wrote, was that he 含羞草研究社渄idn含羞草研究社檛 just procure. I have them as commodities on my inventory that I offer as a chemical vendor.含羞草研究社�

He said he had been instructed by his lawyer to 含羞草研究社渘ot engage含羞草研究社� with The Canadian Press, and said he did not consent to the use of his remarks. He was told an off-the-record interview needed to be agreed upon from the outset.

Valerian含羞草研究社檚 applications filed Sept. 13 in Federal Court in Vancouver say Health Canada 含羞草研究社渉as not set out any justification as to why the press release provides reasonable ground to believe that a suspension is necessary to prevent injury to the health of purchasers or consumers of products manufactured by Valerian Labs.含羞草研究社�

A Health Canada spokesperson said no one was available for an interview about the company含羞草研究社檚 licence cancellations, and the agency would not comment on ongoing litigation.

In a written statement, Health Canada said its 含羞草研究社渢op priority is protecting the health and safety of the people of Canada.含羞草研究社�

含羞草研究社淭he department is committed to verifying that health products manufactured and sold in the Canadian market are safe, effective and of high quality. When there is information that could give rise to health and safety risks, Health Canada will determine if compliance and enforcement action is required and communicate the risks to the public, if warranted.含羞草研究社�

Company registration records show Valerian Labs used to be registered in B.C. under the name Hollywood Vape Labs, and court records show he and his former wife, Ramina Shah, faced a civil forfeiture lawsuit from the B.C. government, but the case was dropped.

In 2021, a B.C. Provincial Court judge found police had breached the couple含羞草研究社檚 Charter rights against unreasonable search and seizure in a cheque fraud investigation.

Ramina Shah was murdered in January 2022, stabbed to death in a Coquitlam parkade, and the Integrated Homicide Investigation Team said in a written statement it could not comment on an 含羞草研究社渁ctive ongoing investigation.含羞草研究社�

The U.S. Department of the Treasury did not respond to a request for comment on the sanctions against Valerian Labs.