A Lake Oswego man pleaded not guilty Monday in federal court to a new four-count indictment that charges him for the first time with the distribution of fentanyl that resulted in the October 2017 death of a man in Wisconsin.

Joseph Richard Caruso, 33, is accused of importing packages of a version of the opioid drug fentanyl from China and was arrested in November.

The indictment also charges him with unlawful importation of a controlled substance analogue, attempted possession with the intent to distribute a controlled substance and possession with the intent to distribute a controlled substance.

Caruso came to the attention of authorities when federal postal inspectors intercepted a suspicious package addressed to him from China. The package label suggested it held a knitting needle, but an inspector noticed the small yellow padded envelope appeared to hold powder, according to a federal complaint.

Investigators opened the envelope and discovered a heat-sealed package that contained a white powdery substance that tested positive for Cyclopropyl fentanyl, a new version of fentanyl responsible for several recent overdose deaths in the Portland area, according to Guy Gino, a special agent with the U.S. Department of Homeland Security.

Further investigation showed that six packages were mailed to Caruso from China between October 2016 and November 2017. The imported goods were labeled as containing a "knitting needle,'' "samples of cosmetics,'' a doll or toy.

Court records allege that the fentanyl Caruso sent to the Wisconsin man resulted in his Oct. 23 death. The Wisconsin man appears to have ordered fentanyl online from Caruso, prosecutor Scott Kerin said previously in court.

Drug packaging material found near the victim's body was similar to the packaging material found in Caruso's home. The victim has been identified in court papers only by the initials "B.S.''

Court records also indicate that federal investigators located the equivalent of $753,356 in in virtual currency that Caruso held.

Caruso remains out of custody on GPS monitoring and home detention. A new trial date was set for March 27.

-- Maxine Bernstein

mbernstein@oregonian.com

503-221-8212

@maxoregonian