finance
Treasury Sanctions Nine Firms and Two Men Tied to Jalisco Cartel Fuel Theft
The U.S. Treasury imposed sanctions on two Mexican men and nine companies accused of operating a fuel-theft network linked to the Jalisco New Generation Cartel. Treasury also issued an alert to banks about patterns of fuel smuggling from the U.S. into Mexico.
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The U.S. Treasury announced sanctions against two Mexican men and nine companies involved in transportation, financial services, and real estate, accusing them of ties to a fuel-theft operation that generates tens of millions of dollars annually for the Jalisco New Generation Cartel.
Treasury’s Office of Foreign Assets Control said the network helps the cartel evade Mexican taxes by tapping pipelines and diverting fuel to service stations. Mexican authorities have seized millions of gallons of stolen diesel, gasoline, and petroleum distillates in states bordering Texas in recent years.
Network issued an alert to financial institutions highlighting red flags associated with fuel smuggling from the U.S. into Mexico. The alert focuses on schemes that combine smuggling with Mexican tax evasion.
“Today’s action highlights the extent to which Mexico’s cartels are expanding beyond traditional drug trafficking to generate revenue for their criminal organizations, which continue to traffic deadly drugs that kill Americans,” Treasury Secretary Scott Bessent said in a statement.
The U.S. Drug Enforcement Agency has reported the Jalisco New Generation Cartel’s presence in 21 of Mexico’s 32 states. Last year, President Donald Trump designated the Jalisco New Generation Cartel and five other Mexican cartels as foreign terrorist organizations.
