WASHINGTON – The U.S. Department of Treasury has sanctioned nine Mexican individuals and 26 Mexico-based entities it says are part of a fuel theft network that generates tens of millions of dollars for a violent drug cartel. Cartel Jalisco Nueva Generacion (CJNG) is considered by the Mexican government to be one of the most dangerous criminal organizations in Mexico. The U.S. also alleges that the cartel is a major player in trafficking fentanyl and other deadly drugs into the country.
“CJNG’s diverse revenue streams, including fuel theft, ultimately strengthen its ability to traffic fentanyl and other deadly drugs into the United States,” said Deputy Secretary of the Treasury Wally Adeyemo.
Fuel thieves steal fuel from Mexico’s state-owned petroleum company, Pemex. Methods include illegal taps on fuel pipelines, theft from refineries, and hijacking tanker trucks. The stolen fuel is then sold on the black market in Mexico, as well as in the U.S. and Central America. In recent years, as Mexican cartels have become more involved in fuel theft, the Mexican government has reported billions of dollars in losses.
One key figure in the operation, Ivan Cazarin Molina, also known as “El Tanque” (meaning the storage tank), was among those sanctioned. El Tanque, a senior CJNG member, is said to steal fuel via illegal taps on Pemex pipelines and store it in massive tanks near Veracruz. He then allegedly sells the stolen fuel through legitimate-looking gas stations managed by family members and associates, as well as to third parties, some of whom funnel it into the U.S., primarily in Texas.
Further details about those sanctioned can be found on the Treasury Department’s website.
Over the past two years, the Treasury has sanctioned more than 300 targets for drug trafficking.