US Announces New Sanctions On Mexican Cartel Figures, 2 Companies Involved In Fuel Theft And Fentanyl Trafficking

In a sweeping enforcement action, the U.S. Department of the Treasurys Office of Foreign Assets Control (OFAC) has sanctioned three Mexican nationals and two Mexico-based companies connected to a criminal network supporting the Cartel Jalisco Nueva Generacion (CJNG), one of the most violent and prolific drug trafficking organizations in the world.

The announcement highlights the cartels expanding revenue streams, which now include widespread fuel theft and crude oil smuggling schemes that have become major sources of illicit income alongside the trafficking of deadly drugs like fentanyl.

“Fuel theft and crude oil smuggling are cash cows for CJNGs narco-terrorist enterprise, providing a lucrative revenue stream for the group and enabling it to wreak havoc in Mexico and the United States,” Secretary of the Treasury Scott Bessent said in a statement. “Treasury, as part of the Administrations whole-of-government effort, will continue to use all available tools to relentlessly target drug cartels and foreign terrorist organizations to Make America Safe Again.”

CJNG, designated by the U.S. as a Foreign Terrorist Organization and a Specially Designated Global Terrorist, has diversified its criminal activities in recent years. Fuel theft, or “huachicol,” now represents a key non-drug revenue stream, with stolen crude oil smuggled across the U.S. border and sold on the black market through complicit importers. These schemes not only hurt the Mexican government — resulting in billions in lost revenue — but also bolster the cartels ability to traffic narcotics and fund violence.

At the center of the latest sanctions is Cesar Morfin Morfin (known as “Primito”), a CJNG leader operating in Tamaulipas, Mexico. Primito, once affiliated with the Cartel del Golfo, has built his faction into a major CJNG operation responsible for fentanyl, methamphetamine, and heroin trafficking into the U.S. Recently, his network shifted focus toward crude oil smuggling, leveraging his control over border crossing points and corrupt networks to facilitate illegal imports.

Two of Morfins brothers, Alvaro Noe Morfin Morfin and Remigio Morfin Morfin, were also sanctioned for their roles in narcotics and crude oil trafficking. In addition, two transportation companies — SLA. Servicios Logisticos Ambientales, S.A. de C.V. and Grupo Jala Logistica, S.A. de C.V. — linked to Primito were targeted for their involvement in moving stolen fuel across the border.

“Primito’s luxurious lifestyle has included ownership of exotic animals and dozens of luxury vehicles,” the Treasury said in a news release, including a photo of a jaguar allegedly seized from Primito by Mexican authorities.

The Treasurys Financial Crimes Enforcement Network (FinCEN) simultaneously issued an alert to financial institutions identifying typologies and red flags associated with the cartels crude oil smuggling operations, signaling an enhanced focus on disrupting these financial networks.

The designations mark the latest in a series of actions targeting CJNG and other cartels. Since President Donald Trumps directive to eliminate transnational criminal organizations, the Treasury has sanctioned individuals and entities tied to major players including the Sinaloa Cartel, La Nueva Familia Michoacana, and human smuggling networks.

As a result of these sanctions, all property and interests in property of the designated individuals and companies that are in the United States or in control of U.S. persons are frozen. U.S. persons are generally prohibited from dealing with these parties without a license from OFAC.

The move also imposes potential secondary sanctions on foreign financial institutions that knowingly conduct transactions with these designated parties.

While the designations aim to disrupt the cartels financial pipeline, the Treasury emphasized that the goal of sanctions is ultimately to change behavior. A formal process exists for sanctioned individuals or companies seeking removal from the Specially Designated Nationals list.