The US Treasury has announced financial sanctions on three Mexican citizens and two Mexico-based Mexican-based entities. Sanctions are coordinated through the department's Office of Foreign Assets Control (OFAC), in collaboration with multiple federal law enforcement agencies. The intent is to disrupt the CJNG cartel's ability to continue to benefit from fentanyl trafficking and massive fuel smuggling activities.
The sanctions target network generates hundreds of millions of dollars a year for the CJNG cartel through a number of criminal activities, including fentanyl trafficking, fuel theft and smuggling stolen crude oil from Mexico, according to the Treasury Department.
Commenting on the government-wide efforts to attack cartel network operatives, Treasury Secretary Scott Bescent said, “Fuel theft and oil smuggling are cash cows for CJNG's drug terrorist companies, providing a profitable stream of revenue for the group and enabling them to continue their efforts in Mexico. Using all the tools available, they will relentlessly target drug cartels and foreign terrorist organizations to make America safe again.”
Coordinated sanctions, including cooperation with US federal law enforcement, were also involved with the Mexican government. Several government agencies, including La Unidade de Intelligence Finance (UIF), a Mexican financial intelligence reporting unit, have worked with the Trump administration's Treasury Department to implement sanctions plans.
The actions announced Thursday would also benefit Mexico, according to the Treasury Department. Cartel Jalisco Nueva Generation is a US-designated foreign terrorist organization (FTO), a specially designated global terrorist (SDGT), a violent Mexico-based drug trafficking organization. CJNG is responsible for a significant portion of fentanyl and other deadly drugs that have been trafficked to the US. Mexico-based drug trafficking cartels such as CJNG have in recent years turned into fuel theft and oil smuggling, bringing the Mexican government's revenue losses to billions of dollars.
The CJNG's criminal scheme has grown into a powerful revenue generator, enabling a campaign to drive drug trafficking in the United States and violence against Mexican government forces along the US southwest border.
According to the Treasury, oil and fuel theft is the most important non-drug revenue for Mexican drug cartels. Fuel theft operations include various means of stealing large quantities of fuel and crude oil from Mexican state-owned energy company Petroleos Mexiconos (PEMEX). The scheme mainly involves bribery of corrupt PEMEX employees and illegally tapping pipelines, stealing from refineries, hijacking tanker trucks and threatening PEMEX employees. Stolen fuel is sold in black markets around Mexico, the US and Central America.
Stolen crude oil is often misunderstood as “waste oil” or other dangerous material through complex Mexican brokers, avoiding scrutiny and avoiding taxes and regulations. The stolen crude oil is delivered to complex US importers of the oil and natural gas industry operating near the US southwest border, selling at a massive discount to the US and global energy markets before repatriation.
In an announcement Thursday, OFAC designated Cesar Morfin Morfin (also known as Primito), the CJNG leader who has benefited from fuel theft. According to a statement from the Ministry of Finance, Primito is the leader of CJNG Cell in Tamaulipas, Mexico. Primit previously led the archaic faction of the licenced Cartel del Golfo, and his close ties with authorized CJNG leader Reuben Osseguera Cervantes (aka “El Mencho”) turned it into the CJNG faction.
As extensively reported by the Breitbart Texas Cartel Chronicles, the prominent role of Primito in cartel activities has been widely known for several years. The role of primites in cartel activities includes the transport, import, and distribution of drugs such as fentanyl, heroin, methamphetamine, cocaine, and marijuana to the United States. He is also known to import fentanyl and methamphetamine precursor chemicals supplied from China. Primito's luxurious lifestyle includes ownership of exotic animals and dozens of gorgeous vehicles.
Primito's role in illegal fuel acquisition activities includes collecting stolen crude oil from a variety of sources, including PEMEX employees and other CJNG members. Given his control over the immigration bridge between Tamaulipas and the Texas border area, Primito charges trucks that travel crude oil to the US via these routes. His subordinates and companions help to forge official customs documents to support cross-border smuggling of stolen crude oil.
Another of AC target is Cesar morphine morphine. The Treasury Department under EO 14059 targets morphine by mandating or substantially making a contribution to the international propagation or production of illicit drugs, or by mandating or substantially making a contribution to, or by acting directly or indalectic actions. Cesar Morfin Morfin is targeted under sanctions for acting or asserting directly or indirectly with C JNG.
In addition to Primito and Morfin, Thursday's actions will target additional operatives, including family members and business associates associated with the CJNG. According to the Ministry of Finance, Primito's brother played a leadership role within the Cartel del Golfo faction, helping to build an alliance with the CJNG.
Primito's younger brother, Remigio Morfin, is run in Hidalgo, Mexico. He oversees the Plaza boss and reports directly to Primito. In addition to drug trafficking, Remigio Morphin Morphin is also involved in the theft of crude oil along with his siblings.
Two dangerous materials transport companies named for target sanctions by the Ministry of Finance: SLA. Servicios Logisticos Ambientales, Sa de CV, and Grupo Jala Logistica, Sa de CV These companies operate directly or indirectly for their primitive purposes and are engaged in the transport of fuel and crude oil between Mexico and the United States. Companies transporting crude oil on behalf of individuals associated with Mexican cartels can serve as a key function of cartel fuel theft companies.
Since President Trump directed the federal government to pursue a complete exclusion of cartels and other cross-border criminal organizations (TCOs), the Treasury has leveraged sanctions authorities and other tools to target Mexican cartels and other drug traffickers.
As a result of the sanctions announced Thursday, all property and interest in the property of the above designated person in the United States will need to be reported to the OFAC department of the Treasury Department, as it is owned or controlled by a person in the United States. Additionally, entities owned directly or indirectly, individually or collectively are also blocked by one or more blocked individuals by one or more blocked people.
Violations of US sanctions could result in civil or criminal penalties on the US and foreigners. OFAC may impose civil penalties for sanctions on a strict liability basis.
Randy Clark He is a 32-year veteran of the US Border Patrol. Before retiring, he served as Chief of Law Enforcement Business and oversaw the operations of nine Border Patrol Bureaus in Del Rio, Texas. Follow him on X (formerly Twitter) @randyclarkbbtx.
