USA imposes sanctions on Mexican drug cartel Jalisco for fentanyl trafficking

FIRST ON FOX: The Treasury Department is expected to announce sanctions on Tuesday against individuals and companies linked to a violent drug cartel based in Mexico that is responsible for a significant portion of the fentanyl and other deadly drugs smuggled into the United States, Fox News Digital has learned.

The U.S. Treasury Department's Office of Foreign Assets Control will impose sanctions on nine Mexican nationals and 26 Mexico-based companies linked to a fuel theft network that generates tens of millions of dollars for the Jalisco Nueva Generacion cartel.

DEA: “The most ruthless” Mexican cartels are active in all 50 states and are bringing turf wars to the USA

Drug cartels based in Mexico, such as the Jalisco Nueva Generacion cartel, have turned to fuel theft in recent years, costing the Mexican government billions in lost revenue.

The Treasury Department coordinated its sanctions with the U.S. Drug Enforcement Administration (DEA) and the Mexican government. U.S. authorities also coordinated their actions with the Mexican financial regulator.

Deputy Treasury Secretary Wally Adeyemo told Fox News Digital that the Biden administration is “committed to taking decisive action to disrupt the funding and operation of deadly fentanyl smuggling cartels like CJNG.”

Adeyemo said the cartel's “diverse revenue streams, including fuel theft, ultimately strengthen its ability to smuggle fentanyl and other deadly drugs into the United States.”

“Treasury will continue to use its expertise and tools to relentlessly crack down on drug gangs, make our communities safer, and keep toxic drugs like fentanyl off our streets,” Adeyemo said.

Last year, the Treasury Department imposed sanctions on members of the Sinaloa cartel.

US imposes sanctions on members of the Sinaloa cartel, including the anthrax monkey, as part of its anti-fentanyl measures

Earlier this year, the DEA said the Jalisco Nueva Generacion and Sinaloa cartels had targeted major U.S. cities with Meth and Fentanyl, and they use violence to defend their territory.

Members of the Jalisco cartel admitted to coordinating the transport of a shipment of 199.97 kilograms of liquid methamphetamine – with a street value of up to $9.9 million – from Mexico to Dallas, federal prosecutors said. (US Attorney's Office, Northern District of Texas)

“Together, the Sinaloa and Jalisco cartels have the worst Drug crisis in U.S. history,” the DEA report states.

Sinaloa and Jalisco have “effectively eliminated all competition in U.S. markets” and “dictate the flow of virtually all illegal drugs” into the country, the report said, noting that thousands of cartel-affiliated dealers currently operate in the United States.

End of April, 12. Human traffickers linked to the Jalisco Cartel were sentenced to 4.5 to 40 years in federal prison after being arrested in Del Rio, Texas, in 2021 for coordinating a shipment of nearly 200 kilograms of liquid methamphetamine valued at $9.9 million.

Police officers stand at a site where a vehicle belonging to members of the Jalisco New Generation cartel was set on fire after one of its leaders was arrested by Mexican federal forces, in Zapopan, in the Mexican state of Jalisco, August 9, 2022. (REUTERS/Fernando Carranza | Inset: REUTERS/Andrew Kelly)

During the course of that special investigation, law enforcement seized approximately 650 kilograms of methamphetamine, 17 firearms, $220,922 in cash and $12,200 worth of real estate and personal property, federal prosecutors in North Texas said.

Fentanyl, which can be fatal even in small doses, has caused the deaths of more than 70,000 Americans each year. It is often laced with other drugs or made into counterfeit pills, so users often don't know what they're taking.

The drug is manufactured primarily in Mexico by cartels using Chinese precursors and then shipped across the U.S. land border.

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The Biden administration has launched a global coalition to address the fentanyl threat, including working with countries like Mexico to crack down on smugglers and regulate precursor chemicals.

Last year, Treasury Secretary Janet Yellen created the Counter-Fentanyl Strike Force. In April, Yellen announced the start of an exchange with the People's Republic of China to “enhance cooperation in the fight against money laundering related to drug trafficking and other crimes.”