Treasury Imposes Sanctions on Major Mexican Cartel Network for Fentanyl and Fuel Theft Revenue

May 1, 2025 TruthUSA

The U.S. Treasury has implemented asset freezes on a significant Mexican cartel involved in fuel theft, imposing sanctions on three brothers and two trucking companies linked to fentanyl trafficking.

On May 1, the Treasury Department announced sanctions against three Mexican nationals and two transport firms based in Mexico. According to investigators, these individuals allegedly support the Cartel Jalisco Nueva Generacion’s (CJNG) fentanyl operations and finance the cartel by engaging in large-scale fuel theft.

The Office of Foreign Assets Control has blocked all U.S. assets and interests associated with Cesar Morfin Morfin, known as “Primito,” along with his brothers Alvaro Noe Morfin Morfin and Remigio Morfin Morfin, as well as the trucking companies SLA Servicios Logisticos Ambientales S.A. de C.V. and Grupo Jala Logistica S.A. de C.V.

“Fuel theft and crude oil smuggling are significant revenue sources for CJNG’s narco-terrorist operations, providing a profitable income stream for the organization and allowing it to cause chaos in both Mexico and the United States,” stated Treasury Secretary Scott Bessent. “As part of the Administration’s comprehensive approach, Treasury will continue to employ all available resources to relentlessly target drug cartels and foreign terrorist groups in an effort to Make America Safe Again.”

Simultaneously, the Treasury’s Financial Crimes Enforcement Network issued an alert to financial institutions, highlighting warning signs that may indicate crude oil smuggling across the Southwest border.

Investigators claim that Primito manages CJNG activities in Tamaulipas, imposes fees at border crossings under his control, and falsifies customs documents to transport stolen crude into Texas. Last year, Mexican authorities seized exotic animals and numerous luxury vehicles from him. His network, which is also involved in trafficking fentanyl, heroin, and methamphetamine, is estimated to generate hundreds of millions of dollars each year.

Fuel theft, known in Mexico as huachicol, has emerged as the most profitable non-drug revenue source for various cartels, costing Petróleos Mexicanos billions in lost products, according to the Treasury. Stolen crude is frequently misclassified as “waste oil” to bypass U.S. import regulations before being resold at discounted prices, with profits funneled back to criminal organizations.

On February 20, CJNG was designated as a Foreign Terrorist Organization and Specially Designated Global Terrorist by the State Department, which had previously imposed sanctions on the group for drug trafficking.

Paul Anthony Perez, president of the National Border Patrol Council, remarked that restricting cartel finances “will severely impact their operations in the United States” and will “disrupt their daily activities” in both Mexico and the U.S.

“When President Trump took office, criminal cartels were put on notice that their time was running out,” Perez stated. “Today’s actions will ensure that cartels can no longer provide unlimited funding to support their criminal activities, while also allowing the U.S. Government to disrupt their daily operations on both sides of the border. Their reign of terror will end due to the strength and authority that President Trump has restored in the Oval Office.”

As per the recent order, Americans are prohibited from engaging in transactions with the listed individuals or companies, and any foreign bank knowingly facilitating significant transactions for them could face secondary sanctions. Violations may result in civil or criminal penalties, warned the Treasury.

This action follows a series of sanctions by the Trump administration targeting CJNG cells and other criminal organizations involved in fentanyl trafficking, human smuggling, and money laundering. The Biden administration also sanctioned the cartel for fentanyl trafficking last year.

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