US imposes sanctions on Mexican drug cartel leader

(Bloomberg) — The U.S. Treasury Department announced sanctions against more than 50 people and businesses linked to the Jalisco cartel, which has been accused of smuggling fentanyl and other illegal drugs into the country from Mexico.

The department called the move its largest single action against the criminal organization to date, according to a statement on Thursday. Among the targets is Juan Carlos Gonzalez, who was identified by the US as the new leader of the Jalisco New Generation Cartel following the death of his stepfather, Nemesio Rubén Oseguero Cervantes, earlier this year.

Oseguera, known as “El Mencho,” was one of Mexico’s most wanted kingpins when he was killed in a raid by Mexican authorities in February. Gonzalez, known as “Pelon,” has been charged with drug trafficking and the State Department is offering a $5 million reward for information leading to his capture.

The Jalisco cartel’s leadership is increasingly relying on family members of major traffickers, who made up many of the new targets identified by the Treasury Department’s Office of Foreign Assets Control, according to the statement. The sanctioned companies span sectors including tequila, apparel, construction and crop production.

The targets include a network that allegedly laundered tens of millions of dollars a year through at least 2023, as well as energy companies allegedly involved in fuel theft and fentanyl trafficking.

In a statement, the Ministry of Finance warned that foreign banks could be subject to sanctions for doing business with designated persons and companies.

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