In a sweeping action to confront narcoterrorism, the Treasury Department’s Office of Foreign Assets Control (OFAC) sanctioned over 50 Mexican individuals and entities linked to the terrorist group Cartel de Jalisco Nueva Generacion (CJNG). These moves will disrupt a wide range of criminal activities benefitting CJNG across multiple Mexican states. Among the targets is dual Mexican-U.S. national Juan Carlos Gonzalez, also known as “Pelon”, who became the new leader of the cartel following the recent death of his stepfather, CJNG founder Ruben Oseguera Cervantes, or “El Mencho.”
“President Trump has made clear that terrorist cartels will be dismantled,” vowed Treasury Secretary Scott Bessent.
CJNG, which is based in Mexico but active globally, is a violent cartel and Foreign Terrorist Organization that is responsible for a significant proportion of fentanyl and other deadly drugs trafficked into the United States. CJNG employs sophisticated money laundering methods and alternative revenue streams, such as fuel theft, smuggling, and timeshare fraud.
In keeping with President Trump’s pledge to eliminate cartels, OFAC has prioritized targeting these and other criminal groups that threaten the welfare of Americans in close coordination with the Homeland Security Task Force, taking nearly 30 actions against 250 individuals and entities.
This unified, whole-of-government approach ensures maximum impact against transnational criminal networks. Additionally, OFAC coordinated this action with the Government of Mexico’s financial intelligence unit.
Since its formation about 15 years ago, CJNG has become one of the most powerful cartels in the world, achieving this status through violence and corruption. CJNG has intimidated other criminal groups and innocent civilians through horrific attacks, including assassinations of government officials and rivals, while also engaging in widespread bribery of Mexican officials. These acts further CJNG’s pursuit of illicit proceeds generated from drug trafficking and other criminal activities, such as fuel theft and timeshare fraud.
Pelon is the new leader of CJNG. A longtime cartel member, Pelon rose to this position following the death of his stepfather, El Mencho, who was killed during a Mexican government operation in February 2026. The State Department, under its Narcotics Reward Program, is offering up to $5 million for information leading to his arrest and/or conviction.
Treasury’s latest action take into account the fact that leaders and high-level members of Mexican cartels frequently entrust their assets to close family members and trusted associates. These individuals often maintain leadership roles in companies within their network, in an effort to reduce the risk that the subject companies and those involved will themselves become the subject of future scrutiny.
With these latest moves, the United States is striking Cartel de Jalisco Nueva Generacion's leadership, financiers, and criminal networks, denying the cartel the resources it uses to traffic fentanyl, terrorize communities, and threaten American lives.