The U.S. Department of the Treasury’s Office of Foreign Assets Control, or OFAC, has designated Sinaloa Cartel faction Los Mayos, along with the leader of the faction’s armed wing. These sanctions, announced on September 18, follow Under Secretary of the Treasury for Terrorism and Financial Intelligence John Hurley’s visit to the U.S.–Mexico border.
OFAC also designated five individuals and 15 companies in connection with one of Los Mayos’ regional networks operating just south of the U.S.-Mexico border, as well as the leader of a separate Sinaloa Cartel-affiliated gang engaged in fentanyl production.
“The Sinaloa Cartel is a foreign terrorist organization that continues to traffic narcotics, launder its proceeds, and corrupt local officials,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence John Hurley.
The Los Mayos faction is responsible for producing and trafficking of fentanyl, cocaine, marijuana, heroin, and methamphetamine from northwest Mexico into the United States. In Rosarito, Baja California, Los Mayos is involved in kidnapping, extortion, money laundering, and local government corruption. Due to its proximity to the U.S. border, Rosarito and the surrounding areas form a key artery for Sinaloa Cartel’s drug trafficking operations.
The Sinaloa Cartel is a U.S.-designated Foreign Terrorist Organization that is responsible for a significant portion of illicit fentanyl trafficked to the United States that ultimately poisons Americans. In addition to trafficking deadly drugs, the Sinaloa Cartel has profited from smuggling migrants across the southern border.
Juan Jose Ponce Felix, also known as Jesus Alexandro Sanchez Felix or “El Ruso”, is the founder and leader of the primary armed wing of Los Mayos, which controls drug trafficking routes in Baja California.
Los Mayos controls large swaths of territory in northern Baja California under the leadership of previously designated cartel leaders, Alfonso Arzate Garcia and Rene Arzate Garcia, also known as the Arzate brothers.
One of the towns controlled by Rene Arzate is Rosarito, a beachside community approximately 15 miles south of the California portion of the U.S.-Mexico border. Due to its proximity to the U.S. border, Rosarito and the surrounding areas are part of a critical corridor for the Sinaloa Cartel to smuggle drugs into the United States. Rene Arzate maintains command of Rosarito through several associates, including Mario Alberto Herrera Sanchez and Karlo Omar Herrera Sanchez.
Treasury Under Secretary Hurley said the U.S. government’s action, “taken in coordination with our law enforcement partners, demonstrates Treasury’s dedication to President [Donald] Trump’s priority of stopping the threats across our borders.”
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The U.S. Department of the Treasury’s Office of Foreign Assets Control has designated Sinaloa Cartel faction Los Mayos, along with the leader of the faction’s armed wing.