The United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) just made major moves against a Mexican cartel accused of transporting fentanyl into the country and stealing fuel. The OFAC sanctioned two Mexican entities and three Mexican nationals that it believes play a role in the drug trafficking and fuel theft ring.

Cesar Morfin Morfin, who goes by the street name Primito, is one of the individuals sanctioned by the OFAC. He is the leader of Cartel Jalisco Nueva Generacion (CJNG), a known Foreign Terrorist Organization and Specially Designated Global Terrorist group. This violent cartel is responsible for trafficking fentanyl and other deadly drugs into the U.S.

Two of Morfin’s family members, Alvaro Noe Morfin Morfin and Remigio Morfin Morfin, were also designated on the sanctions list for their role in aiding CJNG and Primito.

While drug rings have been a major source of revenue in the past, recent economic times have led to a newfound source of illegal money – crude oil smuggling. This effort, dubbed huachicol in Mexico, involves utilizing criminals to steal crude oil from Petróleos Mexicanos (Pemex). Many of these individuals are able to get away with their schemes by bribing Pemex employees. Others have been known to illegally tap into pipelines by drilling taps into them. Even more members of the cartel have been known to hijack tanker trucks, threaten Pemex employees, or even boldly steal directly from refineries.

Once the fuel is secured, it’s sold on the black market both in Mexico and in the US. Smugglers are typically able to get the fuel across the border by labeling it as “waste oil” or hazardous material. Then, they sell it directly to complicit U.S. importers.

Two hazardous materials transportation companies that were complicit in these schemes have been designated on OFAC’s sanctions list. This includes Servicios Logisticos Ambientales, S.A. de C.V. and Grupo Jala Logistica, S.A. de C.V. Both of these organizations are accused of working directly or indirectly with Primito.

Scott Bessent, the U.S. Treasury Secretary, released a statement confirming that his efforts are an attempt to “Make America Safe Again.”

How to Handle an Alleged OFAC Violation

As a result of these OFAC designations, all property and interests in property of those individuals or companies that are currently held in the U.S. or by a U.S. citizen are now blocked and must be reported to the OFAC. Violating these sanctions by failing to report the interests or by continuing to do business with these designated individuals and groups will lead to civil and/or criminal penalties. This includes a maximum prison term of up to 30 years and fines that could reach millions of dollars.

Considering the severity of the situation, the best way to handle an alleged OFAC violation is to hire an attorney ASAP.

Schedule a free consultation phone call with our team here at Bukh Global now to discuss your legal matter in more detail with our lawyers. Together, we’ll work towards a solution that takes into consideration the law, your rights, and your best interests.