8 Corpses With Narco Message Threatening Meth Dealers Found in El Bosque, Chiapas

By "El Huaso: for Borderland Beat

Eight corpses were found Tuesday morning beside the federal highway to Jitotla in El Bosque municipality, with a narco message threatening all "distributors, manufacturers, and dealers of meth".

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The New Capo di Tutti Capi of the CJNG

Who Is Juan Carlos Valencia González?

 

Born on September 12, 1984, in Santa Ana, California, Juan Carlos Valencia González, a.k.a. "Pelón," "Tricky Tres," "O3," "El 3," "JP," and "Pelacas," is the son of Armando Valencia Cornelio, a.k.a. "El Maradona" or "El Juanito," and Rosalinda González Valencia. Following the death of his stepfather, Nemesio Oseguera Cervantes ("El Mencho"), he became the first American national to assume full control of a major Mexican cartel.

 

He spent his early childhood in California while his biological parents, Armando Valencia Cornelio and Rosalinda González Valencia, managed the logistics of the Milenio Cartel. After his biological father was arrested by the Mexican military in 2003, his mother married CJNG leader Nemesio Rubén Oseguera Cervantes, a.k.a. "El Mencho," making him Valencia González's stepfather. Valencia González was raised alongside his cousins and half-siblings in the Guadalajara metropolitan area under the protection of the González Valencia ("Los Cuinis") family network.

 

On July 20, 2020, during a press conference hosted by Mexican President López Obrador, Secretary of Defense Luis Cresencio Sandoval González identified one of the leaders of Grupo Elite as Juan Carlos González, alias "El R-3."

 

On December 1, 2021, the U.S. Department of State announced a reward of up to $5 million for information leading to his arrest and conviction for manufacturing, transporting, and distributing large quantities of narcotics, as well as for organizing numerous violent crimes.

 

Where Is the CJNG Now?

 

CJNG uses a franchise-based command structure—an affiliation agreement between smaller local cartels and the CJNG—to facilitate expansion outside its strongholds in Jalisco, Nayarit, and Colima. CJNG is one of Mexico's most powerful, influential, and ruthless transnational criminal organizations and a key supplier of illicit fentanyl to the United States. CJNG has expanded its operations beyond Mexico's borders, establishing a presence in more than 40 countries.

 

The CJNG's leadership succession became publicly clearer after the first official U.S. intelligence assessment identifying the organization's new leadership.

The New Heir Takes the Crown

 

In June 2026, the Office of the Director of National Intelligence (ODNI) publicly identified Juan Carlos Valencia González as the overall leader of the CJNG, with regional commanders overseeing the organization's day-to-day operations under his authority.

 

It is also worth noting that the report identifies Julio Alberto Castillo Rodríguez, a.k.a. "El Chorro," as the CJNG's second-in-command, senior lieutenant, and Oseguera's son-in-law, placing the CJNG within the old-school model, in which leadership remains within the family rather than passing to former lieutenants.

 

After the arrest of El Jardinero, during a detention plagued with inconsistencies, none of his bodyguards opened fire on the security forces and appeared to allow him to be arrested by the Mexican security authorities. This action fully consolidated the position of "El 03" on the throne of the CJNG, and with no other key figure inside the criminal organization capable of fighting for control, it seems that, at least for now, the full control of the CJNG by "El 03" appears uncontested.

 

Sources: justice.gov - state.gov - dni.gov - juan-carlos-valencia-gonzalez - dea.gov

 

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"People Linked to Organized Crime Were Part of AMLO's Administration": "El Chapo's" Lawyer

 "Sol Prendido" for Borderland Beat 

Thank you. Now, Counselor—I greeted you before the interview started—Attorney Gerardo Rincón, lawyer for Joaquín "El Chapo" Guzmán Loera, is with us. Counselor, thank you. Good morning. How are you? 

Azucena, good morning. Forgive me... that I’m currently having to communicate with you from this hotel. It’s a pleasure to greet you again. At your service. 

Don't worry, Counselor. Tell me about the reports that El Chapo Guzmán had sent letters to President Claudia Sheinbaum—which I understand is false—and now the news that he will send information regarding individuals potentially linked to organized crime. Counselor, please tell me first about the story of the letters—whether true or false—and then about this matter of the information he intends to send to U.S. authorities. 

Look, it is clear: all the letters supposedly presented in the United States and to the President are completely fake. To get a document out of the prison where Mr. Guzmán is held, it has to go through high-security protocols and subsequently be approved by the FBI—just as my own powers of attorney and documents were authorized. 

That process takes about 30 to 40 days, provided the FBI approves them. Now, regarding the letters that were presented: for starters, Mr. Guzmán doesn’t speak English, and his written Spanish isn’t very strong. 

The signatures don't match at all; I know his signatures perfectly. I have the documents, and the authorities have them too. However, I am about to send something out today—I’m not going to wait any longer because my family received threats yesterday over this issue. 

And this government—well, forgive me, not everyone, but some people play very, very dirty, in a truly terrible way. I’m not going to waste any more time or risk my life further. I am simply going to do what is right. 

I don't defend crimes; I defend rights. And regarding the due process Mr. Guzmán received in Mexico—everything, absolutely everything about it was wrong. To put it briefly—so as not to take up too much time—I filed for *amparo* relief because the president refused to accept certain documents from me; she sent her staff out even though I had an appointment and everything was set up. 

They said, "No, that won't do." Okay, fine. But why not accept them based on Article 8 [the constitutional right to petition]? No, they wouldn't do that either. Okay, fine. So, I went to the district court. They declared themselves incompetent to hear the case. 

How can you declare yourself incompetent? I went to another federal judge, and now it’s actually in dispute. Why? Because the FGR FGR [Attorney General's Office] refuses to demonstrate to me that due process is being followed. 

I’m not saying whether he’s innocent or guilty; as I mentioned, I don’t defend the crimes, I defend human rights. Regarding his current place of detention: the man is being tortured—meaning he is in a place where he cannot see the sun or walk in fresh air. 

He is suffering from severe depression and has other medical conditions—nothing critical, but they are affecting him; he is being tortured. And when justice is administered—fine, give him life imprisonment or whatever sentence is appropriate—it must be without torture, because if torture exists, then there is no justice.

That’s true. 

And I do this for him and for anyone else. I have spent years pursuing justice everywhere through my international alliance of lawyers. 

Now, Counselor, these documents you are filing—do they appeal based on due process? Are they trying to get Joaquín Guzmán Loera—"El Chapo" Guzmán—brought back to Mexico or transferred to a different prison? What is the objective? 

Simply that he be granted the same rights as others. I’m not asking for them to give him a fancy bedroom or a suite. Look, he is being held in a dungeon without seeing the sun or breathing fresh air.

He undergoes a "session" once a month—meaning he’s subjected to temperature fluctuations caused by a machine that generates heat, alternating with the standard cold, and that is... well, it’s torture. 

Now, I’m going to say something, and I say it with great respect. I’m not accusing someone in the government—forgive me, not the whole government—but regarding the list I am submitting—I’ll be sending it electronically, and I’ll be in Washington next week—I will be handing over that official document as well. 

Personally, there are 32 people; we know there are 10 others being sought—actually, the U.S. count is down to four, because there were originally 35, but two have already been killed. Two remain, and the status of one is unknown, but the total was 35. So, I’m not mentioning those three. I am mentioning 32 people *in addition* to those.

32 people beyond those identified by the Department of Justice in New York in connection with the Sinaloa Cartel?

That’s right. Well, connected to corruption and the cartels. Let me tell you this: I’m not defending Mr. Guzmán Loaera regarding whether or not he was a criminal or a murderer—whatever the case may be—and if anyone has been harmed, I offer my condolences. 

But what I do want to tell you, Azucena, is that this man helped many families and many people—more than the government did. They are painting him as the monster, as the one who did everything wrong. Why don’t they mention who was behind all of this? 

The 32 people whose names you are going to reveal to the U.S. government? 

I am going to send information with evidence—just as I previously sent to President Claudia—showing how their investigative agents and prosecutors engage in corruption, murder, and planting drugs. 

I have videos and information; the Nuevo León prosecutor has it, that good for nothing who didn’t do anything—quite the opposite; the persecution and threats actually intensified. The President is also aware of this—there are videos, USB drives, and so many innocent people in prison because charges were fabricated against them. 

And I’m not just talking about the Guzmán case; this is happening all over Mexico due to certain corrupt officials—not all of them, I want to be very clear about that: not all of them. 

Look, Counselor, let me ask you this: regarding this package of information—did you try to hand it over to the Mexican government, but they refused to accept it? 

No, what I asked the Mexican government for was the FGR [Attorney General's Office] file to review the due process involved, because I already had evidence showing that everything they had done—or fabricated or orchestrated—was improper. 

At the same time, I brought a formal document for the President—along with supporting evidence—pointing out the wrongdoing, but they wouldn't even accept it; she didn't receive it personally because she sent someone else, claiming she was too busy. Then I was told, "Well, if you're dissatisfied with the FGR's handling of the matter, you should take it up with the competent authority." But which one if there’s nothing left to contest there; there’s no one left to argue the case against. 

So, the next step is the United States—is that where you’re sending these documents? 

Yes, look, I’m preparing these documents to send to the United States and to the Human Rights office in Geneva. They need to be fully informed about the situation. If only people could see—and I think many already know—that there are massive, grave abuses and violations being committed against so many families. 

In Mr. Guzmán’s case, I have the evidence needed to prove what happened and to show where the responsibility lies, because often the blame is placed solely on the drug cartels—"it was the cartel, it was the cartel." But why don't they admit that they have people from other countries involved? 

Why don't they admit that it's their own police officers committing these acts? Why don't they admit that the perpetrators are government employees—some from Andrés Manuel’s administration, others from the previous one, and so on? And regarding the current situation—and I want to be very clear that this doesn't apply to everyone. 

Why present these names and the evidence you say are so significant only now, Counselor? Why wait until today? 

Because the presiding judge hasn't issued a ruling yet. The judges are at odds over the matter. I wanted to demonstrate adherence to due process and present this to the federal court in Mexico so they would be aware of the situation. Right now, federal judges are in disagreement over this very issue; they’re going to handle it, but they’re going to drag it out—making it longer and longer and longer.

I've been working on this case for three and a half months. I've known about it for six months. I've been moving as fast as I can, but they keep shutting doors on you. You can't move forward, there are no ways to get things done, and it keeps happening day after day. 

I repeat, not only in Mr. Guzmán's case, but in many other cases I'm handling with evidence and proof that the authorities did nothing. I even sent García Harfuch a video last time because he never met with me, and I showed him the evidence and everything I have. 

A video that would supposedly prove what, lawyer? 

What happened to other people in other cases where they kill, plant evidence, frame people, and fabricate crimes? 

Of those 32 people whose names you're going to reveal to the United States with evidence, who are they? What examples could you give me? 

I can't give names because it's a very delicate matter, but I will tell you something. Of the people we already know, one of them has a license, we already know who he is. He has much more information that can bolster all of this, and I think more than 35, maybe 32, just in case something happens to him, or they make him sick, or he disappears, because he has a lot of key information. 

Are you talking about Rocha Moya?

Excuse me?

Are you taking about Rocha Moya?

I didn't say that. Yes, but I didn't say that. Okay, correct. Now they're also accusing Andrés Manuel's sons. They have nothing to do with it. No, no, don't distract from this. Look for his uncle or another relative—I won't mention names. 

Look for another relative. You're on the right track, but it's not the sons. I mean, these guys have only just started stealing—I mean, sorry, working. I apologize for what I said—these guys are new businessmen. Look further up and to the sides. You'll find a lot of things there. I have that information, and it's ready to be handed over. 

Relatives of Andrés Manuel López Obrador?

I  didn't say, I didn't say, I want to say that because you know that yesterday at 6:00 in the morning, my brother received some very serious threats. I'm always traveling throughout Mexico and parts of the United States. He tells me, "Hey, you know what, brother? I have to move. Move, take care, because this happened." I said, "Brother, I'm sorry, move, protect your family. Someone has to do this."

This isn't about spectacle; it isn't about putting on a show. It is about all the Mexican men and women whose rights are being violated. So many unfortunate families are in prison. Mr. Guzmán’s case is one of them. He may well have committed crimes…

Well, he isn't innocent, is he? 

No, no, no. I’m not saying he’s innocent. I’m not defending the crimes; let him pay for them, but not through torture. 

So, Counselor, the document is being submitted to the United States today or in the coming days? And I assume you’re expecting a response. 

Today, I am sending information electronically directly to the United States so they have a fuller picture. Look, the United States knows everything, you know? They know everything, but since I saw the list only had 10 names, I told him, "No, that fell short; perhaps they don't want to reveal the rest, but as I've been uncovering more details, I've been fleshing out the document. I'm going to send it today—just in case something happens.

But it won't be made public, Counselor?

I can't make it public because it's an ongoing investigation." 

You acknowledge the 10 individuals named by the U.S. government—the names that are already public? 

Yes, exactly. Well, many of us already knew that, right? 

Please hold on a moment; I’ll come back to finish this after the break—since it’s automated, I’ll take another three minutes, please. 

Thank you. Thanks to attorney Gerardo de Rincón—Joaquín "El Chapo" Guzmán's lawyer—for staying with us. 

So, Counselor, you’re telling me you have a list of 32 people linked to organized crime and drug trafficking—a list involving Joaquín Guzmán Loera—that you intend to send to the United States. You won't make it public, but you do acknowledge the 10 individuals named by the U.S.—specifically by the New York court—in connection with the Sinaloa Cartel, including the governor currently on leave, Rubén Rocha Moya. 

Yes. Okay. Yes, I never mentioned the name myself, but that is correct. Now, regarding these associated individuals: I should point out that some were part of previous administrations and later served in Mr. Andrés's administration. There are others here as well. 

Not all of them remain in office, but they still wield influence—that is common knowledge. Just look at what happened with the fuel theft issue—not to mention other matters, like the Navy officer who was killed... or rather, the one found dead—supposedly a suicide. 

I’d rather not go into it, as there’s a lot of backstory there. It’s not true. It’s not true. That’s a lie. It’s a circus. I say this with great respect to all women, and to the Madam President: How can you allow this to happen? How can you allow so many people to suffer like this? Look at the missing persons cases... with great... ...with respect and deep sorrow for the mothers who are suffering. We must pay attention. 

But look, Counselor, there are many people missing due to the Sinaloa Cartel. 

Well, you know that for a fact, right? 

Reports are filed. Of course. 

Are you aware that governments also make people disappear?

By the Sinaloa Cartel, the Jalisco Cartel, and so on. 

Let me tell you something—and I say this with great respect. I was kidnapped some time ago; I’ve been shot at, and it wasn't the cartels—it was people from the government. They abducted my coordinator, they shot at me; I bear the scars from seeking justice. And it wasn't the "bad guys," it wasn't kidnappers; it was police, government officials, municipal and state personnel. 

Complaints were filed, yet nothing came of it. It’s very easy for everyone to place blame on this group or that group. I don't want to name any specific group, nor am I defending any, but I know there is disorganization. I know there are low-level individuals posing as cartel members, or hiring people brought in from other states—or other countries—to commit crimes; sometimes it's the government itself doing this. 

Well, Counselor, we look forward to you submitting this document, seeing a response from the United States, and—when the time comes that it can be made public—having you share it with us. Thank you.

Source: Azucena Uresti

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Operation Hard Ball Raids Target Indian Bishnoi Gang Members and Traffickers in California and Canada

"Socalj" for Borderland Beat

Los Angeles federal agents led a global operation targeting of the India-based Bishnoi Gang, known for extortion, drug trafficking and the assassination of Indian political figures, industrialists, actors and musicians in the US, Canada and India.

The raids Tuesday that saw the arrest of at least 11 California and over a dozen more across the US, Canada and Europe.

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Ten Chapitos Gunmen Killed in Government Operations in Rosario, Sinaloa

By "El Huaso" for Borderland Beat

A Mexican Navy Pilatus PC-7 flying over Rosario, Sinaloa, 7 July.

Ten Chapitos gunmen were killed by Mexican security forces southern Sinaloa in an operation responding to an IED attack against a Navy patrol which left one Marine dead and three others wounded, last weekend. Operations have continued, with raids being carried out as well as navy planes and helicopters flying over the region.

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El Mayo Seems To Think He’s Special

“Sol Prendido” for Borderland Beat

Regarding the Sinaloa Cartel case in the United States, Ismael "El Mayo" Zambada is seeking to avoid serving his sentence in a maximum-security prison. 

Today, he asked Judge Brian Cogan to be housed in a medical correctional facility rather than the Supermax prison in Colorado. 

"El Mayo's" defense team stated that their client is facing several health issues requiring supervision. It’s worth noting that "El Mayo" is scheduled to be sentenced on July 20, and he is expected to receive a life sentence.

Source: Milenio

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Corrupt Toronto Police Scandal, Shootings & Local Gang War Linked to Ryan Wedding Case

"Socalj" for Borderland Beat

New court documents detail a link between allegations of corruption inside the Toronto Police Service and the cross-continent drug network of ex-Olympic snowboarder Ryan James Wedding.

Canadian court documents detailed not only how investigators believed that suspected Wedding drug trafficker Gurpreet Singh allegedly directed an attempted murder plot against a Toronto jail official, but also how he was allegedly assisted by a supervisor at the jail with whom police say he had had a prior romantic relationship with.

The allegations are contained in a document known as an “information-to-obtain” or ITO, filed in court in January by police as part of an application to conduct the sweeping raids related to the Project South investigation.

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'El Chapo' Claims to Have Information on Alleged Officials Linked to Drug Trafficking During Past Administrations

“Sol Prendido” for Borderland Beat 

Today, the lawyer for Joaquín "El Chapo" Guzmán—the Sinaloa kingpin identified as a leader or co-founder of the Sinaloa Cartel—stated that he would send information to U.S. authorities regarding 32 officials allegedly linked to drug trafficking during the administrations of Enrique Peña Nieto and Andrés Manuel López Obrador. 

In an interview, the attorney asserted that the information being prepared would expand upon existing accounts regarding a list of public servants allegedly connected to criminal activities in the country.

Source: Grupo Formula

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Reports Emerge of a CJNG Attack Using Explosive Drones Against Cárteles Unidos in Michoacán

“Sol Prendido” for Borderland Beat 

The CJNG uses explosive-laden drones in an attack on Cárteles Unidos in Michoacán, intensifying the territorial dispute in the region.

A video circulated on the social media platform "X" has once again raised concerns regarding the alleged use of explosive-laden drones by organized crime groups operating in Michoacán.

The footage was posted on the account "@war_noir"—which specializes in sharing material related to armed conflicts—accompanied by the following message:

“#Mexico: Jalisco New Generation Cartel (CJNG) bombed a ‘Cárteles Unidos’ (R5) camp with drones in Michoacán. CJNG apparently used fairly common off-the-shelf (COTS) DJI UAVs armed with air-dropped Improvised Explosive Devices (IEDs).”

The footage shows aerial shots captured by a drone and what appear to be detonations over a makeshift camp; however, the video lacks elements that would allow for independent confirmation of the exact location, the date of the incident, or the identities of those involved.

To date, neither federal nor state authorities have confirmed the authenticity of the recording or issued official information regarding an attack of this nature.

The use of drones modified to drop explosives has been documented in various clashes between criminal organizations in Michoacán in recent years, particularly in municipalities within the Tierra Caliente region, where criminal cells are vying for territorial control.

The circulation of the video comes amidst a reinforcement of the federal security strategy in Michoacán, where the Mexican government has stated it is maintaining ongoing operations to weaken criminal organizations.

Yesterday, the Secretary of National Defense, Ricardo Trevilla Trejo, reported that since November of last year, the Army has located 625 improvised explosive devices—a figure reflecting the increased use of this type of weaponry by criminal groups fighting for territorial control. “Since November of last year, 625 improvised explosive devices have been detected. We must also mention drones, though many of them function as mines,” he said.

Physical nature

The general acknowledged that the planting of mines and the use of explosive-laden drones stem from territorial disputes between criminal organizations seeking to block the advance of rival groups and federal forces.

Source: Contramuro

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From Fuel Theft to Customs: Family Link Revealed to Operator Sanctioned by the US

“Sol Prendido” for Borderland Beat 

An investigation by Mexicans Against Corruption (MCCI) revealed that Analee de Jesús Juraidini Silva, sister of fuel-theft kingpin Oscar Guillermo Juraidini—who was recently sanctioned by the U.S. Department of the Treasury—continues to work undisturbed as a key official at the Matamoros Customs Office.

The criminal network operated by declaring U.S. fuel as lubricant to evade taxes for the benefit of the CJNG, using the same customs post previously occupied by another official who is now imprisoned at El Altiplano.

Years ago it was an open secret. Today it’s proven that the Jalisco New Generation Cartel is infiltrated in the customs of Matamoros, Tamaulipas. Proof of this, they assure, is the case of the sister of Oscar Guillermo Juraidini Silva. Sanctioned by the US Department of the Treasury as one of the most important financial operators of organized crime. 

His sister, whose name is Analee de Jesús Juraidini Silva, works at none other than the Matamoros customs office through which her brother Oscar Juraidini trafficked millions of liters of stolen fuel in recent years for the Jalisco New Generation Cartel.

According to Mexicans Against Corruption and Impunity (MCCI) since 2019, Analee de Jesús Juraidini, has held various key positions in the Matamoros customs office. One of them being the director of procedures and legal affairs. 

The same position held by Carlos Eugenio Benítez Orta until he was arrested in Texas on charges of facilitating the smuggling of illegal fuel across that border. He is currently imprisoned in Mexico at the El Altiplano prison.

This character, Benítez Orta, held the same position until 2022, which was later left to Juraidini's sister, right? So we have this link between the former customs official who was arrested in the United States in early June of this year. 

Juarini's sister, who came to occupy the position that he left at the time he was arrested, Carlos Eugenio Benítez Orta was in charge of supervising the customs supervisors at the Matamoros customs office. 

According to official documents, Analee de Jesús Jurdini continues to work undisturbed from the Matamoros customs office, the national epicenter of fuel smuggling in our country. 

Despite the fact that on June 30th, the US Department of the Treasury included his brother and several shipping companies that he managed on the list of the Office of Foreign Assets Control for being part of a fiscal huachicol network of the Jalisco New Generation Cartel.

In this same statement, the Treasury Department affirmed that the drug cartels in Mexico use the dirty money from fiscal huachicol to finance political campaigns throughout the country and to buy the wills of corrupt and colluding politicians. Just as well, to ensure that they, the cartels, can obtain drug routes or obtain positions of their associates in different branches of the federal public administration.

Sources: Azteca Noticias, Borderland Beat Archives

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The Mexican Version of El Cartel de los Sapos

“Sol Prendido” for Borderland Beat 

The term "Cártel de los Sapos" (Cartel of Snitches) was coined in 2008 by Andrés López, a former drug trafficker who chronicled in a book the collapse of the Norte del Valle Cartel—the last major Colombian criminal organization of which he was a member.

In this context, a "sapo" (snitch) is a trafficker who betrays their organization and provides information about their associates to the United States in exchange for a reduced sentence.

The central premise of the book—which was later adapted into series and films—is that the United States developed an incentive scheme in which traffickers competed to provide information on other members of their organizations; this dynamic ultimately brought down the Norte del Valle Cartel and similar groups.

The United States is now replicating this strategy with Mexico; it requested the extradition of 92 kingpins in three waves. Once in the U.S., these individuals have been forced to negotiate from a position of disadvantage; to avoid spending the rest of their lives in prison, they are providing information about their own organizations, their rivals, and the politicians who aided their operations.

A similar situation arose regarding the accusations against Rubén Rocha Moya and nine Sinaloa officials for collusion with drug cartels; two of the accused turned themselves in to provide information. Furthermore, according to *The New York Times*, 12 high-level politicians linked to the MORENA party—including several governors—are already providing the U.S. with information regarding ties between organized crime and public officials across the country.

This is creating uncertainty not only within criminal organizations but also within government ranks, where former allies could turn into informants. Consequently, many are considering surrendering or at least cooperating with the U.S., as failing to do so carries the risk of becoming a scapegoat for others' confessions, thereby triggering the disintegration of criminal networks.

Source: Milenio

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U.S. Government Targets Fuel Theft Networks Linked to Mexican Cartels

On June 30, 2026, the U.S. government launched a coordinated financial and law enforcement operation against a fuel theft network operated by the Cartel Jalisco Nueva Generación (CJNG). The action, carried out by several U.S. agencies in coordination with Mexico's Financial Intelligence Unit (UIF), targeted two Mexican nationals and nine entities involved in the network.

This action is directed at disrupting the cartel's transnational operations on both sides of the border by targeting fuel smuggling, falsified customs documents, and shell companies operating as part of a transnational criminal enterprise.

The sanctions also include FinCEN's provision of additional information on financial typologies and red flags indicative of Mexican fuel theft networks and other Mexico-based Transnational Criminal Organizations (TCOs) involved in smuggling fuel from the United States into Mexico through schemes involving tax evasion within Mexican territory.

What Is “Huachicol Fiscal” (Fiscal Fuel Theft)?

 

Fuel theft in Mexico has long been a major source of criminal revenue for different cartels.It gained greater relevance after 2014 in the state of Guanajuato and the so-called Red Triangle, which encompasses the state's geography and its network of fuel pipelines.

 

However, as regulations tightened and profit margins increased, this criminal enterprise evolved from the local theft and sale of gasoline through clandestine vendors into a multinational network of companies operating across different countries.

 

In recent years, cartels and brokers involved in these activities (huachicoleros) have increasingly purchased and smuggled fuel from the United States into Mexico, where it is sold on the Mexican black market. Recent estimates indicate that between one-third and one-half of all fuel consumed in Mexico is linked to the illicit fuel smuggling trade.

 

A Criminal Crisis Announced

 

Following the enactment of Mexico's energy overhaul in 2013 under President Enrique Peña Nieto, the government intended to: (1) end energy subsidies; (2) increase the IEPS tax rate on fuel imports; and (3) allow Mexican, U.S., and other international energy companies to obtain permits facilitating U.S.-Mexico energy trade.

 

All Mexican companies importing fuel must obtain a permit from Mexico's Secretariat of Energy (Secretaría de Energía, SENER) and pay the IEPS tax as a licensed fuel importer. However, SENER does not authorize these companies to wholesale fuel within Mexico. To sell imported fuel to other Mexican companies, they must obtain an additional permit from Mexico's National Energy Commission (Comisión Nacional de Energía, CNE) to store, transport, and ultimately commercialize it within Mexico.

 

This created a bottleneck in Mexico's wholesale fuel market because entities holding CNE permits are prohibited from importing fuel, while most Mexican companies do not possess both SENER and CNE permits. "In summary, companies involved in importing fuel into Mexico must hold a SENER permit, while companies involved in buying and selling fuel within Mexico must hold a CNE permit."

 

This changed under the administration of President Andrés Manuel López Obrador (AMLO). During his administration, the government rescinded most existing SENER licenses, restricted new SENER permits to a limited number of fuel importers, and further limited CNE authorizations. These policies reduced the legal supply of imported fuel and significantly limited the number of entities authorized to wholesale it, resulting in greater market concentration among a small number of energy companies.

 

Combined with the price spread between U.S. and Mexican fuel prices created by the IEPS tax, these conditions created a highly profitable opportunity for organized crime. Fuel purchased in the United States could be smuggled into Mexico without paying taxes and then wholesaled through entities linked to criminal cartels.

 

Breaking the Political-Criminal Pact

 

Since President Trump declared a national emergency at the U.S. southern border and expanded actions against the Mexican cartels, the U.S. government has sought to ensure the total elimination of the cartels and other Transnational Criminal Organizations (TCOs) through their designation as Foreign Terrorist Organizations (FTOs) and Specially Designated Global Terrorists (SDGTs).

 

This approach has prompted U.S. authorities not only to target the principal kingpins but also to disrupt the flow of money and the political protection these organizations receive within Mexican territory. Following financial investigations that identified fuel theft as the second-largest source of cartel revenue, criminal investigations linked these networks to major financiers of political campaigns in Mexico.

 

U.S. authorities have intensified their efforts to disrupt this source of revenue, thereby reducing the financial resources that allegedly sustain the political protection enjoyed by these criminal organizations.

 

Because the primary investigations and sanctions are directed at the CJNG and its allies within the CDG, the principal point of entry into Mexico is located in the state of Tamaulipas.

 

This development also coincides with two recent events in Tamaulipas: reports linking Governor Américo Villarreal to alleged negotiations involving Mexican officials and U.S. authorities, and the arrest of Octavio Leal Moncada, known as "El Profe" or "El Tarzán," in Santiago, Nuevo León. These events might indicate that pressure from the United States on Mexican authorities is increasing to compel the Mexican government to act against these criminal networks.

 

However, if the principal political actors remain associated with the MORENA party, the Mexican government continues to resist the extradition of Rubén Rocha Moya despite the ongoing investigations—even after Mexican authorities reportedly uncovered a network of companies allegedly operated by the Rocha Moya family to embezzle public funds—and progress in dismantling the cartels remains limited, these developments may ultimately result in broader sanctions against Mexico.

Sources: OFAC, FINCEN, BorderlandBeat

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