US Senator Concerned About CJNG Expansion into Menthol Cigarette Trafficking

"Socalj" for Borderland Beat

Congresswoman Carol Miller (R-WV) led a letter to President Joe Biden to express concern about Cártel de Jalisco Nueva Generación (CJNG) expanding its operations in the United States and how the Biden administration's proposed menthol cigarette ban may contribute to CJNG's expansion.

The letter highlights CJNG’s recent growth in operations, which includes cigarette smuggling, and concerns about the U.S. Food and Drug Administration’s (FDA) proposal to ban menthol cigarettes in the United States. The letter raises concerns that the proposed ban "will only provide Mexican cartels and illegal markets with increased opportunities for illicit activity and more potential funding for cartel operations, including the smuggling of fentanyl across our borders."

 

Congresswoman Carol Miller (R-WV)

Read the full letter HERE 

On the proposed plan from the FDA to ban the production of menthol cigarettes

CJNG has reportedly expanded its recent operations to include cigarette smuggling and sales to diversify its operations. We are concerned they could be using the profits from their cigarette smuggling to fund their fentanyl operation in the U.S. 

This concern is particularly timely given that there is a Food and Drug Administration (FDA) proposed rule in the final stages of agency review that concerns menthol in cigarettes. While it may be well-intentioned, this menthol ban would amount to prohibition and the consequences could be more severe than the FDA realizes. 

It could open a huge opportunity for CJNG and other criminal organizations to expand their cigarette smuggling within U.S. borders, especially considering the regulated U.S. menthol market is worth approximately $30 billion. 

Considering CJNG already has a sophisticated narcotics distribution network across major U.S. cities, it would be relatively easy for them to transition to new illicit cigarette sales if given the opportunity and financial incentive.

On the significant threat from CJNG to the United States

As you are aware, Mexican cartels pose a deadly threat to the United States. As the greatest criminal drug threat to the U.S., the Mexican cartels are also involved in several other criminal activities, including but not limited to human trafficking, money laundering, and extortion. In recent years, the Mexican cartels are believed to be responsible for a large portion of synthetic opioid trafficking in the U.S., where overdose deaths due to synthetic opioids like fentanyl have skyrocketed.

We are very concerned about the Mexican cartels and their presence in the United States and urge you to take action that would limit the cartels’ funding and ability to operate within our borders.

Specifically, it has come to our attention that the Cártel de Jalisco Nueva Generación (CJNG) has gained power in Mexico and expanded its operations to the U.S. The Department of Justice considers CJNG “to be one of the five most dangerous transnational criminal organizations in the world”.

The Drug Enforcement Administration (DEA) also believes CJNG is the best-armed criminal organization in Mexico and is a significant threat to the United States. With a reputation for extreme violence, CJNG is a significant target for the United States government.

This issue has also garnered the attention of several Senators, who have penned multiple letters
to your Administration raising concerns about CJNG’s foray into tobacco. Recently, a bipartisan
Senate letter to the U.S. Department of State warned that CJNG’s involvement in tobacco sales
was a threat to our national security and public health and requested more information about
interagency coordination on this specific matter.

Federal rules, such as the proposed menthol and flavored cigar ban, could provide further financial resources to CJNG and other criminal organizations that would fuel their already brutal war against the United States. The American people can’t afford for the cartels to grow more powerful. We’ve already lost too much.

-Carol D. Miller

CJNG & Tobacco International Holdings

Tobacco International Holdings Switzerland is a company formally incorporated in Geneva, Switzerland. Its founder and general director is a person identified as José Guadalupe Varela González. In 2017, Tobacco International Holdings (TIH) was incorporated in the city of Guadalajara, Jalisco.

Testimonies recovered by Milenio mentioned Cedano Filippini as the person responsible for the intimidation of distributors and even indicated him as an alleged partner of the company. In 2018, the then deputy of Movimiento Ciudadano, Martha Tagle, presented a point of agreement in the Chamber of Deputies to ask federal authorities to investigate TIH for possible tax evasion, as well as for operations with illicit resources.

During his participation, Tagle explained that Carlos Cedano Filippini was commander of the defunct Federal Investigation Agency (AFI) in 2006 and was assigned to different states, such as Veracruz, Tabasco, Jalisco, and Michoacán.

Two years later, in 2008, he was arrested by the DEA as part of a drug trafficking investigation. He had about $600,000 in his possession, the origin of which he could not explain, for which he was prosecuted, but was released after paying bail of $2 million.

He was repatriated to Mexico and, after having been detained in Nayarit for organized crime and operations with illegal resources, he was returned to the PGR and sent to Michoacán. In 2016, a member of the self-defense forces of said state indicated him as the agent designated by the then Attorney Martín Godoy to negotiate with the CJNG.

In May 2022, a report by Amílcar Salazar revealed that Carlos Cedano Filippini, along with his brothers Hugo Antonio and Genaro, would be in charge not only of extortions against merchants - supposedly by direct orders from the CJNG - but also of the maquila of TIH cigarettes through the companies Braxico Manufacturing, SA de CV, Sijara International Manufacturing, SA de CV and Burley & Virginia Tabaco Company, SA de CV.

In November 2020, the network of companies acquired licenses for the use of more than 50 brands of tobacco products in the country, including Economicos, Laredo, Link, Cherokee, Studio 54, Peninsula, Roma, and Senator.

Source US Congress, Infobae, Borderland Beat