OFAC takes largest-ever action targeting cartel leadership and support networks

Overview

On July 23, 2026, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) announced sanctions targeting more than 50 Mexican individuals and entities allegedly linked to Cartel de Jalisco Nueva Generacion (CJNG). OFAC described the action as its largest ever targeting CJNG and stated that it is intended to disrupt the cartel's leadership, drug trafficking operations, illicit finance networks, and related support structures across multiple Mexican states.

The action was taken pursuant to Executive Order (E.O.) 14059, which targets the international proliferation of illicit drugs and their means of production, and E.O. 13224, as amended, which targets terrorists and their supporters.

According to OFAC, the designations were supported by coordinated investigations involving the Federal Bureau of Investigation, Homeland Security Investigations, the Drug Enforcement Administration, and other agencies. OFAC also stated that it coordinated the action with Mexico's financial intelligence unit, the Unidad de Inteligencia Financiera. Following the OFAC press release, OFAC further stated that the action forms part of a broader Homeland Security Task Force-led effort under which OFAC has taken nearly 30 actions targeting approximately 250 individuals and entities linked to cartels and other criminal organizations.

Continued OFAC focus on CJNG

According to OFAC, CJNG is a Mexico-based organization with global operations that is allegedly involved in fentanyl trafficking, money laundering, fuel theft, fuel smuggling, and timeshare fraud. The OFAC press release noted that CJNG was designated under the Foreign Narcotics Kingpin Designation Act in April 2015 and later designated pursuant to E.O. 14059 in December 2021. OFAC further noted that the U.S. Department of State designated CJNG as both a Foreign Terrorist Organization (FTO) and a Specially Designated Global Terrorist (SDGT) on February 20, 2025.

OFAC stated that it has designated more than 250 individuals and entities linked to CJNG since 2015. It also emphasized that it continues to employ a network-based sanctions strategy designed to target not only cartel leadership but also facilitators, financial supporters, family members, and business networks allegedly used to support cartel operations.

Current CJNG leadership

Among the individuals designated in the July 2026 action is Juan Carlos Gonzalez, whom OFAC alleged is the current leader of CJNG. Following the release, Gonzalez became leader following the death of his stepfather, Ruben Oseguera Cervantes, in February 2026. OFAC further stated that Gonzalez is charged in a federal narcotics trafficking indictment filed in the U.S. District Court for the District of Columbia and is the subject of a U.S. Department of State Narcotics Reward Program offer of up to $5 million for information leading to his arrest or conviction. See Office of Public Affairs | Reward Offered for Mexican National Indicted for International Cocaine and Methamphetamine Trafficking Charges | United States Department of Justice.

The OFAC press release also highlighted several previously designated CJNG leaders, including Audias Flores Silva (Jardinero), Gonzalo Mendoza Gaytan, Julio Alberto Castillo Rodriguez, Julio Cesar Montero Pinzon, Carlos Andres Rivera Varela, and Francisco Javier Gudino Haro.

Family-based business and support networks

A significant portion of the designations targets individuals and companies that OFAC alleged are connected to senior CJNG members through family, financial, or business relationships.

OFAC specifically targeted networks associated with Jardinero, whom Mexican authorities arrested in April 2026. According to OFAC, Jardinero maintained control of substantial territory in several Mexican states through a network of family members, associates, plaza bosses, and businesses. Treasury designated multiple individuals allegedly associated with that network as well as several entities, including Petrocoda S.A. de C.V., El Almacen Licoreria, Stella Servicios Comerciales y Empresariales S.A. de C.V., Casa Tequilera El Origen Del Tequila S.A. de C.V., Hurrari Kash S.A. Promotora de Inversion de C.V., Agropecuaria Amateq Del Valle S.A. de C.V., and Productores Vagu S.A. de C.V.

OFAC additionally targeted a separate network linked to Gerardo Botello Rozalez, known as "El Cachas," whom Treasury described as a senior CJNG member. According to OFAC, the network included several relatives and business associates, along with companies such as Bubux Baby Shoes S.A. de C.V., Green Agropacific S.P.R. de R.L. de C.V., Corporativo de Seguridad Privada Alfa y Gama S.A. de C.V., and Rancho San Miguel Los Tres Hermanos S.P.R. de R.L. de C.V.

Overall, the action reflects OFAC's continued focus on family members, front persons, and ostensibly legitimate companies that Treasury alleges are used to hold assets or facilitate operations for cartel-affiliated individuals.

Drug trafficking, fuel theft, and money laundering activities

OFAC also stated that several designated individuals were allegedly involved in both narcotics trafficking and “huachicol” activities, which OFAC described as the theft and smuggling of fuel and crude oil. Among those designated were Feliciano Ledezma Ramirez, who OFAC alleged traffics fentanyl to the United States, and Alma Laura Mena Alvarado and Jose Mora Leon, who Treasury alleged were involved in activities related to both fentanyl distribution and fuel theft. OFAC also designated Strong Energy S.A. de C.V. and Transic Logistic S.A. de C.V., which Treasury stated were controlled by Mena and Mora.

The action additionally targeted a cocaine trafficking network led by twin brothers Marcial Apolinar Diaz Robles and Pedro Marcial Diaz Robles. According to OFAC, the brothers used relationships with members of CJNG's inner circle to facilitate shipments of cocaine and other narcotics from South America through Mexico and onward to the United States and Europe. OFAC also designated Jorge Zepeda Rodriguez, whom OFAC alleged was involved in those activities, and Optic Private Transportation S.A. de C.V.

Third-party money laundering network

OFAC also designated a group of individuals that Treasury described as a professional money laundering network operating primarily from Zapopan and Guadalajara, Jalisco.

According to OFAC, the network consisted of Salvador Israel Rodriguez Flores, Jorge Villa Sanchez, Adolfo Gabriel Medina Chavira, Jorge Fernando Cruz Cabrera, Julio Cesar Castellanos Ceja, Luis Mario Mendoza Garcia, and Hugo Alejandro Sanchez Tamayo. OFAC alleged that the group collected bulk cash narcotics proceeds from multiple U.S. cities and facilitated the return of funds to cartel-linked actors in Mexico. OFAC further designated Mundo Fit Suplementos S.A. de C.V. and Medin Products, which Treasury stated were linked to Adolfo Gabriel Medina Chavira.

Key takeaways

The July 2026 action demonstrates OFAC's continued reliance on a network-based approach to sanctions targeting transnational criminal organizations. Rather than focusing solely on alleged cartel leadership, the designations extend to family members, facilitators, money laundering actors, and a broad range of commercial entities that OFAC alleges support CJNG activities.

The action also illustrates OFAC's continued use of both narcotics trafficking and counterterrorism authorities in the cartel context following the State Department's 2025 designation of CJNG as an FTO and SDGT. The breadth of the designations underscores the importance of sanctions screening and enhanced due diligence with respect to counterparties and ownership structures connected to designated persons and certain regions.

OFAC designation implications

As with prior OFAC designations, all property and interests in property of the designated individuals and entities that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. Entities owned 50% or more by one or more blocked persons are also blocked under OFAC's 50% Rule.

All transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or blocked persons are prohibited unless authorized by a general or specific license issued by OFAC or exempt. These prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person and the receipt of any contribution or provision of funds, goods, or services from any such person.

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