U.S. Sanctions Mexican Ice Cream Chain, Pharmacy for Alleged Ties to Sinaloa Cartel
The U.S. Treasury Department on Tuesday announced sanctions against two Mexican businesses – an ice cream chain and a local pharmacy – for allegedly using proceeds from fentanyl trafficking to finance their operations linked to the Sinaloa cartel.
The Treasury’s Office of Foreign Assets Control (OFAC), which combats illicit funds and money laundering, stated that individuals previously identified for money laundering established a chain of ice cream and popsicle shops in the state of Sinaloa. The Sinaloa cartel notoriously utilizes earnings from international drug trafficking to establish businesses, investing in ventures ranging from fraudulent timeshare operations to restaurants to launder money.
OFAC further revealed that another individual established a pharmacy and convenience store in the northern state of Sonora using drug proceeds.
“President Biden and Vice President Harris are committed to using every tool at our disposal to combat the cartels that are poisoning our communities with fentanyl and other deadly drugs,” said Deputy Secretary of the Treasury Wally Adeyemo in a statement.
These sanctions arrive shortly after the U.S. refuted accusations made by Mexico’s President regarding U.S. responsibility for a surge in cartel warfare that resulted in the deaths of at least 30 individuals in Sinaloa.
The cartel is responsible for a significant portion of fentanyl trafficking into the U.S. They acquire precursor chemicals from China and India to synthesize the opioid and smuggle it into the United States, where it contributes to approximately 70,000 overdose deaths annually.
According to the U.S. Treasury Department, Jesús Norberto Larrañaga Herrera, known as “El 30,” and Karla Gabriela Lizárraga Sánchez, established “Nieves y Paletas,” an ice cream chain with multiple storefront locations around the capital using drug proceeds.
OFAC identified a retail pharmacy and convenience store in Sonora as being linked to drug trafficker José Arnoldo Morgan Huerta, nicknamed “Chachio.” His brother, Juan Carlos Morgan Huerta, known as “Cacayo,” holds the position of a Sinaloa cartel “plaza boss” and oversees drug trafficking in the border city of Nogales.
“Today’s action is part of a whole-of-government effort to counter the global threat posed by the trafficking of illicit drugs into the United States that is causing the deaths of tens of thousands of Americans annually, as well as countless more non-fatal overdoses,” the U.S. Treasury Department stated.
In July, U.S. President Joe Biden unveiled a series of proposals aimed at curbing the ongoing drug epidemic. These proposals include urging Congress to pass legislation establishing a pill press and tableting machine registry and enhancing penalties against convicted drug smugglers and traffickers of fentanyl.