The U.S. has sanctioned an individual purportedly leading a cartel-linked fuel theft operation in Mexico, aiming to disrupt the economic backbone of a hyper-violent organized crime syndicate.
At a Glance
- Ivan Cazarin Molina, known as “the tank,” leads the fuel theft arm of Mexico’s Jalisco New Generation cartel.
- Cazarin Molina manages massive storage tanks in Veracruz, generating tens of millions of dollars annually from stolen gasoline sales for the cartel.
- The U.S. Treasury sanctioned Cazarin Molina, nine other Mexicans, and 26 Mexico-based entities involved with the cartel.
- Fuel theft costs Mexico’s government and Pemex billions of dollars annually.
- Sanctions freeze any U.S. assets of the individuals or companies involved and prohibit U.S. citizens from doing business with them.
U.S. Sanctions Critical Player in Fuel Theft Ring
The U.S. Treasury Department has sanctioned Ivan Cazarin Molina, also known as “the tank,” for leading a sophisticated fuel theft operation linked to Mexico’s Jalisco New Generation cartel. The sanctions target the cartel’s ability to fund its violent activities through the economic support structures of Molina’s illegal operations.
Cazarin Molina is responsible for managing large storage tanks in Veracruz, which he uses to stockpile stolen gasoline. These tanks are integral to a distribution network that funnels tens of millions of dollars annually to the cartel through the sale of stolen gasoline. This has significantly bolstered the cartel’s financial capability, enhancing its violent activities both in Mexico and potentially impacting U.S. security.
US sanctions suspected drug cartel money launderershttps://t.co/8rmuIjz8e8
— Voice of America (@VOANews) July 2, 2024
Extensive Sanctions Announced
The U.S. Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Cazarin Molina, nine other Mexican nationals, and 26 Mexican entities for their roles in the cartel operations. These sanctions aim to paralyze their financial networks by freezing any U.S. assets and prohibiting U.S. citizens from doing business with the sanctioned entities. This move is part of a broader strategy to diminish the cartel’s economic power and curb its violent activities.
The sanctioned individuals and entities are believed to facilitate the cartel’s operations through various legitimate business fronts like “Etanofuel” and “G Energy.” The stolen gasoline is sold within Mexico and to third-party buyers, with some even reaching U.S. markets. This complex operation involves not just underground dealings but also professional branding that conceals the illicit activities.
Fuel Theft: A Major Economic and Security Issue
Fuel theft is a major problem for Mexico, costing the government and Pemex, the state oil company, billions of dollars annually. Criminal groups hijack tanker trucks, tap pipelines, and steal directly from refineries to procure the fuel. President Andrés Manuel López Obrador has tasked the Mexican army with curbing this problem, highlighting the national security implications of fuel theft.
Cazarin Molina answers directly to Ruben Oseguera Cervantes, also known as “El Mencho,” the leader of the Jalisco cartel. The U.S. government has offered a $10 million reward for information leading to El Mencho’s arrest. By incapacitating key figures like Cazarin Molina, the U.S. aims to disrupt the cartel’s operations significantly.
