DOT SANCTIONS MOTHER-IN-LAW OF DRUG LORD TO RECOUP HIDDEN ASSETS

FROM:   U.S. TREASURY DEPARTMENT 
Treasury Sanctions Mother-in-Law of Sinaloa Cartel Drug Lord “El Azul”
Action Exposes Sinaloa Cartel Leader’s Attempts to Hide Assets

WASHINGTON – Today, the U.S. Department of the Treasury designated Alejandra Araujo Uriarte, a Mexican national, as a Specially Designated Narcotics Trafficker pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act). Araujo Uriarte was designated for her role in holding and concealing assets in her name on behalf of her son-in-law Juan Jose Esparragoza Moreno (a.k.a. “El Azul”), a leader of Mexico's Sinaloa Cartel.  As a result of today’s action, allassets of those designated that are based in the United States or in the control of U.S. persons are frozen, and U.S. persons are generally prohibited from engaging in transactions with them.

“Araujo Uriarte has knowingly concealed the assets of an influential drug lord,” said Adam J. Szubin, Director of the Office of Foreign Assets Control.  “As the third action that we have taken against the family accomplices of Esparragoza Moreno, today’s designation builds on our unrelenting efforts to disrupt the Sinaloa Cartel and other narcotics organizations around the world.”

The Treasury Department previously designated family members of Esparragoza Moreno on July 24, 2012 and September 30, 2013.  The first action designated seven family members who act on behalf of Esparragoza Moreno, including his wife, Ofelia Monzon Araujo.  Shortly thereafter, Monzon Araujo began to transfer land in Culiacan, Sinaloa to her mother, Alejandra Araujo Uriarte, in an attempt to hide these assets and evade sanctions.  This includes land occupied by designated gasoline retailers that are controlled by Esparragoza Moreno.  The Treasury Department previously exposed attempts by these gasoline retailers to evade sanctions by changing their names.

The United States identified Esparragoza Moreno and the Sinaloa Cartel as significant foreign narcotics traffickers pursuant to the Kingpin Act in 2003 and 2009, respectively.  Esparragoza Moreno was indicted on drug trafficking charges in the U.S. District Court for the Western District of Texas in 2003.  He is wanted in both the United States and Mexico; the U.S. State Department Narcotics Rewards Program is offering a reward of up to $5 million for information leading to his arrest and/or conviction, while Mexican authorities are offering 30 million pesos for information leading to his capture.  Esparragoza Moreno has been active in drug trafficking since the 1970s.

Today’s designation was taken in close coordination with U.S. law enforcement agencies, including the Drug Enforcement Administration, and is part of a larger effort by the Treasury Department to collaborate with Mexican authorities in the sanctioning of Mexican drug trafficking organizations.

Since June 2000, more than 1,700 entities and individuals have been named pursuant to the Kingpin Act for their role in international narcotics trafficking.  Penalties for violations of the Kingpin Act range from civil penalties of up to $1.075 million per violation to more severe criminal penalties.  Criminal penalties for corporate officers may include up to 30 years in prison and fines of up to $5 million.  Criminal fines for corporations may reach $10 million. Other individuals could face up to 10 years in prison and fines pursuant to Title 18 of the United States Code for criminal violations of the Kingpin Act.

CHIEF OF SECURITY FOR DRUG TRAFFICKER TARGETED AS SPECIALLY DESIGNATED NARCOTICS TRAFFICKER

FROM:  U.S. TREASURY DEPARTMENT
Action Targets Cartel Enforcer and Security Firm Linked to the Beltran Leyva Organization


WASHINGTON – The U.S. Department of the Treasury today designated Arnoldo Villa Sanchez as a specially designated narcotics trafficker (SDNT) pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act).  Arnoldo Villa Sanchez, a.k.a. Erick Rene Calderon Sanchez, is the chief of security for Hector Beltran Leyva, the leader of the Beltran Leyva drug trafficking organization.  Villa Sanchez has carried out numerous acts of violence on behalf of his cartel bosses.  In addition to the action against Villa Sanchez, the Treasury Department also designated Sistemas Elite De Seguridad Privada, S.A. de C.V., a private security firm, for being owned and controlled by Arnoldo Villa Sanchez.  Treasury also designated Miguel Loza Hernandez for his links to Arnoldo Villa Sanchez and Sistemas Elite De Seguridad Privada, S.A. de C.V.  Today's action, pursuant to the Kingpin Act, generally prohibits U.S. persons from conducting financial or commercial transactions with these designees, and also freezes any assets they may have under U.S. jurisdiction.

"We have been closely monitoring the resurgence of the Beltran Leyva Organization as it battles for a larger share of the narcotics trade in Mexico.  We are determined to target all sides in this cartel war and will continue to use our authorities to disrupt these violent organizations,” said Treasury’s Director of the Office of Foreign Assets Control (OFAC) Adam J. Szubin.

Arnoldo Villa Sanchez is a top associate of Hector Beltran Leyva and serves as his security chief.  OFAC designated Hector Beltran Leyva as a SDNT in December 2009.  Arnoldo Villa Sanchez is the largest shareholder of Sistemas Elite De Seguridad Privada, S.A. de C.V., a Guadalajara, Mexico based security services firm with more than 150 employees.  Sistemas Elite De Seguridad Privada, S.A. de C.V. specializes in personnel protection and alarm services. Miguel Loza Hernandez manages, and is a shareholder of, Sistemas Elite De Seguridad Privada, S.A. de C.V.  Since 2008, Beltran Leyva Organization has waged a bloody war against rival organizations led by Joaquín "Chapo” Guzman Loera and the Sinaloa Cartel.  In the last two years, the Beltran Leyva Organization has re-established itself and begun to expand its influence in parts of Sinaloa.

The President identified the Beltran Leyva Organization and Marcos Arturo Beltran Leyva as significant foreign narcotics traffickers pursuant to the Kingpin Act in May 2008.  Hector Beltran Leyva has been indicted on drug trafficking charges by federal grand juries in the District of Columbia (2004) and the Eastern District of New York (2009).  The U.S. Department of State is offering up to a five million dollar reward for any information that leads to the capture of Hector Beltran Leyva.  In addition, Mexican authorities are offering up to 30,000,000 Mexican Pesos (two million dollars) for information leading to his arrest.  On January 20, 2008, Mexican authorities arrested Alfredo Beltran Leyva, the former leader of the Beltran Leyva Organization, on organized crime, drug trafficking, and unauthorized use of military grade weapons charges.  In December 2009, the Mexican military killed Marcus Arturo Beltran Leyva.  Subsequently, Hector Beltran Leyva assumed the role as leader of the Beltran Leyva organization.

Since June 2000, the President has identified 103 drug kingpins, and OFAC has designated more than 1,300 businesses and individuals, pursuant to the Kingpin Act. Penalties for violations of the Kingpin Act range from civil penalties of up to $1.075 million per violation, to more severe criminal penalties. Criminal penalties for corporate officers may include up to 30 years in prison and fines up to $5 million.  Criminal fines for corporations may reach $10 million.  Other individuals could face up to 10 years in prison and fines pursuant to Title 18 of the United States Code for criminal violations of the Kingpin Act.

TREASURY DESIGNATES VIOLENT DRUG TRAFFICKER PURSUANT TO KINGPIN ACT

FROM:  U.S. TREASURY 

Treasury Designates Guatemalan Trafficker Allied with Los Zetas

WASHINGTON – The U.S. Department of the Treasury today designated Jairo Estuardo Orellana Morales, a violent Guatemalan narcotics trafficker, as a Specially Designated Narcotics Trafficker (SDNT) pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act).  Orellana Morales traffics cocaine through Guatemala on behalf of Los Zetas and has been implicated in several executions in Guatemala in support of his drug trafficking activities.
Orellana Morales is linked to Marta Julia Lorenzana Cordon, a member of the Lorenzana crime family, who was designated by Treasury pursuant to the Kingpin Act in November 2012.  Today’s announcement is the latest in a series of efforts by the Treasury Department to thwart transnational drug cartels, such as Los Zetas, which are responsible for distributing significant amounts of cocaine, marijuana, and methamphetamine in the United States.  President Obama identified Los Zetas as a significant foreign narcotics trafficker under the Kingpin Act in April 2009 and in July 2011, he named Los Zetas as a significant Transnational Criminal Organization in the Annex to Executive Order 13581 (Blocking Property of Transnational Criminal Organizations).

“Jairo Orellana Morales employs extreme violence in his efforts to traffic cocaine through Guatemala on behalf of Los Zetas,” said Treasury’s Director of the Office of Foreign Assets Control (OFAC) Adam J. Szubin.  “OFAC will continue to deny Los Zetas and their Central American operatives access to the U.S. financial system.”

Today’s action prohibits U.S. persons from conducting financial or commercial transactions with Jairo Orellana Morales, and freezes any assets he may have under U.S. jurisdiction.

Internationally, OFAC has designated more than 1,300 businesses and individuals linked to 103 drug kingpins since June 2000.  Penalties for violations of the Kingpin Act range from civil penalties of up to $1.075 million per violation to more severe criminal penalties.  Criminal penalties for corporate officers may include up to 30 years in prison and fines of up to $5 million.  Criminal fines for corporations may reach $10 million.  Other individuals could face up to 10 years in prison and fines for criminal violation of the Kingpin Act pursuant to Title 18 of the United States Code.

TREASURY TARGETS MAJOR METHAMPHETAMINE SUPPLY ROUTE

FROM:  U.S. DEPARTMENT OF THE TREASURY

Major Methamphetamine Supply Route Targeted with Today’s Action

WASHINGTON – The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) today designated Ezio Benjamin Figueroa Vasquez and his son, Hassein Eduardo Figueroa Gomez, as Specially Designated Narcotics Traffickers pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act) for their significant role in international narcotics trafficking, as well as 16 of their companies in Mexico and Panama. The Kingpin Act prohibits U.S. persons from conducting financial or commercial transactions with these individuals and entities, and it freezes any assets the designees may have under U.S. jurisdiction. 

Figueroa Vasquez and Figueroa Gomez lead an international precursor chemical trafficking organization responsible for the diversion and importation of multi-ton quantities of pseudoephedrine and ephedrine from Europe and sub-Saharan Africa into Mexico. The organization distributes these precursor materials to major Mexican drug trafficking organizations which manufacture methamphetamine in Mexico for ultimate distribution in the United States. 

“Working closely with the Government of Mexico, OFAC is today sanctioning two significant traffickers who for years circumvented Mexican drug control laws to import massive amounts of ephedrine and pseudoephedrine into Mexico,” said OFAC Director Adam J. Szubin. “Together with our colleagues in the U.S. and Mexican governments, we will continue to target the activities of these criminals and other precursor chemical networks.”

On November 2, 2011, Figueroa Vasquez and Figueroa Gomez were indicted by a federal grand jury in the Eastern District of Virginia. They are accused of conspiring to commit money laundering in connection with their alleged precursor chemical trafficking. The indictment was unsealed on April 11, 2012.

In September 2011, Mexican authorities arrested Figueroa Vasquez, and he remains in Mexican custody today. The 16 companies designated today in Mexico and Panama range in business activities from real estate and construction to pharmaceutical activity. Among these companies are Mexico City-based pharmaceutical companies Geofarma, S.A. de C.V. and Distribuidora Medica Hospitalaria, S.A. de C.V. as well as Guadalajara-based construction and housing development companies Promociones Citadel, S.A. de C.V. and Desarrollo Arquitectonico Fortia, S.A. de C.V.

Today's action would not have been possible without key support from the Drug Enforcement Administration and the United States Attorney's Office for the Eastern District of Virginia. The Government of Belgium also assisted OFAC in this action. This cooperation is part of a global effort to interdict Mexican drug trafficking organizations’ access to materials needed for the illicit production of methamphetamine.

“This organization for years served as a major facilitator on behalf of some of the most violent, brutal Mexico-based drug networks in the world,” said DEA Chief of Financial Operations John Arvanitis. “The biggest cartels in the world rely on organizations like this one to secure huge amounts of precursor chemicals like ephedrine and pseudoephedrine to produce massive amounts of meth that ends up in communities across the United States. Using every tool at our disposal, such as this Treasury designation, will go a long way towards ensuring that this organization is dismantled.”

Pursuant to the Kingpin Act, the Treasury Department has designated more than 1,000 individuals and entities linked to drug kingpins since June 2000. Penalties for violations of the Kingpin Act range from civil penalties of up to $1.075 million per violation to more severe criminal penalties. Criminal penalties for corporate officers may include up to 30 years in prison and fines up to $5 million. Criminal fines for corporations may reach $10 million. Other individuals face up to 10 years in prison and fines pursuant to Title 18 of the United States Code for criminal violations of the Kingpin Act.