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.