In addition to Los Chapitos, the Marin brothers also used the BMPE scheme to launder drug proceeds for Sinaloa Cartel members who report to Ismael Zambada Garcia (“El Mayo”), El Chapo’s former partner.
For example, Jesus Norberto Larranaga Herrera (“El 30”) (Jesus Larranaga), based in Culiacan and the surrounding municipalities—such as Pueblos Unidos and Tacuichamona—participated in the BMPE scheme. Jesus Larranaga works for his father in-law, Victor Lizarraga Martinez (“El 20”) (Victor Lizarraga), a former police officer turned high-level operator for El Mayo. Karla Gabriela Lizarraga Sanchez (Karla Lizarraga)—the spouse of Jesus Larranaga and daughter of Victor Lizarraga—is also involved in drug trafficking and bulk cash smuggling. In Pueblos Unidos, brothers, Alexis Vergara Meza (“Wini”) (Alexis Vergara) and Edy Vergara Meza (“Carter”) (Edy Vergara), are fentanyl suppliers working alongside Jesus Larranaga.
As suppliers of methamphetamine and fentanyl, among other drugs, Jesus Larranaga, Victor Lizarraga, Karla Lizarraga, Alexis Vergara, and Edy Vergara—all sanctioned today—coordinate drug distribution throughout the United States, launder money, and smuggle bulk cash. Jesus Larranaga also uses illicit drug proceeds to purchase weapons in the United States, which are smuggled across the border to Mexico via couriers.
OFAC sanctioned Jesus Larranaga, Victor Lizarraga, Karla Lizarraga, Alexis Vergara, and Edy Vergara for having engaged in, or attempted to engage in, activities or transactions that have materially contributed to, or pose a significant risk of materially contributing to, the international proliferation of illicit drugs or their means of production.
Executive Order 14059 of December 15, 2021 Imposing Sanctions on Foreign Persons Involved in the Global Illicit Drug Trade
Regime
OFAC-horizontal
Target State
Drugs
Measures
Blocking Property, Suspending Entry
Official Information
President Biden signed a new Executive Order (E.O.) to modernize the U.S. Department of the Treasury’s sanctions authorities used to combat the illicit drug trade. This E.O. will provide the Treasury Department with new tools to tackle changes in the global illicit drug trade that substantially contributed to over 100,000 American overdose deaths in the 12-month period ending in April 2021.
This E.O. enhances the Department of Treasury’s authorities to target any foreign person engaged in drug trafficking activities, regardless of whether they are linked to a specific kingpin or cartel. It further enables Treasury to sanction foreign persons who knowingly receive property that constitutes, or is derived from, proceeds of illicit drug trafficking activities.
Under the new E.O., “Imposing Sanctions on Foreign Persons Involved in the Global Illicit Drug Trade,” the Office of Foreign Assets Control (OFAC) today designated 25 actors (10 individuals and 15 entities) in four countries for having engaged in, or attempted to engage in, activities or transactions that have materially contributed to, or pose a significant risk of materially contributing to, the international proliferation of illicit drugs or their means of production.
“The illicit drug trade threatens our national security, economy, communities, and families,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian Nelson. “More than 100,000 Americans died in just twelve months from a drug overdose, a record 28 percent increase that was driven largely by synthetic opioids, particularly fentanyl. Using President Biden’s new E.O., Treasury will deploy its sanctions authority with greater speed, power, and effect across the entire illicit drug ecosystem, especially those who profit from the death and misery of the opioid epidemic. We will continue working closely with our partners to reduce threats from these groups and disrupt their business models, including by stopping them from using the U.S. financial system.”
Today’s action targets individuals and drug trafficking organizations (DTO) based in Brazil, China, Colombia, and Mexico. Those sanctioned include individuals who traffic fentanyl, and its precursor chemicals, methamphetamine, cocaine, and heroin, as well as organizations that pose the greatest drug threat to the United States.
The new E.O. builds upon Treasury’s previous narcotics sanctions authorities, specifically E.O. 12978 (1995) and the Foreign Narcotics Kingpin Designation Act (Kingpin Act) (1999). Treasury designated eight individuals and entities under the new E.O. and is also applying the expanded tools of this authority to designate 17 individuals and entities previously sanctioned under other authorities.
