The Herrera brothers work with Jesus Gonzalez Lomeli (Gonzalez), a Rosarito-based business magnate and high-ranking financial operator for the Sinaloa Cartel, to help carry out the cartel’s operations in the area. Gonzalez owns several bars and restaurants in Rosarito, including the Bombay Beach Club, Coco Beach Club, and Mariscos El Caiman, as well as other restaurants, night clubs, and resorts throughout Mexico. Gonzalez has used his businesses to launder millions of dollars of illicit proceeds from drug trafficking on behalf of the Sinaloa Cartel for the Arzate brothers as well as for other high-level cartel figures, including El Ruso. The Arzate brothers have also used Gonzalez’s political influence and another Sinaloa Cartel-affiliated political operative, Candelario Arcega Aguirre (Arcega), to corrupt and exert control over the municipal government of Rosarito, specifically the former Mayor of Rosarito, Hilda Araceli Brown Figueredo (Brown). Arcega maintains a close personal relationship with Brown and, because of their relationship, was able to control parts of the municipal government and appoint his allies to high-level positions within Rosarito’s government. During Brown’s term as Mayor of Rosarito, Gonzalez and Arcega served as intermediaries between Brown and the Los Mayos-aligned Arzate brothers. Working together, Gonzalez, Arcega, and Brown collected extortion payments for the Arzates, assisted in managing the Arzate brothers’ operations, and ensured protection for the Arzates’ criminal activities by the Department of Public Security in Rosarito. Mario Herrera, Karlo Herrera, Gonzalez, Arcega, and Brown are being designated pursuant to E.O. 14059, and pursuant to E.O. 13224, as amended, for being directed by, or having acted or purported to act for or on behalf of, directly or indirectly, the Sinaloa Cartel. In addition to designating the key individuals aligned with Los Mayos in the Playas de Rosarito network, OFAC also targeted 14 businesses owned by Gonzalez: JR Alimentos Del Mar, S. De R.L. De C.V.; Grupo JRCP, S. De R.L.; Sabor Tapatio, S. De R.L. De C.V.; Gotoco Alimentos Procesados S. De R.L. De C.V.; Grupo Hotelero JJJ, S.A. De C.V.; Complejo Turistico JJJ, S.A. De C.V.; Operadora De Espectaculos, Alimentos Y Bebidas J&R S.A. De C.V.; Alimentos Y Diversion Insurgentes, S. De R.L. De C.V.; Sunset Servicios Gastronomicos S. De R.L. De C.V.; JJ Gonver S. De R.L. De C.V.; Operadora De Alimentos Con Origenes De Mexico, S. De R.L. De C.V.; Veintiuno Mexicali, S. De R.L. De C.V.; Coco Beach Bar, S. De R.L. De C.V.; and, Cavally Antro & Bar. These businesses are being designated pursuant to E.O. 14059, and pursuant to E.O. 13224, as amended, for being owned, controlled, or directed by, or having acted or purported to act for or on behalf of, directly or indirectly, Gonzalez.
On June 6, 2003, OFAC issued the Global Terrorism Sanctions Regulations, 31 CFR part 594 (68 FR 34196, June 6, 2003 (“the Regulations”), to implement Executive Order (E.O.) 13224 of September 23, 2001, “Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten To Commit, or Support Terrorism” (66 FR 49079, September 25, 2001). OFAC has amended the Regulations on several occasions.
On September 9, 2019, the President, invoking the authority of, inter alia, the International Emergency Economic Powers Act (50 U.S.C. 1701–1706) (IEEPA) and the United Nations Participation Act (22 U.S.C. 287c) (UNPA), issued E.O. 13886, “Modernizing Sanctions To Combat Terrorism” (84 FR 48041, September 12, 2019), effective September 10, 2019. In E.O. 13886, the President, finding it necessary to consolidate and enhance sanctions to combat acts of terrorism and threats of terrorism by foreign terrorists, terminated the national emergency declared in E.O. 12947 of January 23, 1995, “Prohibiting Transactions With Terrorists Who Threaten To Disrupt the Middle East Peace Process” (60 FR 5079, January 25, 1995), and revoked E.O. 12947, as amended by E.O. 13099 of August 20, 1998, “Prohibiting Transactions With Terrorists Who Threaten To Disrupt the Middle East Peace Process” (63 FR 45167, August 25, 1998). In addition, the President amended E.O. 13224, in order to build upon initial steps taken in E.O. 12947, to further strengthen and consolidate sanctions to combat the continuing threat posed by international terrorism, and in order to take additional steps to deal with the national emergency declared in E.O. 13224, with respect to the continuing and immediate threat of grave acts of terrorism and threats of terrorism committed by foreign terrorists, which include acts of terrorism that threaten the Middle East peace process.
Section 1 of E.O. 13886 replaces in its entirety section 1 of E.O. 13224, which had been amended by a number of prior Executive orders (E.O. 13224, as amended by all such authorities, is referred to herein as “amended E.O. 13224”), but does not amend the Annex to E.O. 13224, which was previously amended by E.O. 13268 of July 2, 2002, “Termination of Emergency With Respect to the Taliban and Amendment of Executive Order 13224 of September 23, 2001” (67 FR 44751, July 3, 2002) (“amended Annex to E.O. 13224”).
