The United States has sanctioned a Mexican cartel and its leader, saying they derive much of their income from fuel and oil theft in the central state of Guanajuato.
The Treasury Department said its Office of Foreign Assets Control blacklisted the Cartel de Santa Rosa de Lima and its leader, Jose Antonio Yepez Ortiz, known as “El Marro.” Treasury said the group’s battle with the rival Jalisco New Generation Cartel for control of stolen hydrocarbons has fueled violence in Guanajuato and supported a cross-border black market that undercuts legitimate oil and gas businesses and deprives Mexico of revenue.
Treasury described fuel theft as a major revenue stream involving bribed employees of state-owned oil company Pemex, illegal pipeline taps, refinery theft, tanker hijackings and intimidation. It said stolen crude can be smuggled into the United States and mislabeled — for example as waste oil — before being sold at steep discounts, with profits sent back to Mexico.
The sanctions freeze any U.S.-based property of the designated targets and generally bar U.S.-linked transactions with them, with civil or criminal penalties for violations.
