U.S. sanctions Mexican fuel smugglers tied to Jalisco cartel
Treasury sanctioned two Mexican nationals and nine entities in a CJNG-linked fuel scheme that moved U.S. gasoline and diesel into Mexico for cartel resale.
The Treasury Department sanctioned two Mexican nationals and nine entities tied to a fuel-smuggling network that moved gasoline, diesel and naphtha from the United States into Mexico without paying the required import tax. The Treasury Department linked the operation to the Jalisco New Generation Cartel, known as CJNG, and said it depended on customs fraud, bribed officials and complicit fuel traders on both sides of the border.
The network evaded Mexico’s IEPS tax through misclassified customs documents and other concealment, then pushed the fuel through front companies and shell entities. Once across the border, the product was sold through cartel-controlled stations and unregulated roadside stops at a steep markup. Treasury said the proceeds were then laundered through luxury goods, real estate and investment assets.
The sanctions named Oscar Guillermo Juraidini Silva and J. Refugio Ruiz, along with nine entities tied to the scheme, including Centro Cambiario La Peseta, OJ Living Trust, RK Real King, Soma Transporte y Servicios, Ogui Fletes, Cucumber Sweet Waves, Jomadi Logistics & Cargo and Ahavat Logistics Solution. Treasury said the illegal trade generated tens of millions of dollars a year, while a broader CJNG-linked fuel theft enterprise brought in hundreds of millions annually.
FinCEN's June 30 alert identifies fuel theft and oil smuggling as the most significant non-drug illicit source of income for cartels, surpassing other sidelines that once sat behind narcotics trafficking. It also puts the share of fuel sold in Mexico that may be illicit at a quarter to a third.
FinCEN instructed banks and other financial institutions to watch for red flags in the cross-border fuel trade and to reference the term FIN-2026-FISCALFUELTHEFT in suspicious activity reports.
The June 30 action was coordinated through a South Texas Homeland Security Task Force-led investigation involving the Drug Enforcement Administration, Homeland Security Investigations, the FBI, IRS-CI, the Bureau of Industry and Security and Customs and Border Protection, and was developed with Mexico’s financial intelligence unit, UIF. It followed a May 1, 2025 Treasury action against three Mexican nationals and two Mexico-based entities tied to CJNG fuel theft and oil smuggling.
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