The Trump administration is warning anyone looking to do businesses with people and companies associated with the Jalisco New Generation Cartel.

On May 1, Treasury Secretary Scott Bessent announced economic sanctions against three Mexican nationals and two Mexico-based entities involved in a drug trafficking and fuel theft network linked to Mexico's Jalisco New Generation Cartel.

“We are denying the cartel the opportunity to wreak further havoc,” Bessent said.

READ MORE ABOUT THE SANCTIONS HERE

George Mason University professor Guadalupe Correa-Cabrera specializes in transnational crime on the border.

“If this is done correctly, we're going to know who is really in charge of this,” Correa-Cabrera said.

According to Correa-Cabrera, the sanctions are against several Jalisco New Generation Cartel bosses — including Caesar 'El Primito' Morfin and his brothers — who operate a fuel theft network that work with U.S. companies. 

“We're not just going to talk about ‘El Primito,’ we're not just going to talk about these small people — we're going to be talking about real entrepreneurs that also operate in the United States,” Correa-Cabrera said.

The U.S. Treasury Department said the network has resulted in tens of millions of dollars in lost revenue to the Mexican government. They also claim the group has smuggled fentanyl into the U.S.

The sanctions freeze any assets the people or companies have in the U.S, and bans U.S. citizens from doing business with them.

Last month, James Jensen and three of his relatives were arrested and indicted on oil smuggling and money laundering charges.

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Jensen is the owner of the Rio Hondo – based crude oil purchasing company Arroyo Terminals.

The indictment against the four people says the group worked with Mexican businesses involved with organized criminal groups to smuggle the crude oil.

A Mexico security expert said cartels have expanded its business from drug and human smuggling to include selling cheaper gasoline on the black market.

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