Action Targets Criminal Groups Responsible for Significant Bloodshed in Mexico
WASHINGTON – Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is sanctioning two notorious Mexican cartels-Carteles Unidos (a.k.a. “United Cartels”) and Los Viagras-and seven affiliated individuals linked to terrorism, drug trafficking, and extortion in Mexico’s agricultural sector. Treasury’s action, taken pursuant to counternarcotics and counterterrorism authorities, further implements President Trump’s directive to eliminate completely cartels and transnational criminal organizations threatening the American people.
“Today’s sanctions action draws further attention to the diverse, insidious ways the cartels engage in violent activities and exploit otherwise legitimate commerce,” said Secretary of the Treasury Scott Bessent. “Treasury, alongside our partners in U.S. law enforcement, will continue to target every effort by the cartels to generate revenue for their violent, criminal schemes.”
Today’s action complements the unsealing of indictments of five of the individuals identified below by federal grand juries sitting in the District of Columbia and the Eastern District of Tennessee. Additionally, the Department of State announced Narcotics Rewards Offers for information leading to the arrest and/or conviction of the same five individuals.
Today’s sanctions were coordinated closely with the Department of Justice (DOJ), Homeland Security Investigations (HSI), the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), and the Unidad de Inteligencia Financiera (UIF), Mexico’s Financial Intelligence Unit. This action, which disrupts cartel involvement in extortion, also follows recent OFAC actions targeting other alternative revenue streams for Mexican cartels, such as networks engaged in fuel theft, arms trafficking, and human smuggling.
RAMPANT VIOLENCE AND EXTORTION IN MICHOACAN, MEXICO
Michoacan, a state in Western Mexico, is home to numerous criminal organizations competing for territory, many of whom have been designated by OFAC. As these organizations grow, splinter, and vie for control, new cartels have arisen in recent years. These groups, including those designated today, fight for control of drug trafficking routes and the opportunity to engage in lucrative extortion practices that harm U.S. and Mexican interests.
SANCTIONING VIOLENT AND DESTABILIZING MEXICAN CARTELS
Mexican cartels, including Carteles Unidos and Los Viagras have caused significant bloodshed in Mexico and the United States through their promotion of drug trafficking and violence. On February 20, 2025, the U.S. Department of State announced the designation of Carteles Unidos, a.k.a. “United Cartels,” as a Foreign Terrorist Organization (FTO) pursuant to section 219 of the Immigration and Nationality Act, as amended, and as a Specially Designated Global Terrorist (SDGT), pursuant to Executive Order (E.O.) 13224, as amended. Today, OFAC is additionally sanctioning Carteles Unidos pursuant to E.O. 14059 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.
Carteles Unidos is responsible for producing synthetic opioids and trafficking them to the United States. In addition, the organization is engaged in extortion and a range of other criminal activities. In its brutal conflict with Cartel de Jalisco Nueva Generacion (CJNG), another FTO and SDGT, Carteles Unidos has committed violence against civilians and law enforcement, further destabilizing Michoacan. Carteles Unidos is even linked to the recruitment of foreign mercenaries and the use of improvised explosive devices, resulting in the deaths of Mexican soldiers.
OFAC is also sanctioning Los Viagras, a Michoacan-based criminal organization that has trafficked methamphetamine and cocaine. In its conflict for control of Michoacan, Los Viagras has recently allied with CJNG, one of the two Mexican cartels primarily responsible for the supply of illicit fentanyl into the United States. Furthermore, Los Viagras has extorted avocado and citrus growers, cattle ranchers, and entire towns to generate revenue. In one instance, the group even established internet networks and required a local municipality to pay for it at risk of death. Los Viagras has also conducted kidnappings and attacked Mexican security forces.
CRIMINAL INVOLVEMENT IN MEXICO’S AGRICULTURAL SECTOR
Criminal extortion is particularly rampant in Michoacan’s lucrative agricultural sector and economy. The cartels routinely extort Mexican farmers, packers, and others involved in the process of harvesting and exporting agricultural products, such as avocados, by demanding compulsory payments via cartel affiliates. When victims are unable or unwilling to pay, they face the risk of significant violence to property or even loss of their lives. In certain areas where several cartels consistently clash for influence and control, victims may be subject to multiple such extortion payments. U.S. agricultural officials have even received threats in recent years, leading to pauses of avocado exports from Mexico to the United States. Furthermore, the Michoacan-based cartels engage in land seizures, deforestation, and illegal logging to grow their own agricultural products as part of a broader effort to increase diversify their revenue streams.
TARGETING PROMINENT CARTEL MEMBERS
Furthermore, OFAC today is sanctioning four individuals who are owned or controlled by, or have acted or purported to act for or on behalf of, directly or indirectly, Carteles Unidos.
Juan Jose Farias Alvarez (Farias Alvarez), a.k.a. “El Abuelo,” is the head of Carteles Unidos. In that capacity, he has committed murders and trafficked drugs. Luis Enrique Barragan Chavez (Barragan Chavez), a.k.a. “Wicho,” is a regional leader of Carteles Unidos involved in avocado-related extortion. Alfonso Fernandez Magallon (Fernandez Magallon), a.k.a. “Poncho,” has recruited former military and police officers from Colombia for Carteles Unidos to confront CJNG. Edgar Valeriano Orozco Cabadas (Orozco Cabadas), a.k.a. “El Kamoni,” is a close associate of Farias Alvarez and oversees sicarios, or hitmen, for Carteles Unidos.
Farias Alvarez, Barragan Chavez, Fernandez Magallon, and Orozco Cabadas are being sanctioned pursuant to E.O. 14059 and 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, Carteles Unidos.
OFAC today is also sanctioning three high-ranking members of Los Viagras: Nicolas Sierra Santana (Sierra Santana), a.k.a. “El Gordo,” is one of Los Viagras’ founders and the long-standing leader of the group. Heladio Cisneros Flores (Cisneros Flores), a.k.a. “La Sirena,” is a prominent member of the organization and was linked to the murder of a prominent anti-cartel figure. César Alejandro Sepulveda Arellano (Sepulveda Arellano), a.k.a. “El Botox,” is a Los Viagras leader responsible for the killing of a citrus producer.
Los Viagras is being sanctioned pursuant to E.O. 14059 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. Sierra Santana, Cisneros Flores, and Sepulveda Arellano are being sanctioned pursuant to E.O. 14059 for being foreign persons who are or have been leaders or officials of Los Viagras.
SANCTIONS IMPLICATIONS
As a result of today’s action, all property and interests in property of the designated or blocked persons described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of blocked persons.
Violations of U.S. sanctions may result in the imposition of civil or criminal penalties on U.S. and foreign persons. OFAC may impose civil penalties for sanctions violations on a strict liability basis. OFAC’s Economic Sanctions Enforcement Guidelines provide more information regarding OFAC’s enforcement of U.S. economic sanctions. In addition, financial institutions and other persons may risk exposure to sanctions for engaging in certain transactions or activities involving designated or otherwise blocked persons. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any designated or blocked person, or the receipt of any contribution or provision of funds, goods, or services from any such person.
Furthermore, engaging in certain transactions involving certain persons designated today may risk the imposition of secondary sanctions on participating foreign financial institutions. OFAC can prohibit or impose strict conditions on opening or maintaining, in the United States, a correspondent account or a payable-through account of a foreign financial institution that knowingly conducts or facilitates any significant transaction on behalf of a person who is designated pursuant to the relevant authority.