U.S. Sanctions Mexican Ice Cream Chain and Pharmacy Linked to Cartel

The U.S. Treasury Department has taken action against two Mexican businesses, an ice cream chain and a pharmacy, for their alleged involvement in laundering proceeds from fentanyl trafficking linked to the Sinaloa cartel. This move is part of a broader effort to combat the ongoing drug epidemic that has claimed thousands of lives in the United States.

The Office of Foreign Assets Control (OFAC), established in 1950 to fight illicit funds and money laundering, identified these businesses as fronts for cartel operations. The Sinaloa cartel, founded in the late 1980s, is known for its sophisticated money laundering tactics, often investing drug profits into legitimate businesses to conceal their origins.

In Sinaloa, Mexico's largest state by area, individuals previously cited for money laundering reportedly established a chain of ice cream and popsicle shops. This tactic is reminiscent of America's first ice cream parlor, which opened in New York City in 1776, long before the current drug crisis. Similarly, in the northern state of Sonora, another person allegedly set up a pharmacy and convenience store using drug proceeds. Interestingly, pharmacies have a long history, with the first recorded apothecary shop dating back to 754 AD in Baghdad.

Jesús Norberto Larrañaga Herrera, known as "El 30", and Karla Gabriela Lizárraga Sánchez, are said to have founded "Nieves y Paletas," an ice cream chain with multiple locations in the capital. In Sonora, a retail pharmacy and convenience store were linked to drug trafficker José Arnoldo Morgan Huerta, nicknamed "Chachio." His brother, Juan Carlos Morgan Huerta, known as "Cacayo," is reportedly a Sinaloa cartel "plaza boss" overseeing drug trafficking in Nogales, a city divided by the U.S.-Mexico border.

These sanctions come at a time of heightened tensions between the U.S. and Mexico. Just days ago, the U.S. rejected accusations by Mexico's President that it was partly responsible for a surge in cartel violence resulting in at least 30 deaths in Sinaloa. This conflict underscores the complex relationship between the two countries, whose shared border stretches approximately 1,954 miles.

The Sinaloa cartel is a major player in fentanyl trafficking to the U.S. They source precursor chemicals from China and India to manufacture this synthetic opioid, which is 50-100 times more potent than morphine. Fentanyl, first synthesized in 1960 by Paul Janssen, now causes about 70,000 overdose deaths annually in the U.S.

[[Deputy Secretary of the Treasury Wally Adeyemo]]

"President Biden and Vice President Harris are committed to using every tool at our disposal to combat the cartels that are poisoning our communities with fentanyl and other deadly drugs."

The U.S. government's response to this crisis has been multifaceted. In July 2024, President Biden announced proposals to address the drug epidemic, including legislation to establish a pill press and tableting machine registry and enhance penalties for convicted drug smugglers and traffickers of fentanyl.

These efforts build on previous actions, such as the declaration of the opioid crisis as a public health emergency in 2017 and the enactment of the "Kingpin Act" in 1999, which targets drug traffickers. The U.S. Drug Enforcement Administration (DEA), established in 1973, continues to play a crucial role in combating drug trafficking.

As the battle against fentanyl trafficking and money laundering continues, the U.S. Treasury Department, founded in 1789, remains at the forefront of financial sanctions. These recent actions demonstrate the ongoing commitment to disrupt the financial networks of drug cartels and protect communities from the devastating effects of the opioid epidemic.