The U.S. Department of the Treasury has unveiled a sweeping set of sanctions targeting a powerful faction of the Sinaloa Cartel and its financial criminal network, which notably includes the former mayor of the Baja California city of Playas de Rosarito.
The action, carried out by the Office of Foreign Assets Control (OFAC) and announced by Undersecretary of the Treasury for Terrorism and Financial Intelligence John Hurley during a visit to the southern border, takes aim at “Los Mayos” and its armed wing. In total, the designation names five key individuals and fifteen companies allegedly acting on behalf of the criminal organization.
Most prominently, the sanctions list includes Hilda Araceli Brown Figueredo, Ex-Mayor of Playas de Rosarito. According to the U.S. Department of the Treasury, Brown collaborated with cartel-linked financial and political operatives to protect the group’s illicit activities.
“Working together, Gonzalez, Arcega, and Brown collected extortion payments for the Arzates and assisted in managing the Arzate brothers’ operations,” the statement read.
Cartel’s Infiltration in Rosarito
The sanctions shed light on the deep infiltration of local institutions by Los Mayos as cartel affiliates successfully placed allies in key positions within the Rosarito city government. This corruption allegedly granted Los Mayos impunity and institutional support for its operations.
The criminal group extended its control over Rosarito with the help of complicit business owners, using a network of bars, restaurants, and nightclubs to launder millions of dollars from drug trafficking.
“Mario Herrera, Karlo Herrera, Gonzalez, Arcega, and Brown are being designated pursuant to E.O. 14059, and pursuant to E.O. 13224, as amended, for being directed by, or having acted or purported to act for or on behalf of, directly or indirectly, the Sinaloa Cartel,” they explained.
The sanctions also include two brothers, Mario Alberto and Karlo Omar Herrera Sánchez, who worked as police officers in Rosarito in 2008 before eventually leaving the force to become high-level operatives for the Sinaloa Cartel. They are now identified as key figures in the region’s extortion, drug trafficking, and money laundering networks.
Regarding the sanctioned individuals’ assets, the statement also read:
“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.”
Goal of the Sanctions
The Department of the Treasury stated the ultimate goal of these sanctions is to cripple the cartel’s direct operations and dismantle the financial and political networks that sustain Los Mayos in strategic northern municipalities like Rosarito.
