OFAC Announces Sanctions Related to Mexican Corruption, Drug Trafficking, Money Laundering

The Treasury’s Office of Foreign Assets Control sanctioned 11 people and 10 entities in Mexico related to allegations of corruption, money laundering, drug trafficking and killings, Treasury said in a May 17 notice. The sanctions include the designation of a Mexican magistrate judge and former Mexican governor, Isidro Avelar Gutierrez, under the Foreign Narcotics Kingpin Designation Act.

In a statement, Sigal Mandelker, Treasury’s under secretary for terrorism and financial intelligence, said the sanctions were a result of “coordinated action with our Mexican counterparts. … Working with our Mexican partners, Treasury will not hesitate to sanction current or former officials and their networks whose corruption destabilizes financial systems and democratic institutions.”

OFAC said Avelar Gutierrez, along with former Mexican governor Roberto Sandoval Castaneda, received bribes from Mexican drug trafficking organizations. Avelar Gutierrez gave certain drug traffickers “favorable judicial rulings” and Sandoval Castaneda “misappropriated state assets,” OFAC said. Sandoval Castaneda’s “complicit family members” were also sanctioned, the notice said: Ana Lilia Lopez Torres, Lidy Alejandra Sandoval Lopez and Pablo Roberto Sandoval Lopez.

OFAC also sanctioned siblings Erika Gonzalez Valencia and Ulises Jovani Gonzalez Valencia for helping to bribe government officials on behalf of the Cartel de Jalisco Nueva Generacion (CJNG) and the Los Cuinis Drug Trafficking Organization. Both also laundered money for the organizations, the notice said, along with Victor Francisco Beltran Garcia, a Guadalajara-based attorney, and Paulina Barajas Sahd, who helps run part of the business on behalf of her husband Ulises Jovani Gonzalez Valencia. OFAC also sanctioned Gonzalo Mendoza Gaytan, known as “El Sapo” -- who is responsible for “kidnappings and numerous killings” -- and his wife, Liliana Rosas Camba, the notice said.

Additional sanctioned entities include: A&A Estudio Arquitectonico, S. de R.L. de C.V. (architecture firm), Arquitectura y Diseno en Balance, S.A. de C.V. (architecture and real estate firm), G Y R Arquitectos, S. de R.L. de C.V. (architecture and real estate firm), Granatura, S. de P.R. de R.L. de C.V. (organic products company), Jafiela Boutique, S.A. de C.V. (women’s clothing store), Operadora Restaurantera del Sol Naciente, S. de R.L. de C.V. (restaurant management company), Bodecarne, S.A. de C.V. (butcher business), Iyari (clothing and accessories store), L-Inmo, S.A. de C.V. (real estate holding company) and Valor y Principio de Dar, A. C. (land-holding foundation).

Global Magnitsky designations (targeting perpetrators of serious human rights abuse and corruption) were attached to several entities -- Bodecarne, Iyari, L-Inmo, Valor y Principio -- and individuals -- Lopez Torres, Sandoval Castaneda, and Lidy and Pablo Sandoval Lopez.