The U.S. Department of the Treasury has sanctioned the Cartel de Santa Rosa de Lima and its leader, Jose Antonio Yepez Ortiz, over large-scale fuel and oil theft operations in Mexico. The action was ordered by Treasury Secretary Scott Bessent through the Office of Foreign Assets Control to disrupt cartel financing and cross-border energy smuggling.
The sanctions were announced in Washington by the U.S. Treasury and target a cartel whose activities have contributed to violence in Mexico and financial losses for both Mexican state energy firms and U.S. companies. The measures form part of a broader U.S. effort to cut off illicit revenue streams linked to organised crime and designated terrorist organisations.
US Treasury announces new cartel sanctions
The U.S. Department of the Treasury confirmed that the Cartel de Santa Rosa de Lima was designated for its role in fuel and oil theft in the Mexican state of Guanajuato. According to the Office of Foreign Assets Control, the cartel derives most of its income from stealing petroleum products and smuggling them through black-market networks. The action also reflects Treasury’s use of financial sanctions to address transnational criminal organisations.
Role of the Office of Foreign Assets Control
OFAC stated that the designation was made under Executive Order 13851, as amended, which targets significant transnational criminal organisations. As a result, all property and interests in property of the designated cartel within U.S. jurisdiction are blocked.
Additionally, U.S. persons are generally prohibited from engaging in transactions involving the cartel without specific authorisation.
Cartel de Santa Rosa de Lima and fuel theft operations
Treasury officials said CSRL has focused heavily on fuel and crude oil theft, commonly known in Mexico as huachicol. The cartel has operated by illegally tapping pipelines, bribing employees of Mexico’s state-owned energy company Pemex, and hijacking tanker trucks. These activities have generated billions of dollars in illicit revenue, according to Mexican government reporting cited by OFAC.
Huachicol and cross-border energy smuggling
OFAC reported that stolen crude oil is often smuggled into the United States through complicit brokers and mislabeled to evade regulations. The oil is then sold by U.S.-based importers at discounted prices before profits are sent back to criminal networks in Mexico.
Treasury officials said this practice undermines legitimate U.S. oil and natural gas companies and distorts energy markets.
Violence and instability in Guanajuato
The U.S. Treasury linked CSRL’s fuel theft operations to escalating violence in Guanajuato, now one of Mexico’s deadliest states. Mexican authorities have reported repeated seizures of stolen hydrocarbons, tanker trucks, and clandestine pipeline equipment.
Treasury officials said these operations contribute to insecurity around refineries and pipeline corridors.
Conflict with Cartel Jalisco Nueva Generación
According to OFAC, CSRL has been engaged in a prolonged conflict with the Cartel Jalisco Nueva Generación for control of fuel theft routes. The rivalry has involved alliances with other criminal groups, including the Gulf Cartel and the Sinaloa Cartel, both designated by the U.S. Department of State as Foreign Terrorist Organizations and Specially Designated Global Terrorists in February 2025.
The Wider Picture
| Indicator | Detail | Relevance to CSRL/CJNG story |
|---|---|---|
| Estimated annual fuel theft losses (Mexico) | Mexican authorities and analysts estimate multi‑billion dollar yearly losses from huachicol, with Pemex reporting several billion USD equivalent in lost revenue in recent years. | Shows the fiscal scale of Cartel de Santa Rosa de Lima (CSRL) and CJNG fuel theft operations and why authorities prioritize these cases. |
| Guanajuato homicide burden | Since the CSRL–CJNG turf war escalated, Guanajuato has consistently ranked among Mexico’s deadliest states by absolute homicides, despite not being the most populous. | Links CSRL’s fuel‑theft conflict directly to human impact on local communities in the “Bermuda Triangle” pipeline zone. |
| Recent Mexican enforcement actions | Mexican security forces have announced periodic crackdowns on fuel theft, including seizures of hundreds of thousands of liters of illegal hydrocarbons and arrests of alleged huachicoleros and corrupt officials in 2024–2025. | Demonstrates that sanctions are paired with domestic raids and seizures, not just U.S. financial measures. |
| U.S. crude‑oil smuggling alerts | A 2025 FinCEN Alert on oil smuggling linked to Mexican cartels identified suspicious transactions totaling over $827 million in four months, with an average deal size of about $5 million and a median of $1.3 million. | Quantifies the cross‑border energy black market and shows how U.S. financial intelligence is tracking cartel revenue streams. |
| Key U.S. sanctions and designations | In 2025, the U.S. designated CJNG as a Foreign Terrorist Organization and SDGT, sanctioned linked fuel‑theft networks, and later added CSRL and its leader “El Marro” for significant transnational criminal activity. | Places the CSRL action within a wider U.S. strategy targeting cartels’ financial and logistical infrastructure. |
| Impact on U.S. and Mexican energy markets | Analyses highlight how smuggled crude and discounted fuel undercut legitimate U.S. and Mexican energy companies, distort pricing, and complicate investment in legal supply chains. | Explains why U.S. and Mexican authorities frame fuel theft as both a security and economic threat, not just a narcotics issue. |
Sanctioning of cartel leadership
The Treasury also designated Jose Antonio Yepez Ortiz, known as “El Marro,” as the leader of CSRL. OFAC said he was sanctioned under Executive Order 13581, as amended, for acting on behalf of the cartel. Despite his arrest in Mexico in 2020, U.S. authorities state that he has continued to direct cartel activities from prison.
Charges, sentencing, and ongoing control
Mexican judicial authorities sentenced Yepez Ortiz to 60 years in prison in 2022 for kidnapping, according to court records cited by OFAC. He still faces accusations including organised crime, money laundering, and illegal fuel extraction. Treasury officials said his continued influence underscores the need for financial sanctions alongside law enforcement action.
Broader US efforts against cartel financing
The sanctions form part of a wider U.S. strategy to target cartel revenue beyond narcotics trafficking. The Treasury’s Financial Crimes Enforcement Network has previously issued alerts on crude oil smuggling schemes linked to Mexican cartels.
In the months following those alerts, FinCEN reported receiving suspicious activity reports totalling more than $827 million, primarily involving transactions between the United States and Mexico.
To Sum Up
The Treasury said the sanctions are intended to block cartel access to the U.S. financial system and increase pressure on illicit fuel theft networks. Officials emphasised that the measures support broader U.S. security and economic objectives. The action also signals continued reliance on financial tools to counter transnational criminal organisations.
Sources: U.S. Department of the Treasury, Office of Foreign Assets Control.
Prepared by Ivan Alexander Golden, Founder of THX News™, an independent news organization delivering timely insights from global official sources.
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