U.S. Sanctions 12 Companies Linked to 'Los Chapitos' for Alleged Role In Fentanyl Trade

The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) announced new sanctions targeting eight Mexican nationals and 12 Mexican companies allegedly linked to Los Chapitos, a faction of the Sinaloa Cartel battling for control of the drug trafficking organization in northern Mexico.

Authorities claimed that the companies supplied fentanyl precursor chemicals to Los Chapitos. One of the companies named in the Oct. 6 announcement is Sumilab, which had also been sanctioned by OFAC in 2023.

Authorities noted that Sumilab is operated by the Favela Lopez family, who have remained "heavily engaged" in the supply of precursor chemicals for the drug trafficking organization since the company was first sanctioned more than two years ago.

Most of the individuals sanctioned include members of the Favela Lopez family. These include Victor Andres, Francisco and Jorge Luis Favela Lopez, who, according to the Treasury Department, are responsible for supplying and distributing chemicals and laboratory equipment to Sinaloa Cartel-affiliated chemical brokers and lab operators. According to OFAC, these brokers and operators then use the materials to produce fentanyl and methamphetamine.

In addition, U.S. authorities noted that the chemicals are sold to companies in the United States, where they are synthesized into drugs for distribution.

Authorities noted that the Favela Lopez family also runs a network of companies involved in chemicals, laboratory equipment and agricultural supplies. In a statement, the Treasury said that shortly after OFAC's May 2023 designation of Sumilab, Victor Andres, Francisco and Jorge Luis Favela Lopez removed themselves and other family members from corporate filings and installed other individuals in their place.

Another individual included in the sanctions is Martha Emilia Conde Uraga, also known as "La Martita," who allegedly traffics chemical products for the Sinaloa Cartel from multiple warehouses in and around Culiacán.

"Utilizing fraudulent invoicing and other concealment methods, Conde Uraga supplies precursor chemicals to drug traffickers and lab operators working for the Los Chapitos faction of the Sinaloa Cartel," the Treasury said in its statement.

As a result of the sanctions, all property and interests in property of the designated individuals or entities within the United States or under U.S. jurisdiction are now blocked. U.S. persons are prohibited from engaging in transactions involving these assets and may face civil or criminal penalties for violations. Non-U.S. persons are also barred from causing U.S. persons to breach these sanctions.

"More than 500,000 Americans have died of fentanyl poisoning," said John K. Hurley, undersecretary for terrorism and financial intelligence. "President Trump has made clear that stopping the deadly flow of drugs into our country is a top national security priority. Under Secretary Scott Bessent's leadership, the Treasury Department is committed to dismantling the complex financial networks that support these terrorist organizations."