Trump Admin Sanctions Mexican Companies Tied to Sinaloa Cartel Drug Network

The Trump administration’s Treasury Department announced Monday that it has sanctioned eight Mexican nationals and twelve Mexico-based companies connected to the Sinaloa Cartel’s Los Chapitos faction.

In a press release, the Treasury said the sanctioned individuals and entities are part of a network that supplies fentanyl precursor chemicals to the cartel, which has been labelled as a terrorist organization. Officials said the network provided illicit chemicals and equipment used to manufacture fentanyl and methamphetamine.

“Over 500,000 Americans have died of fentanyl poisoning,” said Under Secretary for Terrorism and Financial Intelligence John K. Hurley. “President Trump has made clear that stopping the deadly flow of drugs into our country is a top national security priority. Under Secretary Bessent’s leadership, the Treasury Department is committed to dismantling the complex financial networks that support these terrorist organizations.”

The primary company targeted by the sanctions, Sumilab, was described as a major supplier of precursor chemicals to the cartel. Four individuals associated with Sumilab, Jorge Luis Favela Lopez, Francisco Favela Lopez, Victor Andres Favela Lopez, and Martha Emilia, have been sanctioned. 

The Treasury said the Favela Lopez family was “responsible for supplying and distributing precursor chemicals and lab equipment to Sinaloa Cartel-affiliated chemical brokers and lab operators, who produce illicit fentanyl and methamphetamine.” Other companies operated by the Favela Lopez family that deal in laboratory equipment, chemicals, and agricultural products were also sanctioned. 

According to the Treasury, under the sanctions “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” the department, and “any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked.”