Treasury Targets Cartel del Noreste’s Horse Racing Enterprise and Expansive Criminal Network

Sanctions Disrupt CDN’s Integrated Commercial Operations Supporting Violenceand Cross‑Border Corruption

WASHINGTON — Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned four individuals and 11 entities connected to the U.S.-designated Foreign Terrorist Organization (FTO) Cartel del Noreste (CDN). Those designated include individuals and businesses involved in quarter horse racing, construction, trucking, and the oil and gas sector, highlighting the cartel’s diverse commercial footprint. CDN’s evolution from its predecessor, Los Zetas—responsible for some of the deadliest mass‑casualty attacks in Mexican history—underscores the severity of CDN’s continued threat to the United States and the region.

“Today’s action exposes Cartel del Noreste’s exploitation of the horse racing sector to launder illicit proceeds and finance cartel operations,” said Secretary of the Treasury Scott Bessent. “This action marks Treasury’s most significant effort to date to disrupt Cartel del Noreste’s financial infrastructure. Treasury, in close coordination with our law enforcement partners, remains committed to protecting the U.S. financial system from misuse by violent cartels.”

CDN’s stronghold sits directly across the border from Laredo, Texas, the busiest port of entry (POE) on the southern border, where nearly 40 percent of all commercial traffic between the United States and Mexico crosses. This deep entrenchment in cross-border industries, combined with CDN’s ability to infiltrate local governments, steer public contracts, and manipulate regional elections, undermines legitimate authority and destabilizes communities on both sides of the border.

In keeping with President Trump’s pledge to eliminate cartels, OFAC has prioritized targeting these and other criminal groups that threaten the welfare of Americans in close coordination with the Homeland Security Task Force (HSTF), taking nearly 40 actions against over 500 individuals and entities since the beginning of 2025. OFAC uses a network-based approach to simultaneously disrupt as many different facets of the cartels as possible, from their leadership and key organizational nodes to facilitators and enablers, such as corrupt officials, complicit family members, and ostensibly legitimate front persons.

Today’s action reflects a unified, whole-of-government effort to ensure operational coordination and maximize impact against transnational criminal networks. OFAC conducted its investigation in parallel with the HSTF, with support from the Drug Enforcement Administration, the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement Homeland Security Investigations, U.S. Customs and Border Protection, including the U.S. Border Patrol, the Internal Revenue Service Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, as well as assistance from the Federal Bureau of Prisons and the U.S. Marshals Service. OFAC continues to work closely with the HSTF to disrupt the flow of illicit drugs and dismantle the networks, facilitators, and financial infrastructure that enable their production and distribution. Additionally, OFAC coordinated on this action and previous actions against CDN with the Government of Mexico’s financial intelligence unit, the Unidad de Inteligencia Financiera (UIF).

The action was taken pursuant to Executive Order (E.O.) 14059, which targets the international proliferation of illicit drugs and their means of production, and pursuant to E.O. 13224, as amended by E.O. 13886 (collectively, E.O.13224, as amended), which targets terrorists and their supporters. This is OFAC’s fourth and largest action to date targeting CDN networks during the Trump Administration. On May 21, 2025, OFAC designated two high-ranking members and arms traffickers of CDN. On August 6, 2025, OFAC designated three high-ranking members and one associate of CDN, including famous narco-rapper El Makabelico. Earlier this year, on April 14, 2026, OFAC designated three entities and three associates of CDN, including Casino Centenario, a casino just miles from the U.S. border, and Juan Pablo Penilla Rodriguez, criminal advisor to CDN.

CARTEL DEL NORESTE

Based in Mexico directly across from one of the busiest American border crossings, CDN is a violent terrorist cartel founded by the notorious brothers Miguel Angel “Z-40” Trevino Morales and Oscar Omar “Z-42” Trevino Morales. CDN has been involved in the trafficking of narcotics and other illicit drugs, including fentanyl, crystal methamphetamine, heroin, marijuana, and cocaine. CDN, formerly known as Los Zetas, has engaged in horrific violence over the years. This year marks the fifteenth anniversary of the August 25, 2011 deadly Los Zetas arson attack on a casino in Monterrey, Nuevo Leon, Mexico. This arson attack killed 52 people and injured dozens more, with a majority of those killed being women. This firebombing became one of the deadliest cartel attacks against civilians in Mexican history.

Z-40 and Z-42 were arrested by Mexican authorities in 2013 and 2015, respectively, but maintained control over the cartel utilizing corrupt attorneys, including Juan Pablo Penilla Rodriguez, whom OFAC designated in April 2026. The Trevino brothers were transferred from Mexico in February 2025 and are currently facing drug trafficking, racketeering, firearms, and money laundering charges in the District Court for the District of Columbia, with a maximum sentence of life imprisonment. CDN, then known as Los Zetas, was identified by the United States as a specially designated foreign narcotics trafficker on April 15, 2009, pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act). On July 24, 2011, Los Zetas was named as a transnational criminal organization (TCO) in the annex to E.O. 13581. On December 15, 2021, OFAC designated CDN pursuant to E.O. 14059. On February 20, 2025, the U.S. Department of State designated CDN as an FTO and as a Specially Designated Global Terrorist (SDGT).

CDN has a long history of money laundering through the American Quarter Horse racing industry. Between 2008 and 2012, Z-40 and Z-42 bought and sold racehorses with drug money and trained and raced them in the United States. Over a 30-month period, Zetas-affiliated front persons and shell companies spent $16 million in New Mexico, Oklahoma, California, and Texas to support the operation and laundered upwards of $22 million for the cartel. In June 2012, the U.S. Government seized 455 horses at an Oklahoma horse farm, racing venues, and training farms.

CDN’s involvement in horse racing continues to this day. Club La Molienda (La Molienda) is a horse racetrack, restaurant, and bar located on the outskirts of Nuevo Laredo that is controlled by CDN. As the most prominent racetrack in Nuevo Laredo, La Molienda generates revenue for CDN, charging entrance fees for those racing their horses at the track as well as for spectators.

CDN leaders and members purchase horses, including many from the United States, to race at La Molienda. La Molienda is controlled by Z-40 but is ultimately overseen by various CDN leaders and associates while Z-40 is incarcerated in the United States.

Before a successful bilateral U.S.-Mexico action in April 2026 suspended operations of Casino Centenario, La Molienda and Casino Centenario entered a strategic gambling partnership allowing people to bet on races at La Molienda from the premises of Casino Centenario. In coordination with OFAC’s April 2026 designation of Casino Centenario and related entities, on the same day, Mexico’s UIF took action and the Secretaría de Gobernación suspended the activities of these CDN-linked entities.

OFAC designated La Molienda pursuant to E.O. 14059, and pursuant to E.O. 13224, as amended, for being owned, controlled, or directed by, or having acted or purported to act for or on behalf of, directly or indirectly, CDN.

INSIDE THE WINNER’S CIRCLE – TRACKSIDE ASSOCIATES OF CDN

Gamaliel Garza Garcia (Garza Garcia) is a Mexico-based businessman, horse racing enthusiast, and an associate of CDN. Garza Garcia is involved in horse racing in both Mexico and the United States, racing at some of the most prestigious tracks in California and New Mexico. Garza Garcia and his horses frequently race at La Molienda.

Garza Garcia’s company, Construcciones y Edificaciones Garza Elias S.A. de C.V. (CEGESA), has been utilized by CDN to funnel money to election campaigns of CDN’s preferred political candidates. Additionally, CEGESA has corruptly obtained government contracts and then sub-contracted that work to CDN-affiliated individuals. CEGESA is a major recipient of government contracts in the north of the country, including from the governments of the municipality of Nuevo Laredo and the state of Tamaulipas.

Garza Garcia created the Nuevo Laredo-based material supply company Concretos y Productos Asfalticos del Norte, S.A. de C.V. (COPASA) to vertically integrate the illicit construction contract scheme. CEGESA performed or subcontracted the work, while COPASA provided the materials. As of early 2026, CEGESA and COPASA were some of the only construction companies authorized by CDN to perform construction work in Nuevo Laredo, Tamaulipas.

Garza Garcia controls Cuadra San Dibanh, an Anahuac, Nuevo Leon-based Quarter Horse racing barn. Cuadra San Dibanh frequently races at La Molienda and other major racetracks throughout Mexico.

Garza Garcia also owns and controls an extensive corporate network of construction and fuel companies in Nuevo Laredo, Tamaulipas. This includes the following six companies, all based in Nuevo Laredo:

• Construaceros del Fuerte, S.A. de C.V., a construction company;
• Inova NLD Desarrollos Inmobiliarios, S.A. de C.V., a construction company;
• Distribuidora de Gas Economico, S.A. de C.V., a fuel and gas company;
• Gas Energia Confiable, S.A. de C.V., a fuel and gas company;
• Propane Trading Group, S.A. de C.V., a fuel and gas company; and
• Transportadora de Gas de Nuevo Laredo, S.A. de C.V., a fuel and gas transportation company.

Gamaliel Garza Elias (Garza Elias), Garza Garcia’s son, is being designated for his role in CEGESA, where he is involved in the day-to-day operations of CEGESA. Garza Elias has also delivered cash to fund election campaigns for CDN’s preferred political candidates in Mexico.

OFAC designated Garza Garcia pursuant to E.O. 14059, for having provided, or attempted to provide, financial, material, or technological support for, or goods or services in support of, CDN. Garza Garcia is also being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, CDN.

OFAC designated CEGESA; COPASA; Cuadra San Dibanh; Construaceros del Fuerte, S.A. de C.V.; Inova NLD Desarrollos Inmobiliarios, S.A. de C.V.; Distribuidora de Gas Economico, S.A. de C.V.; Gas Energia Confiable, S.A. de C.V.; Propane Trading Group, S.A. de C.V.; and Transportadora de Gas de Nuevo Laredo, S.A. de C.V. pursuant to E.O. 14059, and pursuant to E.O. 13224, as amended, for being owned, controlled, or directed by, or having acted or purported to act for or on behalf of, directly or indirectly, Garza Garcia.

OFAC designated Garza Elias pursuant to E.O. 14059, and pursuant to E.O. 13224, as amended,for having acted or purported to act for or on behalf of, directly or indirectly, CEGESA. 

OTHER PLAYERS IN THE NUEVO LAREDO PLAZA

Pablo Cesar Guajardo Alvarez (Guajardo), known as “Takia,” is a current CDN plaza boss of Nuevo Laredo and former leader of CDN’s sicarios. Plaza bosses are in charge of all cartel activity in their area of responsibility. Guajardo was arrested in 2020 for his connection to the January 4, 2017 assassination of Ricardo Martinez Chavez and four public servants, but has since been released. Guajardo has been involved in arms trafficking on behalf of CDN.

OFAC designated Guajardo pursuant to E.O. 14059, and pursuant to E.O. 13224, as amended, for having acted or purported to act for or on behalf of, directly or indirectly, CDN.

 Tamex Leasing or Tamex Logistics (Tamex) is a Nuevo Laredo, Tamaulipas-based trucking company involved in the smuggling of narcotics into the United States. Tamex’s truckyard in Nuevo Laredo has been the originator of at least two cocaine shipments bound for the United States. Seized by law enforcement, these shipments were stored in hidden compartments of the trailers’ brake drums and totaled 52 kilograms. Francisco Javier Inzunza Partida (Inzunza) is a dispatcher for Tamex who was involved in dispatching the two trailers seized for concealed narcotics.

OFAC designated Tamex and Inzunza pursuant to E.O. 14059 for having engaged in, or attempted to engage in, activities or transactions that have materially contributed to, or pose a significant risk of materially contributing to, the international proliferation of illicit drugs or their means of production.

SANCTIONS IMPLICATIONS

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, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons.

Violations of U.S. sanctions may result in the imposition of civil or criminal penalties on U.S. and foreign persons. OFAC may impose civil penalties for sanctions violations on a strict liability basis. OFAC’s Economic Sanctions Enforcement Guidelines provide more information regarding OFAC’s enforcement of U.S. economic sanctions. In addition, financial institutions and other persons may risk exposure to sanctions for engaging in certain transactions or activities involving designated or otherwise blocked persons. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any designated or blocked person, or the receipt of any contribution or provision of funds, goods, or services from any such person. Non-U.S. persons are also prohibited from causing or conspiring to cause

U.S. persons to wittingly or unwittingly violate U.S. sanctions, as well as engaging in conduct that evades U.S. sanctions. Individuals located in the United States or abroad who provide information about sanctions violations to Financial Crimes Enforcement Network’s whistleblower incentive program may be eligible for awards if the information they provide leads to a successful enforcement action that results in monetary penalties exceeding $1,000,000.

Furthermore, engaging in certain transactions involving the persons designated today may risk the imposition of secondary sanctions on participating foreign financial institutions. OFAC can prohibit or impose strict conditions on opening or maintaining, in the United States, a correspondent account or a payable-through account of a foreign financial institution that knowingly conducts or facilitates any significant transaction on behalf of a person who is designated pursuant to the relevant authority.

The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the Specially Designated Nationals and Blocked Persons List (SDN List), but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, or to submit a request, please refer to OFAC’s guidance on Filing a Petition for Removal from an OFAC List.

To view the chart on the persons designated today, click here.

Click here for more information on the persons designated today.

###