Mexican Government Claims Some Tequila Brands are Drug Cartel Allies

By Danielle Ong First Posted: Jun 09, 2020 08:00 AM EDT

The Mexican government recently froze the bank accounts of nearly two thousand people and businesses after authorities found they had ties to the Jalisco New Generation Cartel (CJNG) through a money-laundering network.

According to a report by Mexico News Daily, the nation's Financial Intelligence Unit (U.I.F.) has frozen the bank accounts of over 1,770 individuals, 167 businesses, and two trust funds, citing connections to the CJNG cartel group as the reason. The parties were allegedly involved in a money-laundering network of companies using the tequila business as a front.

Operation: Blue Agave

The operation, which was dubbed Blue Agave-the main ingredient in tequila-was carried out by the collaborative effort of the U.I.F. and the United States D.E.A. The amounts frozen in the operation reportedly totaled to over U.S.D. $1.1 billion-$666 million came from suspect domestic transactions, $330 million in international transfers, and $137 million in USD transactions.

According to the U.I.F., main leaders, financial operators, lawyers, and public servants were involved in the crime. They also benefited from the illegal activities of the CJNG.

The cartel is recognized as one of the most brutal organized crime groups in Mexico. The U.S. D.E.A. says the cartel is responsible for surging levels of violence in the country. They were also described as one of the most prolific producers of methamphetamine in the world.

The United States is offering a $10 million reward for information that would lead to the arrest of the infamous Jalisco New Generation Cartel leader, Nemesio Oseguera Cervantes.

Tequila and the Underworld

Criminal groups had links to the tequila industry since 2006 when the D.E.A. first discovered a connection between tequila and drug trafficking schemes in Mexico.

At the time, the tequila industry was found to have ties to the Tijuana Cartel. A report published by the U.S. Department of Treasury in September 2006 claimed 4 Reyes, a tequila company, was involved in laundering drug money for the cartel, which operated across Mexico and the United States.

Nearly seven years later, the American drug agency uncovered bottles of tequila that were used to transport cocaine. Two tequila companies-the Casa Tequila El Viejo Luis and Tequila El Aventon-were later identified to be front companies for the Los Gueros cartel. The tequila distribution companies served allowed the cartel to introduce the drugs to Northern America.

Authorities identified four brothers as the operators of the cartel-two of whom were arrested and extradited to the United States. They were charged for trafficking drugs and laundering money.

In 2015, U.S. officials discovered that the Onze Black tequila company had been set up by the Los Cuinis-a drug gang known to have affiliations to the Jalisco drug cartel.

Earlier this year, officials arrested the daughter of the Jalisco cartel's leader for associating with businesses that were blacklisted in the United States.