MEXICO CITY — Close to the leadership of Mexico’s hyper-violent Jalisco New Generation cartel is a man known as “the tank” who leads its fuel theft arm, supplying it with tens of millions of dollars a year by selling stolen gasoline through a network of seemingly legitimate businesses, according to the U.S. Treasury.
Ivan Cazarin Molina gets his nickname not from the battlefield weapon but rather the massive storage tanks he manages in Mexico’s Gulf coast state of Veracruz.
Cazarin Molina was among nine Mexicans and 26 Mexico-based entities sanctioned Tuesday by Treasury’s Office of Foreign Assets Control for their alleged role in fueling the cartel’s illicit activities.
Fuel theft has been a major problem for Mexico’s government and state-owned petroleum company Pemex, costing it billions of dollars.
Organized criminal groups illegally tap pipelines, hijack tanker trucks or steal directly from refineries. President Andrés Manuel López Obrador put the army in charge of stopping it at the beginning of his term.
Mexico’s cartels have been known to branch into legitimate business sectors to diversify their income, whether it be produce or internet service.
According to the U.S. Treasury, Cazarin Molina answers directly to Jalisco cartel leader Ruben Oseguera Cervantes, better known as “El Mencho.” The U.S. government offers a $10 million reward for information leading to the leader’s arrest.
The gasoline that Cazarin Molina and allies allegedly steal is held in the fuel storage tanks he controls in Veracruz, then sold through a network of gas stations that he manages. The companies have professional-looking logos, slogans and names like “Etanofuel” and “G Energy.”
Some of the gasoline is sold to third parties and then into the United States.
A brother and father-in-law, imprisoned in Mexico but allegedly still involved in cartel activities, were among the others sanctioned. A nephew made the list as well.
The new sanctions freeze any assets the individuals or companies have in the U.S. and prohibit U.S. citizens from doing business with them.
