US sanctions hit alleged Sinaloa cartel fentanyl network, including a Chihuahua restaurant

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WASHINGTON (AP) — The U.S. imposed sanctions Wednesday on more than a dozen people, a Mexican restaurant and a security firm linked to Mexico’s powerful Sinaloa cartel and its fentanyl trafficking activities.

Treasury’s Office of Foreign Assets Control targeted Jesus Gonzalez Penuelas, a fugitive known as Chuy Gonzalez, who is alleged to be involved in trafficking narcotics into the U.S. and laundering funds for the cartel. The State Department has been offering a $5 million reward for information leading to his arrest since 2024.

Additionally, Armando de Jesus Ojeda Aviles, who allegedly helps launder the proceeds of fentanyl and other drugs on behalf of the cartel, has also been hit with sanctions.

A restaurant in Chihuahua, called Gorditas Chiwas — controlled by sanctioned businessman Alfredo Orozco Romero — was hit with sanctions.

The sanctions cut them off from the U.S. banking system, cut off their ability to work with Americans and block their U.S. assets. Its unclear how embedded the sanctioned individuals and firms are in the U.S. financial system.

Treasury Scott Bessent said in a statement that Treasury, “will continue to target terrorist cartels and their fentanyl trafficking networks to protect our communities and Keep America Safe.”

Fentanyl, a powerful opioid, is the deadliest drug in the U.S. today. A tiny amount, 2 milligrams, ingested into the body can be fatal.

And while drug overdoses dramatically increased over the last two decades, with the number of deaths increasing approximately 520% from 1999 to 2023, drug overdose deaths are beginning to decline — by nearly 3% from 2022 to 2023, according to the latest CDC data.

Mexico and China are the primary sources for fentanyl and fentanyl-related substances trafficked directly into the U.S., according to the Drug Enforcement Administration, which is tasked with combating illicit drug trafficking. Nearly all the precursor chemicals that are needed to make fentanyl come from China. And the companies that make the precursors routinely use fake return addresses and mislabel the products to avoid being caught by law enforcement.

President Donald Trump has repeatedly offered to send the U.S. military after the cartels and his administration designated the Sinaloa cartel as a terrorist group in 2025.

The Government of Mexico’s financial intelligence unit worked with Treasury and the U.S. Drug Enforcement Administration to identify targets for Wednesday's sanctions.