After a two week hiatus, The United States Department of the Treasury Office of Foreign Assets Control (“OFAC”) has issued some new actions via their website. In addition, to updating the ever growing list of authorized providers of air, travel, and remittance forwarding services to Cuba, OFAC also designated a number of parties as Specially Designated Nationals pursuant to the Foreign Narcotics Kingpin Designation Act (“Kingpin Act”) and its corresponding regulations.

The following parties have been designated: Onecimo Antonio Amaya Aleman, Juan Carlos Cobo Ledesma, Rafael Duarte Torres, Alejandro Flores Cacho, Javier Flores Cacho, Ricardo Garcia Sanchez, Jaime Andres Gonzalez Medina, Oscar Arturo Jasso Rocha, Eduardo Massa Camacho, Arturo Olvera Estrada, Rodolfo Olvera Estrada, Jose Luis Rodarte Grijalva, Arturo Ruiz De Chavez Martinez, Diana Lorena Toro Diaz, Enrique Torres Gomez, Jair Fernando Urrea Lenis, Jose Widolbo Hernandez, Aero Express Intercontinental S.A. DE C.V., Capacitacion AeroNnautica Profesional S.C, Circuito Electronico S.A. DE C.V., Club Deportivo Ojos Negros A.C, Comercializadora Gonra, Copy Red S.A. DE C.V., Florbel Operadora De Restaurantes, S.A. DE C.V., Genetica Ganadera Rancho Alejandra S.P.R. DE R. L. DE C.V., Genetica Import-Export S.P.R. DE R.L. DE C.V., Grupo Cristal Corona S.A. DE C.V., Grupo Horta Zavala S.A. DE C.V., Jr Controladora De Restaurantes, S.A. DE C.V., La Numero Uno De Cuauhtemoc S.A. DE C.V., Lorena Del Mar, S.A. DE C.V., Luzaair, S.A. DE C.V., Mantenimiento, Aeronautica, Transporte, y Servicios Aereos S.A. DE C.V., and Tates DeSarrollo, S.A. DE C.V.

According to The Department of the Treasury these individuals and entities were designated for their alleged roles in assisting the financial and transportation activities of the Sinoloa Cartel. OFAC alleges that Alejandro Flores Cacho controls a multinational drug transport network in coordination with Sinaloa Cartel members Joaquin Guzman Loera and Ismael Zambada Garcia; two individuals who have also been previously designated under the Kingpin Act. Moreover, OFAC believes that Flores Cacho’s network of financial operatives includes his wife, Diana Lorena Toro Diaz, and brother, Javier Flores Cacho, who assist in the operation of a variety of front companies, including a restaurant, a cattle ranch, an agricultural business, a manufacturing and distribution firm, a sports management club, an electronics company, and an office supplies store. Flores Cacho’s legal advisor and principal front person Arturo Ruiz de Chavez Martinez, was also designated today.

Alejandro Flores Cacho is currently a fugitive from U.S. authorities. In May 2008, the U.S. District Court for the Southern District of Texas indicted him on drug trafficking and money laundering charges.

The effect of these designations can be crippling. Not only will a designated person lose access to its assets under U.S. jurisdiction, they will also be denied access to the U.S. financial systems. Moreover, U.S. persons will not be able to engage in any sort of transaction with a person placed on the SDN list. The consequences of a U.S. person violating such a prohibition can have devastating consequences such as multi-million dollar fines and up to twenty years in imprisonment.

The author of this blog is Erich Ferrari, an attorney specializing in OFAC litigation. If you have any questions please contact him at 202-280-6370 at 202-351-6161 or ferrari@ferrari-legal.com.