Drug Cartel’s U.S. Operations Continue Despite Leader’s Death

The elimination of notorious drug lord "El Mencho" by Mexican forces has done little to disrupt his cartel's extensive operations within the United States. Security experts say the Jalisco New Generation Cartel's American networks for weapons, fuel smuggling, and money laundering remain intact and continue fueling the organization's power.

The death of one of the world’s most wanted drug kingpins has failed to significantly impact his criminal organization’s vast operations on American soil, according to security officials from both the United States and Mexico.

Mexican special operations forces eliminated Nemesio Oseguera, better known as “El Mencho,” during a joint operation with U.S. support on February 22. The takedown marked the most significant cartel leader capture in over ten years.

Following their leader’s death, the Jalisco New Generation Cartel unleashed widespread violence across Mexico, setting fires to buildings and blocking major roadways in a show of force that made international headlines.

However, law enforcement sources indicate the cartel’s sophisticated American operations remain largely untouched. These networks facilitate the acquisition of military weapons, enable multi-billion dollar fuel trafficking schemes, and launder enormous amounts of criminal proceeds.

“The United States has become increasingly important to cartels, especially the Jalisco New Generation Cartel, for it to thrive,” stated Alamdar Hamdani, who previously served as U.S. attorney for the Southern District of Texas.

White House representative Anna Kelly emphasized that the current administration “has worked closely with the Mexican government to stop the scourge of drugs and criminals entering our country,” crediting this partnership with the “elimination of infamous narcoterrorist ‘El Mencho.'”

“The president will continue to do everything in his power to keep America safe from these vicious criminals and the drugs they use to poison our country,” Kelly added.

The successful operation has intensified Mexican calls for increased U.S. action against cartel activities within American borders. Such enforcement actions carry significant risks for Mexico, as they often trigger violent retaliation in a nation where drug-related conflicts have claimed tens of thousands of lives.

Mexican President Claudia Sheinbaum’s decision to intensify anti-cartel operations has prompted fresh demands for reciprocal U.S. efforts.

“The United States can’t turn a blind eye to Mexico’s demands any longer,” declared Mexican Congressman Alfonso Ramirez Cuellar, a key Sheinbaum supporter.

Cuellar emphasized the need for enhanced U.S. efforts targeting money laundering, fuel trafficking, and particularly weapons smuggling from America into Mexico.

“We can’t stop drug traffickers if the United States continues allowing them to strengthen their military capabilities,” he stated.

While the U.S. has pursued hundreds of cartel-related prosecutions domestically in recent years, the current administration redirected thousands of agents from drug, firearms, and money laundering investigations to immigration enforcement efforts last year.

Reuters previously documented a notable decline in drug conspiracy and money laundering charges filed in the past year.

“The Trump administration has predominantly focused on highly militarized actions against drugs abroad and has not paid similar attention to actions at home,” observed security analyst Vanda Felbab-Brown.

A Justice Department representative said the administration remains “acutely focused on securing the border, prosecuting violent traffickers, deporting any and all members of cartel networks and ensuring they are held accountable for their horrific crimes against the American people.”

The department highlighted several recent prosecutions targeting senior Jalisco cartel figures.

Roberto Velasco, Mexico’s Undersecretary for North America, confirmed his government has consistently prioritized arms trafficking concerns in bilateral discussions.

“While there has been some significant progress, we believe much more can be done to control this flow and to target the networks in the United States that facilitate it, empowering transnational criminal organizations,” Velasco explained.

Interviews with a dozen current and former officials from both countries, combined with analysis of court records from ten recent cartel cases, revealed extensive U.S.-based operations critical to the organization’s strength and profitability.

The investigation uncovered involvement by American businesses and professionals, including fuel traders, telecommunications retailers, and financial brokers, in cartel activities.

“There’s a lot of economic integration – both legal and illegal,” noted Alexia Bautista, a former Mexican diplomatic official.

During the raid that killed El Mencho at a mountain cabin where he awaited his girlfriend’s visit, cartel gunmen fought back using predominantly American weapons, according to Mexican Army chief Ricardo Trevilla.

Approximately 80% of the 23,000 weapons seized by Mexican authorities since Sheinbaum assumed office in late 2024 originated in the United States, Trevilla reported.

The Jalisco organization has demonstrated particular skill in acquiring heavy military equipment from gun retailers across America, law enforcement officials confirmed.

One weapons trafficking network supplied the cartel with firearms from over a dozen states, including .50 caliber rifles capable of downing aircraft and FN SCAR assault rifles designed for elite military units, according to investigative findings.

While such weapons can be legally purchased in America, they become contraband upon entering Mexico, which maintains strict firearms regulations.

“We complain about the Mexicans’ lack of effort to go after the drugs down there, but then why does the U.S. dismiss their argument that we could do better on the guns going southbound?” questioned Derek Maltz, former acting Drug Enforcement Administration chief.

“The U.S. has to step up in a lot of areas,” Maltz continued, citing needs for improved arms trafficking prosecutions and expanded public health programs addressing American drug demand.

Beyond traditional drug profits, cartels have constructed a massive cross-border petroleum empire worth billions of dollars in less than a decade.

The Jalisco cartel leads this enterprise, which relies on networks of American companies including refineries, fuel traders, transportation firms, and storage facilities, some operating with full knowledge of their criminal partnerships.

“This is no longer stealing fuel from (state energy company) Pemex,” explained Guadalupe Correa, a George Mason University professor studying cartel revenue diversification. “It’s a huge, transnational business.”

Authorities describe two primary smuggling methods: stolen Mexican crude oil sold to American companies, and legitimate U.S. fuel purchased through shell companies and smuggled into Mexico disguised as other products to evade taxes.

Sheinbaum confirmed last year that American business figures were involved in fuel smuggling investigations. “One cannot explain otherwise how fuel comes from the U.S. to Mexico, and enters illegally,” she stated.

In late 2024, El Mencho’s son-in-law Cristian Gutierrez Ochoa was apprehended at a $1.2 million residence in Riverside, California.

Court documents reveal Gutierrez, who pleaded guilty to international money laundering conspiracy charges in June 2025, purchased the five-bedroom home using drug money channeled through a Mexican shell company masquerading as a tequila business.

Property investment represents just one method the Jalisco cartel employs to legitimize its American profits.

Carlos Olivo, a former DEA agent who specialized in tracking the organization’s U.S. financial operations, said cartel money flows through restaurants, textile companies, entertainment businesses, agricultural enterprises, and even stock markets.

“In total, we’re talking about hundreds of millions in assets in cartel-related money in the United States,” Olivo stated.

A DEA spokesperson confirmed cartels utilize diverse money laundering techniques, “also use trade-based money laundering schemes, cryptocurrency, bulk cash, and Chinese underground banking systems to fund their operations.”

Alejandro Celorio, a former Mexican diplomat, expressed hope that Sheinbaum’s decision to target the country’s most powerful cartel leader would motivate increased U.S. domestic enforcement efforts.

“As the world’s leading commercial and military power, the U.S. could certainly investigate more deeply how money and drugs move within U.S. territory,” Celorio concluded.