Siblings of La Nueva Familia Michoacan Leaders Sanctioned, Rewards Offered for "El Pez" and "El Fresa"

 El Armadillo for Borderland Beat from OFAC

Today, Treasury’s Office of Foreign Assets Control (OFAC) sanctioned four individuals affiliated with La Nueva Familia Michoacana (LNFM), a Mexican cartel designated as a Foreign Terrorist Organization and a Specially Designated Global Terrorist, that has poisoned Americans by trafficking fentanyl and other illicit drugs into the United States. LNFM’s crimes also include the smuggling of illegal aliens into the United States and violence against its rivals and Mexican security forces, utilizing drones and bombs in addition to conventional firearms.  Those sanctioned today, all of whom are siblings, include the group’s notorious co-leaders: Johnny Hurtado Olascoaga and Jose Alfredo Hurtado Olascoaga.

“Today’s action underscores our commitment to intensify the pressure on violent drug cartels like LNFM, who continue to traffic deadly fentanyl and other drugs, smuggle illegal aliens over our Southwest border, and attack law enforcement,” said Secretary of the Treasury Scott Bessent.  “The Trump Administration will continue to use all available tools to target the cartels and other violent organizations that attempt to exploit our communities and harm Americans.” 

Today’s action reflects ongoing coordination with the Drug Enforcement Administration, the Department of Justice, Homeland Security Investigations, and the Department of State.  This action was also coordinated closely with Mexico’s Financial Intelligence Unit, La Unidad de Inteligencia Financiera.

Today’s action complements the unsealing of indictments of Johnny and Jose Alfredo Hurtado Olascoaga by a federal grand jury sitting in the Northern District of Georgia.  Additionally, the Department of State announced Narcotics Rewards Offers of up to $5 million for information leading to the arrest and/or conviction of Johnny Hurtado Olascoaga and up to $3 million for information leading to the arrest and/or conviction of Jose Alfredo Hurtado Olascoaga.

VIOLENT ACTIVITIES OF LNFM

LNFM is a drug trafficking organization primarily based in the Mexican states of Guerrero and Michoacan that has trafficked fentanyl, methamphetamine, heroin, and cocaine to the United States, and that has laundered the proceeds of these illicit drugs through the U.S. financial system.  In addition to poisoning Americans, the group has engaged in acts of terror and violence within Mexico.  For instance, LNFM has utilized drones to drop bombs on its rivals, with utter disregard for Mexico’s civilian population.  They also terrorize local communities through kidnappings, killings, and extortion.

On November 17, 2022, OFAC designated LNFM pursuant to Executive Order (E.O.) 14059 for having engaged in, or attempted to engage in, activities or transactions that have materially contributed to, or pose a significant risk of materially contributing to, the international proliferation of illicit drugs or their means of production.  On February 20, 2025, the U.S. Department of State announced the designation of LNFM as a Foreign Terrorist Organization pursuant to section 219 of the Immigration and Nationality Act, as amended, and as a Specially Designated Global Terrorist, pursuant to E.O. 13224, as amended by E.O. 13886.

SANCTIONING KEY LEADERS OF LNFM

LNFM’s leaders, Johnny Hurtado Olascoaga (Johnny) and Jose Alfredo Hurtado Olascoaga (Jose Alfredo), are drug traffickers based in Mexico.  Johnny and Jose Alfredo were previously designated on November 17, 2022 pursuant to E.O. 14059 for having engaged in, or attempted to engage in, activities or transactions that have materially contributed to, or pose a significant risk of materially contributing to, the international proliferation of illicit drugs or their means of production.  Today, OFAC is sanctioning them pursuant to E.O. 13224, as amended, for being owned, controlled, or directed by, or having acted or purported to act for or on behalf of, directly or indirectly, LNFM, a Foreign Terrorist Organization and Specially Designated Global Terrorist. 

In addition, OFAC is today sanctioning two siblings of Johnny and Jose Alfredo, underscoring how Mexico-based cartels often rely on familial networks to facilitate their criminal activities.  Ubaldo Hurtado Olascoaga (Ubaldo) is a senior leader of LNFM involved in extortion and narcotics trafficking on behalf of LNFM.  Ubaldo oversees sicarios, or hitmen, for LNFM and has illegally mined and extracted mercury and uranium for the organization.

Adita Hurtado Olascoaga (Adita) has laundered drug proceeds for LNFM, including through used clothing stores along the Rio Grande Valley.  This trade-based money laundering scheme includes the purchase of used clothing in the United States and their shipment to Mexico, where the used clothing is sold, and the laundered proceeds are received by LNFM.  In addition, Adita has trafficked arms for her brothers from the United States into Mexico to use against rival cartels in Mexico.

Ubaldo and Adita are being sanctioned pursuant to E.O. 14059 and E.O. 13224, as amended, for being owned, controlled, or directed by, or having acted or purported to act for or on behalf of, directly or indirectly, LNFM.

SANCTIONS IMPLICATIONS

As a result of today’s action, all property and interests in property of the designated persons described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC.  In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked.  Unless authorized by a general or specific license issued by OFAC, or exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons.

U.S. persons may face civil or criminal penalties for violations of E.O. 14059 or E.O. 13224, as amended.  Non-U.S. persons are also prohibited from causing or conspiring to cause U.S. persons to wittingly or unwittingly violate U.S. sanctions, as well as engaging in conduct that evades U.S. sanctions.  OFAC’s Economic Sanctions Enforcement Guidelines provide more information regarding OFAC’s enforcement of U.S. sanctions, including the factors that OFAC generally considers when determining an appropriate response to an apparent violation.

Furthermore, engaging in certain transactions with the individuals designated today entails risk of secondary sanctions pursuant to E.O. 13224, as amended.  Pursuant to this authority, OFAC can prohibit or impose strict conditions on the opening or maintaining in the United States of a correspondent account or a payable-through account of a foreign financial institution that knowingly conducted or facilitated any significant transaction on behalf of a Specially Designated Global Terrorist.

Exports, reexports, or transfers of items subject to U.S. export controls involving persons included on the SDN List pursuant to E.O. 13224, as amended, may be subject to additional restrictions administered by the Department of Commerce, Bureau of Industry and Security.  See 15 C.F.R. section 744.8 for additional information.