WASHINGTON — Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is sanctioning 12 individuals and eight entities, located across seven countries, who are linked to the global illicit drug trade. Today’s action, taken pursuant to Executive Order (E.O.) 14059, underscores the United States’ commitment to combating the synthetic drug threat at home and abroad.
“Drug trafficking organizations continue to rely on a global web of producers, transporters, and sellers to bring their deadly wares to market,” said Acting Under Secretary for Terrorism and Financial Intelligence Bradley T. Smith. “The United States, leveraging our strong domestic and international partnerships, will continue to disrupt the financial networks that enable the illicit drug trade.”
Today’s sanctions are the result of strong collaboration with the Drug Enforcement Administration and a range of international law enforcement partners, including in Colombia, Lithuania, and New Zealand. This action was also enabled with support from Treasury’s Financial Crimes Enforcement Network and reporting from financial institutions under the Bank Secrecy Act, and was coordinated closely with various foreign Financial Intelligence Units.
EUROPEAN DRUG TRAFFICKERS
Lithuanian nationals Rokas Karpavicius (Karpavicius) and Virginijus Labutis (Labutis) have been involved in the trafficking of cocaine and methamphetamine, money laundering, and corruption, including bribery, and pose a significant criminal threat to Lithuania and other jurisdictions. Collectively, they have coordinated significant shipments of narcotics from Central and South America to Europe, Australia, New Zealand, the Pacific Islands, and the United States. Karpavicius has been arrested on drug-related charges in multiple jurisdictions since the 1990s and has also laundered the illicit proceeds of his drug trafficking. Labutis was recently arrested in October 2024 on an Interpol Red Notice issued for drug trafficking charges.
Labutis has frequently traveled to Colombia, Mexico, and other countries to establish connections with drug trafficking organizations. Most notably, he has worked with the Sinaloa Cartel, one of the two main Mexico-based transnational criminal organizations supplying illicit fentanyl to the United States. Drug trafficking organizations in Venezuela and Ecuador also have supplied Labutis with cocaine.
Also included in today’s action is Lithuanian national Saulius Staskus (Staskus), who has worked with both Labutis and Karpavicius. Staskus has helped Labutis coordinate vessels in South America to transport cocaine to Europe and Australia.
Karpavicius, Labutis, and Staskus are being sanctioned 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.
DISRUPTING EUROPEAN FINANCIAL NETWORKS
Karpavicius is the majority owner of Switzerland-based holding company Karpis AG and Poland-based company Lake Forest SP Z O O (Lake Forest), which is engaged in wholesale and retail trade. Karpavicius’s partner, Lithuanian national Jurga Karpe, resides with Karpavicius in Spain, and is on the board of directors of Karpis AG. Karpis AG and Lake Forest are being sanctioned pursuant to E.O. 14059 for being owned, controlled, or directed by, or for having acted or purported to act for or on behalf of, directly or indirectly, Karpavicius. Jurga Karpe is being sanctioned pursuant to E.O. 14059 for being or having been a leader or official of Karpis AG.
Karpavicius is also the majority owner of Switzerland-based Dragon Secure GmbH (Dragon Secure). The company operates the “Kraden” encrypted messaging application, which has been used by drug traffickers. Dragon Secure is being sanctioned pursuant to E.O. 14059 for being owned, controlled, or directed by, or for having acted or purported to act for or on behalf of, directly or indirectly, Karpavicius.
Arnas Grinevicius (Grinevicius) is a Lithuanian national who is being sanctioned pursuant to E.O. 14059 for being or having been a leader or official of Dragon Secure. Grinevicius is the sole owner of Lithuania-based company MB Ptera and the director of UAB Flavour Labs, which are engaged in computer programming activities and professional, scientific, and technical activities, respectively. MB Ptera and UAB Flavour Labs are being sanctioned pursuant to E.O. 14059 for being owned, controlled, or directed by, or for having acted or purported to act for or on behalf of, directly or indirectly, Grinevicius.
Labutis is also an executive and legal representative of Atiya S A S, a Colombia-based company that is engaged in real estate-related activity, including the sale of owned or leased property. Atiya S A S is being sanctioned pursuant to E.O. 14059 for being owned, controlled, or directed by, or for having acted or purported to act for or on behalf of, directly or indirectly, Labutis.
AUSTRALIAN AND NEW ZEALAND ASSOCIATES
Drug traffickers earn significantly higher commissions on the transport of illicit drugs to Australia and New Zealand, where the increased profits offset the high costs of trafficking narcotics. Accordingly, Karpavicius, Labutis, and Staskus have worked with Australian and New Zealand nationals and have imported drug shipments into the two countries.
Australian national David Jonathan Thackray (Thackray) and New Zealand national Ho Kai Leung (Leung) are key associates of Karpavicius. Thackray was previously arrested and imprisoned in New Zealand for importing cocaine into the country. Leung was previously convicted in New Zealand for procuring and possessing methamphetamine and amphetamine. Thackray and Leung are being sanctioned 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.
Leung is also the owner of New Zealand-based entity JT Trading Limited and the director of New Zealand-based TNK Trading Limited. Both JT Trading Limited and TNK Trading Limited, which are engaged in activity tied to motor vehicles, are being sanctioned pursuant to E.O. 14059 for being owned, controlled, or directed by, or for having acted or purported to act for or on behalf of, directly or indirectly, Leung.
COLOMBIAN COCAINE TRAFFICKERS
Treasury is also sanctioning Allende Perilla Sandoval (Allende), a Colombia-based narcotics trafficker. Allende coordinates directly with the Sinaloa Cartel in Mexico and is the leader of a drug trafficking organization that controls key drug trafficking routes along the Pacific coast of Colombia and Ecuador. Allende’s organization further operates significant cocaine laboratories, which distribute cocaine to Central America and Mexico that is ultimately smuggled into the United States and Europe.
Camilo Esteban Betancourt Rosero (Betancourt) has laundered illicit drug proceeds derived from cocaine shipments in U.S. dollars and other currencies for Allende’s organization. Once Allende receives these funds from Betancourt, he uses them to purchase firearms and to build submarines for his drug trafficking activity. Betancourt introduced Labutis to Allende for the purpose of facilitating a cocaine trafficking venture. In addition, Betancourt coordinated a drug trafficking venture from Colombia to Costa Rica.
Finally, OFAC is taking action against Colombia’s Clan del Golfo (CDG)—formerly known as Los Urabeños and Clan Usuga—which is one of the country’s largest drug trafficking organizations. CDG, an organization designated pursuant to the Foreign Narcotics Kingpin Designation Act (“Kingpin Act”) and E.O. 14059, is engaged in cocaine trafficking, arms smuggling, and other illicit activities.
OFAC is sanctioning Orozman Orlando Osten Blanco (Osten Blanco), Elkin Casarrubia Posada (Casarrubia Posada), and Luis Perez Castaneda (Perez Castaneda). Osten Blanco and Casarrubia Posada, who are leaders within CDG, are involved in drug trafficking and responsible for overseeing various CDG-controlled areas. Perez Castaneda is the Director of Policy for CDG, which considers itself a political armed group. Osten Blanco, Casarrubia Posada, and Perez Castaneda are being designated for being owned, controlled, or directed by, or having acted or purported to act for or on behalf of, directly or indirectly, CDG.
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 and the Kingpin Act. 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.
The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the SDN List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s Frequently Asked Question 897 here. For detailed information on the process to submit a request for removal from an OFAC sanctions list, please click here
For a graphic on today’s sanctions, click here.
For more information on the individuals and entities designated today, click here.
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