The Sinaloa Cartel’s Los Chapitos Faction Dominates Fentanyl Flow into the United States
WASHINGTON — Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned eight Mexican individuals and 12 Mexico-based companies affiliated with the Sinaloa Cartel’s Los Chapitos faction. This network supplies illicit fentanyl precursor chemicals to the Sinaloa Cartel, a terrorist organization responsible for a significant portion of the deadly drugs trafficked into the United States.
“Over 500,000 Americans have died of fentanyl poisoning,” said Under Secretary for Terrorism and Financial Intelligence John K. Hurley. “President Trump has made clear that stopping the deadly flow of drugs into our country is a top national security priority. Under Secretary Bessent’s leadership, the Treasury Department is committed to dismantling the complex financial networks that support these terrorist organizations.”
Within the Sinaloa Cartel, the faction known as Los Chapitos is run by the four sons of Joaquin ‘El Chapo’ Guzman Loera. With two of the four members of Los Chapitos now in U.S. federal custody, fugitive brothers Archivaldo Ivan and Jesus Alfredo Guzman Salazar lead the faction and exert control over vast swaths of Sinaloa Cartel-controlled territories across Mexico. Heavily invested in the trafficking of illicit fentanyl and methamphetamine, Los Chapitos have consistently procured precursor chemicals, overseen illicit laboratories, and managed drug distribution. On February 20, 2025, the U.S. Department of State designated the Sinaloa Cartel as a Foreign Terrorist Organization and as a Specially Designated Global Terrorist. On June 9, 2025, OFAC designated Los Chapitos pursuant to counterterrorism and counternarcotics authorities.
This action would not have been possible without the cooperation, support, and ongoing collaboration with the Federal Bureau of Investigation Phoenix Field Office (Tucson Resident Agency), the Drug Enforcement Administration’s Tampa District Office (“CHEMEX”) and Rocky Mountain Field Division Office, the Homeland Security Investigations’ Newark Field Office, and Customs and Border Protection’s National Targeting Center.
SUPPLYING PRECURSOR CHEMICALS FOR ILLICIT FENTANYL PRODUCTION
Headquartered in Culiacan, Sinaloa, Mexico, chemical and laboratory equipment company, Sumilab, S.A. de C.V. (Sumilab), was founded in May 2001. First sanctioned by OFAC pursuant to counternarcotics authorities on May 9, 2023, Sumilab was designated today for its involvement in providing and shipping precursor chemicals for and to Sinaloa Cartel members and associates.
Sumilab is run by the Favela Lopez family, including siblings, Victor Andres Favela Lopez (Victor Andres), Francisco Favela Lopez (Francisco), Jorge Luis Favela Lopez (Jorge Luis), and Maria Gabriela Favela Lopez (Maria Gabriela), as well as Maria Gabriela’s spouse, Jairo Verdugo Araujo (Jairo), and Gilberto Gallardo Garcia (Gilberto), who is married to another Favela Lopez sibling.
Following OFAC’s May 2023 sanctions targeting Sumilab, the Favela Lopez family removed signage from Sumilab storefronts and changed tactics, but remained heavily engaged in supplying precursor chemicals for the Sinaloa Cartel’s fentanyl production. Victor Andres, Francisco, and Jorge Luis operate under the Los Chapitos faction of the Sinaloa Cartel and are responsible for supplying and distributing precursor chemicals and lab equipment to Sinaloa Cartel-affiliated chemical brokers and lab operators, who produce illicit fentanyl and methamphetamine. Additionally, chemicals are sold to companies in the United States, where they are synthesized into illicit drugs and ultimately sold to U.S.-based customers.
Today, Sumilab, Victor Andres, Francisco, and Jorge Luis were designated pursuant to Executive Order (E.O.) 14059 for having provided, or attempted to provide, financial, material, or technological support for, or goods or services in support of, the Sinaloa Cartel; and pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the Sinaloa Cartel. Additionally, Maria Gabriela, Jairo, and Gilberto were designated pursuant to E.O. 14059 and 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, Sumilab.
A FAMILY AFFAIR
In addition to Sumilab, the Favela Lopez family operates a network of chemical, laboratory equipment, and agriculture-related companies, including seven sanctioned today: Agrolaren, S.P.R. de R.L. de C.V. (Agrolaren), Distribuidora de Productors y Servicios Viand, S.A. de C.V. (Viand), Favelab, S.A. de C.V. (Favelab), Favela Pro, S.A. de C.V. (d.b.a. Fagalab), Qui Lab, S.A. de C.V. (Qui Lab), and Storelab, S.A. de C.V. (Storelab).
Shortly after OFAC’s May 2023 designation of Sumilab, several members of the family attempted to distance themselves—at least on paper—from numerous companies within their network. Specifically, in the days and weeks following OFAC’s action, Victor Andres, Francisco, and Jorge Luis each removed themselves and/or other family members from numerous corporate filings—to include Agrolaren, Viand, Favelab, and Fagalab—and installed front persons in their place. For example, Cesar Elias Lopez Araujo (Cesar Elias), sanctioned today, was the front person of choice for Victor Andres. Cesar Elias also owns laboratory equipment company Importaciones y Nacional Marcerlab, S.A. de C.V. (d.b.a. Macerlab), which was sanctioned today.
Despite the utilization of front persons on numerous occasions, other companies within the family’s network—to include Qui Lab (owned by Jorge Luis and Gilberto) and Storelab (owned by Jorge Luis, Maria Gabriela, and Jairo)—maintained their corporate structures following OFAC’s May 2023 designation of Sumilab.
Today, Cesar Elias and Viand were designated pursuant to E.O. 14059 and 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, Victor Andres. Favelab was designated pursuant to E.O. 14059 and 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, Francisco. Agrolaren and Fagalab were designated pursuant to E.O. 14059 and 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, Jorge Luis. Qui Lab was designated pursuant to E.O. 14059 and 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, Jorge Luis and Gilberto. Storelab was designated pursuant to E.O. 14059 and 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, Jorge Luis, Maria Gabriela, and Jairo. Lastly, Macerlab was designated pursuant to E.O. 14059 and 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, Cesar Elias.
SINALOA CARTEL-AFFILIATED CHEMICAL BROKER
OFAC sanctioned Martha Emilia Conde Uraga (Conde Uraga), also known as “Martita,” who is a longtime Sinaloa Cartel-affiliated chemical broker operating out of multiple warehouses in and around Culiacan. Utilizing fraudulent invoicing and other concealment methods, Conde Uraga supplies precursor chemicals to drug traffickers and lab operators working for the Los Chapitos faction of the Sinaloa Cartel.
Also a utilizer of front persons, Conde Uraga and her family run several Mexico-based businesses sanctioned today, including chemical and industrial cleaning companies Comercial Viosma del Noroeste, S.A. de C.V. (Viosma) and Prolimph Quimicos en General, S.A. de C.V. (Prolimph); a health company, Proveedora de Servicios de Salud Mental del Pacifico, S.A. de C.V. (Salud); and a real estate company, Roco del Pacifico Inmobiliaria, S.A. de C.V. (Roco).
Today, Conde Uraga was designated pursuant to E.O. 14059 for having provided, or attempted to provide, financial, material, or technological support for, or goods or services in support of, the Sinaloa Cartel; and pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the Sinaloa Cartel. Additionally, Viosma, Prolimph, Salud, and Roco were designated pursuant to E.O. 14059 and pursuant to E.O. 13224, as amended, for being owned, controlled, or directed by, or having acted for or on behalf of, directly or indirectly, Conde Uraga.
SANCTIONS IMPLICATIONS
As a result of today’s action, all property and interests in property of the designated or blocked 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 blocked persons.
Violations of U.S. sanctions may result in the imposition of civil or criminal penalties on U.S. and foreign persons. OFAC may impose civil penalties for sanctions violations on a strict liability basis. OFAC’s Economic Sanctions Enforcement Guidelines provide more information regarding OFAC’s enforcement of U.S. economic sanctions. In addition, financial institutions and other persons may risk exposure to sanctions for engaging in certain transactions or activities involving designated or otherwise blocked persons. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any designated or blocked person, or the receipt of any contribution or provision of funds, goods, or services from any such person.
The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the Specially Designated Nationals and Blocked Persons List (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, or to submit a request, please refer to OFAC’s guidance on Filing a Petition for Removal from an OFAC List.
Click here for more information on the persons designated today.
View the chart on the individuals and entities designated today.
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