The Treasury Department announced sanctions on Monday against an illicit fentanyl network tied to the Sinaloa Cartel as the Trump administration ramps up its war on drug traffickers. 

The department’s Office of Foreign Assets Control said the sanctions would impact eight Mexicans and 12 Mexico-based companies tied to the Sinaloa Cartel’s Los Chapitos faction. The State Department has designated the Sinaloa Cartel a Foreign Terrorist Organization.

“Over 500,000 Americans have died of fentanyl poisoning,” said Undersecretary 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.”

The main company targeted by the sanctions is Sumilab, which the department said was responsible for shipping fentanyl precursor chemicals to the Sinaloa Cartel. A number of individuals affiliated with the company, including Jorge Luis Favela Lopez, Francisco Favela Lopez, Victor Andres Favela Lopez, and Martha Emilia, were all sanctioned. 

The department said that the family was “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.”

Sumilab was first targeted by the Treasury Department back in 2023, after which the company removed signs from its building.

Treasury Department

Also sanctioned was Martha Emilia Conde Uraga, who, the department stated, was a “longtime” Sinaloa Cartel-affiliated chemical broker operating out of several locations in Culiacán, Mexico.

“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,” the department said. 

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Seven other chemical, laboratory equipment, and agriculture-related companies operated by the Favela Lopez family, including Agrolaren, Viand, Favelab, Qui Lab, and Storelab, were also sanctioned, the Trump administration said. 

As a result of the sanctions “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” the department and “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.”