U.S. accuses man dubbed "The Tank" of leading cartel fuel theft ring

Close to the leadership of Mexico's hyper-violent Jalisco New Generation cartel is a man known as "The Tank" who leads its fuel theft arm, supplying it with tens of millions of dollars a year by selling stolen gasoline through a network of seemingly legitimate businesses, according to the U.S. Treasury.

Ivan Cazarin Molina gets his nickname not from the battlefield vehicle but rather the massive storage tanks he manages in Mexico's Gulf coast state of Veracruz.

Cazarin Molina was among nine Mexicans and 26 Mexico-based entities sanctioned Tuesday by Treasury's Office of Foreign Assets Control for their alleged role in fueling the cartel's illicit activities.

Fuel theft has been a major problem for Mexico's government and state-owned petroleum company Pemex, costing it billions of dollars.

Organized criminal groups illegally tap pipelines, hijack tanker trucks or steal directly from refineries. President Andrés Manuel López Obrador put the army in charge of stopping it at the beginning of his term.

Mexico's cartels have been known to branch into legitimate business sectors to diversify their income, whether it be produce or internet service .

According to the U.S. Treasury, Cazarin Molina answers directly to Jalisco cartel leader Ruben Oseguera Cervantes, better known as "El Mencho." The U.S. government offers a $10 million reward for information leading to the leader's arrest.

The gasoline that Cazarin Molina and allies allegedly steal is held in the fuel storage tanks he controls in Veracruz, then sold through a network of gas stations that he manages. The companies have professional-looking logos, slogans and names like "Etanofuel" and "G Energy."

Some of the gasoline is sold to third parties and then into the United States.

"Tornado" and "El Mingo" also sanctioned

Cazarin Molina's brother -- nicknamed "Tornado" -- imprisoned in Mexico but allegedly still involved in cartel activities, was among the others sanctioned.

"Like El Tanque, Tornado was a founding member of CJNG and is close friends with El Mencho," the Treasury Department alleges. "Involved in homicide and recognized as a member of the armed wing of CJNG, Tornado was arrested in 2013 but remains involved in CJNG activities in Veracruz from within prison."

Cazarin Molina's father-in-law, Domingo Medina Diaz (dubbed "El Mingo"), was also sanctioned. A nephew, Jahir Cazarin Ramos, made the list as well.

The new sanctions freeze any assets the individuals or companies have in the U.S. and prohibit U.S. citizens from doing business with them.

In December 2022, the Mexican army captured Antonio Oseguera , the brother of "El Mencho."  He allegedly oversaw violent actions and logistics, and bought weapons and laundered money for the Jalisco cartel. The U.S. Treasury Department listed Antonio Oseguera's alias as "El Tony Montana," an apparent reference to the fictional protagonist of the 1983 gangster film "Scarface."

The Jalisco cartel is better known for producing millions of doses of deadly fentanyl and smuggling them into the United States disguised to look like Xanax, Percocet or oxycodone. Such pills cause about 70,000 overdose deaths per year in the United States.