19 Mar WHO CAN MAKE A CLAIM AGAINST THE ESTATE OF CARTEL LEADER, “EL MENCHO”?
Infamous drug trafficking king Nemesio “El Mencho” Oseguera was killed by Mexican security forces last month. It is estimated that he may have had at least a $50 billion estate.
There is a difference on who can make a claim versus if collection could be made. His drug cartel, Jalisco New Generation Cartel (commonly known as CJNG), continues to operate. His assets are likely varied and often bought with bitcoin or cash through a series of money laundering, creation of shell companies, etc. This is one of the reasons there are new (as of 3/01/26) reporting requirements to the Financial Crimes Enforcement Network (FinCen).
Under the laws of both the U.S. and Mexico, those governments are entitled to collect against the ill-gotten gains. Even before his death, the U.S. had financially sanctioned (ability to freeze accounts and collect) El Mencho. The U.S. government changed the law so that drug cartel leaders are treated as terrorists due to mass killings, trafficking of fentanyl, kidnappings, etc. A couple of years ago, an award of $15,000,000 was offered for information leading to his arrest.
El Mencho had been criminally convicted for his drug trafficking so the U.S. can seize his assets – if the assets can be found. U.S. laws permit asset seizure due to drug trafficking if there is a criminal conviction.
Mexico passed its own forfeiture laws to reach the financial assets of drug cartels and organized crime groups. In Mexico, there is a civil procedure whereby the prosecutor can seek forfeitures of title of certain assets in favor of the federal government (without criminal conviction). Further, assets may be forfeited of anyone else if reasonably linked to certain criminal conduct even if the titleholder did not engage in criminal conduct.
Notwithstanding the cooperation efforts between Mexico and the U.S., collection will be difficult.
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