Mexico's New Cocaine Kingpin is Cashing In

Key Takeaways

El Mencho, from Jalisco, Mexico, emerged as a dominant drug lord, leveraging U.S. cocaine demand.
Internal civil war within the Sinaloa Cartel created a power vacuum exploited by El Mencho.
El Mencho secured critical U.S. tunnel access and focused on cocaine as fentanyl trade faced U.S. pressure.
His Jalisco cartel operates as a parallel government, controlling local economies and public services.
El Mencho remains Mexico's most wanted fugitive, with a $15 million U.S. reward for his capture.

Nemesio Oseguera, known as El Mencho, operates from a heavily guarded mountain hideout in Jalisco, Mexico.
Identified as one of the world's most powerful drug lords, he capitalizes on a 154% increase in U.S. cocaine consumption in the western U.S. since 2019.
El Mencho, involved in the drug trade since the 1980s, co-founded the Jalisco New Generation Cartel in the 2010s.
His cartel is known for extreme violence, including shooting down a military helicopter in 2015 and ambushing police officers.

The Sinaloa Cartel began fracturing after its leader, Joaquin "El Chapo" Guzman, was arrested in 2015 and imprisoned in the U.S. in 2017.
El Chapo's four sons, the Chapitos, took control, leading to internal conflicts with El Mayo Zambada's faction.
These disputes resulted in significant violence, including approximately 2,000 people killed and 2,000 disappeared in the past year.
A Chapito's attempted betrayal against El Mayo Zambada led to both their arrests by U.S. officials near El Paso, Texas.

The civil war within the Sinaloa Cartel created an opening for El Mencho and his Jalisco cartel.
Facing rival violence, the Chapitos negotiated with El Mencho, offering him unrestricted access to their U.S. tunnels in exchange for supplies and men.
These tunnels were a critical advantage, previously requiring a fee, allowing undetectable drug shipments into the U.S.
El Mencho's acquisition of tunnel access was a significant victory, simplifying and reducing the cost of drug trafficking into the U.S. for his cartel.

The Chapitos and El Mencho agreed to divide the drug market, with the Chapitos focusing on fentanyl and El Mencho on cocaine.
The fentanyl trade faced disruption due to a U.S. government crackdown driven by tens of thousands of overdose deaths, with President Trump pressuring Mexico.
While Chapitos' fentanyl operations dispersed, El Mencho's cocaine market boomed due to increased production in Colombia and falling prices in the U.S.
El Mencho and the Jalisco cartel became dominant in the drug trade as rivals struggled with internal conflicts and U.S. pressure on fentanyl.

The Jalisco cartel operates as a parallel government, generating revenue by taxing goods, controlling construction companies, and smuggling illicit fuel.
In controlled areas, people fear El Mencho's ruthlessness but also benefit from his provision of necessities and funding for community events.
El Mencho is celebrated in "Narco Ballads," songs depicting the heroic deeds of drug lords, describing him as a defiant fighter against the government.
He is one of Mexico's most wanted fugitives, with the U.S. offering a $15 million reward for information leading to his arrest.