In an historic move, the U.S. Department of Justice (DOJ) has charged key leaders of the Sinaloa Cartel with narco-terrorism and providing material support to terrorism under the U.S. Anti-Terrorism Act (ATA). This is the first time charges under the ATA have been brought against drug traffickers and reinforces the new legal risks emerging from the recent designation of drug cartels as terrorist organizations.
FTOs and the ATA
As we explain here, on February 20, 2025, the U.S. DOJ designated eight profit-motivated criminal enterprises operating in Latin America as “Foreign Terrorist Organizations” (FTOs). These groups include Tren de Aragua, the Sinaloa Cartel, and the Gulf Cartel.
The material support count in the newly unsealed indictment highlights the connection between FTO designations and potential liability under the ATA. As discussed in further detail here, the recent FTO designations create new risks, not just for cartel members, but for companies operating in Mexico and other Latin American countries. Many FTO-designated cartels are so embedded in the local economy that they are difficult for legitimate businesses to avoid. Businesses that engage with—or are perceived to engage with—FTOs run the risk of being sued in the United States under the ATA.
The ATA creates a private right of action allowing U.S. nationals injured by an act of international terrorism to sue both principal wrongdoers and those who aid and abet or conspire with an FTO to commit a terrorist act. Defendants in ATA cases face treble damages and attorneys’ fees—which can lead to tremendous exposure, since hundreds of victims often sue simultaneously. Even if ATA claims against a company are eventually dismissed, such proceedings are likely to subject a company to years of costly litigation and widespread reputational damage.
The Indictment and Operation Take Back America
The indictment, unsealed on May 13, 2025, targets, among others, Pedro Inzunza Noriega and his son Pedro Inzunza Coronel, alleged leaders of the Beltrán Leyva Organization (BLO), a violent faction of the Sinaloa Cartel. According to the DOJ, the BLO operates the world’s largest fentanyl production network, trafficking large quantities of fentanyl, cocaine, methamphetamine, and heroin into the U.S.
The case is part of Operation Take Back America, a sweeping federal initiative aimed at dismantling transnational criminal organizations. Among the indictment’s seven charges are narcoterrorism, conspiracy to import and distribute controlled substances, conspiracy to commit money laundering, and notably, providing material support to an FTO under the ATA. See 18 U.S.C. § 2339B.
“The Sinaloa Cartel is a complex, dangerous terrorist organization and dismantling them demands a novel, powerful legal response,” said Attorney General Pamela Bondi. “Their days of brutalizing the American people without consequence are over — we will seek life in prison for these terrorists.”
Key Takeaways
These latest developments—equating cartel activity with terrorism—signal a significant shift in how the U.S. government is framing and prosecuting drug trafficking. Companies operating in Latin America should be mindful of potential connections to FTO cartels and consider evaluating controls, including those described here, to mitigate risks.