A Texas-based fuel trader is under investigation in the United States and Mexico after documents allegedly showed a paper trail linking fuel shipments to a smuggling scheme tied to the Jalisco New Generation Cartel, one of Mexico's most powerful drug cartels.
Reuters reported that Ikon Midstream shipped diesel and naphtha that were allegedly classified in customs paperwork as lubricants, a category that can avoid steep Mexican fuel import duties. Mexican security documents and government sources cited by the news agency allege the company played a key role in moving fuel into Mexico through obscure importers that lacked valid permits.
