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Mexico Arrests Tequila Mayor Over Alleged CJNG-Linked Extortion of Distillers

Mexico Arrests Tequila Mayor Over Alleged CJNG-Linked Extortion of Distillers
People walk around the town in Tequila, Jalisco, Mexico, April 10, 2018. REUTERS/Carlos Jasso

Mexican federal agents arrested Tequila mayor Diego Rivera and several municipal officials on allegations they ran a corruption ring that extorted tequila and beer producers in coordination with the Jalisco New Generation Cartel (CJNG). Investigators say companies including Becle and Jose Cuervo were targeted with excessive taxes and fines—one complaint cites a property tax up to 20 times the legal rate and a fine exceeding 60 million pesos. At least 10 firms filed complaints, and authorities allege the network also diverted public funds and colluded with the CJNG. Rivera previously attracted attention after a concert reportedly displayed images of cartel leader Nemesio Oseguera “El Mencho.”

Mexican federal authorities have detained Diego Rivera, the mayor of Tequila — the town famed as the birthplace of the agave spirit — along with several municipal officials, accusing them of running a corruption ring that extorted major distillers in collusion with the Jalisco New Generation Cartel (CJNG).

Allegations and Arrests

Security Minister Omar García Harfuch said federal raids led to the arrests of the mayor, the municipal security director, and the heads of public works and the land registry. Authorities allege the group targeted beer and tequila producers, imposed excessive taxes and fines, withheld permits and sought to close facilities as part of an extortion scheme.

Companies Named

Investigators identified Becle, the world’s largest tequila producer, as one of the targets. Jose Cuervo’s producers also filed complaints alleging the mayor’s administration levied a property tax as high as 20 times the legal rate and imposed a fine in excess of 60 million pesos (about $3.45 million), while obstructing permits.

Wider Impact

The Jalisco governor said at least 10 companies had filed complaints against the municipal administration, prompting state intervention. Officials further allege the network diverted public funds and cooperated with the CJNG, one of Mexico’s most powerful and violent criminal organizations.

Rivera previously drew attention after a local concert reportedly displayed projected images of CJNG fugitive leader Nemesio Oseguera, known as "El Mencho."

Exchange rate: ($1 = 17.3993 Mexican pesos)

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