Oct. 12,2011

MEXICO security memo

La Familia Michoacana’s Presence in Austin

On Oct. 8, the Austin American-Statesman published a report on the presence of a Mexican drug cartel operating within the city. According to the report, the La Familia Michoacana (LFM) cartel has strong ties to Austin, Texas, because of a sizable contingency of expatriates from Luvianos, a city located in Mexico’s Michoacan state from which the cartel originated and took its name.

The presence of Mexican cartels in the United States understandably represents a serious concern for U.S. citizens, and is an issue STRATFOR and the U.S. mainstream media follow closely. A grasp on cartel origins and relationships is vital to understanding the Mexican cartel landscape, and we believe we can provide some clarity to help address the issue posited by the report: Does LFM actually operate in Austin? Essential to addressing that question is a cursory explanation of how LFM has evolved and how it currently exists.

LFM began as a vigilante group that sought to protect the citizens of Michoacan state from encroaching cartels. At some point in the mid-2000s, they began engaging in their own drug trafficking operations, adopting a quasi-religious, cult-like ideology. In 2009, then-Mexican Attorney General Eduardo Medina Mora labeled LFM the most violent organized criminal group in Mexico, a statement that was made amid an offensive against Los Zetas, LFM’s archrival at the time.

The organization began to experience serious setbacks in December 2010, when the Mexican government announced the death of LFM leader Nazario “El Mas Loco” Moreno Gonzalez. Then in March 2011, banners appearing in the Michoacan cities of Morelia, Zitacuaro and Apatzingan said an LFM offshoot calling itself the Knights Templar would replace its predecessor as the dominant cartel in the area. Notably, the Knights Templar also adopted a quasi-religious ideology, even issuing a comprehensive code of conduct for its members. The splintering of LFM and the Knights Templar resulted in all-out war between the two, with LFM on the losing side. The LFM lost multiple leaders, including Jose “El Chango” Mendez Vargas, who led the LFM factionafter the original group broke apart. Between the Knights Templar and the Mexican government, the LFM faction has been decimated. The government has gone so far as to say the original LFM has effectively ceased to exist.

At present, the Knights Templar are faring much better than LFM in the struggle. They are demonstrably the stronger and more capable of the two. But the distinction between the two often goes unnoticed in or is otherwise not clearly delineated by the mainstream media. Therefore, if a cartel from Michoacan state is operating in Austin, it is likely the Knights Templar, as LFM is in disarray and probably lacks the resources to traffic large quantities of narcotics on its own.

That is not to say it is impossible for LFM to be operating in the Texas capital, as the Austin American-Statesman article suggests. The fact that LFM is losing the battle against the Knights Templar has given rise to rumors that the former has sought an alliance with the Zetas. (Mexican government officials have said any alliance between the two has fallen through.) If the smaller LFM faction of the original group is operating in Austin and if the rumors of the alliance are true, then the Zetas are likely working closely with the faction to move narcotics in and through the Texas capital.

Continued Threat of Paramilitary Groups

The recent killings in Veracruz, including the dumping of some 35 alleged members of Los Zetas on a main road in the city, has garnered a great deal of attention from the media, which subsequently have labeled the group that claimed responsibility for the killings — the Matazetas, or Zetas killers — a “paramilitary group.” Indeed, many in the media have characterized such paramilitary groups as an emerging threat in Mexico.

The existence of paramilitary groups in Mexico is nothing new, and there appears to be a misconception as to what qualifies as a paramilitary group. STRATFOR has long considered several groups in Mexico to be paramilitary groups, which, broadly speaking, can be defined as groups that utilize military-grade weaponry and maintain a military-style hierarchy but are not part of the country’s formal military.

In this context, Los Zetas, the Matazetas (the enforcement arm of the Cartel de Jalisco Nueva Generacion), Los Pelones and La Gente Nueva (both enforcers for the Sinaloa Federation) all are paramilitary organizations. The Sinaloa Federation recruited from the Mexican military to create La Gente Nueva. When the Gulf and Sinaloa cartels were avowed enemies from 1998 to 2010, the Gulf cartel leadership sought to build a similar organization and began specifically recruiting from the Mexican army’s Special Forces Airborne Group, which became Los Zetas.

By the broadest definition of paramilitary, all armed, organized and hierarchically structured cartels and crime groups in Mexico can be referred to as paramilitary groups. They all possess and use a wide variety of weaponry, the bulk of which is considered military-grade, and they all have been conducting armed operations against a ruling power — the Mexican military and federal police — and/or against an occupying power — rival cartels.

Mexico has seen multiple paramilitary groups for over a decade. The acts of the Metazetas, while sensational in their violence, do not represent a growing trend; they represent a continuing trend.

Oct. 4
  • Mexican special operations forces captured Noel “El Flaco” Salgueiro Nevarez, founder and leader of La Gente Nueva, in Culiacan, Sinaloa state. La Gente Nueva is an armed branch of the Sinaloa Federation operating primarily in Ciudad Juarez, Chihuahua state.
  • Mexican authorities captured six members of Los Zetas in Jalisco state.
Oct. 5
  • Mexican authorities announced the arrest of Martin “El Terry” Rosales Magana, a founder of La Familia Michoacana. Rosales was arrested in Las Juntas, Mexico state.
  • Mexican soldiers and customs agents seized about $915,000 from a vehicle at a checkpoint near the U.S. border in Tijuana, Baja California state.
  • Gunmen attacked a family in their home in Monterrey, Nuevo Leon state, leaving four dead and three injured. Among the dead was a two-year-old child.
Oct. 7
  • A decapitated body was found with a narcobanner in Ciudad Altamirano, Guerrero state. The banner was addressed to political leaders, including President Felipe Calderon. The message threatened the families of political leaders who support La Barredora, a criminal organization aligned with the Sinaloa Federation. The message also blames La Barredora for extorting teachers in Guerrero state.
  • Mexican authorities seized a camp in Vallecillo, Nuevo Leon state, used by drug traffickers. Approximately 40 individuals fled the camp as the authorities entered. At the camp, authorities discovered camouflage military uniforms and Mexican marine insignias, along with communication equipment.
  • Mexican marines arrested 20 individuals thought to be members of criminal organizations in Veracruz. Eight of the individuals belonged to Cartel de Jalisco Nueva Generacion, and twelve belonged to Los Zetas.
Oct. 8
  • A firefight between the Mexican military and gunmen erupted in Miguel Aleman, Tamaulipas state. It was reported that Juan Reyes “R1” Mejia Gonzalez, a Gulf cartel leader, was among those killed.
  • Ten bodies were discovered in two locations in Veracruz state. Seven bodies were discovered in a truck in Laguna Real, while three bodies were discovered on a road in Colinas de Sante Fe.
Oct. 10
  • Gunmen shot and killed six police officers as they rode in a vehicle to Valparaiso, Zacatecas state. The police officers were returning from a party.