US targets Mexican oil services firm linked to drug trade

Reuters News
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Posted: Aug 29, 2012 10:45 AM
US targets Mexican oil services firm linked to drug trade

WASHINGTON (Reuters) - The Treasury Department said on Wednesday it has targeted a Mexican oil services firm owned by Francisco Antonio Colorado Cessa, who it has already identified as a drug trafficker and is U.S. custody awaiting trial on money laundering charges.

The action prohibits U.S. companies and individuals from doing business with ADT Petroservicios SA De C.V. and freezes any assets the company has under U.S. jurisdiction.

"By exposing this business of Francisco Antonio Colorado Cessa, which is tied to the violent Los Zetas group, we are depriving their organization of an avenue to launder their illicit proceeds," Adam Szubin, director of Treasury's Office of Foreign Asset Control, said in a statement.

Los Zetas is a Mexican drug trafficking organization identified by President Barack Obama as a significant foreign narcotics trafficker in April 2009 under the Foreign Narcotics Kingpin Designation Act, Treasury said.

The Treasury Department has designated more than 1,100 individuals and entities under the act since 2000.

(Reporting By Doug Palmer; Editing by Vicki Allen)