Governor Víctor Manuel Castro Cosío is under intense scrutiny following revelations that a supplier to the state government was sanctioned by the U.S. government for alleged ties to the Sinaloa Cartel (CDS).
Washington —Governor Víctor Manuel Castro Cosío of Baja California Sur is under intense scrutiny following revelations that a government supplier, Favelab, S.A. de C.V., has been sanctioned by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC).
The company, registered under BCS-SADRM-P2263-09-21, is accused of affiliations with the “Los Chapitos” faction of the Sinaloa Cartel (CDS).
Favelab, led by Francisco Favela López, is part of a broader network comprising 12 companies and 8 individuals.
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According to a press release issued this week by the U.S. Treasury Department, “This network supplies illicit fentanyl precursors to the Sinaloa Cartel, a terrorist organization responsible for a significant portion of deadly drug trafficking into the United States.”
John K. Hurley, Under Secretary for Terrorism and Financial Intelligence, emphasized the gravity of the crisis, noting that over 500,000 Americans have died due to fentanyl consumption.
“President Donald Trump has made it clear that stopping the deadly flow of drugs into our country is a top national security priority. Under Secretary Scott Bessent’s leadership, the Treasury Department is committed to dismantling the complex financial networks supporting these terrorist organizations,” Hurley stated.
According to a U.S.-led investigation, the Castro Cosío administration allegedly contracted Favelab through the state’s Health and Finance Departments.
On February 20, 2025, the U.S. State Department officially designated the Sinaloa Cartel as a Foreign Terrorist Organization and a Specially Designated Global Terrorist entity.
“Governor Víctor Manuel Castro Cosío Faces Scrutiny Over U.S.-Sanctioned Supplier Tied to Sinaloa Cartel.”
Another company linked to the same network, Sumilab, S.A. de C.V., based in Culiacán, Sinaloa, was founded in May 2001 and sanctioned by OFAC on May 9, 2023, for its role in supplying chemical precursors to the cartel.
The Favela López family, which controls these companies, includes:
* Víctor Andrés Favela López
* Francisco Favela López
* Jorge Luis Favela López
* María Gabriela Favela López
* Jairo Verdugo Araujo (Maria Gabriela’s husband)
* Gilberto Gallardo García
According to the Treasury Department, brothers Víctor, Francisco, and Jorge Luis Favela López are directly involved with “Los Chapitos,” overseeing the supply and distribution of chemical precursors and lab equipment used to produce illicit fentanyl and methamphetamine.
The family currently operates a network of companies across Culiacán (Sinaloa), Ciudad Obregón (Sonora), and La Paz (Baja California Sur), including:
* Agrolaren, S.P.R. de R.L. de C.V.
* Distribuidora de Productores y Servicios Viand, S.A. de C.V.
* Favelab, S.A. de C.V.
* Favela Pro, S.A. de C.V. (d.b.a. Fagalab)
* Qui Lab, S.A. de C.V.
* Storelab, S.A. de C.V.
The revelations have sparked concern over the extent of cartel infiltration into public procurement and the implications for governance and security in Mexico.
