Gerardo Gonzalez Valencia, whose name appears in the PanamaPapers, is brother of the leader of the criminal group, Abigael González Valencia, arrested on February 28 in Puerto Vallarta, Jalisco.
According to the information, González Valencia gave a statement in the South American Organized Crime court yesterday, for money laundering in Uruguay by buying real estate in Punta del Este.
Gerardo Gonzalez Valencia is wanted by the United States for drug trafficking, El País said.
"Sources on this case indicated to El Pais that the detainee was under investigation since 2015 by judge Adriana de los Santos specialized in organized crime, and by the Directorate General for the Repression of Illicit Drug Trafficking after it was found that he had acquired several properties in El Este through various corporations link to the Panamanian firm Mossack Fonseca "he says.
The Uruguayan news say that the publication of the investigation of the Panama Papers, forced De los Santos judge and the Directorate General for the Repression of Illicit Drug Trafficking to advance on the operation to arrest the traffickers to prevent them from leaving the country.
In recent days Gerardo Gonzalez had left his residence in Punta del Este and settled in Montevideo, sources have told El Pais.
As part of the investigation of the #PanamaPapers, Proceso reported that among the Mossack Fonseca firm's clients, the "elite" of drug trafficking in western Mexico are included, through Gerardo González Valencia.
Designated by the US and Mexican governments as part of the illegal business, Gerardo Gonzalez is relative and partner of three major cartels: Los Valencia, Los Cuinis and Cartel Jalisco New Generation (CJNG), these cartels originated in Michoacan and Jalisco and deploy millions of dollars on international activities.
For the US government there is no doubt, the Cuinis cartel, is the Mexican drug trafficking organization with more economic power around the world, even well above the Sinaloa Cartel.
"I know it sounds incredible, but Los Cuinis are the world's richest drug traffickers," a senior official of the US Drug Enforcement Administration (DEA) previously told Proceso.
US authorities accept that it is impossible to determine the amounts of money earned by Los Cuinis and its leader, but they have commented that there most be billions of dollars annually.
Los Cuinis "are almost the absolute owners of European and Asian drug markets," according to analysis and intelligence investigation from several US federal agencies, which placed this criminal group as "associated" with Cartel de Jalisco New Generation (CJNG) , a big difference of the Mexican authorities versions, who identifying them as the same mafia.
"Los Cuini and his brothers (five) are the richest because they are drug traffickers who sell more cocaine and methamphetamines in Europe and European authorities have not succeeded in confiscating almost no money or drugs. In other words their profits are close to one hundred percent, "DEA official said.
Amid the war against drug trafficking unleashed by Mexican President Felipe Calderon, "The Cuini" and his brother in law Nemesio Oseguera Cervantes, "El Mencho" (leader of Cartel de Jalisco), allied with South American drug traffickers to get cocaine in bulk to Europe, while the Sinaloa, Gulf, Juárez, Los Zetas, La Familia Michoacana and others vied with blood and gun fire routes to the United States, according to documents.
"Los Cuini" and "El Mencho" understood that "there was more risk of loss in every way if they try to compete with other cartels for the US market," said an official source to the newspaper La Prensa de Mexico.
The Sinaloa Cartel is the most powerful and feared Mexican organization on the planet. However, Cuinis are richer because they did not compete with "El Mayo" Zambada or with "El Chapo" Guzman for the US market and with very little effort, took over the European and Asian markets. "Los Cuinis", unlike other Mexican cartels "are not violent, to avoid attracting attention and are almost impenetrable in its command structure."
In recent days, the US government announced sanctions against seven Mexican companies, which they considered as fronts for money laundering to these organizations.
The Treasury Department, through the Office for Foreign Assets Control (OFAC), confiscated property and froze bank accounts under the US jurisdiction, which belong to the sanctioned companies.
Boreal Agriculture, Agricultural Tavo, Organic Agricultural Development, Agricultural Development Sayula Green, Step Latinamedica, Tourism Advisory and Administrative Status are the seven Mexican companies that OFAC identified as money laundering fronts for Los Cuinis and its leader Abigael González Valencia.
Based on the Kingpin Act, the Treasury Department designated González Valencia and the Organization of Cuinis as relevant drug traffickers.
According to the Federal Drug Enforcement Administration (DEA), Los Cuinis make more money than any other drug cartel in Mexico, cocaine and marijuana for export to Europe, where they earn euro currency.