Monday, October 29, 2012

Arellano Felix - Los Caballeros Templarios Alliance

Arellano Felix Family (back when)
I don't know whether or not the word is out, however, the alliance between the Arellano Felix Organization (AFO) and Los Caballeros Templarios (LCT) does make some sense when you stop and think about it.

Benefits:
  • SUPPLY - Cocaine smuggling is on the decline because it simply doesn't make good financial sense anymore and won't until the demand pushes the price through the roof (if it ever does). Meth is the new coke and AFO doesn't have a reliable lab network to call on for supplies to meet the demand in the US and Canada. LCT does have a substantial lab network in Mexico that churns out tons of methamphetamine each month.
  • SUMGGLLING and DISTRIBUTION - LCT doesn't have an effective distribution network north of the US Border to deal with the supply that they are able to manufacture. AFO has an excellent network that has been in place for a very long time.
  • POLITICAL STROKE - Despite persistent rumors of their demise (including pronouncements by various US Law Enforcement task forces and US Attorneys (Laura), the AFO has a lot of infrastructure and power in Northern Mexico. The LCT does not, but they have stroke in Michoacan and Gurrero where they manufacture meth and tap poppies. In other words, they have the power where they need it if they are the manufacturers. They control the port of Lazlo Cardenas and can bring precursors directly to the labs through that route.
  • THE PLAZA PROBLEM - LCT doesn't need to control plazas (nor buy sanction from MEXGOV to run them) in order to brew and ship methamphetamine (and refine opium) for distribution by AFO.
LCT Narco Mata
One other thing to keep in mind is that the AFO has changed due to pressure from the US and Mexican governments, changing leadership and the reality that the Tijuana Plaza is owned and operated by the Sinaloa Federation. AFO (meaning Luis Francisco Sanchez Arellano) made a conscious decision not to go to war with anyone. They cooperate, collaborate and run their dope in peace because it's more profitable and after all, it is a business.

LCT has regional aspirations, but is generally isolated by its members and its political constituency to remain in the Michoacan (Mexican Interior) region. They do not challenge AFO in any measurable way nor are their ambitions likely to expand to cause friction.
The mandate by the People of Michoacan for LCT to provide some sort of social justice to the people living in the hamlets doesn't interfere with anything AFO has going, six hundred miles to the north.

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