Stock Markets February 5, 2026

Mexican authorities arrest Tequila mayor accused of extorting distillers with cartel links

Federal raids detain municipal officials alleged to have targeted major tequila and beer producers while collaborating with the Jalisco New Generation Cartel

By Derek Hwang BCCLF
Mexican authorities arrest Tequila mayor accused of extorting distillers with cartel links
BCCLF

Federal prosecutors detained the mayor of Tequila and several municipal officials after allegations they ran a corruption ring that extorted large distillers, diverted public funds and colluded with the Jalisco New Generation Cartel. Investigators say the scheme targeted the world’s largest tequila producer, prompting state intervention and multiple company complaints.

Key Points

  • Federal raids in Tequila led to the arrest of Mayor Diego Rivera and several municipal officials accused of running an extortion ring targeting beer and tequila producers.
  • Investigators say Becle, the world’s largest tequila producer and owner of Jose Cuervo, was targeted with an alleged property tax up to 20 times the legal rate and a fine exceeding 60 million pesos, alongside withheld permits and attempts to close a plant.
  • State authorities intervened after at least 10 companies filed complaints; officials additionally allege diversion of public funds and collaboration with the Jalisco New Generation Cartel, increasing legal and operational uncertainty for firms in the region.

Mexican federal authorities on Thursday arrested the mayor of the municipality of Tequila - the birthplace of the agave spirit - on accusations that he led a local corruption network which extorted major distillers in coordination with the Jalisco New Generation Cartel (CJNG). The operation also resulted in the detention of the town’s security director and the heads of public works and the land registry, officials said.

Security Minister Omar Garcia Harfuch said the group ran a ring that singled out beer and tequila producers operating in the municipality. Investigators have identified the world’s largest tequila producer, Becle, as one of the companies targeted by the alleged scheme, according to authorities' December findings.

The producer behind Jose Cuervo lodged a formal complaint alleging the local administration had levied a property tax at up to 20 times the lawful rate and imposed a fine exceeding 60 million pesos - while simultaneously withholding permits and seeking to close one of its facilities. Those measures prompted state authorities to step in; the governor of Jalisco indicated that at least 10 businesses had filed grievances against the municipal government.

The Tequila Regulatory Council said it did not take a position on the matter. Becle did not immediately respond to a request for comment, according to investigators.

Officials allege the network was not limited to extortion of private firms but also diverted public resources and maintained collaboration with the CJNG, which federal authorities describe as one of Mexico’s most powerful and violent criminal organizations. The mayor had previously attracted scrutiny after a concert in the town displayed projected images of the cartel’s fugitive leader, Nemesio Oseguera "El Mencho."

The case highlights the risks companies confront when operating in regions that support multi-billion-dollar industries yet are afflicted by cartel activity. Authorities provided an exchange-rate reference of $1 = 17.3993 Mexican pesos in their statements.


This investigation remains subject to official proceedings. The extent of any further legal action, potential corporate remediation or the impact on local operations will depend on ongoing federal and state inquiries.

Risks

  • Operational disruption and regulatory interference for beverage producers in Jalisco due to alleged extortion and permit withholding - impacts the spirits and related industrial sectors.
  • Potential reputational and financial damage for targeted companies facing municipal sanctions and legal disputes - affects corporate governance and investor sentiment in the affected firms.
  • Continued cartel influence and alleged collusion with local officials could worsen security and legal uncertainty in the municipality, posing risks to tourism and industrial activity in the area.

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