Mexico’s Attorney General’s Office (FGR) has publicly named brothers Manuel and Fernando Farías as the alleged leaders of an intricate criminal network dedicated to what’s known in Mexico as ‘huachicol fiscal’ — a form of fuel tax fraud distinct from the more commonly known physical theft of gasoline from pipelines.
In this scheme, fuel — often diesel — is imported under false paperwork claiming it’s meant for tax-exempt industrial or export use. Instead, it’s diverted and sold on the domestic market as regular, taxed fuel, allowing the operators to pocket the difference while evading import duties and taxes that would otherwise flow to the Mexican treasury. These schemes have cost the government billions of pesos in lost revenue over the years and have become a major target of federal investigators.
According to the FGR, the network allegedly run by the Farías brothers was notably sophisticated, suggesting coordination across multiple companies, customs filings, and distribution channels to disguise the fraud. Mexican authorities have increasingly focused on dismantling these tax-evasion structures as part of a broader crackdown on fuel-related corruption, which has ensnared both private businesspeople and, in past cases, military and customs officials.
Details on the scale of the alleged fraud, the specific charges filed, and any arrests remain limited in initial reporting. For the full account of the investigation and the FGR’s findings, read the original article at La Jornada.
Source: FGR: Manuel y Fernando Farías encabezaban compleja red de 'huachicol' fiscal (jornada.com.mx). English version produced with AI assistance.
Image: CCY18999, BY-SA 3.0 (via Openverse).