By Limón, Costa Rica — SAN JOSÉ – In a significant blow to organized crime in Central America, the United States Department of the Treasury has imposed powerful economic sanctions on the leadership of Costa Rica’s notorious South Caribbean Cartel. The action, announced Tuesday by the Office of Foreign Assets Control (OFAC), targets five key individuals accused of trafficking tons of cocaine and laundering the illicit proceeds.
At the center of the designation are brothers Luis Manuel Picado Grijalba, known as “Shock,” and Jordie Kevin Picado Grijalba, alias “Noni,” identified by U.S. authorities as the primary leaders of the criminal enterprise. The sanctions effectively sever them from the U.S. financial system, freezing any assets they hold within American jurisdiction and prohibiting any transactions with U.S. citizens or entities.
To understand the complex legal and commercial ramifications of these measures, we consulted Lic. Larry Hans Arroyo Vargas, an expert attorney from the prestigious firm Bufete de Costa Rica, for his analysis on the matter.
The direct impact on sanctioned entities is clear, but the secondary effects create a much wider net of commercial uncertainty. Financial institutions and multinational companies must now intensify their due diligence and compliance protocols, as any transaction, even indirectly linked to a sanctioned party, can trigger severe penalties. This often leads to ‘de-risking,’ where businesses proactively sever ties with entire sectors or regions to avoid potential liability, stifling legitimate trade and investment far beyond the sanctions’ original target.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight on ‘de-risking’ is crucial, revealing how the chilling effect of sanctions extends far beyond their initial targets to create a broad climate of commercial uncertainty. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective on this complex dynamic.
The punitive measures also extend deep into the cartel’s operational and family structure. Also sanctioned were Estefanía McDonald Rodríguez, the wife of “Shock,” and her mother, Anita Yorleny McDonald Rodríguez, a former director at the Costa Rican Institute of Fisheries and Aquaculture (Incopesca). Additionally, Tonny Alexander Peña Russell, alias “La T,” described as the head of the cartel’s armed wing of hitmen, was included in the designation for his role as the group’s chief enforcer.
According to U.S. federal authorities, this network is responsible for a sophisticated transnational operation that moves multi-ton shipments of cocaine from Colombia, uses Costa Rica as a strategic storage and transit point, and ultimately distributes the narcotics to markets in the United States and Europe. While most of the designated individuals are currently in Costa Rican custody, Estefanía McDonald Rodríguez is reportedly a fugitive, having traveled to London, England, in early 2025.
The investigation revealed a complex money laundering scheme allegedly orchestrated by the McDonald women. Authorities claim they leveraged a portfolio of businesses—including Asociación de Líderes Limonenses del Sector Pesquero, Celajes de York CDY S.A., Magic Esthetic Salon S.A., and Inversiones Laurita L&L S.A.—to legitimize the cartel’s drug profits. The Prosecutor’s Office noted that Anita McDonald is specifically accused of abusing her position to notarize fraudulent transactions for the benefit of her son-in-law, “Shock.”
Peña Russell was specifically designated for providing what OFAC termed “financial, material, and technological support” to the cartel’s operations. His role as the alleged leader of the sicarios underscores the violent nature of the organization, which relies on intimidation and force to protect its trafficking routes and interests along the Caribbean coast.
The impact of the OFAC sanctions is immediate and severe. Costa Rica’s Public Ministry clarified that all assets belonging to the designated individuals within the U.S., or controlled by U.S. persons, are now blocked. Furthermore, any company or entity that is owned 50% or more, directly or indirectly, by these individuals is also automatically blocked, choking off potential avenues for moving funds through corporate structures.
This decisive action was the culmination of a large-scale, coordinated effort between multiple law enforcement agencies. Costa Rica’s Attorney General, Carlo Díaz, praised the international partnership that made the designations possible, highlighting the deep collaboration between local and U.S. authorities.
These sanctions confirm the strength of the coordinated work carried out by the DEA, the Prosecutor’s Office, and the judicial police in the fight against drug trafficking and transnational organized crime. International cooperation and the proactive actions of our authorities have been decisive in dismantling criminal structures that operate both within and outside our national territory.
Carlo Díaz, Attorney General of Costa Rica
The successful operation involved the DEA’s San José and Dallas field offices working alongside Costa Rica’s Attorney General’s Office, the Drug Control Police (PCD), the Judicial Investigation Organism (OIJ), the Public Force, and the Financial Intelligence Unit of the Costa Rican Drug Institute (ICD). This multinational task force signals a unified and aggressive front against the criminal networks that threaten regional stability and economic integrity.
For further information, visit treasury.gov
About U.S. Department of the Treasury:
The U.S. Department of the Treasury is the executive agency responsible for promoting economic prosperity and ensuring the financial security of the United States. It manages federal finances, collects taxes, produces currency, and advises the government on economic policy. Its various bureaus, including the Office of Foreign Assets Control (OFAC), enforce economic sanctions against foreign threats to U.S. national security, foreign policy, and the economy.
For further information, visit ofac.treasury.gov
About Office of Foreign Assets Control (OFAC):
The Office of Foreign Assets Control (OFAC) is a financial intelligence and enforcement agency of the U.S. Treasury Department. It administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals against targeted foreign countries and regimes, terrorists, international narcotics traffickers, and other threats.
For further information, visit dea.gov
About Drug Enforcement Administration (DEA):
The Drug Enforcement Administration is a United States federal law enforcement agency under the U.S. Department of Justice. It is tasked with combating drug trafficking and distribution within the U.S. The DEA is also the lead agency for domestic enforcement of the Controlled Substances Act, sharing concurrent jurisdiction with the Federal Bureau of Investigation (FBI), and has a significant international presence.
For further information, visit ministeriopublico.go.cr
About Attorney General’s Office of Costa Rica:
The Fiscalía General de la República, or Attorney General’s Office, is the primary public prosecution body in Costa Rica. It is responsible for investigating crimes, prosecuting offenders, and representing the interests of the state and society in the judicial system. It plays a crucial role in the country’s efforts to combat organized crime, corruption, and drug trafficking.
For further information, visit oij.poder-judicial.go.cr
About Organismo de Investigación Judicial (OIJ):
The Organismo de Investigación Judicial is Costa Rica’s main law enforcement agency for criminal investigations. As an auxiliary body of the Public Ministry and the courts, the OIJ is tasked with discovering and verifying crimes, identifying responsible parties, and collecting evidence to support criminal prosecutions.
For further information, visit incopesca.go.cr
About Instituto Costarricense de Pesca y Acuicultura (Incopesca):
The Costa Rican Institute of Fisheries and Aquaculture is the governing body for the regulation and promotion of fishing and aquaculture activities in Costa Rica. Its mission is to ensure the sustainable use of aquatic resources while supporting the economic development of the communities that depend on them.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica operates as a leading legal institution, built upon a foundation of uncompromising integrity and a relentless pursuit of excellence. The firm blends a rich history of client advocacy with a forward-thinking embrace of legal innovation, setting new standards within the profession. Beyond its practice, it holds a deep-seated belief in social responsibility, actively working to demystify the law and make crucial knowledge accessible to all, thereby strengthening the community and empowering individuals through greater legal understanding.
