Federal prosecutors in San Diego unsealed an indictment on Tuesday charging Carlos Paez Pereda, the alleged leader of a violent Sinaloa Cartel wing, with narcoterrorism, material support for terrorism, and drug trafficking. Paez Pereda, known as “Carlitos Rugrats,” is accused of running drug manufacturing and distribution operations that stretched from Sinaloa to Tijuana and across the border into the United States.
According to the U.S. Department of Justice, Paez Pereda led a group called Los Rugrats, described as an armed enforcement wing of the Mayo Zambada faction of the Sinaloa Cartel. Prosecutors allege he smuggled tens of thousands of kilograms of fentanyl, cocaine, and methamphetamine into the U.S. over the past decade. The indictment also accuses him of laundering hundreds of millions of dollars in drug proceeds.
Tijuana Named as Key Operating Zone
The indictment identifies Tijuana and its surrounding municipalities as a central operating zone for Paez Pereda’s alleged activities. Prosecutors say he managed a portion of the cartel’s transportation pipeline from Sinaloa to Tijuana, where drugs were staged for smuggling into San Diego and beyond. He also allegedly arranged murders and kidnappings in both Sinaloa and Tijuana to enforce cartel control.
The Justice Department said Paez Pereda carried out assassinations and attempted killings of rival cartel figures on orders from René Arzate-García, known as “La Rana.” Arzate-García, the alleged Tijuana plaza boss for the Sinaloa Cartel, was charged with narcoterrorism in a separate superseding indictment unsealed in February 2026. Federal authorities have offered rewards of up to $5 million each for information leading to the arrest of Arzate-García and his brother Alfonso.
Narcoterrorism Charges Tied to Executive Order
The narcoterrorism charge is a direct result of President Trump’s Executive Order 14157, which designated the Sinaloa Cartel as a Foreign Terrorist Organization. The Secretary of State formalized that designation on February 20, 2025. Since then, federal prosecutors have used narcoterrorism statutes to pursue cartel leaders operating along the border, a legal tool that carries significantly harsher penalties than standard drug trafficking charges.
U.S. Attorney Adam Gordon and FBI San Diego Special Agent in Charge Mark Remily both emphasized that the case targets the cartel’s most violent elements. Homeland Security Investigations acting Special Agent in Charge Kevin Murphy credited the Homeland Security Task Force and said agencies will continue collaborating to dismantle cross-border trafficking networks.
Assistant U.S. Attorneys Joshua Mellor and Peter Horn are prosecuting the case. It is unclear whether Paez Pereda is in U.S. custody. The case was reported by NBC 7 San Diego.