The flow of weapons from the United States to Mexico is once again at the center of a federal investigation in Texas. A grand jury in the Northern District of Texas indicted Loyd Walter Hall, 27, of Amarillo, for allegedly conspiring to supply firearms and material support to the Sinaloa Cartel, while three other people face charges related to the illegal purchase and trafficking of weapons.
According to the Department of Justice (DOJ), the 12-count indictment was filed on June 25 and later declassified. Hall faces charges of conspiracy to provide material support to a foreign terrorist organization, conspiracy to distribute controlled substances intended for importation into the United States, possession of a firearm in connection with a drug trafficking crime, making false statements to gun dealers, and conspiracy to make proxies and traffic in weapons.
The investigation maintains that between 2024 and 2026, Hall and his accomplices maintained contact with a member of the Sinaloa Cartel located in Chihuahua, Mexico. According to prosecutors, through that relationship the accused would have provided weapons, technical knowledge and advice to evade US authorities, despite knowing that the organization had been designated as a foreign terrorist by Washington.
The case takes on a particular dimension due to the American classification of the criminal group. On February 20, 2025, the United States government formally designated the Sinaloa Cartel as a Foreign Terrorist Organization (FTO). The DOJ noted that this designation derived from Executive Order 14157 and subsequently began using charges of material support for terrorism against alleged members and collaborators of the organization.
According to court documents, Hall would have purchased weapons in establishments in Amarillo using documentation in which he presented himself as the legitimate owner, although investigators maintain that some purchases were made for the benefit of third parties.
The so-called loan purchase occurs when a person acquires a weapon apparently legally, but in reality does so for another person. The ATF warns that this mechanism is used by trafficking networks to obtain weapons in the United States and later smuggle them into Mexico.
Following the announcement, federal prosecutor Ryan Raybould argued that arms trafficking fuels the violent and criminal capabilities of criminal organizations.
“Every firearm trafficked from the United States to a cartel strengthens their ability to terrorize communities, secure their drug trafficking operations, engage in corruption, and commit international fuel thefts.”
Raybould added: "This case underscores my office's commitment to dismantling all cartel criminal networks. We will not stop until the cartels and those who support and cover them up are completely eradicated."
Garner assured that the agency will continue to work with federal, state, local and international authorities to investigate and bring to justice those who participate in transnational criminal networks.
