Overview
This interview with investigative journalist Katarina Schulz explores her in-depth reporting on Mexican cartel operations, their expansion into Canada, diversification of criminal businesses, propaganda strategies, infiltration of governments, and related security threats. Schulz discusses her methods for gaining insider access, cartel motives, evolving criminal tactics, and the broader implications for North American and global security.
Investigative Access & Approach
- Schulz attributes her access to deep subject knowledge, non-judgmental interviewing, and a disarming personal approach.
- She maintains strict confidentiality for sources and pushes persistently for interviews.
- Organized crime figures often share stories as an ego flex or to send messages to adversaries.
Cartel Operations in Canada
- Mexican cartel operations have increasingly shifted to Canada since 2016, exploiting unprotected borders and existing Canadian organized crime networks.
- Fentanyl production has moved to suburban and rural labs in western Canada, with precursors entering through the Port of Vancouver (less than 1% of cargo inspected).
- Canadian law enforcement is aware but lacks resources to combat 4,000+ organized crime groups.
- Canadian authorities often fail to track or publicize cartel affiliations in crime reports.
Cartel Diversification & Economic Influence
- Cartels have expanded from drugs and human smuggling into crude oil theft and agriculture, especially avocados and limes.
- Oil theft involves tapping pipelines and smuggling billions in crude oil, some sold to US companies as "waste oil."
- Cartels extort or usurp farms, forcing owners to pay or abandon land, with US produce companies sometimes knowingly buying cartel-controlled products.
Cartel Technology, Warfare, and International Links
- Cartels use advanced tech (drones, IEDs, anti-drone tech, Pegasus spyware) and receive training from US and Israeli ex-military personnel.
- Safe houses and weapons stockpiles are positioned in tourist areas and expected conflict zones.
- Cartels cooperate with international criminal and terrorist groups for intelligence and tactics.
Propaganda and Recruitment
- Cartel propaganda permeates music, social media, and influencer culture, glamorizing crime and targeting youth recruitment.
- Social media is used for recruitment, operational showcases, and direct contact via encrypted apps.
- Violence against influencers/journalists is used to intimidate and control narratives.
Government & Law Enforcement Infiltration
- Cartels have infiltrated US and Canadian law enforcement, border agencies, and politicians, particularly through shell companies and lobbying fronts.
- Influence operations are focused on border policy, agricultural regulation, and gun laws.
Human Smuggling & Border Security
- Cartels control nearly all illegal border crossings, using distraction tactics and exploiting increased border technology.
- Despite improved border security, cartels adapt quickly to changes.
Responses, Solutions, and Further Work
- Schulz argues that dismantling cartels requires targeting financial pipelines, propaganda, and corrupt networks, rather than focusing only on leadership arrests.
- Cartels are attempting to synthesize fentanyl precursors to become independent from China.
- She continues boots-on-the-ground reporting through her podcast "Borderland Dispatches" and Substack newsletter.
Questions / Follow-Ups
- How many operational fentanyl labs exist in Canada, and what is their total output?
- What is the true extent of cartel influence in North American politics and law enforcement?
- Can Mexico or international coalitions develop effective responses to cartel diversification?
Recommendations / Advice
- Address organized crime with multifaceted strategies: disrupt finances, propaganda channels, and supply chains.
- Enhance intelligence cooperation and resource allocation in Canada and at international borders.
- Increase oversight of produce and resource supply chains to avoid supporting cartel enterprises.