Shawn Ryan Show - Episode #212: Katarina Szulc - Inside the Cartels' Secret Smuggling Operation in Port of Vancouver

Host: Shawn Ryan
Guest: Katarina Szulc
Release Date: June 26, 2025
Description: In this episode, Shawn Ryan engages in a comprehensive discussion with Katarina Szulc, a fearless investigative journalist specializing in organized crime and international conflict. Together, they delve into the intricate operations of Mexican cartels, particularly focusing on their secret smuggling activities through the Port of Vancouver and their expanding influence in Canada.

1. Introduction

Shawn Ryan opens the episode by welcoming Katarina Szulc, praising her remarkable investigative work on the cartels. He inquires about her impressive access to cartel operations, leading Katarina to discuss her dedication, non-judgmental approach, and determination to provide a voice to those involved in organized crime.

Notable Quote:

• [02:27] Sean Ryan: "You're only 24?"
• [02:28] Katerina Szulc: "Yeah. I know I look a lot older, but I'm a 24-year-old girl from Canada..."

2. Cartels’ Reaction to Terrorist Designation

Katarina shares her experience interviewing cartel members in a border region following President Trump's declaration of Mexican cartels as Foreign Terrorist Organizations (FTOs). Contrary to her expectations, the cartels dismissed the designation, displaying indifference and resilience.

Notable Quotes:

• [08:23] Katerina Szulc: "We're not gonna fight them on it. We're just gonna wait four years."
• [09:04] Katerina Szulc: "We're not terrorists because there is a demand for our product."

3. Shift of Cartel Operations to Canada

Katarina reveals that in response to increased crackdowns at the southern border, major cartels like Sinaloa and CJNG are relocating their operations to Canada. The Port of Vancouver serves as a critical hub due to its minimal cargo inspections (less than 1%) and existing alliances with Canadian gangs such as the Hells Angels and Brothers Keepers.

Notable Quotes:

• [26:14] Katerina Szulc: "It's a proxy alliance. The Chapitos were losing the fight..."
• [11:00] Katerina Szulc: "Last summer I wanted to crack down on this story because I had an individual reach out to me..."

4. Mexican Cartels' Diversification of Revenue Streams

The conversation shifts to the diversification strategies of Mexican cartels beyond drug trafficking:

• Crude Oil Theft (Huachicol): Cartels are involved in stealing crude oil, selling it as waste oil to unsuspecting refineries in the U.S., generating approximately $3 billion annually.

  Notable Quote:

  • [47:16] Katerina Szulc: "They were calling it waste oil."

• Agriculture: Cartels are extorting farmers in regions like Michoacán to seize control of avocado and lime orchards, leading to the abandonment of legitimate farms and the takeover by organized crime.

  Notable Quote:

  • [56:49] Katerina Szulc: "A lot of these people have to abandon their farms... control over every aspect, every necessity."

5. Impact on Law Enforcement and Governance

Katarina criticizes the inefficacy of Canadian law enforcement in tackling the influx of cartel operations. She highlights the vast number of organized crime groups (estimated 668 by CSIS) and the lack of resources to address the transnational threat effectively.

Notable Quotes:

• [17:55] Katerina Szulc: "There are 4,000 organized crime groups operating in Canada."
• [40:46] Katerina Szulc: "I think they're sweeping it under the rug."

6. Technological Advancements and Cartel Militarization

The discussion delves into the technological sophistication adopted by cartels, including:

• Drone Warfare: Utilization of drones to deploy IEDs and conduct surveillance, enhancing their combat capabilities.
• Surveillance Tools: Implementation of advanced phone hacking technologies like Pegasus to monitor and intimidate targets, including journalists and politicians.

Notable Quotes:

• [73:15] Katerina Szulc: "They're using drones attached with bombs that can disable themselves after deployment."
• [71:08] Katerina Szulc: "Mexican journalists are the number one victims of having Pegasus on their phone."

7. Propaganda and Recruitment Strategies

Katarina emphasizes the role of propaganda in perpetuating the cartel's influence, particularly through:

• Narcorridos: Popular music genres that glamorize cartel lifestyles, promoting violence and wealth.
• Social Media Recruitment: Leveraging platforms like TikTok to attract and recruit new members by showcasing a luxurious and powerful image.

Notable Quotes:

• [103:20] Katerina Szulc: "Narcorridos are super popular, top charts in Mexico and the U.S."
• [108:46] Katerina Szulc: "You're joining this group chat... then you move into a different group chat..."

8. Political Infiltration and Corruption

The cartels' deep infiltration into political structures is explored, with Katarina pointing out that cartel money flows into U.S. politics through shell companies and corrupt officials, undermining law enforcement and policy-making.

Notable Quotes:

• [116:37] Katerina Szulc: "They have their claws in all of these departments."
• [117:30] Katerina Szulc: "Cartels have infiltrated any member of politics they can get to..."

9. Future Implications and Potential Solutions

In the concluding segments, Katarina and Shawn discuss the future trajectory of cartel operations and potential strategies to combat their influence:

• Psychological Operations: Encouraging infighting among cartels to weaken their structure.
• Comprehensive Crackdowns: Targeting financial pipelines, propaganda, and intelligence operations.
• International Collaboration: Enhancing cooperation between the U.S. and Canada to secure borders and dismantle cartel networks.

Notable Quotes:

• [82:29] Katerina Szulc: "To defeat this Fortune 500 corporation that's armed to the max... a multifaceted approach is necessary."
• [135:16] Shawn Ryan: "If we infiltrate it, it would be extremely bloody just because of the amount of people involved."

10. High-Profile Cases and Real-World Impacts

Katarina recounts specific incidents that illustrate the cartel's brutality and the challenges in investigation due to corruption:

• Influencer Murder: The case of Valeria, a TikTok influencer killed live, symbolizes the cartel's message against dissent and the dangers faced by public figures.

  Notable Quotes:

  • [99:44] Katerina Szulc: "Valeria was murdered to send a message... if you do us dirty, you're dead."
  • [107:55] Shawn Ryan: "Are you saying they're murdering influencers as part of the propaganda machine?"

11. Conclusion and Final Thoughts

Shawn and Katarina conclude by reflecting on the pervasive influence of cartels and the dire need for strategic, multifaceted approaches to dismantle their operations. Katarina underscores the importance of addressing root causes such as propaganda and financial corruption to effectively combat the cartel threat.

Notable Quotes:

• [122:12] Sean Ryan: "I have an issue with this because I find it's hard not to know anyone with half a brain."
• [124:22] Sean Ryan: "They're making billions, tens of billions of dollars a year by doing it, they will find a way around it."

Key Takeaways:

• Relocation to Canada: Mexican cartels are shifting their operations northward due to increased U.S. border security, leveraging weak oversight at ports like Vancouver.
• Diversification: Beyond drugs, cartels are engaging in oil theft, agriculture, and controlling essential services like water and internet in Mexico.
• Technological Edge: Advanced use of drones, IEDs, and surveillance tools like Pegasus bolster cartel militarization.
• Deep Infiltration: Cartels have entrenched themselves within political systems in both Mexico and the U.S., undermining efforts to curb their activities.
• Propaganda and Recruitment: Utilizing popular music and social media platforms, cartels glamorize their lifestyle to recruit and maintain power.
• Call to Action: Comprehensive strategies addressing financial corruption, propaganda, and international cooperation are essential to dismantle cartel operations effectively.

About the Guest:
Katarina Szulc is a renowned investigative journalist who has dedicated her career to uncovering the realities of organized crime. Through her work with various media outlets and her Substack, she provides in-depth analysis and firsthand accounts of cartel operations, offering invaluable insights into their pervasive influence across North America.

Connect with Katarina Szulc:

• Podcast: Borderline Dispatches
• Substack: Katarina Szulc Substack (Note: Replace with actual link)
• Social Media: Available on major platforms under her full name.

Disclaimer:
The information presented in this summary is based on the transcript provided and represents the viewpoints expressed by the speakers during the podcast episode.