In Tequila, Jalisco, former mayor Diego 'N' is alleged to have presided over a network of extortion targeting local businesses. According to Antonio Lancaster, president of the Industrial Chambers Council of Jalisco, efforts to resolve conflicts politically met with limited success. The operations involved systematic intimidation, where businesses faced unreasonably high increases in property taxes and sudden inspections that led to substantial fines, creating a coercive environment where compliance was often mandatory.

The guilty party is said to be Diego 'N' himself, who reportedly instituted abrupt property tax hikes of up to 20 times their previous value shortly upon taking office. Local entrepreneurs, overwhelmed by these new demands, resisted the payment of these inflated taxes, which were significantly higher than previous years. In parallel, inspections were conducted under the guise of regulatory compliance, where officials could easily find faults to impose hefty fines amounting to 600,000 pesos, further pressuring businesses into compliance.

Francisco Javier 'N,' another associate in the Tequila municipal cabinet and director of the Registry and Licenses, was identified as the main operator in this extortion scheme. He is alleged to have worked closely with Diego 'N' to enforce these policies, where failure to negotiate a settlement would lead to shutdowns of business operations. This pattern of exploiting regulatory frameworks for illegal gain raises questions about governance and accountability in local governments, underscoring the need for oversight in political and economic interactions within communities.