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The Vargas Cartel is based in Sinaloa, Mexico and was run by Epifaño Vargas. Camila Vargas was responsible for the new branch in Dallas, Vargas Cartel (Texas).
Before Epifaño's death, he sold the business to the Jimenez family so that he could be governor.
As of season 3, the Vargas cartel and the Jimenez cartel are united, and will be referred to as the Sinaloa Cartel.