Federal authorities have moved to seize a 200-acre ranch that they allege is owned by the No. 3 leader of the Zetas drug cartel.

Federal authorities have moved to seize a 200-acre ranch that they allege is owned by the No. 3 leader of the Zetas drug cartel.

The Mexican Army arrested Carlos Oliva-Castillo (aka "La Rana") in Saltillo back in October.

He remains in a Mexican jail where he's facing organized crime charges and extradition to the United States.

The U.S. Attorney's Office for the Southern District of Texas filed a lawsuit to seize a Starr County ranch that they allege is owned by Oliva-Castillo.

According to the lawsuit, the 200-acre ranch is north of Rio Grande City on FM 2686.

Public records show that the Dr. Carlos Ricardo Tamez-Tirado of Diaz Ordaz, Tamaulipas bought the ranch for $125,000 dollars back in May 2007.

But the seizure lawsuit alleges that the doctor was a 'straw purchaser' and that Oliva-Castillo is the actual owner and that he paid $400,000 dollars.

The lawsuit shows that Oliva-Castillo's criminal history with the Zetas goes back to 2005 and that drug profits were used to buy the ranch.

Prosecutors allege that Oliva-Castillo's uncle Domingo Castillo has been in charge of taking of the ranch since 2008.

Federal prosecutors allege that the land has been used for drug trafficking activities as well as receiving laundered money.

Oliva-Castillo did not appear to have an attorney to represent him as of Thursday.

No court date has been set for the seizure lawsuit.