U.S. Cracks Down on Timeshare Scams Linked to Mexican Cartel

In a significant move, the U.S. government has imposed sanctions on individuals and companies associated with the Jalisco New Generation Cartel (CJNG), based around Puerto Vallarta. This action targets operations accused of orchestrating timeshare fraud schemes, ultimately deceiving U.S. citizens through elaborate scams involving advance fees under false pretenses.

The U.S. Treasury revealed that information critical to these fraudulent schemes was procured from insiders at Mexican resorts. The scammers, posing as credible professionals like brokers or officials, executed sophisticated scams resulting in nearly $300 million of financial losses for American timeshare owners from 2019 to 2023, as per FBI findings.

Assets from four individuals and 13 companies believed to sustain the CJNG cartel's enterprises are under sanction. U.S. Treasury Secretary Scott Bessent emphasized efforts to dismantle such operations, which not only exploit vulnerable populations but also contribute to drug trafficking.

(With inputs from agencies.)