US Treasury Department has imposed sanctions on Mexican cartel involved in Timeshare fraud

7087

US Sanctions Drug Cartel Involved in Timeshare Fraud Targeting Elderly Americans

The US Treasury Department has imposed sanctions on members and associates of the Jalisco New Generation drug cartel, who are allegedly involved in timeshare fraud targeting elderly Americans.

The Jalisco cartel is known for producing large amounts of fentanyl and smuggling it into the US, causing around 70,000 overdose deaths annually. However, the cartel has also been scamming millions of dollars from people trying to sell their timeshares in Puerto Vallarta, Mexico, an area dominated by the cartel.

The Treasury Department’s Office of Foreign Assets Control (OFAC) has sanctioned seven people and 19 Mexican tourism and real estate companies. This action freezes their assets in the US and prohibits any transactions with them by US citizens or companies.

CJNG’s timeshare fraud, which often targets elderly US citizens, is a significant revenue source supporting the group’s criminal activities.

Scammers contacted people, mostly Americans, looking to sell their timeshares. They claimed to have a buyer lined up but required the seller to pay taxes or fees first. Once the money was paid, the deals disappeared.

In 2022, the FBI received over 600 complaints of losses totaling around $39.6 million due to timeshare scams in Mexico.