WASHINGTON — The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned three Mexican accountants and four companies connected to timeshare fraud led by the Cartel de Jalisco Nueva Generacion (CJNG). This cartel is responsible for trafficking a significant proportion of the illicit fentanyl and other deadly drugs that enter the United States.
The Financial Crimes Enforcement Network (FinCEN) also issued a joint notice with OFAC and the FBI, alerting financial institutions to timeshare fraud schemes in Mexico associated with CJNG and other transnational criminal organizations.
“Cartel fraudsters run sophisticated teams of professionals who seem perfectly normal on paper or on the phone – but in reality, they’re money launderers expertly trained in scamming U.S. citizens,” said Under Secretary for Terrorism and Financial Intelligence Brian E. Nelson. “Unsolicited calls and emails may seem legitimate, but they’re actually made by cartel-supported criminals. Treasury and our partners are deploying all tools available to disrupt this nefarious activity, which funds things like deadly drug trafficking and human smuggling, and we encourage the public to use our resources to stay vigilant against these threats.”
CJNG operates call centers in Mexico, scamming U.S. owners of timeshares through telemarketing, impersonation, and advance fee schemes. Victims often send payments through U.S. banks to Mexican shell companies before the funds are further laundered in Mexico. The notice provides financial institutions with methodologies and red flag indicators to identify and report suspicious activity related to these schemes.
The U.S. government has taken multiple actions since 2021 against CJNG for its role in international narcotics trafficking. The cartel has been responsible for a large portion of the deadly drugs entering the U.S., according to the federal government.
The FBI estimates that approximately 6,000 U.S. victims reported losing nearly $300 million between 2019 and 2023 to timeshare fraud schemes in Mexico, though the true figure is likely higher.
OFAC’s sanctions block all U.S. property and interests of the designated individuals and entities. Violations can result in civil or criminal penalties. This action is part of a broader effort to counter the global threat of illicit drug trafficking into the United States.
Victims of timeshare fraud are encouraged to file complaints with the FBI’s Internet Crime Complaint Center. Elderly victims can also contact the Department of Justice’s National Elder Fraud Hotline.