The U.S. imposed new sanctions on Tuesday on a group of Mexican accountants and firms allegedly connected to a timeshare fraud ring operated by the Jalisco New Generation drug cartel.
Three accountants and four Mexican real estate and accounting firms were sanctioned, according to the Associated Press.
Additionally, the FBI and Treasury released a statement to U.S. banks reminding them to “be vigilant in detecting,
identifying, and reporting timeshare fraud perpetrated by Mexico-based transnational criminal organizations.”
The Drug Enforcement Administration (DEA) released a report describing the activity of the Jalisco New Generation drug cartel.
“The Cartel Jalisco Nueva Generación, or Jalisco Cartel, is one of Mexico’s most powerful and ruthless criminal organizations, and another key driver of fatal drug poisonings in the United States,” the DEA stated. “The Jalisco Cartel uses its vast financial resources, violence, bribery of corrupt officials, and franchise-based command structure to maintain and expand its dominance in Mexico’s illicit drug trade.”
The Jalisco New Generation drug cartel has been engaging in timeshare fraud, which tends to disproportionately affect older adults, including retirees, according to the FBI.
Paul Roberts, an assistant special agent and leader at the FBI New York’s Complex Financial Crimes Branch, explained how these scams occur and also gave advice on what Americans should be cautious of.
“Throughout the process, the fraudsters use a combination of high-pressure sales tactics and cyber-enabled fraud strategies, such as mimicking legitimate entities’ email addresses and forging official documents, to convince victims that each phase of the scam is legitimate,” Roberts said.
The FBI warned that scammers typically encourage victims to exit their timeshare, rent out their timeshare property, or invest in share certificates for their timeshare and then pressure them to pay upfront fees or taxes to complete the deal.
In the last five years, more than 6,000 victims have reported over $300 million in losses to the agencies, Roberts explained.
These new sanctions imposed by the U.S. follow on the heels of sanctions it imposed in April 2023 for timeshare fraud led by the Jalisco New Generation drug cartel, AP reported.
More recently, the Sinaloa Cartel was allegedly found to be in partnership with underground Chinese banking groups, leading to a federal indictment, as previously reported by The Dallas Express.