U.S. Department of the Treasury sanctions cartel accountants and firms for timeshare fraud in Mexico

SEATTLE - Amid the continuous scam that some Americans are facing over their timeshares in Mexico, the U.S. Department of the Treasury is now imposing sanctions on a group of Mexican accountants and firms allegedly linked to a timeshare fraud ring that is controlled by the Jalisco New Generation drug cartel, one of the most dangerous criminal organizations in Mexico.

Three accountants and four Mexican real estate and accounting firms were hit with the sanctions due to their links to CJNG's timeshare activities. U.S. authorities say that most of these scams are located in Puerto Vallarta, Jalisco, which is a strategic stronghold for the cartel. In addition, Treasury and the FBI issued a notice to banks with a reminder to be vigilant in detecting and reporting timeshare fraud.

Each year, hundreds and even thousands of Americans fall prey to a complex scheme involving one of Mexico's most violent cartels, the Jalisco New Generation cartel. They started the timeshare fraud business in Puerto Vallarta and now have also taken over the Cancún timeshare market. The fraud network has expanded to at least two dozen call centers that contact U.S. owners of property in those two cities, as well as other areas popular with North American retirees such as Acapulco.

According to a U.S. government investigation, thousands of Americans, many of them elderly, have fallen prey to these type of schemes. According to the FBI, approximately 6,000 U.S. victims reported losing nearly $300 million between 2019 and 2023 to timeshare fraud schemes in Mexico

Over the years, the Treasury Department has sanctioned more than 40 Mexican companies associated with the Jalisco cartel and its telemarketing scam, but despite the efforts, more people are reporting timeshare fraud every year. Based on their investigation, a U.S. government official estimated that these type of frauds generates hundreds of millions of dollars each year for the cartels.

"It's more cash in hand than they make from drugs," said the official, who spoke to USA TODAY on condition of anonymity. "The overhead is really low for this."

Last year, the Treasury Department and the Office of Foreign Assets Control announced three actions sanctioning a total of 50 individuals and entities linked to timeshare fraud activities which mostly targeted the elderly.

"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 Treasury Undersecretary Brian Nelson. "Unsolicited calls and emails may seem legitimate, but they're actually made by cartel-supported criminals. If something seems too good to be true, it probably is."

The cartel hires call center workers who speak perfect English who are then taught how to lure unsuspecting Americans into believing someone is willing to buy their timeshares. Employees at these call centers craft documents with names of companies, brokers and attorneys that appear to be legitimate and, in some cases, they even steal the identities of actual lawyers and real estate agents.

On ways to fight back against these type of frauds, the FBI recommends to be cautious of uninvited calls, texts or emails from anyone interested in a timeshare. They also say to be wary of high-pressure and time-sensitive offers that require an immediate response.