U.S. Sanctions Another Jalisco Cartel-Linked Timeshare Fraud Scheme Targeting Older Americans

The Jalisco cartel's timeshare fraud operation began in Puerto Vallarta, but U.S. authorities say the criminal group has since expanded to other Mexican tourist destinations, including Cancún and Acapulco.

The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) sanctioned a timeshare fraud network led by the Cártel Jalisco Nueva Generación (CJNG), which the cartel used to make automated calls to lure potential buyers to sales presentations and later defraud them.

The office said in a statement that the Mexican timeshare resort Kovay Gardens, along with five Mexican nationals and 17 Mexican companies associated with the network, were targeted by the sanctions. OFAC said the network led by the Jalisco cartel used robocalls to attract potential buyers to presentations, where deceptive sales practices were used to entice them.