The U.S. Treasury Department has sanctioned Kovay Gardens, a beachfront resort in Mexico's Nayarit state, accusing it of operating as part of a fraud network directed by the Cártel Jalisco Nueva Generación (CJNG) that allegedly defrauded American tourists of millions of dollars, according to U.S. officials cited by CBS News.
Treasury officials said the 22-room property near Puerto Vallarta functioned as what they described as a "vertically integrated fraud factory," where prospective buyers were drawn into timeshare sales presentations promising luxury stays and rental income.
