U.S. imposes sanctions on Mexican businesses linked to timeshare fraud targeting elderly Americans

U.S. Treasury Department imposed sanctions on 13 Mexican companies and four individuals linked to the Jalisco New Generation Cartel (CJNG), a group designated by the U.S. government as a foreign terrorist organization. These sanctions target assets within the United States and prohibit American citizens and entities from engaging in business with the sanctioned parties.

The sanctioned network operated in areas near Puerto Vallarta, a popular tourist destination. Since 2012, the CJNG has been involved in sophisticated timeshare fraud schemes targeting U.S. citizens, particularly the elderly. These schemes often involve fraudulent rental and resale operations, leading to significant financial losses for victims. In a six-month period, authorities documented $23.1 million sent from U.S. victims to these fraudulent operations.

U.S. Treasury Secretary Scott Bessent emphasized the government’s commitment to dismantling CJNG’s revenue streams, stating, “At President Trump’s direction, we will continue our effort to completely eradicate the cartels’ ability to generate revenue, including their efforts to prey on elderly Americans through timeshare fraud.”

This action is part of a broader U.S.-Mexican collaboration to combat cartel activity, which has also included actions against money laundering and fentanyl production networks. The sanctions aim to disrupt the financial operations of the CJNG and protect vulnerable American citizens from fraudulent schemes.

The U.S. government continues to monitor and address such fraudulent activities, coordinating with international partners to safeguard citizens from financial exploitation.