The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned three Mexican accountants and four Mexican companies linked to timeshare fraud led by the Cartel de Jalisco Nueva Generacion (CJNG). Concurrently, the Financial Crimes Enforcement Network (FinCEN) issued a Notice, jointly with OFAC and the FBI, to financial institutions detailing timeshare fraud schemes in Mexico associated with CJNG and other transnational criminal organizations.

“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 Under Secretary for Terrorism and Financial Intelligence Brian E. 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. Treasury and our partners are deploying all tools available to disrupt this nefarious activity, which funds things like deadly drug trafficking and human smuggling, and we encourage the public to use our resources to stay vigilant against these threats.”

CJNG traffics a significant proportion of illicit fentanyl and other drugs entering the United States. OFAC coordinated this action with the Government of Mexico’s financial intelligence unit, Unidad de Inteligencia Financiera (UIF), as well as U.S. Government partners—FinCEN, the Federal Bureau of Investigation (FBI), and the Drug Enforcement Administration.

These organizations operate call centers in Mexico with scammers impersonating U.S.-based third-party timeshare brokers, attorneys, or sales representatives. They target U.S. owners of timeshares in Mexico through telemarketing, impersonation, and advance fee schemes including timeshare exit scams. Victims often send payments via wire transfers to Mexican shell companies before funds are further laundered through additional shell companies controlled by cartel members or complicit professionals.

The joint Notice provides methodologies and red flag indicators associated with timeshare fraud in Mexico to help financial institutions identify suspicious activity.

Over a decade ago, Mexican attorney Omar Aguirre Barragan learned how to conduct timeshare fraud from Puerto Vallarta-based fraudsters. In about 2012, Aguirre educated CJNG about these schemes. Eventually, CJNG took direct control.

In 2023, OFAC announced sanctions against 50 individuals and entities linked to CJNG’s timeshare fraud activities under Executive Order (E.O.) 14059. Today’s sanctions add more individuals and companies based in Puerto Vallarta—a strategic stronghold for CJNG.

OFAC sanctioned Mexican accountants Griselda Margarita Arredondo Pinzon (Arredondo), Xeyda Del Refugio Foubert Cadena (Foubert), and Emiliano Sanchez Martinez (Sanchez) pursuant to E.O. 14059 for their involvement with CJNG's activities. Additionally, four Mexican companies were sanctioned: Constructora Sandgris S.R.L., Pacific Axis Real Estate S.A., Realty & Maintenance BJ S.A., and Bona Fide Consultores FS S.A.S.

On April 8, 2015, OFAC sanctioned CJNG under the Foreign Narcotics Kingpin Designation Act for its role in international narcotics trafficking.

According to FBI data from 2019-2023 approximately 6,000 U.S. victims reported losing nearly $300 million due to timeshare fraud schemes in Mexico; however actual losses are likely higher as many victims do not report due to embarrassment.

Victims are encouraged to file complaints with FBI’s Internet Crime Complaint Center or contact DOJ’s National Elder Fraud Hotline for elderly victims.

As a result of today’s action all property interests of designated persons within U.S jurisdiction are blocked requiring reporting compliance by U.S persons; violations may incur civil/criminal penalties under E.O 14059/Kingpin Act guidelines per OFAC enforcement policies aimed at countering global drug trafficking threats contributing significantly towards overdose fatalities annually within US borders alongside non-fatal incidents globally coordinated through Presidential Unity Agenda support mechanisms targeting accountable actions influencing positive behavioral changes amongst involved businesses/entities identified today amidst evolving sanctions listings/removal processes facilitated consistently law compliant frameworks inclusive frequent FAQs submissions/reviews processing requests removals therein specific designations references charted updates herein detailed information provisionally updated accordingly reflecting current designations statuses reviews ongoing monitoring compliance adherence protocols specified regulatory frameworks contextually operationalized extensively

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