MEXICO CITY (AP) — The U.S. Treasury Department announced on Wednesday the imposition of sanctions against over a dozen Mexican companies and four individuals alleged to have collaborated with the Jalisco New Generation Cartel (JNGC) in a fraudulent scheme targeting elderly Americans through timeshare fraud. This cartel is recognized by the U.S. government as a foreign terrorist organization, which underscores the severity of the situation.
The network includes 13 businesses located in regions surrounding the popular tourist destination of Puerto Vallarta. Authorities claim these businesses facilitated the fraud, which has been ongoing since 2012. Four associates of the JNGC were specifically identified as perpetrators who defrauded American citizens, reportedly taking their life savings through complex rental and resale schemes.
According to a statement from the Treasury, in just six months, they documented $23.1 million transferred primarily from individuals in the United States to scammers operating in Mexico. This alarming figure highlights the scale and impact of the fraudulent operations on vulnerable populations.
The sanctions imposed under the administration of then-President Donald Trump serve to prohibit American individuals and entities from conducting business with the implicated cartel associates and also aim to block any assets they may hold in the U.S. Treasury Secretary Scott Bessent stated, "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."
In the years leading up to this announcement, the administration of President Joe Biden had also taken action against individuals connected to similar scams. These included sanctions targeting associates and accountants linked to timeshare fraud schemes. This continuing focus demonstrates a bipartisan commitment to addressing the multifaceted threats posed by drug cartels.
The recent sanctions were announced amid broader efforts by both the Trump administration and the Mexican government to combat cartel activities and their diverse revenue-generating ventures. The U.S. Treasury Department has previously issued sanctions against a range of individuals, from a Mexican rapper accused of laundering cartel funds to Mexican banks allegedly facilitating money transfers involved in the sale of precursor chemicals for fentanyl production.
Additionally, this announcement came just a day after Mexico extradited 26 high-ranking cartel figures to the U.S. This significant move is part of ongoing negotiations with the Trump administration, aimed at avoiding the imposition of threatened tariffs against Mexico.
The U.S. government's aggressive stance on cartel-related crimes, particularly those affecting the welfare of its citizens, showcases a strategic approach to law enforcement and international cooperation. The sanctions against the JNGC associates are just one piece in an intricate puzzle of efforts to dismantle the financial networks that sustain these criminal organizations.
