The Treasury Department sanctioned a network of companies and individuals linked to the Jalisco New Generation Cartel (CJNG) through which they defrauded thousands in the United States by offering them investments in timeshares in Puerto Vallarta, Jalisco.
In a statement, the federal agency said that the CJNG, considered one of the most powerful cartels in Mexico, offers investments in timeshares to clients in the United States through call centers and emails that appear legitimate.
“Cartel fraudsters operate sophisticated teams of professionals who appear perfectly normal on paper or over the phone, but in reality are money launderers trained to defraud American citizens,” the agency said in a statement.
The Treasury Department added that it is currently deploying “all available tools” to dismantle the CJNG’s activities in defrauding tourists and American citizens.
How does the CJNG fraud scheme operate?
In its report, the federal agency added that the individuals who operate this fraud network are located in Puerto Vallarta, where the US government seeks to weaken the financial activities of the CJNG in conjunction with the Mexican authorities.
In that tourist city, a group of accountants that was sanctioned by the Treasury Department runs several companies in charge of carrying out the defrauding of US citizens.
The Mexican accountants sanctioned by the US government were identified as Griselda Margarita Arredondo Pinzon, Xeyda Del Refugio Foubert Cadena and Emiliano Sanchez Martinez.
The fraud consists of locating US citizens who are owners of timeshares to make them offers of repurchase, rent or additional investments.
The fraudsters make the offers through calls made from call centers operated by the cartel and through emails.
“Victims often send payments to the fraudsters via wire transfers through U.S. banks to Mexican shell companies with accountants at Mexican banks or brokerage houses,” the federal agency said.
According to the statement, the CJNG started this fraud scheme with the help of a Mexican lawyer and businessman identified as Omar Aguirre Barragán, now deceased.
The businessman taught the criminals how to operate the fraud schemes using timeshares as bait, according to the U.S. government.
Thousands of victims have been defrauded in the U.S.
The Treasury Department added that, according to the Federal Bureau of Investigation (FBI), approximately 6,000 U.S. citizens have been victims of fraud linked to timeshares.
Victims have reported cumulative losses equivalent to about $300 million between 2019 and 2023.
“However, this figure likely underestimates total losses, as the FBI believes the vast majority of victims do not report the fraud out of embarrassment and other reasons,” the statement said.
Fraudsters could falsely represent themselves as Mexican or U.S. authorities, including the Treasury Department’s Office of Terrorism and Financial Intelligence (OFAC).
CJNG uses the money for drug trafficking
After receiving money from defrauded victims, the CJNG and the network of companies that operate the scheme launder the resources through businesses and trusts with the help of accountants and other professionals, the federal agency said.
The Treasury Department warned that this cartel uses the resources to carry out illicit activities such as drug trafficking and human trafficking.
The agency added that the CJNG is responsible for trafficking fentanyl, a powerful opiate, and other deadly drugs that are brought into the United States.
Source: univision
