The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned a timeshare fraud network (Feb. 19, 2026) led by the terrorist Cartel de Jalisco Nueva Generacion (CJNG). The action targets Kovay Gardens, a Mexican timeshare resort, as well as five Mexican individuals and 17 Mexican companies associated with the network. Many of these individuals and entities are based in or near Puerto Vallarta, a popular tourist destination that also serves as a strategic stronghold for CJNG. CJNG is a brutally violent terrorist cartel that continues to diversify its illicit revenue streams beyond drug trafficking, including through timeshare fraud and fuel theft. These activities generate significant proceeds for the organization at the expense of U.S. citizen victims. Timeshare fraud often targets vulnerable older Americans and can defraud victims of their life savings.
Timeshare fraud in Mexico has plagued American victims for decades, costing them hundreds of millions of dollars while enriching criminal organizations such as CJNG. Over the past three years, Treasury Department components—including OFAC and the Financial Crimes Enforcement Network (FinCEN)—have undertaken a sustained effort to expose and counter this threat. These efforts have increased awareness and led to enhanced reporting of suspicious activity by U.S. financial institutions. In addition to Treasury’s actions, Department of Justice investigations have resulted in recent indictments related to timeshare fraud schemes conducted by CJNG members.
Today’s action was taken pursuant to Executive Order (E.O.) 14059, which targets the proliferation of illicit drugs and their means of production, and pursuant to E.O. 13224, as amended, which targets terrorists and their supporters. Today’s action reflects the culmination of a coordinated Homeland Security Task Force (HSTF)–New York led investigation involving the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), Internal Revenue Service Criminal Investigation (IRS-CI), and U.S. Customs and Border Protection (CBP). OFAC works in close coordination with the HSTF, which targets the proliferation of illicit drugs and the networks, enablers, and financial mechanisms that support their production and distribution. This unified, whole-of-government approach ensures operational coordination to maximize the impact against transnational criminal networks. Additionally, OFAC coordinated on this action with the Government of Mexico’s financial intelligence unit, the Unidad de Intelligence Financiera (UIF).
CJNG is considered one of the most powerful cartels in the world. He has conducted intimidating acts of violence, including attacks on the Mexican military and police with military-grade weaponry, the use of drones to drop explosives on Mexican law enforcement, and both assassinations and attempted assassinations of Mexican officials. CJNG has also executed its own recruits who defy orders. All of these acts are perpetrated in furtherance of CJNG’s relentless pursuit of illicit proceeds. In addition to drug trafficking—the group’s core source of revenue—CJNG is also generating revenue through fuel theft, extortion, and timeshare fraud, among other activities.
On April 8, 2015, OFAC designated CJNG pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act) for playing a significant role in international narcotics trafficking. On December 15, 2021, OFAC also designated CJNG pursuant to E.O. 14059. On February 20, 2025, the U.S. Department of State designated CJNG as a Foreign Terrorist Organization and a Specially Designated Global Terrorist.
Source: drgnews
