A Mexican drug cartel, the Jalisco New Generation cartel (CJNG), has been involved in a timeshare scam that is draining millions of dollars from Americans, particularly targeting elderly victims. The U.S. Treasury has issued sanctions against individuals and companies connected to this scam, which uses extreme violence and intimidation to defraud victims of their life savings. The scheme has become increasingly complex over the years, resulting in significant financial losses for victims.
The Courier Journal documented a case where a victim lost nearly $1.8 million as a result of the cartel’s timeshare scam. The victim was lured in by promises of profits from his timeshare, and was then further manipulated by false promises of reimbursement from fake legal actions. The scammers continued to target the victim for decades, utilizing perfect English and a variety of tactics to keep him hooked on the scam.
The FBI issued a warning in March 2023 about the increasing targeting of timeshare owners in Mexico by scammers, resulting in losses totaling millions of dollars. The scammers use high-pressure sales tactics and false promises to deceive victims into paying upfront fees for various services related to their timeshares. Some victims are later approached by individuals claiming to be from fake recovery companies or law firms offering restitution.
The U.S. Treasury has imposed multiple sanctions against individuals and companies involved in the CJNG cartel’s timeshare fraud network as part of a federal crackdown on the operation. These sanctions have frozen assets and restricted dealings with the sanctioned entities. Despite these efforts, the cartel continues to engage in criminal activities, with reports of violence against Mexican citizens who attempt to leave illegal call centers linked to the scam.
The CJNG cartel’s timeshare scam has grown significantly since its inception in 2010, with estimates of hundreds of millions of dollars being defrauded from victims each year. The scam involves sophisticated tactics and the use of shell companies to avoid law enforcement detection and to retain victims’ funds. While the U.S. government is attempting to track and combat the scam, Mexican authorities have been criticized for their lack of action in addressing the issue.
Mexican President Andrés Manuel López Obrador has faced criticism for downplaying the issue of cartel violence and criminal activity in Mexico, which may be contributing to the ongoing success of the CJNG cartel’s timeshare scam. Despite international efforts to combat the criminal operation, including FBI warnings and U.S. Treasury sanctions, the cartel continues to defraud victims and evade law enforcement. Victims of the scam are advised to report any incidents to the Internet Crime Complaint Center and provide detailed information to assist in investigations.
