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EXCLUSIVE REPORT: The United States Treasury Department has sanctioned a network of individuals associated with a violent cartel implicated in extensive timeshare fraud schemes that defraud Americans, particularly targeting older individuals, in the bustling tourist locale of Puerto Vallarta, Mexico. This significant crackdown highlights ongoing efforts to combat financial crimes linked to drug trafficking.
As part of the sanctions, the Treasury has issued a stern warning to U.S. citizens who own a timeshare or are considering purchasing a timeshare in Mexico. Officials recommend practicing diligent research to avoid falling victim to these scams, which often result in devastating financial losses.
The Treasury’s Office of Foreign Assets Control recently imposed sanctions on four Mexican individuals and 13 companies connected to this fraudulent activity, all associated with the notorious Cartel de Jalisco Nueva Generacion, also known as CJNG. Most of the individuals involved in these scams operate within or around the popular tourist destination of Puerto Vallarta.
In a statement, Secretary of the Treasury Scott Bessent emphasized that the administration is committed to targeting terrorist organizations such as CJNG. He noted, “We are coming for terrorist drug cartels like Cartel de Jalisco Nueva Generacion that are flooding our country with fentanyl. These cartels continue to find new ways to generate revenue for their operations. Under President Trump’s direction, we will persist in eradicating their capacity to earn revenue—including tactics that exploit vulnerable Americans through timeshare fraud.”
Among those sanctioned are prominent CJNG members: Julio Cesar Montero Pinzon, Carlos Andres Rivera Varela, and Francisco Javier Gudino Haro. Additionally, they included Michael Ibarra Diaz Jr., a resident of Puerto Vallarta, who the Treasury claims is directly involved in the cartel’s timeshare-related fraudulent activities.
The companies under sanctions include Akali Realtors, Centro Mediador De La Costa, S.A. de C.V., Corporativo Integral De La Costa, S.A. de C.V., Corporativo Costa Norte, S.A. de C.V., and Sunmex Travel, S. de R.L. De C.V. These organizations are explicitly noted for their involvement in the timeshare sector.
Other firms sanctioned, such as TTR Go, S.A. de C.V., market themselves as travel agencies, although they serve as fronts for engaging in fraudulent timeshare transactions.
Three real estate companies have also come under scrutiny: Inmobiliaria Integral Del Puerto, S.A. de C.V., KVY Bucerias, S.A. de C.V., and Servicios Inmobiliarios Ibadi, S.A. de C.V. Additionally, a wide-ranging corporate network involved in the timeshare and tourism industry has been linked to CJNG, including tour operators and other service-related businesses.
The Cartel de Jalisco Nueva Generacion has been designated as a Foreign Terrorist Organization by U.S. authorities. Alongside its notorious drug trafficking operations, the cartel has increasingly ventured into alternate revenue generation methods such as timeshare fraud and fuel theft.
The Treasury Department openly acknowledges its commitment to disrupting revenue sources for cartels through various channels, which include fuel theft, human smuggling, extortion, and fraud. Officials urge U.S. citizens to be vigilant—if an unsolicited offer for purchase or rental appears too good to be true, it most likely is.
Moreover, the Treasury encourages anyone considering timeshare investments or ownership in Mexico to conduct thorough due diligence to protect their financial interests.
Reports indicate that Mexican cartels have specialized in targeting American timeshare owners using call centers staffed with fluent English-speaking telemarketers to deceive victims.
Beginning in 2012, CJNG has been identified as the dominant force in perpetrating timeshare fraud within Puerto Vallarta and the surrounding Jalisco region. These elaborate scams disproportionately affect older Americans, often leading to severe emotional and financial ruin for victims.
To execute these scams, cartels typically collaborate with complicit insiders at timeshare resorts in Mexico. After obtaining essential information about U.S. timeshare owners, they employ deceptive tactics through phone calls or emails, posing as U.S.-based brokers, attorneys, or real estate representatives.
The fraudulent schemes can take various forms including timeshare exit scams, resale scams, and rental scams. Victims are often required to pay advance fees and taxes before they receive promised funds, which never materialize. Instead, victims are instructed to send these payments via wire transfer to accounts held in Mexican banks and brokerage houses.
Officials also warn that victims of the initial scams frequently face re-victimization through follow-up scams.
In July 2024, the Treasury Department’s Financial Crimes Enforcement Network and the FBI previously issued a warning about the escalating threat of timeshare fraud perpetrated by Mexican cartels and criminal organizations.
Following that notice, the Financial Crimes Enforcement Network logged more than 250 suspicious activity reports over a six-month period, totaling approximately 1,300 transactions, amounting to a staggering $23.1 million sent primarily from U.S. individuals to various parties in Mexico.
Analysis from the Financial Crimes Enforcement Network indicated that American victims of these scams sent an average of $28,912, with a median transaction value of $10,000, to suspected scammers since the warning was issued.
Since 2019, approximately 6,000 U.S. victims have reported cumulative losses nearing $300 million due to timeshare fraud schemes linked to Mexico. However, this figure may significantly undervalue total losses, as many victims choose not to report their experiences due to feelings of shame and embarrassment.
Protect Yourself from Timeshare Scams
Given the troubling trends in scams within the timeshare market, individuals must exercise caution. By staying informed and conducting thorough research, prospective buyers can safeguard themselves against falling victim to these sophisticated fraud schemes.
