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U.S hits Mexican accountants and firms with sanctions for timeshare scams that support drug cartel

The U.S. has imposed sanctions on three Mexican accountants and four firms allegedly linked to a timeshare fraud ring run by the Jalisco New Generation drug cartel

Fatima Hussein
Tuesday 16 July 2024 17:43 BST
Timeshare Sanctions
Timeshare Sanctions (Copyright 2021 The Associated Press. All rights reserved.)

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The U.S. on Tuesday imposed sanctions on a group of Mexican accountants and firms allegedly linked to a timeshare fraud ring run by the Jalisco New Generation drug cartel.

Three accountants were hit with sanctions, along with four Mexican real estate and accounting firms. In addition, Treasury and the FBI issued a notice to banks with a reminder to be vigilant in detecting and reporting timeshare fraud perpetrated by Mexico-based transnational criminal organizations.

Time share fraud targeting Americans results in tens of millions of dollars in losses annually. In 2022, the FBI's Internet Crime Complaint Center received over 600 complaints with losses of roughly $39.6 million from victims contacted by scammers regarding timeshares owned in Mexico.

The new sanctions come after the U.S. in April 2023 sanctioned members or associates of the Jalisco New Generation drug cartel for timeshare fraud that allegedly targeted elderly Americans.

“Cartel fraudsters run sophisticated teams of professionals who seem perfectly normal on paper or on the phone – but in reality, they’re money launderers expertly trained in scamming U.S. citizens,” said Treasury Undersecretary Brian Nelson. “Unsolicited calls and emails may seem legitimate, but they’re actually made by cartel-supported criminals. If something seems too good to be true, it probably is.”

The FBI shares tips on how to avoid timeshare fraud: Be cautious of uninvited calls, texts, or emails from anyone interested in a timeshare. Be wary of high-pressure and time-sensitive offers that require an immediate response, research everyone you are in contact with, and contact offices independently to confirm that you're talking with a real company representative, and hire a real estate agent or lawyer you trust.

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