Sanctions Strike: Unveiling Cartel's Timeshare Scam

The US Treasury has sanctioned Mexican companies and individuals linked to the Jalisco New Generation Cartel for defrauding elderly Americans in a timeshare fraud scheme. The action blocks American dealings with these entities, aiming to curb cartel finances. The crackdown aligns with broader US-Mexico efforts against cartel activities.

The US Treasury Department has enacted sanctions against more than a dozen Mexican companies and four individuals accused of collaborating with a prominent drug trafficking cartel to defraud elderly Americans. Allegedly connected to the Jalisco New Generation Cartel, these entities reportedly engaged in a multimillion-dollar timeshare fraud that has been active since 2012.

According to a Treasury statement, the cartel associates deceived American citizens into surrendering their life savings through intricate rental and resale schemes, with authorities tracking USD 23.1 million in transactions over six months. The imposed sanctions now prevent US citizens from conducting business with these cartel affiliates and facilitate asset blocking within the United States.

The sanctions come amidst a sustained effort by the US, under President Donald Trump, and Mexico to dismantle cartel mechanisms. The Treasury Department has been targeting various cartel-affiliated entities, including bankers and money launderers, to disrupt financially sustained criminal activities. These actions against fraudulent operations go hand in hand with the latest US-Mexico collaborative initiatives.

(With inputs from agencies.)