U.S. Treasury Sanctions Individuals and Companies Linked to Timeshare Scams
The U.S. Treasury Department has sanctioned a network of individuals associated with violent cartels involved in a scheme targeting American timeshare owners in Mexico. Reports indicate that these scams have involved unauthorized charges amounting to hundreds of millions of dollars.
Officials urge U.S. timeshare owners and those thinking about buying into these properties in Mexico to exercise caution. The warning emphasizes that older Americans are often the primary victims, potentially losing their entire life savings due to these scams.
Sanctions Target Timeshare Fraud
The Foreign Assets Bureau of the Treasury has imposed sanctions on four individuals and thirteen companies tied to timeshare fraud operations connected to the Jalisco New Generation Cartel (CJNG), based mainly around Puerto Vallarta.
Treasury Secretary Scott Bescent commented on the urgency of addressing the issue. “We’re targeting drug terrorist organizations like CJNG that continue to find ways to fund their actions while preying on vulnerable populations,” he stated. Bescent reaffirmed the government’s commitment to eradicating cartel revenues that exploit Americans.
Notable figures identified in the sanctions include Giulio Cesar Monteropinzon, Carlos Andres Rivera Barrera, and Francisco Javier Gudino Halo, all prominently involved in these fraudulent activities. Additionally, a fourth individual, Michael Ibaladiaz Jr., has been linked to these scams.
Companies Under Scrutiny
The sanctioned companies include several that are actively involved in the timeshare market, such as Akali Real Estate Agents and Corporativo Integral de la Costa. These companies have openly acknowledged their participation in timeshare transactions and might also be linked to dubious practices.
The cartel, designated as a foreign terrorist organization in the U.S., is reportedly diversifying its revenue streams, looking beyond drug trafficking to include scams like these. Cartels often get hold of information about American timeshare owners from insiders at resort complexes, targeting them through call centers run by English-speaking staff.
Widespread Fraud and Victims’ Impact
Authorities have expressed concern over the scales of these scams, noting that they’ve been particularly damaging to older Americans who face economic and emotional hardship as a result. Reports suggest that, since 2012, CJNG has been running these schemes, often enriching themselves at the expense of countless victims.
Scams can vary but typically involve demands for “prepaid fees” or “taxes,” which never result in any payout for the victims. Instead, individuals find themselves continually instructed to send money to accounts held in Mexico, leading to significant financial losses.
From July 2024, a joint alert from financial enforcement bodies highlighted the growing issue, which resulted in over 250 suspicious activity reports related to these frauds. Victims have reported median losses of nearly $29,000, with the overall losses from U.S. victims estimated at nearly $300 million from 2019 to 2023.
In light of these developments, it’s crucial for anyone involved in or considering timeshare investments in Mexico to conduct thorough due diligence. Authorities remain vigilant, aiming to disrupt cartel operations and protect American citizens from further exploitation.
