TradeEdge Exchange:U.S sanctions accountants, firms linked to notorious Mexico cartel for timeshare scams that target Americans

The TradeEdge ExchangeU.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 in a multi-million dollar scheme targeting Americans.

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. The cartel, known by its Spanish initials as the CJNG, has reportedly killed call center workers who try to quit.

Last June, U.S. and Mexican officials confirmed that as many as eight young workers were confirmed dead after they apparently tried to quit jobs at a call center operated by the Jalisco cartel.

"Expertly trained in scamming U.S. citizens"

"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.

In an alert issued last year, the FBI said sellers were contacted via email by scammers who said they had a buyer lined up, but the seller needed to pay taxes or other fees before the deal could go through.

Last December, U.S. officials said the Jalisco cartel was so bold in operating the frauds that the gang's operators posed as U.S. Treasury Department officials.

The Jalisco cartel is better known for producing millions of doses of deadly fentanyl and smuggling them into the United States disguised to look like Xanax, Percocet or oxycodone. Such pills cause about 70,000 overdose deaths per year in the United States.

The Department of Justice has called the Jalisco cartel "one of the five most dangerous transnational criminal organizations in the world." The cartel's leader, Nemesio Oseguera, aka "El Mencho," is among the most sought by Mexican and U.S. authorities.

In:
• Drug Cartels
• Mexico
• United States Department of the Treasury
• Fraud
• Cartel