• The U.S. government sanctioned 13 Mexican companies and four individuals linked to a timeshare fraud scheme.
• The fraudulent activities are associated with the Jalisco New Generation Cartel, a designated foreign terrorist organization.
• Victims reportedly lost nearly $300 million to these schemes from 2019 to 2023, with $23.1 million documented in just six months.
• The sanctions block U.S. business with the accused individuals and freeze their U.S. assets.
• This action is part of ongoing efforts to combat cartels' financial operations and protect American citizens.

The U.S. Treasury Department announced sanctions on Wednesday affecting more than a dozen Mexican companies and four individuals linked to a fraudulent scheme targeting American citizens, particularly the elderly. These companies are based in or near Puerto Vallarta, and they allegedly collaborated with the Jalisco New Generation Cartel (CJNG) to execute elaborate scams under the guise of legitimate timeshare transactions, according to Reuters and Los Angeles Times.

The fraudulent operations, which date back to 2012, involved falsely presented rental and resale opportunities that led American victims to lose substantial financial resources, including their life savings. Reports indicated that in a six-month period alone, approximately $23.1 million was documented as being sent from mainly U.S. citizens to these scammers, signifying a significant financial impact, as noted by CBS News and Reuters.

The sanctions will impede U.S. individuals and entities from conducting business with the pointed-out cartel affiliates and include the freezing of any assets they may have in the United States. Treasury Secretary Scott Bessent emphasized that the goal is to "completely eradicate the cartels' ability to generate revenue," reaffirming the administration's ongoing efforts to protect vulnerable Americans from such frauds, as articulated in Los Angeles Times and CBS News.

The Jalisco New Generation Cartel, regarded as one of the most dangerous international crime groups, has been linked to other criminal activities, including drug trafficking. The cartel's brazen operations reportedly include actions such as impersonating U.S. Treasury officials, indicating their deep infiltration and boldness in committing fraud. The cartel's notoriety extends beyond just timeshare scams, as they are responsible for widespread fentanyl distribution, leading to thousands of overdose deaths annually in the U.S., according to various statements from the U.S. government reported by Reuters and Los Angeles Times.