The Jalisco New Generation cartel (CJNG) has been involved in a sophisticated timeshare scam targeting Americans, primarily the elderly population, leading to losses of millions of dollars. The operation began in popular tourist destinations like Puerto Vallarta and Cancun and has grown to cause significant financial harm to victims. Scammers use high-pressure sales tactics to convince timeshare owners to pay upfront fees with promises of selling their property, only to disappear once the money is transferred.
The scheme involves individuals who speak perfect English in call centers and provide seemingly legitimate documents to victims. The scam can start with fees for capital gains taxes or listing and advertising costs, which escalate as victims are promised returns on their investments after paying. Many victims, like one man who lost nearly $1.8 million, become hooked on the promises of reimbursement from fake recovery companies or lawyers. The FBI has received over 600 complaints of losses totaling $39.6 million in 2022 alone.
The U.S. Treasury has imposed sanctions on individuals and companies linked to the CJNG’s timeshare fraud network, freezing assets and prohibiting American businesses from dealing with them. Despite some efforts by Mexican law enforcement to arrest those involved in illegal practices related to the scam, the cartel remains largely unchallenged. Mexican President Andrés Manuel López Obrador has downplayed cartel violence and criminal activity in his administration, which allows these criminal operations to continue with little interference.
The cartel scam is extremely profitable, generating hundreds of millions of dollars annually by defrauding elderly Americans through elaborate schemes. Victims are subjected to years of financial loss, threats, and promises of restitution that rarely materialize. Law enforcement agencies are working to track these scams, but the complex network of shell companies created by the cartel makes it challenging to dismantle the operation completely. Victims are encouraged to report such crimes to the authorities and be cautious of any unsolicited offers related to timeshares.
The timeshare scam orchestrated by the CJNG has operated for over a decade, targeting vulnerable and trusting individuals in the United States. The sophisticated nature of the scheme, coupled with the cartel’s use of intimidation and violence, has allowed it to evade law enforcement efforts and continue to defraud victims. The Mexican government’s reluctance to address cartel activities and cooperation with U.S. authorities further enables these criminal operations to thrive. While efforts have been made to disrupt the cartel’s revenue streams, the scope and complexity of the fraud pose significant challenges to enforcement agencies.
Individuals who have been victimized by timeshare scams are advised to report the incidents to the FBI through the Internet Crime Complaint Center. By providing detailed information about the interactions with scammers, including phone numbers, emails, and transaction details, victims can help law enforcement track and investigate these criminal activities. Awareness of the tactics used by scammers, such as high-pressure sales and promises of quick returns, can help potential victims avoid falling prey to such fraudulent schemes.
