The U.S. Treasury Department has announced sanctions against a network of individuals and companies tied to the Cartel de Jalisco Nueva Generacion (CJNG) for orchestrating a large-scale timeshare scam in Puerto Vallarta, Mexico. The scheme has defrauded Americans—many of them seniors—out of hundreds of millions of dollars.
How the Mexican Timeshare Scam Works
Officials warn that cartels have been exploiting the Mexican timeshare market through call centers staffed with fluent English speakers. These individuals pose as U.S.-based brokers, attorneys, or sales representatives and approach unsuspecting owners with offers that seem legitimate.
The scams often fall into several categories of timeshare fraud:
Resale scams – Victims are told they have a buyer but must pay upfront fees before the deal closes.
Re-rent scams – Scammers promise rental income if owners pay advance advertising or booking fees.
Investment scams – Fraudsters promote fake investment opportunities tied to timeshare properties.
Exit scams – Criminals offer to cancel a timeshare contract for a large upfront payment.
In all cases, victims are persuaded to send “fees” and “taxes” via international wire transfers to Mexican banks or brokerage houses. The promised payouts never arrive, and in many cases, victims are targeted again through “re-victimization” schemes.
Sanctions Against Cartel Members and Front Companies
The Treasury’s Office of Foreign Assets Control sanctioned four Mexican nationals for their involvement in the timeshare scam:
Julio Cesar Montero Pinzon
Carlos Andres Rivera Varela
Francisco Javier Gudino Haro
Michael Ibarra Diaz Jr.
In addition, 13 companies linked to CJNG’s fraudulent operations were sanctioned, including:
Real estate firms such as Akali Realtors and Corporativo Costa Norte
Travel agencies like Sunmex Travel and TTR Go
Tour operators, an automotive service company, and an accounting firm
Treasury officials say the CJNG, a U.S.-designated foreign terrorist organization, is increasingly using timeshare fraud and fuel theft as alternative revenue sources to fund criminal activities.
The Financial Toll on American Victims
According to the FBI, about 6,000 U.S. victims reported losing nearly $300 million to Mexican timeshare scams between 2019 and 2023. Officials believe the true total is higher, as many victims never report the crime due to embarrassment or fear.
A 2024 joint advisory from the Treasury’s Financial Crimes Enforcement Network and the FBI revealed that in just six months, more than $23 million in suspicious transactions were tied to these scams. The average amount sent per victim was nearly $29,000.
How to Protect Yourself from Timeshare Fraud
The Treasury Department advises current and potential timeshare owners to be especially cautious. Key tips include:
Avoid unsolicited offers – If someone contacts you out of the blue to buy or rent your timeshare, treat it as suspicious.
Verify the company – Research any broker, attorney, or agency through official business registries and consumer protection sites.
Watch for red flags – High-pressure sales tactics, and vague promises are common signs of a timeshare scam.
Report suspicious activity – Contact the FBI or the Federal Trade Commission (FTC) if you suspect timeshare fraud.
Officials emphasize: If an offer for your timeshare seems too good to be true, it probably is.
The U.S. government is cracking down on cartel-linked timeshare scam networks in Mexico, but prevention is still the best protection. By staying alert and conducting proper due diligence, timeshare owners can help safeguard themselves against costly fraud.
If you currently own an unwanted or unsellable timeshare and want to explore reliable options for ending your ownership, Vacation Ownership Consultants (VOC) can help. Since 2014, VOC has assisted families nationwide with navigating a process that is proven to be difficult to exit their timeshares in a dishonest industry. Contact VOC today for a no-cost consultation to discuss your situation and find a tailored solution that works for you.
