Mexican timeshare owners may be funding terrorist cartel, feds warn
#timeshare fraud #Jalisco New Generation Cartel #Treasury Department #terrorist financing #Mexico real estate #CJNG #money laundering #consumer protection
📌 Key Takeaways
- Treasury Department sanctioned Kovay Gardens resort and associated individuals/companies
- CJNG uses deceptive timeshare tactics and additional scam operations to victimize Americans
- Timeshare fraud costs Americans hundreds of millions of dollars annually
- Cartels are diversifying income sources as traditional smuggling routes face increased pressure
📖 Full Retelling
The Treasury Department delivered a warning to American timeshare owners and potential buyers in Mexico on Thursday, February 19, 2026, revealing that the Jalisco New Generation Cartel has infiltrated the timeshare market and is siphoning funds to support its terrorist activities. Officials announced sanctions against Kovay Gardens resort, along with five Mexican citizens and 17 companies associated with the operation, which they say has direct ties to CJNG, a group designated as a terrorist organization by the United States. The Treasury Department highlighted that CJNG operatives in the Puerto Vallarta area specifically target American timeshare owners, using cartel-controlled call centers to run sophisticated scams that cost Americans hundreds of millions of dollars annually. The cartel's strategy involves offering to sell or rent properties, demanding up-front fees and taxes that are never delivered, followed by additional scams by fake law firms or government officials promising to recover lost funds for new fees. Treasury Secretary Scott Bessent emphasized that whether through fentanyl trafficking or timeshare fraud, these cartels consistently victimize Americans for profit, and the Trump administration is committed to eradicating their ability to generate revenue. The sanctions freeze assets held in the U.S. or controlled by American entities, reflecting the administration's broader strategy to defang the cartels that have plagued Mexico for decades. With the closure of the U.S. border denying cartels revenue from migrant fees, timeshare fraud has emerged as an increasingly important income source for criminal organizations.
🏷️ Themes
Terrorism financing, Consumer fraud, International crime networks, Economic security
📚 Related People & Topics
Department of the Treasury
Topics referred to by the same term
Department of (the) Treasury or Treasury Department may refer to: Department of the Treasury (Australia) Department of Treasury and Finance (South Australia) Department of Treasury and Finance (Victoria) Department of Treasury (Western Australia) Department of the Treasury (Isle of Man) Puerto Rico...
Jalisco New Generation Cartel
Mexican drug cartel
The Jalisco New Generation Cartel (Spanish: Cártel de Jalisco Nueva Generación, pronounced [ˈkaɾtel ðe xaˈlisko ˈnweβa xeneɾaˈsjon]), or CJNG, is a Mexican criminal syndicate, based in Jalisco and headed by Nemesio Oseguera Cervantes ("El Mencho"). The cartel has been characterized by extreme violen...
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Original Source
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