U.S. sanctions drug cartel associates accused of targeting Americans in multimillion-dollar timeshare scam
The network of 13 businesses in areas near the seaside tourist destination of Puerto Vallarta were accused of working with the Jalisco New Generation Cartel, a group designated by the U.S. government as a foreign terrorist organization.
In a scheme dating back to 2012, four cartel associates are accused of defrauding American citizens of their life savings through elaborate rental and resale schemes, according to a Treasury statement. In the span of six months, officials said they were able to document $23.1 million sent from mostly people in the U.S. to scammers in Mexico.
The sanctions imposed by the Trump administration would prohibit Americans from doing business with the alleged cartel associates and block any of their assets in the U.S..
"We will continue our effort to completely eradicate the cartels' ability to generate revenue, including their efforts to prey on elderly Americans through timeshare fraud," U.S. Treasury Secretary Scott Bessent said in a statement.
In past years, the administration of then-President Joe Biden also sanctioned associates and accountants related to such schemes.
In December 2023, 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, known by its Spanish initials as the CJNG, has reportedly killed call center workers who try to quit. In June 2023, 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.
The 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 American authorities. The U.S. government has offered a reward of up to $15 million for information leading to "El Mencho's" arrest or conviction.
The Wednesday announcement was made amid an ongoing effort by the Trump administration and the Mexican government to crack down on cartels and their diverse sources of income.
The U.S. Treasury Department has slapped sanctions on a variety of people from a Mexican rapper who it accused of laundering cartel money to Mexican banks facilitating money transfers in sales of precursor chemicals used to produce fentanyl.
The announcement also came one day after Mexico sent 26 high-ranking cartel figures to the U.S. in the latest major deal with the Trump administration as Mexico tries to avoid threatened tariffs.
"These transfers are not only a strategic measure to ensure public safety, but also reflect a firm determination to prevent these criminals from continuing to operate from within prisons and to break up their networks of influence," Mexican Security Minister Omar García Harfuch said in a news conference on Wednesday.
The mass transfer was not, however, part of wider negotiations as Mexico seeks to avoid higher tariffs threatened by President Trump, officials said.
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Forbes
2 hours ago
- Forbes
Target Sued In Two Class Actions Over Gift Card Scams
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Forbes
3 hours ago
- Forbes
Tax Breaks: The Scammers And Schemers Are Upping Their Fraud Game Edition
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Retirement account laws can be notoriously difficult to navigate at the best of times, but for the millions of former U.S. persons living abroad, understanding the tax implications of U.S. retirement accounts is critical. That's because IRAs, Roths, and SEPs remain tethered to U.S. tax rules long after you give up U.S. status. Withholding taxes, U.S. estate tax exposure and the harsh 'covered expatriate' tax regime are often overlooked until the time for planning has passed. U.S. citizens and green card holders who are contemplating giving up U.S. status need to be proactive in their tax planning to preserve hard-earned wealth–understanding the tax treatment of retirement accounts can help avoid unintended tax consequences. And that's a wrap on tax news for this week–but keep reading for more good stuff, including our fraud-focused tax trivia question. 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Free File is an existing program offered as part of a public-private partnership between the IRS and Free File Inc., formerly the Free File Alliance. Through this partnership, tax preparation and filing software providers make their online products available to eligible taxpayers. That means that you can prepare and e-file your federal taxes for free. Direct File also allows eligible taxpayers to file taxes directly with the IRS online for free. With Direct File, some of your information, like your employment and wage information from your Form W-2 (if it's available), can be transferred directly to your tax return. You can also get access live support from IRS staff, Monday - Friday, 9 a.m. to 3:30 p.m. Eastern time. But that option won't be around for long—the controversial program is expected to be eliminated after this year. Do you have a tax question that you think we should cover in the next newsletter? We'd love to help if we can. Check out our guidelines and submit a question here. Statistics, Charts, and Graphs Over the past few years, the IRS has worked to improve access and availability of taxpayer services. As part of these efforts, the agency installed stand-alone booths—called kiosks—in Taxpayer Assistance Centers (TACs) beginning in 2011. The services available from the kiosks, which are supposed to be connected to a computer, are the same as those that you'd normally see on the IRS website. These kinds of services may not normally be easily available to taxpayers in rural and underserved communities since taxpayers in these communities may not have access to a computer, printer, or the internet at home. The kiosks would be a great idea—if they worked. In April 2024, TIGTA found that the IRS had 100 kiosks located at 37 TACs. Of those, only 55 kiosks were operational. Of the remaining kiosks, 40 were inoperable, and the status of five was unknown. 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When TIGTA brought those concerns to the agency, the IRS said it was discontinuing the kiosk program. According to TIGTA, 'While we support the IRS's decision to discontinue the current kiosk program, we believe that offering taxpayers a self-service option could be beneficial as the IRS reduces and restructures its workforce.' (The IRS workforce dropped from 103,000 employees in January 2025 to approximately 77,000 in May 2025, a 25% reduction.) In response, TIGTA recommended that the IRS perform a study to determine whether a new kiosk program that uses updated technology or deploys laptops to TACs would provide effective and efficient self-service options to taxpayers. IRS management agreed with the recommendation and indicated that it will assess the potential benefits and challenges of introducing a new program designed to offer modern self-assistive solutions for taxpayers. A Deeper Dive State and local taxes (SALT) are hot right now. getty State and local taxes (SALT) are hot right now–it's no wonder that tax controversy firm Kostelanetz recently included it in a list of tax practice areas keeping them busy. State and local governments are feeling stretched in the current economic climate, and rather than ride the coattails of federal audits, they are increasingly digging in on their own investigations to raise revenues. According to Kostelanetz partner Caroline Ciraolo, that may be made easier by an infusion of talent—as the federal government workforce and some private sector jobs shrink, state and local governments are seizing the opportunity to pick up those employees. The growth in SALT tax law may be helped along by the One Big Beautiful Bill Act (OBBBA). The SALT cap featured prominently in discussions before the law was passed. 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However, in a recent case, the U.S. Court of Appeals for the Second Circuit rejected arguments by several states who challenged updated regulations that would prohibit many of the SALT workarounds passed in the wake of the Tax Cuts and Jobs Act. The quintessential example of these workarounds was the creation of a state charitable fund (or a local version of the same), which could accept payments from residents, who would then receive a state or local tax credit. In 2018, the IRS issued proposed rulemaking to disallow the charitable-deduction workaround. In essence, the proposed rule required that taxpayers would have to reduce their federal charitable deduction for the amount of any state or local tax credit received 'in consideration for the taxpayer's payment or transfer.' The final rule made some tweaks, and the states launched a legal challenge. On appeal, the Second Circuit had to address several issues in addition to the substantive tax merits, including an allegation that the Final Rule was contrary to §170 of the tax code. The crux of §170 as it applies to charitable contributions is that the taxpayer cannot receive a quid pro quo—because, if so, then the payment does not really represent a contribution or a gift. In other words, to the extent a taxpayer receives a benefit that is commensurate with the payment, it really isn't a gift. The Second Circuit reasoned, among other things, that the argument from the states misstates the quid pro quo principle (meaning that it was not the taxpayer's desire to claim the § 170 deduction that was disqualifying, but rather it was the receipt of the state tax credit). The result? The Second Circuit sided with the federal government, finding that the Final Rule was neither arbitrary nor capricious. Tax Filings And Deadlines 📅 September 15, 2025. Third quarter estimated payments due for individual taxpayers. 📅 September 30, 2025. Due date for individuals and businesses impacted by recent terrorist attacks in Israel. 📅 October 15, 2025. Due date for individuals and businesses affected by wildfires and straight-line winds in southern California that began on January 7, 2025. 📅 November 3, 2025. Due date for individuals and businesses affected by storms in Arkansas and Tennessee that began on April 2, 2025. Tax Conferences And Events 📅 August 26-September 16 (various dates), 2025. IRS Nationwide Tax Forum in New Orleans, Orlando, Baltimore and San Diego. Registration required (discounts available for some partner groups). 📅 September 17-18, 2025. National Association of Tax Professionals Las Vegas Tax Forum. Paris Hotel, Las Vegas, Nevada. Registration required. 📅 Sept. 26-27, 2025. National Association of Tax Professionals Philadelphia Tax Forum. Sheraton Philadelphia Downtown, Philadelphia, Pennsylvania. Registration required. Trivia NEW YORK - JANUARY 5: Bernard Madoff (C) walks out from Federal Court after a bail hearing in Manhattan January 5, 2009 in New York City. (Photo by) Getty Images The Bernie Madoff scandal is considered the biggest Ponzi scheme in history. After he pleaded guilty to fraud charges, how long was his prison sentence? (A) 25 years (B) 50 years (C) 100 years (D) 150 years Find the answer at the bottom of this newsletter. Positions And Guidance The IRS Identity Protection PINs, also referred to as IP PINs, are a critical defense tool against identity thieves. As part of its Security Summit, the IRS encourages taxpayers to enroll in the IP PIN program. There are no new stimulus checks from the IRS. Several news outlets have picked up an outdated story about stimulus checks to suggest that "new" checks are coming from the IRS. Those news stories are confusing the timeline for the older stimulus checks. Earlier this year, the IRS mailed checks to those who missed the RRC in 2021 (returns filed in 2022, for stimulus checks related to COVID). It wasn't new—it was intended to help folks who failed to get their stimulus check in 2021 or 2022. If you didn't get one then, and the IRS didn't catch it, you could have filed to claim it, but that window closed months ago, in April. (FWIW, the IRS confirmed that most taxpayers received their check). Noteworthy Atlanta-based law firm Wiggam Law has added Mark Mesler as senior counsel. Mesler brings experience in tax controversy, IRS practice and procedure and high-stakes tax resolution for corporations and high-net-worth individuals. Loeb & Loeb has announced the arrival of Natan Leyva to the firm's Washington, DC office. Leyva advises on domestic and international matters, including M&A, financing and capital markets transactions, with deep experience in U.S. federal tax rules governing international and cross-border deals. KPMG LLP announced its next national line of business and sector leaders. The newly named line of business leaders include Manish Madhavani (Financial Services), Chris Marston (Government & Healthcare), Dave Neuenhaus (Asset Management & Private Equity, Heather Rice, (Products) and Chad Seiler (Technology, Media and Telecom). The national sector leaders are Frank Albarella (Media & Telecommunications), Drew Corrigan (Healthcare), Todd Fowler (Energy, Natural Resources and Chemicals), Andy Gottschalk (State, Local and Education), Brian Higgins (Industrial Manufacturing), Cecil Mak (Technology), Kristin Ciriello Pothier (Life Sciences), Duleep Rodrigo (Consumer & Retail), Yesenia Scheker-Izquierdo (Asset Management), Peter Torrente (Banking & Capital Markets), Sean Vicente (Insurance) and Don Zambarano (Private Equity). Detroit City FC's new stadium will pay property taxes, according to the club's CEO, Sean Mann. AlumniFi Field will be located at the corner of Michigan Avenue and 20th Street before the 2027 season begins. The $150 million stadium will seat 15,000 spectators. 'It's a true civic endeavor that puts our values into action in the most sizable way to date so far,' said Mann. 'And with that, I'm proud to say, this will also be the only privately owned, privately financed stadium in Detroit, meaning it's the only pro stadium that pays property taxes.' Detroit's other major sports stadiums, including Ford Field, are owned by local government agencies and are not required to pay property taxes. — If you have tax and accounting career or industry news, submit it for consideration here or email me directly. In Case You Missed It Here's what readers clicked through most often in the newsletter last week: You can find the entire newsletter here. Trivia Answer The answer is (D) 150 years. According to the FBI, Madoff started out as a legitimate market maker, matching potential buyers with stocks. When Madoff lost money, he created fake trades and profits to keep up the appearance that he was making money for his clients. The feds reported that at the height of the fraud, Madoff owned four homes, including a Manhattan penthouse and a home in the French Riviera. He also owned three yachts. When the markets fell, investors tried to withdraw $1.5 billion, but there was only $300 million in the bank. Eventually, the scheme unraveled and Madoff was arrested. He pleaded guilty and was convicted on March 12, 2009. On June 29, he was sentenced to 150 years in prison. He died in April 2021, just 12 years into the lengthy sentence, at the age of 82. Feedback How did we do? We'd love your feedback. If you have a suggestion for making the newsletter better, submit it here or email me directly
Yahoo
4 hours ago
- Yahoo
Singer Sean Kingston sentenced to 3.5 years in prison for $1 million fraud scheme
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