Latest news with #CarteldeJaliscoNuevaGeneracion
Fox News
5 days ago
- Business
- Fox News
US treasury sanctions 'brutally violent' cartel for timeshare fraud in tourist hotspot, warns Americans
FIRST ON FOX: The Treasury Department sanctioned a network of individuals linked to a "brutally violent" cartel for hundreds of millions of dollars of timeshare fraud targeting Americans in popular tourist destination Puerto Vallarta, Mexico, Fox News Digital has learned. The Treasury Department is now warning current U.S.-based owners of timeshares and those considering the purchase of a Mexico-based timeshare, to conduct "appropriate due diligence." Officials warn that the scams often target older Americans who can lose their life savings. The Treasury Department's Office of Foreign Assets Control imposed sanctions on four Mexican individuals and 13 Mexican companies linked to timeshare fraud led by the Cartel de Jalisco Nueva Generacion (CJNG). The individuals linked to the fraud are based in or near Puerto Vallarta, Mexico. "We are coming for terrorist drug cartels like Cartel de Jalisco Nueva Generacion that are flooding our country with fentanyl," Secretary of the Treasury Scott Bessent said in a statement. "These cartels continue to create new ways to generate revenue to fuel their terrorist operations. At President Trump's direction, 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." The three senior CJNG members most involved in timeshare fraud sanctioned Wednesday are Julio Cesar Montero Pinzon (Montero), Carlos Andres Rivera Varela (Rivera) and Francisco Javier Gudino Haro (Gudino). Additionally, Puerto Vallarta, Mexico, native Michael Ibarra Diaz Jr. (Ibarra) was sanctioned. Treasury says Ibarra is "engaged in timeshare fraud on behalf of CJNG." The companies sanctioned are Akali Realtors, Centro Mediador De La Costa, S.A. de C.V., Corporativo Integral De La Costa, S.A. de C.V., Corporativo Costa Norte, S.A. de C.V., and Sunmex Travel, S. de R.L. De C.V. They "explicitly acknowledge their involvement in the timeshare industry." Another company involved in timeshare-related transactions that was sanctioned is TTR Go, S.A. de C.V. They claim only to be a travel agency. Three additional companies were sanctioned for their alleged real estate activities: Inmobiliaria Integral Del Puerto, S.A. de C.V., KVY Bucerias, S.A. de C.V., and Servicios Inmobiliarios Ibadi, S.A. de C.V. "This diverse corporate network also includes tour operators (Fishing Are Us, S. De R.L. de C.V.; Santamaria Cruise, S. de R.L. de C.V.), an automotive service company (Laminado Profesional Automotriz Elte, S.A. de C.V.), and an accounting firm (Consultorias Profesionales Almida, S.A. de C.V.). Cartel de Jalisco Nueva Generacion is a U.S.-designated foreign terrorist organization. Officials said the cartel is increasingly supplementing its drug trafficking proceeds with alternative revenue streams like timeshare fraud and fuel theft. "Treasury has taken a series of actions targeting the diverse revenue streams benefitting the cartels, including fuel theft, human smuggling, extortion, and fraud," the Treasury Department said. "As Treasury and its partners seek to disrupt the cartels' revenue streams, it is important to remind current owners of timeshares in Mexico: If an unsolicited purchase or rental offer seems too good to be true, it probably is." Treasury added: "Those considering the purchase of a timeshare in Mexico should conduct appropriate due diligence." Officials said Mexico-based cartels have been targeting U.S. owners of timeshares through call centers in Mexico staffed by telemarketers in fluent English. Officials said that beginning in 2012, CJNG took control of timeshare fraud schemes in Puerto Vallarta, Jalisco, Mexico, and the surrounding area. The scams often target older Americans "who can lose" their life savings, officials warned, adding that the lifecycle of the scams can "last years, resulting in financial and emotional devastation of the victims while enriching cartels like CJNG." Officials said the cartels typically obtain information about U.S. owners of timeshares in Mexico from "complicit insiders at timeshare resorts." "After obtaining information on timeshare owners, the cartels, through their call centers, contact victims by phone or email and claim to be U.S.-based third-party timeshare brokers, attorneys, or sales representatives in the timeshare, travel, real estate, or financial services industries," the Treasury Department said. Officials explained that the fraud may include timeshare exit scams, or resale scams, timeshare re-rent scams, and timeshare investment scams. "The common theme is that victims are asked to pay advance 'fees' and 'taxes' before receiving money supposedly owed to them," officials warned. "This money never comes, and the victims are continuously told to send these 'fees' and 'taxes' via international wire transfers to accounts held at Mexican banks and brokerage houses." After initial scams, officials warn that "re-victimization scams can occur." In July 2024, Treasury Department's Financial Crimes Enforcement Network and the FBI issued a joint-notice on the timeshare fraud associated with Mexico-based cartels and criminal organizations. In the six-month period following that notice, FinCEN received more than 250 suspicious activity reports, and filers reported approximately 1,300 transactions totaling $23.1 million, sent primarily from U.S. based individuals to counterparties in Mexico. Based on FinCEN's analysis, U.S. fraud victims sent an average of $28,912 and a median amount of $10,000 per transaction to the suspected scammers since July 2024. The FBI says approximately 6,000 U.S. victims reported losing nearly $300 million between 2019 and 2023 to timeshare fraud schemes in Mexico. But officials said that figure "likely underestimates total losses, as the FBI believes the vast majority of victims not report the scam due to embarrassment, among other reasons."
Yahoo
5 days ago
- Business
- Yahoo
U.S. Sanctions CJNG Cartel For $300M Timeshare Fraud Targeting Seniors
On Wednesday, the U.S. Treasury Department sanctioned four Mexican individuals and 13 companies linked to timeshare fraud schemes run by the Cartel de Jalisco Nueva Generacion (CJNG). The action targets operations based in Puerto Vallarta that prey on elderly Americans. CJNG, designated as a Foreign Terrorist Organization, has expanded beyond drug trafficking to generate revenue through elaborate timeshare scams that have cost U.S. victims nearly $300 million since 2019. 'We are coming for terrorist drug cartels like Cartel de Jalisco Nueva Generacion that are flooding our country with fentanyl,' said Treasury Secretary Scott Bessent. 'These cartels continue to create new ways to generate revenue to fuel their terrorist operations. At President Trump's direction, 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.' The scams follow a devastating pattern. Cartel-run call centers obtain timeshare owner information from resort insiders, then contact victims claiming to be brokers or attorneys. They promise to sell timeshares or secure rental income but demand upfront 'fees' and 'taxes' that victims wire to Mexican bank accounts. The promised money supposedly owed to the owners never materializes, yet victims are pressed for additional payments. Some schemes stretch for years. Re-victimization scams follow, with fraudsters impersonating law firms offering to recover losses or government officials threatening imprisonment without payment of 'fines.' The FBI received nearly 900 timeshare fraud complaints in 2024 alone, reporting losses exceeding $50 million. Officials believe actual losses are far higher since most victims don't report due to embarrassment, among other reasons. CJNG seized control of Puerto Vallarta's timeshare fraud operations around 2012. The cartel employs English-fluent telemarketers and accountants to execute complex schemes targeting older Americans' life savings. Three senior CJNG members lead the fraud operations: Julio Cesar Montero Pinzon, Carlos Andres Rivera Varela, and Francisco Javier Gudino Haro. These men also orchestrate assassinations for the cartel's enforcement group using military-grade weapons. Michael Ibarra Diaz Jr., a Puerto Vallarta businessman with 20 years in the timeshare industry, was also sanctioned. His network includes 13 companies spanning real estate, travel agencies, tour operators, and accounting firms. Five companies explicitly acknowledge timeshare involvement: Akali Realtors, Centro Mediador De La Costa, Corporativo Integral De La Costa, Corporativo Costa Norte, and Sunmex Travel. Others mask their activities behind tourism and real estate fronts. The Treasury's action freezes all U.S. property belonging to the designated individuals and companies. American citizens are prohibited from conducting transactions with them. Financial institutions risk secondary sanctions for knowingly facilitating transactions with the sanctioned parties. The Treasury can prohibit foreign banks from maintaining U.S. correspondent accounts if they assist designated persons. This marks the Treasury's fifth action against CJNG timeshare fraud, bringing total designations to over 70 individuals and entities. Previous sanctions occurred in March 2023, April 2023, November 2023, and July 2024. CJNG ranks among the world's most powerful cartels. The group attacks Mexican military and police with military weapons, drops explosives from drones, and executes defiant recruits. Beyond drug trafficking, CJNG generates revenue through fuel theft, extortion, and human smuggling. Treasury continues targeting these diverse income streams alongside the FBI, DEA, and Mexican financial intelligence partners. Officials urge timeshare owners to exercise caution. Unsolicited purchase offers that seem too good to be true probably are fraudulent attempts to steal money. Victims should file complaints at Elderly victims can call the National Elder Fraud Hotline at 833-FRAUD-11 for assistance and resources. Solve the daily Crossword
Fox News
5 days ago
- Business
- Fox News
Treasury sanctions 'brutally violent' cartel for timeshare fraud in tourist destination, warns Americans
FIRST ON FOX: The Treasury Department sanctioned a network of individuals linked to a "brutally violent" cartel for hundreds of millions of dollars of timeshare fraud targeting Americans in popular tourist destination Puerto Vallarta, Mexico, Fox News Digital has learned. The Treasury Department is now warning current U.S.-based owners of timeshares and those considering the purchase of a Mexico-based timeshare, to conduct "appropriate due diligence." Officials warn that the scams often target older Americans who can lose their life savings. The Treasury Department's Office of Foreign Assets Control imposed sanctions on four Mexican individuals and 13 Mexican companies linked to timeshare fraud led by the Cartel de Jalisco Nueva Generacion (CJNG). The individuals linked to the fraud are based in or near Puerto Vallarta. "We are coming for terrorist drug cartels like Cartel de Jalisco Nueva Generacion that are flooding our country with fentanyl," Secretary of the Treasury Scott Bessent said in a statement. "These cartels continue to create new ways to generate revenue to fuel their terrorist operations. At President Trump's direction, 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." The three senior CJNG members most involved in timeshare fraud sanctioned Wednesday are Julio Cesar Montero Pinzon (Montero), Carlos Andres Rivera Varela (Rivera), and Francisco Javier Gudino Haro (Gudino). Additionally, Puerto Vallarta native Michael Ibarra Diaz Jr. (Ibarra) was sanctioned. Treasury says Ibarra is "engaged in timeshare fraud on behalf of CJNG." The companies sanctioned are Akali Realtors, Centro Mediador De La Costa, S.A. de C.V., Corporativo Integral De La Costa, S.A. de C.V., Corporativo Costa Norte, S.A. de C.V., and Sunmex Travel, S. de R.L. De C.V. They "explicitly acknowledge their involvement in the timeshare industry." Another company involved in timeshare-related transactions that was sanctioned is TTR Go, S.A. de C.V. They claim only to be a travel agency. Three additional companies were sanctioned for their alleged real estate activities: Inmobiliaria Integral Del Puerto, S.A. de C.V., KVY Bucerias, S.A. de C.V., and Servicios Inmobiliarios Ibadi, S.A. de C.V. "This diverse corporate network also includes tour operators (Fishing Are Us, S. De R.L. de C.V.; Santamaria Cruise, S. de R.L. de C.V.), an automotive service company (Laminado Profesional Automotriz Elte, S.A. de C.V.), and an accounting firm (Consultorias Profesionales Almida, S.A. de C.V.). Cartel de Jalisco Nueva Generacion is a U.S.-designated Foreign Terrorist Organization. Officials said the cartel is increasingly supplementing its drug trafficking proceeds with alternative revenue streams like timeshare fraud and fuel theft. "Treasury has taken a series of actions targeting the diverse revenue streams benefitting the cartels, including fuel theft, human smuggling, extortion, and fraud," the Treasury Department said. "As Treasury and its partners seek to disrupt the cartels' revenue streams, it is important to remind current owners of timeshares in Mexico: If an unsolicited purchase or rental offer seems too good to be true, it probably is." Treasury added: "Those considering the purchase of a timeshare in Mexico should conduct appropriate due diligence." Officials said Mexico-based cartels have been targeting U.S. owners of timeshares through call centers in Mexico staffed by telemarketers in fluent English. Officials said that beginning in 2012, CJNG took control of timeshare fraud schemes in Puerto Vallarta, Jalisco, Mexico, and the surrounding area. The scams often target older Americans "who can lose their live savings," officials warned, adding that the lifecycle of the scams can "last years, resulting in financial and emotional devastation of the victims while enriching cartels like CJNG." Officials said the cartels typically obtain information about U.S. owners of timeshares in Mexico from "complicit insiders at timeshare resorts." "After obtaining information on timeshare owners, the cartels, through their call centers, contact victims by phone or email and claim to be U.S.-based third-party timeshare brokers, attorneys, or sales representatives in the timeshare, travel, real estate, or financial services industries," the Treasury Department said. Officials explained that the fraud may include timeshare exit scams, or resale scams, timeshare re-rent scams, and timeshare investment scams. "The common theme is that victims are asked to pay advance 'fees' and 'taxes' before receiving money supposedly owed to them," officials warned. "This money never comes, and the victims are continuously told to send these 'fees' and 'taxes' via international wire transfers to accounts held at Mexican banks and brokerage houses." After initial scams, officials warn that "re-victimization scams can occur." In July 2024, Treasury Department's Financial Crimes Enforcement Network and the FBI issued a joint-notice on the timeshare fraud associated with Mexico-based cartels and criminal organizations. In the six month period following that notice, FinCEN received more than 250 Suspicious Activity Reports, and filers reported approximately 1,300 transactions totaling $23.1 million, sent primarily from U.S. based individuals to counterparties in Mexico. Based on FinCEN's analysis, U.S. fraud victims sent an average of $28,912 and a median amount of $10,000 per transaction to the suspected scammers since July 2024. The FBI says approximately 6,000 U.S. victims reported losing nearly $300 million between 2019 and 2023 to timeshare fraud schemes in Mexico. But officials said that figure "likely underestimates total losses, as the FBI believes the vast majority of victims not report the scam due to embarrassment, among other reasons."
The Herald Scotland
31-05-2025
- The Herald Scotland
Family business in Texas indicted in Mexican drug cartel oil scheme
A total of 2,881 of shipments Jensen's company received since May 2022 came from Mexican smugglers tied to the Cartel de Jalisco Nueva Generacion, according to the U.S. Attorney's Office for the Southern District of Texas. Experts have previously told USA TODAY that the CJNG organized crime group is perhaps the most militant in Mexico, turning regions into essentially warzones. The case against the Jensens comes as authorities under President Donald Trump aim to apply greater pressure to cartels smuggling drugs in the U.S. In February, the U.S. State Department designated CJNG, the Sinaloa Cartel and other crime groups as terrorist organizations. "This case underscores the more aggressive and innovative approach the Southern District of Texas is taking towards combating the scourge of drug cartels," said U.S. Attorney Nicholas J. Ganjei. "This strategy focuses not just on the traffickers and trigger-pullers directly employed by the cartels, but also targeting their confederates and enablers." Most of the charges are against James and Maxwell Jensen, who face up to 20 years in prison for money laundering. They face up to 15 years collectively if convicted of aiding and abetting smuggling goods under false statements. Lawyers for the Jensens did not respond to repeated requests for comment. Oil smuggling is a multi-billion-dollar business for cartels, according to the Treasury Department. A Drug Enforcement Administration official called it "the largest funding source for Mexican drug cartels." American authorities' move to crack down on the Texas company handling smuggled oil comes as Mexican authorities say the practice has been a widespread issue for years with devastating effects south of the border. "The narrative is that everything bad is done in Mexico and the USA only suffers the drugs," Jesus Perez Caballero, a Mexican government researcher, told USA TODAY. "But it's impossible to do this kind of complex business without these links to support it." Mexican smugglers depend on American refiners, small-time oil producers and distributors to make money from the theft. "It's a good start to recognize that the USA is not a passive actor in this business," Caballero said. "It's as active as the Mexican one." What are the charges against the Jensens? The Jensens have operated Arroyo Terminals in Rio Hondo, Texas, since 2020, according to James Jensen's LinkedIn page. Terminals are crucial distribution points in the oil economy, storing oil as it moves between producers and refineries. Prosecutors allege that from May 2022 through April 2025, the Jensens' Texas terminals served as a key waypoint for smuggled oil from Mexico, according to the indictment. The family received a total of 2,881 shipments of stolen oil, court filings claim. The oil was shipped using fraudulent authentication papers and labels, including "waste of lube oils," the indictment alleges. The father faces up to 10 years for money laundering spending. According to the money, he used money from the smuggling operation to buy a 2024 GMC vehicle. Kelly and Zachary Jensen are charged with money laundering conspiracy. Kelly is also charged with money laundering spending conspiracy. Items they were ordered to forfeit, according to the indictment, included barges for ferrying oil, tractor trailers, the GMC vehicle, a Chevy Stingray registered to Kelly Jensen and a property in Utah where the family has roots. Ties between Mexican and American smugglers The family isn't the first in Texas to face charges related to smuggling cartel oil, according to experts. Ramanan Krishnamoorti, a researcher at the University of Houston, said the practice has been going on for years at many small-time oil operations. Smugglers ferry the oil into the U.S. aboard boats or by crossing the border where the traffic is so high that border agents are unlikely to uncover it without significant increases in border crossings. A typical scheme brings the smuggled oil to "mom and pop" operations throughout Texas, according to Krishnamoorti. The oil is then added to their own supply and by the time it makes it to refineries, it can be hard to tell the difference. The total amount of smuggled oil is "literally a drop in the ocean," said Krishnamoorti. But "it's significant for the cartels in terms of being able to steal and sell." Americans involved can make as much as $5 million per barge of smuggled oil, according to the Treasury Department. The oil is then shipped to markets around the world, from Japan and India to Africa and even right back into Mexico. Deep seated problem in Mexico Guadalupe Correa-Cabrera, a researcher at George Mason University and author of a book on Los Zetas cartel, said issues of oil smuggling in Mexico are longstanding. Mexico's state oil company Pemex has a legacy of corruption scandals and oil smuggling is just one of charges against operators. The company dates back to the nationalization in 1938 of all private oil companies in the country. Correa-Cabrera said the scrutiny of American involvement is overdue. "Somebody has to refine this crude oil or gas condensate," she said, "and there's refineries in the U.S. that sell this massively back down south." She lauded U.S. authorities for going after Americans involved in order to help fight cartels. But she fears the organized crime groups will be blamed for a more deeply rooted problem. "The cartel participation is not as important as we imagine," Correa-Cabrera said. "It's not like stealing 18-wheelers, it involves knowing about the pipes, the surveillance of the pipes, really specialized knowledge." She said the smuggling operations likely depend on everyone from engineers at the pipelines to military officials responsible for watching the border. "The stories and the coverage has been directed toward cartels," she said. "But you cannot imagine this happening without all these other parts."
Newsweek
17-05-2025
- Politics
- Newsweek
US Issues First Terrorism Charges Over Mexican Cartel Support: What To Know
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. A Mexican national faces the first federal charges issued for supporting a criminal group that under an executive order by President Donald Trump, is now deemed a foreign terrorist organization. The U.S. Department of Justice said Maria Del Rosario Navarro-Sanchez, 39, has been charged with providing the Mexican drug cartel Cartel de Jalisco Nueva Generacion (CJNG) with grenades and helping it smuggle migrants, firearms, money and drugs. Why It Matters On his first day in office, Trump signed an executive order declaring that cartels are a national security threat beyond that posed by traditional organized crime as he tasked his officials with implementing "terrorism" designations. The indictment released Friday detailing the charges Navarro-Sanchez faces is the first to stem from Trump's decision to apply "terrorism" designations to foreign criminal organizations, including gangs and drug cartels. This U.S. Justice Department handout shows firearms it says were seized during the arrest of Mexican citizen Maria Del Rosario Navarro-Sanchez, who faces federal charges over links to the Cartel de Jalisco Nueva Generacion (CJNG)... This U.S. Justice Department handout shows firearms it says were seized during the arrest of Mexican citizen Maria Del Rosario Navarro-Sanchez, who faces federal charges over links to the Cartel de Jalisco Nueva Generacion (CJNG) now deemed a "terrorist" organization. More U.S. Justice Department What To Know Navarro-Sanchez is accused of involvement with the CJNG in charges that include providing it with grenades and engaging in "alien smuggling, firearms trafficking, bulk cash smuggling, and narcotics trafficking on its behalf." She has two co-defendants who are also Mexican nationals who face charges of firearms trafficking and other crimes. The Justice Department statement showed firearms and packages of meth and fentanyl allegedly linked to the case, as well as a photo of a golden AR-15 gun known as "El Dorado" allegedly "recovered" from her possession during her arrest in Mexico on May 4. The U.S. State Department says that CJNG has conducted attacks and assassinations of Mexican military and police with military grade weaponry drones. The indictment by the Western District of Texas is the first to charge a Mexican national with providing material support to a designated foreign terrorist organization. On February 19, the Federal Register in the U.S. listed eight Latin American criminal groups as "foreign terrorist organizations," including the CJNG. The list was broadened to include more Latin American groups, including from El Salvador. Mexican national Maria Del Rosario Navarro-Sanchez has been charged in Texas with providing material support to the Cartel de Jalisco Nueva Generación, a group labeled as a foreign terrorist organization. Read more at #OperationTakeBackAmerica #WeAreATF — ATF HQ (@ATFHQ) May 16, 2025 U.S. Attorney General Pam Bondi said in the statement said cartels like CJNG are terrorist groups that "wreak havoc" in American communities and are behind the deaths of many in the U.S, Mexico and elsewhere. Acting U.S. Attorney Margaret Leachman for the Western District of Texas said the federal charges against Navarro-Sanchez send a "monumental message" that U.S. law enforcement is cracking down on unlawful immigration practices and to dismantle the smuggling of illicit drugs and firearms. What people are saying FBI Director Kash Patel: "The arrest of Maria Del Rosario Navarro-Sanchez should send a clear message to people who wish to align themselves with terrorist groups that they will be sought out and held to the highest extent of the law." US Attorney General Pam Bondi: "This announcement demonstrates the Justice Department's unwavering commitment to securing our borders and protecting Americans through effective prosecution." Acting U.S. Attorney Margaret Leachman for the Western District of Texas said: "The slew of federal charges we have brought against Navarro-Sanchez sends a monumental message through the ranks of cartels like CJNG—now designated as a terrorist organization—along with those who support them in various capacities, that U.S. law enforcement is turning up the pressure to crack down on unlawful immigration practices and to dismantle the smuggling of illicit drugs and firearms." What happens next The statement did not specify when Navarro-Sanchez's case would be heard but said it was part of Operation Take Back America—a Department of Justice campaign to tackle illegal immigration and eliminate cartels and transnational criminal organizations.
