The notorious Jalisco New Generation Cartel (CJNG) has been running a timeshare fraud network scheme that targeted tourists in Jalisco state. Now, the Biden administration revealed that the U.S. Department of Treasury is imposing sanctions on that timeshare fraud scheme.

The Treasury Department coordinated with the Mexican government to sanction the cartel with traffics a "significant proportion" of the illegal fentanyl and other drugs that enter the US."

The Mexican government has found that perpetrators of the scheme have falsely claimed to be U.S. government entities at times. The sanctions were announced on Thursday, with an alert from the Office of Foreign Assets Control to "make the public aware of telephone, email, and letter scams involving individuals falsely claiming to represent OFAC and requesting payments."

WENY News reported that the agency clarified that it does not collect this type of payment from the public. OFAC director Andrea Gacki even released a statement saying that the CJNG has been "heavily engaged in timeshare fraud, which often targets U.S. citizens" in various tourist destinations, including Puerto Vallarta.

Gacki also warned that the infamous "four-letter cartel" can "defraud victims of their life savings," resulting in the cartel getting more money into its revenue stream and making its overall criminal enterprise even stronger.

The OFAC director added that the Biden administration's sanctioning of the cartel for this practice has exposed the CJNG and serves as a warning for potential victims. He also pointed out that most of the victims targeted by the cartel are the elderly.

READ MORE: Familia Michoacana Cartel Sanctioned Over Rainbow Fentanyl

Treasury Department Announces Companies Involved in Jalisco New Generation Cartel's Fraud Scheme

The U.S. Department of Treasury released a list of companies allegedly involved in the CJNG's scheme to defraud U.S. citizens in Mexico: Corporativo Title I, S.A. de C.V., Corporativo TS Business Inc, S.A. de C.V., and TS Business Corporativo, S.A. de C.V.

According to the Treasury Department press release, they are all based in Guadalajara, Mexico, which is the largest city in Jalisco state. Five other companies sanctioned, Servicios Administrativos Fordtwoo, S.A. de C.V.; Integracion Badeva, S.A. de C.V.; JM Providers Office, S.A. de C.V.; Promotora Vallarta One, S.A. de C.V.; and Recservi, S.A. de C.V., are based in or near Puerto Vallarta.

How the Jalisco New Generation Cartel Runs Its Timeshare Fraud Scheme

According to UPI, third-party scammers often approach tourists and make unsolicited purchase offers to timeshare owners by claiming that they have ready buyers. They then make requests for payments of advance fees and taxes, supposedly to facilitate or expedite the sale. These are often made with assurances of reimbursement when the deal is done.

However, once the payments have been completed, the timeshare owners often realize that they have been scammed as there were no actual buyers.

As a result, all properties from the named companies within the United States, as well as any possessions in control of American citizens that have been linked to these companies, have been blocked and must be reported to OFAC.

READ MORE: El Mencho's Notorious Jalisco Cartel Hands Out Christmas Gifts to Children During a Parade in Mexico City of Guadalajara

This article is owned by Latin Post.

Written by: Rick Martin

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