(NewsInsights.org) – The US government is taking action against a network of Mexican accountants and financial firms allegedly involved in a timeshare fraud scheme aimed at bilking Americans out of their hard-earned money. All of the entities involved have ties to Mexico’s notorious Jalisco New Generation (CJNG) drug cartel according to a joint statement from the Financial Crimes Enforcement Network (FinCEN), the Office of Foreign Assets Control (OFAC), the US Treasury, and the FBI.
The crackdown specifically targeted three individuals and four firms who reportedly played a key role in the long-term fraud scheme. That shortlist includes accountants Xeyda Del Refugio Foubert Cadena, Griselda Margarita Arredondo Pinzon, and Emiliano Sanchez Martinez, as well as the Mexican companies Bona Fide Consultores, Constructora Sandgris, Pacific Axis Real Estate, and Realty & Maintenance BJ.
The scheme itself dates back to at least 2012, when an attorney by the name of Omar Aguirre Barragan learned how to use timeshares to defraud Americans who already owned timeshares in Mexico. Barragan, and later, those helping him operate the scheme, used a combination of telemarketing campaigns and impersonation scams to sign people up for seemingly innocent options, like timeshare exits, re-rental opportunities, or hot new investments.
Barragan decided to expand the clearly lucrative venture and reached out to the CJNG cartel for help. The criminal organization eventually took over altogether and cut him out of the deal.
The scheme grew rapidly from that point on, and by 2022, it was so extensive that the FBI’s Internet Crime Complaint Center logged over 600 complaints from victims in the US in that year alone. The reported losses for the same time period totalled a whopping $39.6 million.
Timeshare fraud was a low-risk, high-reward strategy that brought in tens of millions in funding, fueling the much larger drug trade. It also became an effective way to launder money through shell companies and trusts, many of which were owned or operated by members of the organized crime ring or their family members.
OFAC began taking serious action against entities allegedly participating in the extensive scheme in early 2023. Between January and December of the same year, it imposed sanctions on a total of 10 Mexican nationals and 40 companies with direct links to the operation.
All of the sanctions, including those issued in July, freeze any assets owned by those named in the sweep. They also make it illegal for any citizen or company in the US to do business with them or financially support them, even indirectly.
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