The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
11/30/2023 Treasury Takes Third Action Against CJNG Timeshare Fraud Network Centered in Puerto Vallarta | U.S. Department of … Treasury Takes Third Action Against CJNG Timeshare Fraud Network Centered in Puerto Vallarta November 30, 2023 Treasury Coordinates with Government of Mexico to Further Disrupt CJNG Timeshare Fraud WASHINGTON — Today, the U.S. Department of the Treasuryʼs O ice of Foreign Assets Control (OFAC) sanctioned three Mexican individuals and 13 Mexican companies. These individuals and companies are linked, directly or indirectly, to timeshare fraud led by the Cartel de Jalisco Nueva Generacion (CJNG). CJNG, a violent Mexico-based organization, tra ics a significant proportion of the illicit fentanyl and other deadly drugs that enter the United States. OFAC coordinated this action with the Government of Mexico, including its Financial Intelligence Unit, as well as U.S. Government partners, including the Federal Bureau of Investigation (FBI), and the Drug Enforcement Administration. “The CJNG cartel, a leading tra icker of narcotics like illicit fentanyl into the United States, generates substantial revenue for its multi-faceted criminal enterprise through its timeshare fraud network,” said Secretary of the Treasury Janet L. Yellen. “CJNG uses extreme violence and intimidation to control the timeshare network, which o en targets elder U.S. citizens and can defraud victims of their life savings. Treasury remains committed to the Administrationʼs whole-of-government e ort, in coordination with our partners in Mexico, to disrupt CJNGʼs revenue sources and ability to tra ic deadly drugs like fentanyl.” EXPOSING CJNG T IMESHARE F RAUD On March 2, 2023, OFAC sanctioned eight Mexican companies pursuant to Executive Order (E.O.) 14059. These companies are linked, directly or indirectly, to CJNGʼs timeshare fraud activities. On April 27, 2023, OFAC sanctioned seven Mexican individuals, including drug tra icking fugitive Eduardo Pardo Espino, and 19 Mexican companies pursuant to E.O. 14059. These individuals and companies are also linked, directly or indirectly, to CJNGʼs timeshare fraud activities. Although there are di erent types of timeshare fraud, the schemes o en involve the following: (1) third-party scammers, who claim to have ready buyers, make unsolicited https://home.treasury.gov/news/press-releases/jy1936 1/5 11/30/2023 Treasury Takes Third Action Against CJNG Timeshare Fraud Network Centered in Puerto Vallarta | U.S. Department of … purchase o ers to timeshare owners; (2) if o ers are accepted, scammers make requests to timeshare owners for payments of advance fees and taxes, supposedly to facilitate or expedite the sale with assurances of reimbursement upon closing; and (3) once multiple payments have been made to the scammers, timeshare owners eventually realize that the o ers were fictitious, that there are no buyers, and that their money is gone. CONT INUING TO DISRUPT CJNGʼS T IMESHARE F RAUD NET W ORK Building on the two actions taken earlier this year, today OFAC sanctioned additional Mexican individuals and companies pursuant to E.O. 14059 that are linked, directly or indirectly, to CJNGʼs timeshare activities. Many of these individuals and entities are located in Puerto Vallarta, Jalisco, Mexico, which is a CJNG strategic stronghold for drug tra icking and various other illicit activities. Today, OFAC sanctioned Mexican individuals Teresa De Jesus Alvarado Rubio (Alvarado), Manuel Alejandro Foubert Cadena (Foubert), and Gabriela Del Villar Contreras (Del Villar) pursuant to E.O. 14059 for being owned, controlled, or directed by, or having acted or purported to act for on behalf of, directly or indirectly, CJNG, a person sanctioned pursuant to E.O. 14059. Alvarado has been linked to timeshare fraud activities in the Puerto Vallarta area for approximately 15 years. Foubert has been linked to timeshare fraud activities in Puerto Vallarta and elsewhere since at least 2016. Del Villar is a Puerto Vallarta attorney who engages in debt collection and real estate fraud on behalf of CJNG. https://home.treasury.gov/news/press-releases/jy1936 2/5 11/30/2023 Treasury Takes Third Action Against CJNG Timeshare Fraud Network Centered in Puerto Vallarta | U.S. Department of … Also today, OFAC sanctioned 13 Mexican companies pursuant to E.O. 14059. OFAC sanctioned Grupo Empresarial Epta, S.A. de C.V., which is purported to be engaged in real estate activities, for being owned, controlled, or directed by, or having acted or purported to act for or on behalf of, directly or indirectly, CJNG. OFAC sanctioned the following nine companies—listed with their purported activities—for being owned, controlled, or directed by, or having acted or purported to act for or on behalf of, directly or indirectly, Foubert, a person sanctioned pursuant to E.O. 14059: Assis Realty And Vacation Club, S.A. de C.V. (real estate activities), Axis Sale & Maintenance Buildings, S.A. de C.V. (real estate activities), Comercializadora de Servicios Turisticos de Vallarta, S.A. de C.V. (real estate activities), Condos & Vacations Buildings Sale & Maintenance, S.A. de C.V. (real estate activities), Grupo Minera Barro Pacifico, S.A.P.I. de C.V. (mining), International Realty & Maintenance, S.A. de C.V. (real estate activities), Mega Comercial Ferrelectrica, S.A. de C.V. (wholesale trade), Real Estates & Holiday Cities, S.A. de C.V. (real estate activities), and Terra Minas e Inversiones del Pacifico, S.A.P.I. de C.V. (mining). OFAC sanctioned the following three Mexican companies—listed with their purported activities—for being owned, controlled, or directed by, or having acted or purported to act for or on behalf of, directly or indirectly, Del Villar, a person sanctioned pursuant to E.O. 14059: Banlu Comercializadora, S.A. de C.V. (a.k.a. Cear Gym) (wholesale trade; sports club), Crowlands, S.A. de C.V. (real estate activities), and Skairu, S.A. de C.V. (real estate activities). OT HER ACT IONS AGAINST CJNG On April 8, 2015, OFAC sanctioned CJNG pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act) for playing a significant role in international narcotics tra icking. On December 15, 2021, OFAC also designated CJNG pursuant to E.O. 14059. In other actions, OFAC has sanctioned numerous CJNG-linked companies that were engaged in various commercial activities and multiple individuals who played critical roles in CJNGʼs drug tra icking, money laundering, and corruption. Many recent actions have focused on CJNGʼs strategic stronghold of Puerto Vallarta. OFAC has sanctioned the following senior CJNG members based in Puerto Vallarta: Carlos Andres Rivera Varela (a.k.a. “La Firma”), Francisco Javier Gudino Haro (a.k.a. “La Gallina”), and Julio Cesar Montero Pinzon (a.k.a. Luis Armando Velazquez Baltazar; a.k.a. Cesar Hernandez Jimenez; a.k.a. “El Tarjetas”). These three https://home.treasury.gov/news/press-releases/jy1936 3/5 11/30/2023 Treasury Takes Third Action Against CJNG Timeshare Fraud Network Centered in Puerto Vallarta | U.S. Department of … individuals are part of a CJNG enforcement group based in Puerto Vallarta that orchestrates assassinations of rivals and politicians using high-powered weaponry. T IMESHARE F RAUD RESOURCES On March 2, 2023, the FBI issued a public service announcement to consumers concerning scammers targeting owners of timeshares in Mexico. Victims of this type of scam are encouraged to file a complaint with the FBIʼs Internet Crime Complaint Center by visiting https://www.ic3.gov. At times, perpetrators of timeshare fraud misuse government agency names in attempts to appear legitimate. For example, perpetrators may call victims and claim to represent OFAC, demanding a payment in exchange for the release of funds that the perpetrator claims OFAC has “blocked.” On March 2, 2023, OFAC issued an alert regarding such scams, warning that individuals may falsely claim to represent OFAC in furtherance of their fraud. SANCT IONS IMPLICAT IONS As a result of todayʼs action, all property and interests in property of the designated persons described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or exempt, OFACʼs regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons. U.S. persons may face civil or criminal penalties for violations of E.O. 14059 and the Kingpin Act. Todayʼs action is part of a whole-of-government e ort to counter the global threat posed by the tra icking of illicit drugs into the United States that is causing the deaths of tens of thousands of Americans annually, as well as countless more non-fatal overdoses. OFAC, in coordination with its U.S. Government partners and foreign counterparts, will continue to target and pursue accountability for foreign illicit drug actors. The power and integrity of OFAC sanctions derive not only from OFACʼs ability to designate and add persons to the Specially Designated Nationals and Blocked Persons List (SDN List), but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in https://home.treasury.gov/news/press-releases/jy1936 4/5 11/30/2023 Treasury Takes Third Action Against CJNG Timeshare Fraud Network Centered in Puerto Vallarta | U.S. Department of … behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFACʼs Frequently Asked Question 897 here. For detailed information on the process to submit a request for removal from an OFAC sanctions list, please click here. For more information on the individuals and entities designated today, click here. To view a chart on the entities designated today, click here. ### ### https://home.treasury.gov/news/press-releases/jy1936 5/5
@FedFRASER