Treasury Issues Sanctions, Red Flag Advisory on Mexico Timeshare Fraud
The Office of Foreign Assets Control this week sanctioned three accountants and four companies linked to a timeshare fraud led by the Mexico-based Cartel de Jalisco Nueva Generacion. OFAC, the Financial Crimes Enforcement Network and the FBI also issued a joint alert urging financial institutions to submit suspicious activity reports to FinCEN about transactions that may be tied to timeshare fraud in Mexico, along with several red flags to monitor.
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OFAC said the cartel and other criminal groups run call centers in Mexico with scammers “impersonating U.S.-based third-party timeshare brokers, attorneys, or sales representatives.” Through yearslong schemes, the people “target and defraud” U.S. owners of timeshares in Mexico.
The designations target Mexican accountants Griselda Margarita Arredondo Pinzon, Xeyda Del Refugio Foubert Cadena and Emiliano Sanchez Martinez for helping the cartel’s “timeshare fraud activities.” The agency also sanctioned Constructora Sandgris, S. de R.L. de C.V., a company owned by Arredondo; Pacific Axis Real Estate, S.A. de C.V. and Realty & Maintenance BJ, S.A. de C.V., owned by Foubert; and Bona Fide Consultores FS S.A.S., owned by Sanchez. OFAC also published an illustration and chart of the cartel's timeshare fraud network.