US sanctions Mexican accountants and companies for fraud that supports drug cartel

The United States imposed sanctions on Tuesday on a group of Mexican accountants and companies that are allegedly linked to a short-term rental fraud network run by the Jalisco New Generation Cartel.

Three accountants were targeted by sanctions, along with four Mexican real estate and accounting firms. In addition, the U.S. Treasury Department and the FBI issued a notice to banks reminding them to be vigilant in detecting and reporting short-term rental frauds perpetrated by transnational criminal organizations based in Mexico.

Such frauds cost Americans tens of millions of dollars in losses annually. In 2022, the FBI’s Internet Crime Complaint Center received more than 600 complaints with losses of approximately $39.6 million from victims contacted by scammers regarding Mexican-owned timeshares.

The new sanctions come after the United States sanction members or associates of the cartel in April 2023 of the Jalisco New Generation drug cartel for frauds allegedly targeting elderly Americans.

“Cartel fraudsters run sophisticated teams of professionals who appear perfectly normal on paper or over the phone, but in reality, they are money launderers expertly trained to defraud American citizens,” said Treasury Deputy Secretary Brian Nelson. “Unsolicited calls and emails may appear legitimate, but they are actually made by cartel-backed criminals. If something seems too good to be true, it probably is.”

The FBI shares tips on how to avoid timeshare fraud: Be wary of unsolicited calls, texts or emails from anyone interested in offering a property. Be wary of high-pressure, urgent offers that demand an immediate response, research everyone you come into contact with and contact the offices independently to confirm you are speaking with a real representative of the company, and hire a real estate agent or attorney you trust.

Connect with the Voice of America! Subscribe to our channels Youtube, WhatsApp and to newsletter. Turn on notifications and follow us on Facebook, X and Instagram.