On July 16, 2024, the U.S. Department of the Treasury’s Office of Foreign Assets Control sanctioned three individuals and four entities based in Mexico that are allegedly linked a timeshare fraud scheme led by the Cartel de Jalisco Nueva Generacion (“CJNG”), a violent transnational criminal organization responsible for trafficking illegal fentanyl and other deadly drugs into the United States. OFAC also issued a joint notice with the Financial Crimes Enforcement Network (“FinCEN”) and the Federal Bureau of Investigation (“FBI”) to make financial institutions aware of these Mexico-based timeshare fraud schemes; enable them to recognize red flag indicators and the methodologies used in these schemes; and enable them to identify and report suspicious activity to FinCEN and other law enforcement authorities.
The new designations were coordinated with the Government of Mexico and the Unidad de Inteligencia Financiera (“UIF”), its financial intelligence unit. Among the new designees are Mexican accountants Griselda Margarita Arredondo Pinzon, Xeyda Del Refugio Foubert Cadena, and Emiliano Sanchez Martinez, all of whom are based in Puerto Vallarta and have familial relationships with persons previously designated by OFAC. The designations were imposed pursuant to Executive Order 14059, which targets participation in activities that materially contribute to the international proliferation of illicit drugs or their means of production. As a result of the designations, all property and interests in property of the designated persons within the United States or within the possession or control of a U.S. person are blocked, and U.S. persons are generally prohibited from engaging in transactions involving a designated person. Entities owned 50 percent or more by one or more blocked persons are also blocked.
U.S. Department of Treasury Press Release | FinCEN, OFAC & FBI Joint Notice