In a sophisticated scam that has ensnared thousands of Americans, many of whom are elderly, Mexican cartels have found a lucrative business venture in timeshare fraud, rivaling their infamous drug trafficking revenues. The scheme, largely orchestrated by the Jalisco New Generation Cartel (CJNG), has exploited the allure of Mexican resort timeshares to defraud unsuspecting U.S. citizens out of vast sums of money, with estimated fraud reaching hundreds of millions of dollars annually, according to USA Today.
One such victim, a Midwest-based financial manager named Stephen, recounted how a seemingly fortuitous call in December 2011 led him down a path of financial ruin. Believing he was selling his cherished Cancún timeshare for a profit, Stephen found himself ensnared in a cycle of deceit, ultimately costing him nearly $1.8 million over a decade. "It's almost like an addiction," Stephen lamented, reflecting on the repeated promises of sales and settlements that never materialized.
The CJNG's foray into timeshare fraud began in Puerto Vallarta and quickly dominated the Cancún market. The cartel's modus operandi involves setting up call centers to target U.S. timeshare owners with fabricated offers to purchase their properties. Victims like Stephen and Filomeno Medina, a retired United Airlines employee, were enticed with high sale prices only to be bilked for nonexistent taxes, fees, and legal costs.
The scam's complexity is matched by its brutality. Employees coerced into participation face dire consequences for dissent, as evidenced by the grim fate of eight call center workers found dismembered in Guadalajara last June. The cartel's ruthless control ensures a steady flow of calls to potential victims, with operations running from dawn till dusk.
Despite the scale of the operation, legal action against the perpetrators has been scant. The U.S. Treasury Department has sanctioned 40 Mexican entities linked to the CJNG's scam, but arrests have been few. A notable case in 2019 led to the indictment and conviction of six men for defrauding Americans out of $20 million, yet this represents just a fraction of the overall fraud.
The psychological toll on victims is immense. Stephen, who once hoped to resolve his financial nightmare through a supposed class-action lawsuit against Mexican banks, now grapples with the harsh reality of his situation. The promise of restitution, once a source of hope, has become a haunting reminder of the deception he endured.
As U.S. authorities continue to receive increasing complaints of timeshare fraud emanating from Mexico, the plight of victims like Stephen and Medina underscores the urgent need for greater awareness and international cooperation to dismantle these fraudulent operations. The CJNG's diversification into timeshare scams not only highlights the cartel's entrepreneurial acumen but also the profound human cost of their criminal enterprises.
