5 Mexican cartel bosses charged in timeshare fraud scheme targeting elderly Americans, DOJ says
CJNG cartel members face federal indictments for drug trafficking, weapons charges, and a timeshare fraud scheme that stole $400M from seniors.
The U.S. Department of Justice (DOJ), along with the heads of numerous other federal agencies, announced Wednesday indictments of members of the Jalisco New Generation Cartel (CJNG) for drug trafficking, weapons charges and for targeting elderly Americans in sprawling timeshare fraud schemes.
The revelation was part of a wider inter-agency news conference Wednesday announcing a sweeping set of enforcement actions targeting the CJNG in Mexico.
"These sophisticated organizations use violence and fear to maintain control over the importation of deadly narcotics in the United States, including fentanyl, cocaine, meth, and other illegal drugs. Their actions spread violence and death to our communities," Acting Attorney General Todd Blanche announced during the news conference.
"These cartel members have been charged with a range of crimes, including running drug networks, organizing highly trained hitmen responsible for murders and attempted assassinations, procuring weapons, money laundering and deadly drug manufacturing and distribution. Three of the alleged cartel members were also allegedly committing a sophisticated fraud targeting elderly Americans in an alleged timeshare fraud scheme," Blanche added.
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As part of the enforcement, the DOJ's criminal division brought federal charges against five senior members of the cartel, including drug trafficking and firearms offenses, Assistant Attorney General Tysen Duva said. Duva also provided further details about the fraud scheme targeting elderly Americans.
"CJNG targeted Americans who are aspiring to own or already own timeshares in Mexico, many of them elderly, and promised them profits for selling or renting them. But first, the victims had to pay taxes and advance fees. Of course, the profits never came. Once someone paid, the fraudsters contacted them again, posing as lawyers or officials who could recover the money for another fee," Duva explained.
"Of course it was fake. The scheme morphed and continued, with the fraudsters even claiming that the victims actually paid a cartel and would be arrested if they did not pay more, which they did. One particular victim, an 83-year-old individual, an American who bought a timeshare many years ago for $179,000, was duped at each level of this phase. He paid advance fees to begin with. He fell for fake real estate websites and title companies. He was victimized again by attorneys who sent their bar information and fake websites, who claimed that they could get his money back. Of course they were impersonators and they could not," Duva continued.
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"Government agencies then contacted him for additional fees, using government letterhead and spoofed government websites. And then again, Mexican law enforcement contacted him and demanded he pay criminal and civil fines because he had apparently paid a cartel. It went on and on. It victimized this man for hundreds of thousands of dollars over eight years," Duva said.
Between 2019 and 2023, FBI Director Kash Patel explained during the news conference, the scheme defrauded over 6,000 Americans to the tune of $400 million.
"These individuals, pursuant to the New York Field Office investigation that began a few years ago, started call centers, down south and across the world. The funds they utilized and they scammed out of these call centers from senior citizens from across America, totaled over $400 million. They duped our seniors using email, telephone, text messages and phishing campaigns into subscribing to a timeshare project that they falsely stood up and falsely delivered promises that our seniors would be able to enjoy their lives and their vacations, only to have that money seized from them and that vacation and their retirements deprived from them," Patel said.
Patel also announced that the FBI had executed over 30 foreign transfers of custody in 15 countries in July alone.
"I'm here to tell you today, for all these individuals that are on the run right now, you will not be on the run for long. We will hunt you down in every corner of the planet, and we will return you here to face American justice," he said. Patel also said the FBI was working to return stolen funds to the elderly victims, adding "we have seized these funds and we are going to get them back to the senior citizens that were fleeced of their life savings and their retirements. That is the mission of law enforcement."
Blanche said the DOJ has been working with a wide swath of other federal agencies on increased enforcement actions which he said have helped reduce fentanyl overdose deaths in the U.S. by 22%. The agencies involved in the enforcement actions included the FBI, Homeland Security Investigations (HSI), the IRS, the State Department, Customs and Border Protection (CBP) and the Drug Enforcement Agency.
The DEA's Administrator Terry Cole framed the enforcement as an America First policy during the news conference.
"Since the inception nearly two decades ago, CJNG has grown into one of the world's most dangerous and ruthless foreign terrorist organizations. CJNG was built on a vast criminal network that produces and distributes deadly drugs, while sustaining a powerful influence via violence and corruption in Mexico. This includes members within the Mexican government who shield CJNG leadership from justice and facilitate drug trafficking, money laundering, and violence," Cole said.
"CJNG actions have resulted in the deaths of thousands of Americans, Americans that were lost way too soon. They did this through the production and distribution of fentanyl, a weapon of mass destruction. DEA is aggressively targeting both the cartels and the corrupt government officials who are responsible for the deaths of our citizens," Cole continued.
"Today's coordinated actions against CJNG leadership and infrastructure, including superseding indictments and rewards totaling more than $100 million in arrest, will not end. It sends a very clear message. This is just the beginning. This is about Americans first. This is a fight against CJNG that we are just beginning, and we will not back down. DEA investigations of cases have generated more than 100 federal indictments against CJNG leaders and members and associates. We are working with our international partners to arrest, extradite, and prosecute these defendants in the United States," Cole concluded.
Blanche said the agency partnered with the State Department to offer up to $100 million for information leading to the arrest of the cartel leaders.
Fox News Digital contacted the DOJ, FBI and DEA for further comment.