Federal authorities have indicted five senior members of the Jalisco New Generation Cartel (CJNG) on charges including drug trafficking, weapons offenses, and a sophisticated timeshare fraud scheme that targeted elderly Americans. The indictments were announced as part of a broader, multi-agency enforcement action against the cartel.
Acting Attorney General Todd Blanche stated that the CJNG uses violence and fear to control the importation of narcotics into the United States, including fentanyl, cocaine, and methamphetamine. The cartel members are accused of operating drug networks, employing hitmen for murders and attempted assassinations, procuring weapons, money laundering, and manufacturing and distributing deadly drugs. Three of the indicted members are specifically linked to the timeshare fraud scheme.
Assistant Attorney General Tysen Duva elaborated on the fraud, explaining that CJNG targeted individuals who owned or aspired to own timeshares in Mexico, often preying on the elderly. The cartel promised victims profits for selling or renting their timeshares, but required advance payments for taxes and fees, with the promised profits never materializing. The scheme evolved, with fraudsters posing as lawyers or officials to solicit additional fees for recovering the non-existent profits. In some cases, victims were led to believe they had paid a cartel and faced arrest if further payments were not made.
Duva recounted the case of an 83-year-old victim who, after initially paying advance fees for a timeshare project, was defrauded through fake real estate websites, bogus title companies, and impersonating attorneys. The scheme escalated to include entities posing as government agencies, demanding more fees and using spoofed government websites and letterhead. Eventually, the victim was contacted by individuals claiming to be Mexican law enforcement, demanding criminal and civil fines for allegedly paying a cartel. This single victim lost hundreds of thousands of dollars over an eight-year period.
According to FBI Director Kash Patel, the timeshare fraud scheme operated between 2019 and 2023, defrauding over 6,000 Americans and stealing approximately $400 million. The cartel utilized call centers and digital communication methods, including email, telephone, text messages, and phishing campaigns, to deceive seniors. Patel assured that the FBI is actively pursuing cartel members globally and working to recover the stolen funds to return them to the victims.
The enforcement actions are a joint effort involving numerous federal agencies, including the FBI, Homeland Security Investigations (HSI), the IRS, the State Department, Customs and Border Protection (CBP), and the Drug Enforcement Agency (DEA). Blanche noted that these increased enforcement actions have contributed to a 22% reduction in fentanyl overdose deaths in the U.S.
DEA Administrator Terry Cole characterized the CJNG as one of the world's most dangerous and ruthless foreign terrorist organizations, built on a network that produces and distributes deadly drugs and maintains influence through violence and corruption, including within the Mexican government. Cole emphasized that the current actions are just the beginning of a sustained fight against the cartel, which has been responsible for the deaths of thousands of Americans through fentanyl distribution. The DEA has generated over 100 federal indictments against CJNG leaders and associates and is working with international partners for their arrest and extradition.
The State Department has partnered with the DOJ to offer up to $100 million in rewards for information leading to the arrest of CJNG leaders. The DOJ indicated it is working to return seized funds to the elderly victims who were defrauded of their life savings.