The U.S. Department of Justice has indicted an alleged drug cartel member accused of operating a timeshare fraud scheme.
The indictment alleges a senior cartel member, Julio César Montero Pinzón, ran a scheme targeting Americans who own timeshares in Mexico alongside his half-sister Griselda Margarita Arredondo Pinzón.
The indictment claims the Jalisco Nueva Generación cartel ran call centers in Mexico that convinced timeshare owners to pay fake fees and taxes under the guise of selling or renting out their property.
Carlos Sugich, an international real estate lawyer in Phoenix and Mexico, says timeshare owners should be cautious. Often, criminals will approach timeshare owners out of the blue asking if they want to sell their property.
“If you’re selling a timeshare, the first rule that I tell everyone is: ‘you’re the seller.’ Sellers do not wire funds. Buyers wire funds” Sugich said.
He’s seen an uptick in timeshare scams, as criminal groups get more technologically advanced.
“Now with the use of AI, these criminal groups are getting more sophisticated and more organized and they’re able to create a more plausible story and trick people into sending money,” Sugich said.
Sugich says criminals will disguise themselves by using the names of real brokerage firms or escrow agencies and forge documents from Mexican authorities claiming the victim needs to wire cash. Timeshare owners unfamiliar with Mexican law and tax processes sometimes send the money, thinking it’s the only way to follow the law.
Some victims don’t reach out for help until they’ve already wired funds, Sugich said. At that point, it’s often too late to recoup that money.
“Get someone involved,” Sugich said. “Get legal counsel involved just to look at the document before you send any money.”
In addition to money laundering and wire fraud, the indictment charges the alleged cartel member with material support for a terrorist group. The Trump administration earlier this year designated several Mexico-based drug cartels as foreign terrorist organizations, giving prosecutors the option to use the charge against people allegedly associated with the cartels.
