An unsealed indictment charged alleged cartel leaders of stealing $350 million from Americans who thought they were investing in timeshare properties in Mexico.
An indictment was unsealed charging Julio Cesar Montero Pinzon, also known as El Tarjetas, Moreno, El Chess, Cesar Hernandez Jimenez, and CH Jimenez, a senior member of the Cartel de Jalisco Nueva Generacion, and his half-sister Griselda Margarita Arredondo Pinzon.
Montero Pinzon and Arredondo Pinzon were each charged with conspiracy to commit wire fraud and conspiracy to commit money laundering. In addition, Montero Pinzon was charged with conspiracy to provide material support to a foreign terrorist organization and providing and attempting to provide material support to a foreign terrorist organization. Both Montero Pinzon and Arredondo Pinzon are Mexican nationals and are not in U.S. custody.
Court documents say that CJNG has been perpetrating an “advance fee” fraud scheme targeting owners of timeshare properties since approximately 2012. As part of the scheme, timeshare owners, many of whom were residents and citizens of the United States, were fraudulently induced to pay money up front either to sell or rent their timeshares under the pretext of fees and taxes, in exchange for false promises of receiving money later.
25-Cr-169 Julio Montero Pinzon Et Al Indictment by scott.mcclallen
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Despite paying the advance fees, the victim timeshare owners did not receive the funds as promised and couldn't recoup their advance fee payments. The fraudsters contacted victim timeshare owners and claimed to be lawyers or government officials who could help the victims recover their lost funds, so long as they paid additional advance fees.
“This senior leader of a foreign terrorist organization allegedly defrauded innocent citizens to fuel terrorism against the American people,” Attorney General Pamela Bondi said in a statement. “The CJNG and other cartels are on notice: no scheme, plot, or conspiracy will evade the reach of this Justice Department.”
The fraudsters operated the scheme out of various call centers in Mexico, where fraudsters contacted and solicited timeshare owners. Since about 2012, Montero Pinzon created and managed a financial network for receiving and laundering funds obtained from victims of CJNG’s timeshare fraud scheme. Arredondo Pinzon worked at a CJNG-controlled central office that oversaw the operations of the call centers and oversaw the receipt and laundering of victim funds.
“As alleged, Montero Pinzon and Arredondo Pinzon filled the coffers of a dangerous terrorist organization through a sophisticated fraud scheme that victimized thousands of American timeshare owners,” said U.S. Attorney Joseph Nocella for the Eastern District of New York. “Terrorist cartels such as CJNG fund their activities not only through drug trafficking but also through complex fraud schemes, and this office is committed to aggressively prosecuting such crimes.”
On Feb. 20, CJNG was designated as a Foreign Terrorist Organization and a Specially Designated Global Terrorist.
“For more than a decade, Julio Montero Pinzon, a senior CJNG cartel leader, and Griselda Arredondo Pinzon allegedly defrauded timeshare owners before laundering the illicit proceeds to fund their terrorist organization,” said Assistant Director in Charge Christorpher G. Raia of the FBI New York Field Office. “This alleged scheme spanned the globe and exploited thousands of victims, reflecting the cartel’s evolution of developing various mechanisms for criminal financing. Today’s significant disruption emphasizes the FBI’s determined resolve to not only eliminate any monetary source fueling criminal enterprises but also defend our nation against foreign adversaries.”
If convicted, the defendants face up to 20 years in prison on each count.
On Aug. 13, Montero Pinzon was sanctioned by the U.S. Department of the Treasury’s Office of Foreign Assets Control for his role in CJNG’s timeshare fraud scheme. On July 16, 2024, OFAC sanctioned Arredondo Pinzon for her role in CJNG’s timeshare fraud scheme. To date, OFAC has sanctioned over 70 individuals and entities based on their participation in CJNG’s timeshare fraud. Between approximately 2019-2024, approximately 6,000 U.S. victims have reported losses of approximately $350 million attributable to timeshare fraud schemes in Mexico.
Trial Attorneys Brant Cook and Maryann McGuire of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys Benjamin Weintraub and Andrew Wang for the Eastern District of New York are prosecuting the case, with critical support from the Justice Department’s Office of International Affairs.
Complaints are often under-reported. Victims are encouraged to file a complaint at IC3.gov. Additional resources for victims are available at: FBI Timeshare Fraud Victim Resource Page
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