U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned eight Mexican companies linked to timeshare fraud on behalf of the Cartel de Jalisco Nueva Generacion (CJNG). CJNG is a violent Mexico-based organization that traffics a significant proportion of the illicit fentanyl and other deadly drugs that enter the United States. Today’s action is the result of a collaboration between the United States and the Government of Mexico.

“As CJNG has consolidated territory over the past decade, it has added other crimes to its core activity of drug trafficking,” said OFAC Director Andrea M. Gacki. “In tourist destinations such as Puerto Vallarta, CJNG has become heavily engaged in timeshare fraud, which often targets U.S. citizens"...

Although there are different types of timeshare fraud, the schemes often involve the following: (1) third-party scammers, who claim to have ready buyers, make unsolicited purchase offers to timeshare owners; (2) if offers are accepted, scammers make requests of timeshare owners for payments of advance fees and taxes, supposedly to facilitate or expedite the sale with assurances of reimbursement upon closing; and (3) once multiple payments have been made to the scammers, timeshare owners eventually realize that the offers were fictitious, that there are no buyers, and that their money is gone.

The eight companies designated today, which are linked directly or indirectly to CJNG’s timeshare fraud activities, claim to be financial services or real estate companies. Five of the companies—Servicios Administrativos Fordtwoo, S.A. de C.V., Integracion Badeva, S.A. de C.V., JM Providers Office, S.A. de C.V., Promotora Vallarta One, S.A. de C.V., and Recservi, S.A. de C.V.—are based in or near Puerto Vallarta, Jalisco, Mexico. Servicios Administrativos Fordtwoo, S.A. de C.V. has also made direct payments to CJNG members.... The remaining companies designated today—Corporativo Title I, S.A. de C.V., Corporativo TS Business Inc, S.A. de C.V., and TS Business Corporativo, S.A. de C.V.—are based in Guadalajara, Jalisco, Mexico.

This is a little bit of old news, issued on a press release back in August- but I thought it was a worth revisiting as it shows how the telemarketing operators out of Mexico use multiple fake business names and websites to cold call timeshare owners across the Americas with fake purchase offers for timeshares located inside Mexico.  These con artists purchase black market owner lists, often from resort employees, which they then use to contact timeshare owners. The telemarketing pitch always involves a high sale price for a Mexican timeshare ownership, and a fake closing company to process the transfer. There are then fake closing fees, fake government taxes, etc that are extorted from the timeshare owner- always with the promise that after wiring money to a Mexican bank the seller's proceeds will be released. Of course, it always turns our that the buyer is a fake- the closing agent is a fake, and somehow the Mexican bank never seems to be able to return the money that was stolen.  As always, the BEST way to protect yourself from the Mexican timeshare scam- is simply to HANG UP on any telemarketing calls you get about your timeshare!   Follows is an excerpt from the release:

"....NEW ORLEANS –JESUS ADRIAN LEDESMA BERNAL, a/k/a JSS, age 32, a resident and citizen of Mexico, was sentenced today to 18 months in the Bureau of Prisons after pleading guilty to one count of conspiracy to commit wire fraud by U.S. District Court Judge Jane Triche Milazzo of the Eastern District of Louisiana, announced U.S. Attorney Peter G. Strasser.
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As detailed in the factual basis and superseding bill of information, the defendants, from at least January 1, 2016, to the present, conspired together and with others to commit wire fraud in connection with a telemarketing scheme that targeted and victimized persons in the United States, Canada and South America. As part of the elaborate scheme, the conspirators made unsolicited phone calls to owners of resort timeshare properties to induce them into paying fees associated with the bogus sale of their property. The defendants misrepresented the existence of a buyer for their timeshare and solicited money from the victims to facilitate the sale. They solicited the timeshare owners to enter into agreements to sell their timeshares and pay for alleged “closing costs” with electronic wire transfers from banking institutions within the United States to Mexican banks. There were no interested buyers, the closings did not occur, and the timeshares were not resold. Instead, the conspirators simply pocketed the advanced fees. Of the U.S. victims, 40 were age 60 and older and the total estimated loss is at least $10,000,000.

The defendants, who are all based in Mexico, operated under the business names Planet Travel and Newport International Investments, and at other times used the following business names: Advance Travel INC, All American Real Estate, American International Investment Group, Bear Claw Travel, Best Investment Services, Champion Properties, Closing Source LLC, Equity Closing Services Group, Global Offshore Services, NSC Holding, Peach Title, Sandia Title, Travel and Acquisitions, Travel Innovations, Travel Plus Acquisitions, Travel Right, and World Travelers, Inc. All of these domain websites have been seized by the Federal Bureau of Investigation and the Department of Justice.

BERNAL, who worked as a telemarketer, was ordered to pay restitution of $127,000 USD, a fee of $100.00, and he is subject to deportation after serving 18 months....."

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The Better Business Bureau is warning consumers about a timeshare scam that lures victims by offering lucrative prices for those reselling a property. The scam uses the name and address of Resort Network Services LLC, which claims to be based in Raleigh, N.C. However, an investigation by the BBB serving Eastern North Carolina revealed that the real Resort Network Services dissolved in 2009.  

The scam company is targeting people throughout the United States and Canada who are looking to resell a timeshare property. Targets were asked to wire thousands of dollars to Mexico under the guise paying “title fees,” “transfer fees,” “foreign investment fees” and other phony charges.

The BBB of Eastern North Carolina originally became aware of the scam when a consumer contacted them about the company, assuming it was based in their area. Since then, BBB has received several Scam Tracker reports about the con.

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​Marco Antonio Ramirez Zuno, 32, of Cancun, Mexico, has pleaded guilty to conspiracy to commit wire fraud in relation to a timeshare resale fraud scheme which targeted consumers who owned timeshares in Mexico.

According to court documents, between 2011 and 2012, Mr. Zuno and others conducted a timeshare resale fraud scheme based in Puerto Vallarta, Mexico. Sales agents including co‑defendant Juan Montalbo, who also goes by the name of John Monte, conducted sales meetings in Mexico to convince prospective customers to purchase a timeshare vacation package marketed under the names Platinum Access Program or World Luxury Destinations.

A reader has reported a possible timeshare scam operating as Exchange Travel International. Again, this is the Mexican timeshare tax scam that has become so common in the industry!

"...Unsolicited offer to sell from Exchange Travel International at a price above purchase price. After accepting the offer we experienced the "Mexican Tax Scam" ploy. After sending the money we were asked to pay the Mexican State Tax. After we cancelled the sale the promised refund has failed to appear... Michael L."

If you believe that you have also been a victim of consumer fraud perpetrated by this organization or individual, please take the time to report the crime to the Texas Attorney General's office by calling (512) 463-2100.

Another reader has submitted a possible timeshare scam alert using the name Global Partner Network. The technique she reports is one that readers here will be very familiar with that commonly targets owners of timeshares in Mexico.

The consumer receives a telemarketing call telling her that a buyer has been found for her Mexican timeshare, and normally promising a ridiculously high selling price. The seller is told that there are no upfront fees and sent what appears to be a legitimate contract. Eventually, the transaction will be given to a "closing company" who then goes into the Mexican transfer tax con game. If the consumer pays the non-existent tax (which is in reality just a camouflaged upfront fee)- the con artists will then normally try to bleed the victim for a few more payments (all of which they promise will be refunded) until the timeshare owner finally realizes that it just a scam!

An except from the reader's warning is below:

"...I was contacted at home by a man by the name of Darren Lucas from Global Partner Netowrk out of Toronto, Canada. He told me that a buyer is interested in purchasing my timeshare week (in addition to others) at the Villa Del Palmar Resort in Mexico. He asked for my email and said he would send an offer letter within 72 hours. I agreed to the offer and completed all the forms. I also spoke with a David Klein and Kenneth Wade during the process. When it came time to go to escrow, I received a few documents via email for closing. One of them was in Spanish and was stating that I need to pay a SAT tax in the amount of $2650.00 before they would wire transfer my payment to my account. I called to discuss this with Kenneth Wade, who took me to a website that supposely explained SAT taxes and he had me write a letter to explain why I should get a refund of the tax. He replied within an hour stating that he received approval to refund my tax money and it would come back to me with the money for my timeshare. I didn't have the money so borrowed it from my parents. They suggested that I look into this because of potential scam. I have not heard back from Global Partners Network since I told them that I had the money to pay the fee. I looked at their website globalpartners-network.com and they appear to be legitimate, but I have a bad feeling that it is a scam. I looked up the BBB in Toronto and they have not had any reports. I have not proceeded with the sale. As I reread the sales contract, a flag went up when I read a paragraph that told me not to contact my resort or they would try to stop the sale..."

You can find more examples of the Mexican timeshare resale scam at the following links:

Mexican Transfer Tax Scam

Mexican Tax Scam

Mexican Timeshare Closing Cost Scam

A reader has submitted a possible timeshare scam alert about a company or individual using the business name of Coastal Vacations and/or Escrow Holdings, and allegedly soliciting owners of Mexican timeshares with a version of the fake closing cost scam.

"... I was contacted by Coastal Vacation to sell my time shares in Mexico and I signed a contract with them. They Escrow Holdings contacted me and I have been working with them and paid them transfer fees, lawyer fees, and finally insurance to cover the transfer of money to me. All a scam. They are unavailable by phone and of course no money has been given...  The original company that contacted me was Coastal Vacation at 74 Broad St, Charleston, SC 24901.  Then I got a call from Escrow Holdings at 29 W. Paces Ferry Rd. NW, Atlanta, GA,30305 and they were supposed to handle the escrow.  I spoke to a Manny Zimerman many times and he seemed reputable and personable.  These guys are good at what they do.  They charged me a transfer fee and then asked for lawyer fees to deal with Mayan Palace who was charging me 10 maintenance fees to release the property and they supposedly got out of paying that.  Then they wanted more money to cover insurance costs to wire the money to me.  What a scam.  I feel so foolish to have fallen for it, but I hope to prevent other people from getting in the same position. "

You can find details and examples of this fake closing fee and tax scheme by clicking HERE.

Over the past month, I have received numerous contacts from timeshares owners of both Costa del Sol and Rancho Banderas timeshare regimes out of Mexico. Every owner has stated that they are being targeted by what they believe to be fraudulent resellers for their Mexican timeshares.

Resale fraud has reached epidemic proportions as these con artist appear to be obtaining owner's lists for various resorts, and are systematically targeting owners of these properties with cold call schemes that at first promise no upfront fees, but later demand thousands of dollars in fake transfer fees and closing costs. In fact, the Better Business Bureau recently specified Mexican timeshare fraud as one of the top consumer reported scams of 2011.

In general, demand for Mexican timeshares is at an all time low- both for resales as well as rentals. Many timeshare properties can be difficult to even give away in the current market. Possible reasons for this include the worldwide economic recession, continued negative press about illness and drug violence in Mexico, and increased reports of extremely aggressive sales tactics being employed at some timeshare resorts.

If you own a timeshare in Mexico and are considering selling, your first step should be to contact your resort's member services department to learn what the actual transfer process and transfer fees are to change ownership from one party to another. This simple ten minute phone call can protect you from the vast majority of Mexican resale schemes that are currently targeting consumers which involve vastly inflated transfer fees as well as fake transfer taxes. You can find the phone number for your resort on the last maintenance fee bill you've received.

And finally- never pay any type of advance fee to sell your timeshare. If you are being promised a large net proceeds after closing, a true escrow agent will simply deduct any seller fees or expenses from the buyer's funds- and never require an owner to directly pay any type of fee. Think of the process in the same mindset as a residential real estate sale- unless you are upside down and have to come with cash to closing, any seller fees or broker commissions are simply deducted from the overall sales price and are paid out at closing AT THE SAME TIME YOU AS THE SELLER ARE PAID!

And as always, if you are approached by what you believe to be a fraudulent reseller or timeshare scam operation- please take the time to submit a possible timeshare scam alert through Vacation-Times.org and help warn others!

".... Timeshare owners continue to be frustrated with not being able to sell their properties. In 2011, many consumers fell victim to a very specific timeshare scam. Victims received a call out of the blue offering a generous price for their Mexican timeshare property. The buyer offered to handle the transaction for no money up front and made the process simple and easy for the consumer, emailing all necessary documents and providing a supposed independent escrow account to act as a secure third party.

In time, various international taxes and other ambiguous fees were assessed to victims, while the timeshare company promised reimbursement at the time of sale. Thousands of dollars later, both the buyer and escrow company disappeared, taking with them the consumers' money and trust..."

We have seen this scam perpetrated over and over again! Recently, I have gotten numerous reports of scams targeting owners of the owners of the Playa del Sol, so it appears that con artists have obtained an owner's list for that resort. As always, if you own a timeshare resort- always take the time to contact your resort management company and learn what the required transfer procedure and costs are to change ownership. This twenty minute call can give you the information you need to protect yourself from many of the "closing cost" scams that demand fake taxes or hugely inflated title search fees!