The U.S. Treasury’s OFAC targeted a CJNG‑linked timeshare fraud network called Kovay Gardens, designating entities and individuals and issuing a wind‑down license and guidance to disrupt operations. The action alleges timeshare sales were used to harvest U.S. victims’ data and funnel clients into boiler‑room recovery and investment scams.

The U.S. Department of the Treasury’s Office of Foreign Assets Control announced sanctions and related guidance targeting Kovay Gardens, a timeshare operation near Puerto Vallarta that Treasury alleges is linked to the Jalisco New Generation Cartel (CJNG) and engaged in large‑scale consumer fraud. OFAC designated multiple entities and individuals associated with the network, froze U.S.‑based infrastructure where applicable, and issued a limited wind‑down general license to permit certain orderly and time‑limited transactions while blocking ongoing illicit activity. According to Treasury materials, the operation used timeshare sales as a vector to harvest sensitive data from U.S. consumers and to funnel victims into high‑pressure boiler‑room recovery and bogus investment schemes, effectively enabling cross‑border criminal diversification into consumer scams. The action highlights Treasury’s use of financial sanctions to disrupt non‑narcotics revenue streams for transnational criminal organizations and to sever access to U.S. financial channels. OFAC’s package includes public guidance for financial institutions and potential victims, and signals intensified cooperation between sanctions, law‑enforcement and regulatory authorities to tackle hybrid cartel fraud operations.