The U.S. Treasury’s Office of Foreign Assets Control designated Kovay Gardens and a network of companies and individuals it says are tied to a CJNG timeshare-fraud operation that preyed on U.S. timeshare owners, particularly older Americans. The sanctions block U.S. dealings with the named entities and individuals and aim to disrupt resale, re‑rent and advance‑fee schemes.

On Feb. 19, 2026 OFAC announced sanctions targeting Kovay Gardens and an associated network of companies and individuals identified as part of a Cartel de Jalisco Nueva Generación (CJNG) timeshare‑fraud operation that repeatedly targeted U.S. timeshare owners. Treasury’s press release states the network used the resort and linked businesses to facilitate resale and re‑rent frauds and advance‑fee schemes that extracted money from mostly older American victims. The action adds named entities and persons to U.S. sanctions lists, effectively blocking U.S. persons and institutions from engaging in transactions with them and freezing access to any U.S.-based assets. Treasury highlighted investigative coordination and publication of materials to help victims and financial institutions identify related accounts and illicit transfers. The designation frames the scheme as a transnational fraud infrastructure that combined conventional advance‑fee techniques with organized criminal direction, and signals enhanced enforcement and financial countermeasures against CJNG‑linked illicit revenue streams.