Puerto Vallarta (PVDN) – The report issued by the Government of the United States in which it warns that the Jalisco Nueva Generación Cartel ( CJNG ) uses fraud schemes against Americans in Puerto Vallarta, comes as the state presents a boom of financial companies that have been denounced by thousands of victims who were scammed out of their investments.
On March 2, the US Government’s Office of Foreign Assets Control ( OFAC ) revealed that this criminal group is in fraud networks in Jalisco, especially in Puerto Vallarta. It stated the cartel would be acting through financial services companies to defraud people, especially targeting Americans in the area.
“The eight companies designated today, which are directly or indirectly linked to the CJNG’s timeshare fraud activities, claim to be real estate or financial services companies,” the agency said.
In a previous OFAC report, dated February 17, 2022, it was noted that Puerto Vallarta had become a “strategic stronghold” for the cartel and that this criminal group had widely diversified its money laundering schemes.
The confirmation that this criminal group has ventured into fraud schemes in Jalisco to obtain more illegal resources, coincides with a marked increase in criminal complaints of fraud, an upward trend maintained for two consecutive years.
While in 2020 the State Prosecutor’s Office launched 7,205 investigations for fraud in the state, by 2021 that number increased to 8,013 inquiries, and in 2022 it climbed again to 8,777, according to the platform “Monitoring of Development Indicators ( MIDE )” of the Government of Jalisco.
During 2022 and 2023, the Jalisco authorities have had to address the thousands of fraud complaints that have originated from the operations of at least six financial companies (Professional Legal Advisors, Green Oceans, DDC, Financiera Bicentenario, Creso and Novus), which would have scammed people out of billions.
Only in the case of Professional Legal Advisers ( AJP ), the information provided by the Prosecutor’s Office via transparency confirms the existence of 1,208 victims, for a defrauded amount of at least $1,572,724,829.61 pesos.
In the March 2 announcement, OFAC Director Andrea M. Gacki stated: “In tourist destinations like Puerto Vallarta, the CJNG has become heavily involved in timeshare fraud, often targeting US citizens. This crime, which can defraud victims of their life savings, generates another important source of revenue for the cartel and strengthens their overall criminal enterprise.”
Although the boom in fraudulent financial companies broke out in Jalisco in 2022, at least since 2020 local authorities were already issuing reports evidencing a boom in this type of scam in the state; For example, on March 23, 2020, the governor himself, Enrique Alfaro Ramírez, announced the detection of several properties dedicated to these purposes in Guadalajara.
“There are some crimes, such as fraud, that are not so notorious in Jalisco, but they exist and directly affect people’s assets. That is why they have to be prosecuted with all seriousness to prevent financial assumptions from abusing people’s needs by offering easy loans and regardless of the Credit Bureau, but all they do is steal from those who have less “
Enrique Alfaro Ramirez
Governor of Jalisco
And he continued: “Based on different citizen complaints, this same month, the General Directorate of Property and Financial Crimes of the @FiscaliaJal detected and searched five buildings in the Guadalajara Metropolitan Area where some of these alleged financial pirates operated. Worst of all, these cynics were in full view of everyone on avenues like Chapultepec, Vallarta, Niños Héroes, Boulevard Puerta de Hierro, and Santa Margarita.”
Springboards for money laundering
The information that the State Prosecutor’s Office has collected with its investigations into financial companies accused of fraud shows that these schemes are serving as mechanisms not only to generate illicit income for their operators, but also for the possible laundering of funds.
For example, with respect to the financial company Green Oceans, one of those under investigation, the Prosecutor’s Office has documented the case of a young woman of only 23 years of age, who denounced the company for fraud; However, what is striking is that the amount that she had invested at her young age amounted to $37,902,370 pesos.
The eight financial services and real estate companies that would be orchestrating fraud for the CJNG, as reported by OFAC on March 2, are based in Jalisco: five of these companies — Fordtwoo Administrative Services, Badeva Integration, JM Providers Office, Promoter Vallarta One, and Recservi — are located in Puerto Vallarta.
The report released indicates that “Servicios Administrativos Fordtwoo, SA de CV has also made direct payments to members of the CJNG”; the remaining companies —Corporativo Title I, Corporativo TS Business Inc, and TS Business Corporativo— are located in Guadalajara.
In a previous OFAC report, dated February 17, 2022, it was noted that Puerto Vallarta had become a “strategic stronghold” for the cartel, and that this criminal group had widely diversified its money laundering schemes.
“OFAC has also designated a wide range of companies and individuals linked to the Jalisco Nueva Generación Cartel and its close ally, Los Cuinis. Pre-designated businesses in Mexico include shopping centers, real estate companies, agricultural companies, a music promotion business, and a luxury boutique hotel. Many of these entities located in Mexico have been involved in laundering drug money and represent attempts by the CJNG and Los Cuinis to integrate their illicit profits into the legitimate economy,” the report reads.
