Federal prosecutors in Brooklyn have unsealed an indictment charging Julio Cesar Montero Pinzon, a senior member of the Cartel de Jalisco Nueva Generacion (CJNG), and his half-sister Griselda Margarita Arredondo Pinzon for their roles in a large-scale timeshare fraud scheme targeting American property owners in Mexico. Both are accused of conspiracy to commit wire fraud and money laundering, while Montero Pinzon faces an additional charge related to providing material support to a foreign terrorist organization.
According to authorities, CJNG is a transnational criminal group based in Mexico. The cartel was designated as a Foreign Terrorist Organization (FTO) and Specially Designated Global Terrorist on February 20, 2025. Despite this designation, Montero Pinzon allegedly continued to participate in fraudulent activities and launder funds derived from the scheme with knowledge of the FTO status.
Attorney General Pamela Bondi stated: “This senior leader of a foreign terrorist organization allegedly defrauded innocent citizens to fuel terrorism against the American people. The CJNG and other cartels are on notice: no scheme, plot, or conspiracy will evade the reach of this Justice Department.”
United States Attorney Joseph Nocella, Jr., commented: “As alleged, Montero Pinzon and Arredondo Pinzon filled the coffers of a violent foreign terrorist and narcotics trafficking organization through a sophisticated fraud scheme that victimized thousands of American timeshare owners. CJNG funds its criminal terrorist operations using multiple tactics, from trafficking dangerous narcotics to executing complex fraud schemes, and our Office will continue to use all available tools and resources to protect American investors and the public at large, and bring to justice those who provide support to the cartel.”
The indictment alleges that since around 2012, CJNG orchestrated an advance fee fraud targeting U.S.-based timeshare owners. Victims were induced to pay upfront fees under false pretenses for selling or renting their properties but did not receive any promised returns. In some cases, follow-up scams involved individuals posing as lawyers or officials offering help in recovering lost funds for additional payments.
The operation reportedly involved call centers in Mexico where victims were solicited. Montero Pinzon is said to have managed financial networks receiving laundered funds from these schemes; Arredondo Pinzon oversaw operations at a central office managing call center activities.
FBI Assistant Director Christopher G. Raia noted: “For more than a decade, Julio Montero Pinzon...and Griselda Arredondo Pinzon allegedly defrauded timeshare owners before laundering the illicit proceeds to fund their terrorist organization...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.”
DEA New York Special Agent Frank A. Tarentino III added: “CJNG has repeatedly victimized our communities through widespread drug trafficking, ruthless violence, money laundering, fraud, and other criminal schemes...Thanks to the relentless work of DEA’s Trident Initiative—an initiative built with our federal law enforcement partners...the DEA remains relentless in dismantling these cartels and our pursuit for justice.”
IRS-CI New York Special Agent Harry T. Chavis explained: “Cartel de Jalisco Nueva Generacion ran this timeshare fraud scheme like a business...This massive, multi-million dollar fraud required timeshare owners to pay up front...only to be left victim [to] the false promise of receiving money later.”
If convicted on all counts, each defendant faces up to 20 years’ imprisonment per charge.
On August 13, 2025, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) sanctioned Montero Pinzon for his role in CJNG’s timeshare scam; Arredondo Pinzon had previously been sanctioned as well. OFAC has now sanctioned over 70 individuals or entities linked with such activity by CJNG.
Between 2019-2024 alone, about 6,000 Americans reported losses totaling approximately $350 million due to similar timeshare scams operating out of Mexico.
The case is being prosecuted by attorneys from both the Business and Securities Fraud Section and International Narcotics and Money Laundering Section within the Eastern District office alongside staff from other federal agencies.
Victims are encouraged by authorities to file complaints via IC3.gov or access further resources at FBI Timeshare Fraud Victim Resource Page.
