Earlier today, an indictment was unsealed charging Julio Cesar Montero Pinzon, also known as El Tarjetas, Moreno, El Chess, Cesar Hernandez Jimenez, and CH Jimenez, a senior member of the Cartel de Jalisco Nueva Generacion (CJNG), and his half-sister Griselda Margarita Arredondo Pinzon for their roles in an international fraud scheme targeting Americans who own timeshare properties in Mexico. Both individuals are Mexican nationals and are not currently in U.S. custody.
Montero Pinzon and Arredondo Pinzon face charges of conspiracy to commit wire fraud and conspiracy to commit money laundering. Additionally, Montero Pinzon is charged with conspiracy to provide material support to a foreign terrorist organization and providing or attempting to provide such support.
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.”
U.S. Attorney Joseph Nocella for the Eastern District of New York said: “As alleged, Montero Pinzon and Arredondo Pinzon filled the coffers of a dangerous terrorist organization through a sophisticated fraud scheme that victimized thousands of American timeshare owners. Terrorist cartels such as CJNG fund their activities not only through drug trafficking but also through complex fraud schemes, and this office is committed to aggressively prosecuting such crimes.”
Assistant Director in Charge Christorpher G. Raia of the FBI New York Field Office commented: “For more than a decade, Julio Montero Pinzon, a senior CJNG cartel leader, and Griselda Arredondo Pinzon allegedly defrauded timeshare owners before laundering the illicit proceeds to fund their terrorist organization. This alleged scheme spanned the globe and exploited thousands of victims, reflecting the cartel’s evolution of developing various mechanisms for criminal financing. 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.”
Special Agent in Charge Frank A. Tarentino of DEA New York Division added: “CJNG has repeatedly victimized our communities through widespread drug trafficking, ruthless violence, money laundering, fraud, and other criminal schemes. Their cartel operations extend well beyond Mexico, pumping poison into American streets, fueling addiction, tearing apart neighborhoods, and corrupting financial systems. Thanks to the relentless work of DEA’s Trident Initiative — an initiative built with our federal law enforcement partners and created specifically to target and dismantle drug cartels and their leadership — the DEA and our partners were able to pursue senior members like Montero Pinzon and Arredondo Pinzon, cutting off CJNG and its network of its illicit profits through money laundering and fraud. The DEA remains relentless in dismantling these cartels and our pursuit for justice. This is our global fight — and our promise to save lives.”
Special Agent in Charge Harry T. Chavis of IRS-CI's New York Field Office said: “Cartel de Jalisco Nueva Generacion ran this timeshare fraud scheme like a business, with each member playing a role — finding the investors to victimize, manipulating the docs and online sites, moving and hiding the money, and securing funds to purchase and distribute deadly narcotics into the United States. This massive, multi-million dollar fraud required timeshare owners to pay up front to sell or rent their timeshares, only to be left victim to the false promise of receiving money later. The CJNG cannot continue to operate with impunity — pocketing massive profits from narcotics trafficking and flat-out deception — which is why federal law enforcement will continue partnering in these investigations until this entire criminal organization is dismantled.”
According to court documents provided by authorities, since around 2012 CJNG has been running an "advance fee" scam aimed at timeshare property owners—many residing in or citizens of the United States—who were convinced they needed to pay fees or taxes upfront under false promises that they would receive funds later from selling or renting out their properties. Victims paid these advance fees but did not receive any returns as promised; some were then targeted again by individuals posing as lawyers or officials offering help recovering losses if further payments were made.
The operation involved call centers based in Mexico where staff solicited payments from victims using fraudulent claims about services related to selling or renting timeshares. Since approximately 2012 Montero Pinzon helped set up financial networks for collecting these funds while Arredondo Pinzon managed central office operations overseeing both call centers’ activity as well as receipt/laundering processes.
If convicted on all counts both defendants could face up to 20 years imprisonment per charge.
On February 20th CJNG was designated as both a Foreign Terrorist Organization (FTO) under section 219 of Immigration & Nationality Act (as amended) plus Specially Designated Global Terrorist pursuant Executive Order 13224 (as amended). Despite this designation—and knowledge thereof—Montero Pinzon continued engaging in fraudulent activities connected with CJNG after those designations took effect.
Further sanctions have followed from U.S Treasury Department’s Office of Foreign Assets Control (OFAC): On August 13th OFAC sanctioned Montero Pinzon for his involvement; on July 16th OFAC sanctioned Arredondo Pinzon for hers; overall more than seventy individuals/entities have been sanctioned by OFAC over participation in these schemes.
Between roughly 2019-2024 about six thousand U.S victims reported losing approximately $350 million due specifically to Mexican-based timeshare scams.
Trial Attorneys Brant Cook & Maryann McGuire from Civil Division’s Consumer Protection Branch together with Assistant U.S Attorneys Benjamin Weintraub & Andrew Wang (Eastern District NY) are prosecuting this case supported by Justice Department's Office International Affairs.
Victims aged sixty or older can seek assistance via National Elder Fraud Hotline at 1-833-FRAUD-11 operated by DOJ's Office for Victims Crime; information/resources available at DOJ Consumer Protection Branch, elder complaints may be filed with FTC, additional resources provided by DOJ OVC. Reports can also be submitted via IC3.gov; more help found on FBI Timeshare Fraud Victim Resource Page.
An indictment is merely an allegation; all defendants are presumed innocent unless proven guilty beyond reasonable doubt.
