Industry association supports new sanctions that will protect timeshare owners
WASHINGTON, Feb. 20, 2026 /PRNewswire-PRWeb/ -- ARDA, the trade association for the vacation ownership and timeshare industries, today released a statement praising the U.S. Department of the Treasury for its latest efforts to dismantle sophisticated timeshare fraud networks victimizing American citizens.
The U.S. Treasury's Office of Foreign Assets Control (OFAC) recently announced sanctions against a major timeshare fraud network led by the Cartel de Jalisco Nueva Generacion (CJNG). This coordinated action specifically targeted Kovay Gardens, a Mexican timeshare resort, along with five Mexican individuals and 17 companies associated with the criminal enterprise.
"ARDA applauds the Treasury's Offices of OFAC and FinCEN for their relentless efforts to combat timeshare fraud in Mexico," said an ARDA spokesperson. "By targeting the financial infrastructure of these cartels, the U.S. government is sending a clear message that the exploitation of American consumers will not be tolerated. These actions are vital in protecting the integrity of our industry, as well as the financial well-being of our owners."
The Treasury's investigation revealed a "vertically integrated fraud factory" where prospective buyers were lured into luxury sales pitches at Kovay Gardens. Once contracts were signed, the cartel-run operation allegedly overcharged credit cards and fed owner data into CJNG-run call centers to launch secondary investment and resale scams.
The Evolving Tactics of Fraudsters
Unscrupulous actors continue to make a living by scamming timeshare owners through increasingly deceptive methods. ARDA wishes to highlight the sophisticated nature of these schemes as detailed in the Treasury's recent findings:
- Mimicking Legitimacy: Fraudsters design convincing websites that mimic real U.S. companies to provide a veneer of authenticity while containing entirely false information.
- Official Misrepresentation: In many cases, criminals file fraudulent documents with state or local officials and even register with local Better Business Bureaus using false identities to appear legitimate.
- Identity Theft: When posing as stockbrokers or legal representatives, scammers often assume the identities of real registered professionals without their knowledge or consent.
- Persistent Re-victimization: These fraudsters are persistent; once a victim has been scammed, they are often contacted again by callers posing as lawyers or government officials—sometimes even claiming to represent OFAC itself—promising to recover lost funds for an upfront fee.
A United Front Against Fraud
ARDA has a long history of working with law enforcement communities to protect consumers and raise awareness of this epidemic in Mexico. Since 2023, ARDA has worked closely with the Federal Bureau of Investigation (FBI) to address the rampant fraud taking place. This collaboration, combined with vigilant work alongside State Attorneys General, creates a strong and united force dedicated to combating these transnational criminal networks.
The FBI estimates that between 2019 and 2023, approximately 6,000 U.S. victims reported nearly $300 million in losses to these schemes, though the true figure is likely much higher due to underreporting.
ARDA remains committed to educating timeshare owners and champions early and effective consumer education on legitimate timeshare exit avenues with several online resources – ResponsibleExit.com and TheTCPC.org — in an effort to prevent scams like these from taking root.
Additionally, ARDA encourages anyone who believes they have been targeted by a scam to contact their resort developer directly and report the activity to the FBI's Internet Crime Complaint Center (IC3).
About ARDA
ARDA is a nonprofit, nonpartisan, Washington, DC-based trade association for the vacation ownership and timeshare industries, representing more than 300 privately held and publicly traded companies. ARDA's members include developers, exchange companies, vacation clubs, timeshare resale and rental companies, timeshare owner associations (HOAs), resort management companies, industry vendors, consultants, and legal and regulatory experts.
Media Contact
Lauren McCommon, ARDA, 1 3212815356, [email protected], ARDA.org
SOURCE ARDA
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