Sanctioning Timeshare Resort Linked to CJNG for Defrauding U.S. Citizens

State Dept EB Bureau

Filed February 19th, 2026

Detected March 1st, 2026

Summary

The U.S. Department of State announced sanctions against Kovay Gardens, a Mexican timeshare resort, and associated individuals and companies for their involvement in timeshare fraud schemes orchestrated by the Cártel de Jalisco Nueva Generación (CJNG). This action was taken under executive orders targeting illicit drug proliferation and terrorism.

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What changed

The U.S. Department of State, in conjunction with the Treasury Department, has imposed sanctions on Kovay Gardens, a Mexican timeshare resort, along with five individuals and 17 companies linked to the Cártel de Jalisco Nueva Generación (CJNG). This action, taken under Executive Orders 14059 and 13224, targets the financial operations of CJNG, which generates revenue through various illicit activities including timeshare fraud, and further endangers Americans through fentanyl trafficking.

This designation will likely impact entities involved in international financial transactions with the sanctioned parties, potentially leading to asset freezes and prohibitions on dealings. U.S. citizens and businesses should exercise extreme caution and conduct thorough due diligence to avoid engaging with any of the sanctioned entities or individuals to prevent potential violations of U.S. sanctions law. The Treasury Department's press release provides further details on the specific sanctions and their implications.

What to do next

Review Treasury's press release for details on sanctioned entities and individuals.
Update due diligence procedures to screen against newly sanctioned parties.
Ensure no business or financial transactions are conducted with Kovay Gardens or the listed associated entities and individuals.

Penalties

Sanctions typically involve asset freezes and prohibitions on dealings with the designated entities and individuals.

Source document (simplified)

Home Office of the Spokesperson Press Releases … Sanctioning CJNG-Controlled Timeshare Resort for Defrauding U.S. Citizens hide

Sanctioning CJNG-Controlled Timeshare Resort for Defrauding U.S. Citizens

Press Statement

Thomas "Tommy" Pigott, Principal Deputy Spokesperson

February 19, 2026

The United States is sanctioning Kovay Gardens, a Mexican timeshare resort, along with five Mexican individuals and 17 Mexican companies linked to timeshare fraud schemes orchestrated by the Cártel de Jalisco Nueva Generación (CJNG).

Last year, the Trump Administration designated CJNG as both a Foreign Terrorist Organization (FTO) and a Specially Designated Global Terrorist (SDGT). CJNG generates illicit revenue through drug trafficking, fuel theft, extortion, human trafficking, and timeshare fraud, and further endangers Americans by trafficking illicit fentanyl, which President Trump rightly designated as a weapon of mass destruction. The United States remains committed to protecting the American people from vicious FTOs and SDGTs.

Today’s action was taken pursuant to Executive Order (E.O.) 14059, which targets the proliferation of illicit drugs and their means of production, and E.O. 13224, as amended, which targets terrorists and their supporters.

For more information about today’s sanctions, please see Treasury’s press release.