U.S. law enforcement officials announced 100 million dollars in rewards for Cartel Jalisco Nueva Generación leaders, targeting cartel-linked vacation ownership fraud networks in Puerto Vallarta and Nayarit. Prosecutors filed new drug, weapons, and timeshare scam charges against five figures, while international sanctions and visa revocations expand against criminal associates.
Federal law enforcement agencies launched a coordinated crackdown on the Cartel Jalisco Nueva Generación, pairing multi-million dollar bounties with sweeping criminal indictments that target both the cartel’s narcotics operations and its vacation-fraud networks. Prosecutors unveiled the actions, emphasizing that criminal enterprises and public corruption remain inextricably linked.
Millions in Rewards and New Indictments Target Cartel Leadership
The U.S. Assistant Attorney General Tyson Duva announced new drug and weapons trafficking charges against five leaders: Julio Alberto Castillo Rodríguez, also known as "Chorro; Hugo Gonzalo Mendoza, known asEl Sapo; Ricardo Luis Velasco, known asTripa; Julio César Montero Pinzón, known asTarjetas; and Carlos Andrés Rivera, known asLa Firma".
The State Department elevated reward amounts for key figures, setting the bounty for Juan Carlos Valencia González—identified by the DEA as the organization’s new leader—at 25 million dollars. Bounties ranging from 10 million to 15 million dollars were assigned to other figures, while the government also restricted or revoked entry visas for 65 individuals identified as family members or business associates of sanctioned cartel operatives.
If they traffic lethal drugs, if they profit from the suffering of others, or if they use public office to protect the cartels, this is the warning: The DEA is coming for you. No title, office, or political connection will protect you. Terrance Cole, head of the Drug Enforcement Administration
Timeshare Fraud Schemes Target Elderly American and Canadian Tourists
Beyond traditional drug trafficking and fuel theft—which has generated more than 400 million dollars for the syndicate—federal authorities targeted a financial front involving fraudulent vacation ownership schemes. Prosecutors filed superseding indictments for timeshare fraud against Montero Pinzón, Rivera, and Griselda Margarita Arredondo Pinzón.
The fraudulent network specifically preys on elderly citizens from the United States and Canada. Victims are contacted with offers to sell or recover existing vacation packages, only to face demands for additional fees under the guise of taxes, processing costs, or administrative commissions. Investigators found that approximately more than 6,000 individuals in the United States alone fell victim to schemes operated through entities such as Kovay Gardens in Nayarit and Puerto Vallarta.
Sanctions, Asset Freezes, and Corporate Aliases in Nayarit
Following actions by the Office of Foreign Assets Control and Mexico’s Financial Intelligence Unit, authorities froze bank accounts and imposed sanctions on 17 companies tied to the criminal network. Despite the formal closure and web shutdown of sanctioned properties like Kovay Gardens—founded by Carlos Humberto Rivera Miramontes—victims reported that illicit collection efforts persisted through newly formed aliases.
Clients received communications directing them to alternative channels operated under names such as Selvara Signature Collection and VG Desarrollos de la Bahía. Investigative reports documented cases where secondary front companies, including Blue Sky Realty and Title Escrow Services, extracted thousands of dollars in purported state taxes, utilizing fake financial documents and nonexistent cross-border bank accounts.
Bilateral Cooperation and Ongoing Enforcement Priorities
DEA head Cole acknowledged regular communication with Mexican Security Secretary Omar García Harfuch, highlighting ongoing cross-border cooperation. U.S. officials pointed to recent enforcement milestones, including a methamphetamine seizure in Spain and an operation led by Mexican security forces that resulted in the death of Nemesio Oseguera Cervantes.
As federal prosecutors maintain pressure on the organization’s financial infrastructure, investigations into deceptive vacation ownership networks remain active across tourist corridors in Nayarit and Jalisco, leaving affected property owners facing complex legal hurdles to recover lost funds.