Senior Member of Mexican Cartel Indicted on Wire Fraud, Money Laundering, and Terrorism Charges for Operating Massive Timeshare Properties Fraud Scheme

BROOKLYN, NY - Earlier today, an indictment was unsealed in federal court in Brooklyn, charging Julio Cesar Montero Pinzon (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 (Arredondo Pinzon), for their roles in an international fraud scheme organized and controlled by CJNG that targeted Americans who own timeshare properties in Mexico. Montero Pinzon and Arredondo Pinzon are each charged with conspiracy to commit wire fraud and conspiracy to commit money laundering. In addition, Montero Pinzon is charged with conspiracy to provide and providing material support to a foreign terrorist organization. CJNG is a transnational criminal group based in Mexico. The defendants are Mexican nationals and are not in U.S. custody.

CJNG is a transnational criminal group based in Mexico. On February 20, 2025, CJNG was designated as a Foreign Terrorist Organization (FTO) and a Specially Designated Global Terrorist. Montero Pinzon continued to engage in CJNG's timeshare fraud and in the laundering of victim funds derived from that fraud after CJNG was designated as an FTO and with knowledge of CJNG's designation.

United States Attorney General Pamela Bondi; Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Brett A. Shumate, Assistant Attorney General of the Justice Department's Civil Division; Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); Frank A. Tarentino III, Special Agent in Charge, Drug Enforcement Administration New York Division (DEA New York); and Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI New York), announced the indictment.

"This senior leader of a foreign terrorist organization allegedly defrauded innocent citizens to fuel terrorism against the American people," stated Attorney General Bondi. "The CJNG and other cartels are on notice: no scheme, plot, or conspiracy will evade the reach of this Justice Department."

"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," stated United States Attorney Nocella. "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."

Mr. Nocella also expressed his appreciation to the Justice Department's Consumer Protection Branch and National Security Division, and U.S. Customs and Border Protection, New York Field Office, for their invaluable assistance during the investigation.

"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," stated FBI Assistant Director in Charge Raia. "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."

"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," stated DEA New York Special Agent in Charge Tarentino. "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."

"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," stated IRS-CI New York Special Agent in Charge Chavis. "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."

As alleged in the indictment, since approximately 2012, CJNG perpetrated an "advance fee" fraud scheme targeting owners of timeshare properties in Mexico, including many cities in Jalisco. As part of the scheme, timeshare owners, many of whom were residents and citizens of the United States, were fraudulently induced to pay money up front either to sell or rent their timeshares under the pretext of fees and taxes, in exchange for false promises of receiving money later. Despite paying the advance fees, the victim timeshare owners did not receive the funds as promised and were unable to recoup their advance fee payments. The fraud scheme was multi-layered, and involved follow-on schemes in which the fraudsters contacted victim timeshare owners and claimed to be lawyers or government officials who could help the victims recover their lost funds, so long as they paid additional advance fees.

The timeshare fraud scheme perpetrated by CJNG was operated out of various call centers in Mexico, where fraudsters contacted and solicited timeshare owners. Since approximately 2012, Montero Pinzon participated in the creation and management of a financial network for receiving and laundering funds obtained from victims of CJNG's timeshare fraud scheme. Arredondo Pinzon worked at a CJNG-controlled central office that oversaw the operations of the call centers and oversaw the receipt and laundering of victim funds.

The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to 20 years' imprisonment on each count.

Additionally, on August 13, 2025, U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) sanctioned Montero Pinzon for his role in CJNG's timeshare fraud scheme. Arredondo Pinzon was previously sanctioned by OFAC for her role in CJNG's timeshare fraud scheme. To date, OFAC has sanctioned over 70 individuals and entities based on their participation in CJNG's timeshare fraud. Between approximately 2019-2024, approximately 6,000 U.S. victims have reported losses of approximately $350 million attributable to timeshare fraud schemes in Mexico.

The government's case is being handled by the Office's Business and Securities Fraud Section and International Narcotics and Money Laundering Section, with the Justice Department Civil Division's Consumer Protection Branch. Assistant United States Attorneys Benjamin Weintraub and Andrew Wang are in charge of the prosecution with Trial Attorneys Brant Cook and Maryann McGuire. Assistant United States Attorney Claire S. Kedeshian of the Office's Asset Recovery Section is handling forfeiture matters.

The case is part of the work of the Office's Transnational Criminal Organizations Strike Force.

Complaints are often under-reported. Victims are encouraged to file a complaint at IC3.gov. Additional resources for victims are available at: FBI Timeshare Fraud Victim Resource Page

The Defendants:

JULIO CESAR MONTERO PINZON (also known as "El Tarjetas," "Moreno," "El Chess," "Cesar Hernandez Jiminez," and "CH Jiminez")
Age: 43
Puerto Vallarta, Mexico

GRISELDA MARGARITA ARREDONDO PINZON
Age: 35
Puerto Vallarta, Mexico

E.D.N.Y. Docket No. 25-CR-169 (ARR)