The Biden Government sanctions a timeshare fraud network led by the Mexican cartel Jalisco Nueva Generación

US Treasury Department announced sanctions against Argentine group Goldpharma 2:25

(CNN) --

The Biden administration has sanctioned eight Mexican companies involved in a timeshare fraud scheme for the benefit of the Jalisco cartel, a notorious drug trafficking organization that authorities say traffics a "significant proportion" of illegal fentanyl and other drugs entering the United States.

According to the Treasury Department, the perpetrators of the fraud "sometimes" falsely signed that they represent US government entities. The sanctions on Thursday were accompanied by an alert issued by the Office of Foreign Assets Control (OFAC, for its to "raise public awareness of phone, email, and letter scams involving individuals falsely claiming to represent OFAC and requesting payment."

OFAC does not collect this type of payment from the public.

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“As the CJNG [Cartel de Jalisco Nueva Generación] has consolidated territory in the last decade, it has added other crimes to core drug trafficking activity,” OFAC Director Andrea Gacki said in a statement.

“In tourist destinations like Puerto Vallarta, the CJNG has become heavily involved in timeshare fraud, which often targets US citizens.

This crime, which can rob victims of their life savings, generates another important source of revenue for the cartel and strengthens their overall criminal enterprise.

Today's action exposes this CJNG scheme and also serves as a warning to potential victims, many of whom are elderly people,” he added.

The eight companies sanctioned this Thursday claim to be financial services or real estate companies and are based in Puerta Vallarta or Guadalajara, according to the Treasury.

The eight companies are Fordtwoo Administrative Services, SA de CV, Badeva Integration, SA de CV, JM Providers Office, SA de CV, Promotora Vallarta One, SA de CV, and Recservi, SA de CV, Title I Corporate, SA de CV, Corporativo TS Business Inc, SA de CV, and TS Business Corporativo, SA de CV

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Treasury has previously issued sanctions on cartel-related entities and individuals critical to their operations.

Last week, the US government also took action against a network of members of the Sinaloa Cartel and associated entities for their involvement in supplying chemicals to "super labs" that produce illicit drugs such as fentanyl and methamphetamine for the cartel once led by notorious drug lord Joaquín "El Chapo” Guzmán.

Jalisco New Generation Cartel