Puerto Vallarta-area timeshare was a cartel-run fraud engine, Treasury Department says

February 19, 2026

TL;DR

Kovay Gardens, a timeshare resort near Puerto Vallarta, is accused by U.S. officials of being a cartel-run fraud engine.
The U.S. Treasury Department sanctioned Kovay Gardens and associated individuals and companies for defrauding U.S. citizens, many of whom lost life savings.
The resort allegedly lured victims with false promises, overcharged credit cards, and fed data to CJNG-run call centers for further scams.
Victims were often contacted again by scammers posing as recovery agents or threatened with legal trouble if they didn't pay more.
CJNG has consolidated control over timeshare scams in the Puerto Vallarta region for over a decade.
CJNG commander Audias Flores Silva reportedly oversaw timeshare fraud networks in Nayarit.
U.S. alerts have generated over 850 suspicious activity reports totaling about $330 million in potentially fraudulent transactions.
The FBI reports nearly $300 million in losses from 2019-2023, with an additional $50 million in 2024.
These sanctions highlight CJNG's diversification into financial fraud beyond narcotics.

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