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A US veteran fell victim to a scam orchestrated by a powerful Mexican drug cartel, losing nearly $900,000.

US Veteran Gets Scammed by Powerful Mexican Drug Cartel

According to reports by NewsNation and AARP, the scam began with a call in October 2022 that offered to buy the Lake Tahoe timeshare of the retired law enforcement officer and veteran, who was only named "James," for more than double its original price.

The call, allegedly from the Jalisco New Generation Cartel-run call center in Mexico, told James that a wealthy Mexican national wanted to buy the timeshare at $22,470.

The veteran told AARP he and his wife bought the timeshare in Lake Tahoe in 1996 at $8,900. The caller, named Michael, convinced James and his wife to pursue the sale.

The couple was asked to pay various fees that were allegedly required before the buyer could take ownership. These fees were initially refunded to an online escrow account as promised.

However, over the next few months, more fees and calls popped up, including one claiming to be from Banco de Mexico, who asked for a $16,155 fee.

While dealing with his wife's cancer diagnosis, James continued to pay as the demands grew, ballooning to almost a million dollars. That's the time he contacted a lawyer for help and realized he had been scammed by the Jalisco cartel exploiting elderly timeshare owners.

The Jalisco Cartel on Timeshare Fraud

The Jalisco cartel, one of the most powerful drug cartels in Mexico, reportedly diversified into timeshare fraud in 2010 as another source of its revenue, employing call centers with English-speaking staff to deceive Americans.

This lucrative scam has led to substantial financial losses for victims, with little chance of recovering their money. According to USA Today, the US Treasury Department has already sanctioned 40 Mexican firms connected with the Jalisco cartel and its telemarketing scam, but only a few individuals have been arrested.