Overview
- Treasury designated Kovay Gardens in La Cruz de Huanacaxtle, Nayarit, for operating under the direction of the Jalisco New Generation Cartel.
- Sanctions also hit five Mexican individuals and 17 companies connected to the network, freezing property and assets held in the U.S. or controlled by American entities.
- Officials say the resort used deceptive sales pitches, overcharged credit cards, and fed customer lists to cartel-run call centers that executed resale and recovery scams.
- FinCEN and the FBI cite more than $300 million in flagged transactions and reported losses by thousands of U.S. victims since 2019, while warning the true toll is higher.
- The move is part of a broader effort to cut off CJNG’s non-narcotics revenue streams, with the cartel designated by the U.S. as a terrorist organization.