u.s. treasury department

MEXICO CITY — The U.S. Treasury Department imposed sanctions Wednesday on more than a dozen Mexican companies and four people it says worked with a powerful drug trafficking cartel to scam elderly Americans in a multimillion-dollar timeshare fraud.

The network of 13 businesses in areas near the seaside tourist destination of Puerto Vallarta were accused of working with the Jalisco New Generation Cartel, a group designated by the U.S. government as a foreign terrorist organization.

In a scheme dating back to 2012, four cartel associates are accused of defrauding American citizens of their life savings through elaborate rental and resale schemes, according to a Treasury statement. In the span of six months, officials said they were able to document $23.1 million sent from mostly people in the U.S. to scammers in Mexico.

The sanctions imposed by the administration of President Trump would prohibit Americans from doing business with the alleged cartel associates and block any of their assets in the U.S.

“We will continue our effort to completely eradicate the cartels’ ability to generate revenue, including their efforts to prey on elderly Americans through timeshare fraud,” U.S. Treasury Secretary Scott Bessent said in a statement.

In past years, the administration of then-President Biden also sanctioned associates and accountants related to such schemes.

The Wednesday announcement was made amid an ongoing effort by the Trump administration and the Mexican government to crack down on cartels and their diverse sources of income.

The U.S. Treasury Department has slapped sanctions on a variety of people from a Mexican rapper who it accused of laundering cartel money to Mexican banks facilitating money transfers in sales of precursor chemicals used to produce fentanyl.

The announcement also came one day after Mexico sent 26 high-ranking cartel figures to the U.S. in the latest major deal with the Trump administration as Mexico tries to avoid threatened tariffs.

RIO DE JANEIRO — The U.S. Treasury Department on Wednesday announced sanctions on Brazilian Supreme Court Justice Alexandre de Moraes over alleged suppression of freedom of expression and the ongoing trial of former President Jair Bolsonaro.

De Moraes oversees the criminal case against Bolsonaro, who is accused of masterminding a plot to stay in power despite his 2022 election loss to current President Luiz Inácio Lula da Silva.

“De Moraes is responsible for an oppressive campaign of censorship, arbitrary detentions that violate human rights, and politicized prosecutions — including against former President Jair Bolsonaro,” U.S. Treasury Secretary Scott Bessent said in a statement.

The Treasury cited the Global Magnitsky Human Rights Accountability Act, which targets perpetrators of human rights abuse and corrupt officials, as its authority to issue the sanctions.

The decision orders the freezing of any assets or property De Moraes may have in the U.S.

Brazil’s Supreme Court and the presidential palace did not immediately respond to a request for comment.

Wednesday’s announcement follows the U.S. State Department’s announcement of visa restrictions on Brazilian judicial officials, including De Moraes, on July 18.

It also comes after President Trump announced a 50% tariff on Brazilian imported goods that is set to take effect Friday. In a letter announcing the tariff, Trump explicitly linked the import tax to what he called the “witch hunt” trial of Bolsonaro that is underway in Brazil.

Days later, Bolsonaro was ordered to wear an ankle monitor after being deemed a flight risk.

Bolsonaro’s son Eduardo celebrated the Treasury’s announcement on X, calling it a “historic milestone” and a warning that “abuses of authority now have global consequences.”

Eduardo Bolsonaro relocated to the U.S. in March and is under investigation for allegedly working with U.S. authorities to impose sanctions against Brazilian officials.

Hughes writes for the Associated Press.