Meanwhile, heavily armed Mexican security forces kept up their battle with cartel gunmen following the killing that sparked a surge in violence and put the country on edge. Cartel fighters continued to block roads as smoke rose on the outskirts of the town in the state of Jalisco.

The Jalisco New Generation Cartel’s reprisal against Mexican authorities for the killing of its leader highlights the threat of the powerful group armed with military weapons and billions in wealth.

The U.S. Treasury Department has sanctioned Kovay Gardens, a beachfront resort in Mexico's Nayarit state, accusing it of operating as part of a fraud network directed by the Cártel Jalisco Nueva Generación.

The U.S. Treasury Department has issued sanctions against five individuals, a timeshare resort and another 17 companies with alleged ties to the Jalisco New Generation Cartel (CJNG).

The sanctions target the Kovay Gardens resort near Puerto Vallarta, Mexico, which allegedly generates money for the Jalisco Nueva Generación cartel.