Data from Mexico City’s Public Property Registry and complaints compiled by the capital’s Prosecutor’s Office show that between 2018 and 2024, more than 2,500 cases of property dispossession were reported in the city. Iztapalapa, Gustavo A. Madero, and Tlalpan remain the most affected boroughs.
Prosecutor’s Office Investigations
Authorities have uncovered corruption networks in Benito Juárez, where former borough officials extorted real-estate developers. In 2023, it was reported that ex-officials obtained over 15 million pesos from the developers of City Towers Green and City Towers Black in exchange for authorizing the construction of 32 additional apartments beyond what regulations allowed.
The Machinery of the So-Called “Real Estate Cartel”
Colluded officials. Personnel from borough governments, Urban Development offices, and Legal departments forge records, alter zoning designations, or issue irregular permits in exchange for bribes.
Shock groups. Cells linked to La Unión Tepito, the Tláhuac Cartel, or factions of Los Rodolfos carry out violent evictions under political protection. They also invade properties.
Corrupt notaries and lawyers. They fabricate witnesses, deeds, and forged legal documents. In 2023, the Prosecutor’s Office dismantled a network in Xochimilco dedicated to producing fake property deeds.
Gray-zone investors. Shell companies and real-estate developers purchase stolen lots at low cost and integrate them into new development projects.
The Dispossession Pipeline
Target selection: properties in litigation, homes owned by elderly residents, or lots in areas undergoing urban renewal.
Document fabrication: collusion with public officials to generate permits, possession certificates, or construction documents.
Eviction by intimidation: threats, beatings, or intervention by shock groups.
Final laundering: sale to third parties or incorporation into social-housing programs. In Iztapalapa, stolen lots have been found re-entering these schemes.
The Root of the Problem: Corruption Inside Borough Governments
Investigations by the Mexico City Prosecutor’s Office (FGJ-CDMX) identified a corruption network in the Benito Juárez borough, involving former officials who partnered with developers using irregular permits and construction licenses in exchange for bribes and discounted apartments.
The Social and Economic Cost
The Notary College estimates 137 complaints related to forged documents through 2025.
According to the IMCO, recovering a stolen property costs more than 300,000 pesos in legal fees and administrative procedures.
The Crime Reservoir: The Informal Workforce That Feeds These Networks
Numbers That Reveal the Size of the Recruitment Pool
Data from INEGI (2023) and the Mexico City Labor Secretariat estimate:
- More than 500,000 street vendors, 30% operating without permits on major roads.
- Around 20,000 “franeleros” (street parking attendants).
- About 8,000 “vagoneros” working in the Metro and Metrobús systems.
Many come from marginalized areas such as Iztapalapa, Nezahualcóyotl, and Tláhuac. Their social conditions make them easy targets:
- 78% have only basic schooling.
- 44% live on less than 6,000 pesos per month.
From Informal Work to Crime: The Recruitment Path
1. Capture
Offering fake permits, “social aid,” or food baskets in exchange for loyalty — often connected to vote-buying or coercion — is a recurrent practice in Mexican politics. Accusations have been leveled across parties, including PRI, PAN, PRD, and Morena.
General Context. The Office for Electoral Crimes (FEPADE) has warned repeatedly about these schemes. Federal and local authorities issue alerts during election periods, when social-aid programs are paused to prevent political manipulation.
Recent Operations (February 2025). Security forces seized large quantities of forged documents and production materials in downtown Mexico City — specifically on República de Chile, Tacuba, and Palma Norte streets. The findings included:
- Drugs and a firearm
- Over 200 SEP seals for fake academic degrees
- 200 INE-branded ID card sleeves
- 20 packages of security paper used for birth and marriage certificates
- 100 sleeves for firearm-carrying permits
- 40 INE templates with different names and addresses
- Fake IDs, driver’s licenses, passports, invoices, and checkbooks
- Computers, printers, and cutting equipment
Specific Complaints. Reports include the seizure of tons of food baskets allegedly purchased by PAN-PRI coalition candidates in Álvaro Obregón for vote coercion.
Fraud Variants. Criminals sometimes impersonate government workers to scam citizens — especially elderly people — offering fake aid packages and stealing personal and banking data.
2. Indoctrination
Recruits are given a narrative of “resistance” to justify illegal acts. In reality, they are trained to:
- Monitor areas (halconeo)
- Participate in property invasions, as occurred in Xoco and Narvarte in 2022
- Guard drug-selling points: 15% of those arrested for street-level drug sales in Mexico City were former franeleros
3. Promotion
The most loyal individuals become extortion collectors (“cobradores de piso”) or intermediaries with groups like La Unión Tepito.
The Political–Criminal Alliance
According to Inteligencia Pública, 12 leaders of street-vendor groups are under investigation for money-laundering operations in boroughs such as Iztacalco and Cuauhtémoc.
Voices From the Ground
María, 38, former Metro vendor on Line 3:
“They told me that if I sold drugs inside the train car, they’d give me a shop space. Now I have two sons in prison.”
José, 45, parking attendant in the city center:
“People from the borough office paid us 500 pesos to bring supporters to their events. Later they asked us to ‘watch over’ abandoned houses.”
