Insights

In a significant criminal case unfolding in the United States, two family members from Utah, James Jensen and his son Maxwell Jensen, have been charged with multiple offenses involving support for a Mexican cartel, the Jalisco New Generation cartel, which was designated as a Foreign Terrorist Organization by the U.S. government earlier this year. The charges arise from allegations that the Jensens engaged in an elaborate smuggling operation that reportedly trafficked nearly 3,000 shipments of stolen crude oil into the U.S. over a span of years, specifically targeting a timeframe between May 2022 and 2025, with a total monetary value of around $300 million. Authorities, including the Department of Justice, articulated that the Jensens conspired to disguise the criminal origins of the oil by mislabeling it as ‘waste’ to circumvent U.S. import regulations. Undercover operations led by the Drug Enforcement Administration initially focused on drug trafficking, but investigations expanded to include oil as a lucrative funding stream for cartels. The Jensens allegedly utilized their family-owned business, Arroyo Terminals, to facilitate this smuggling scheme, which also involved other companies linked to them. After being arrested at their multimillion-dollar residence, the Jensens pleaded not guilty to the charges against them. Should they be found guilty, they face over 20 years of imprisonment and substantial financial penalties. Furthermore, as federal investigations continue, prosecutors intend to pursue a $300 million judgment if convictions are secured. The implications of these allegations extend beyond individual charges, highlighting the tangible connections between organized crime and legitimate businesses in the oil industry across international borders. Alongside their father and brother, the Jensens faced charges of conspiracy to provide material support to a designated terrorist organization. The case has drawn attention to the broader issue of cartel operations impacting both the U.S. and Mexico, showcasing the multifaceted nature of criminal enterprises involved in drug and oil trafficking.