Home » James Lael Jensen Indicted in $300M Oil Smuggling Scheme

James Lael Jensen Indicted in $300M Oil Smuggling Scheme

Utah couple accused of laundering money for Mexican cartels

by Sophia Bennett

Sandy, Utah — The luxury mansion of James Lael Jensen and Kelly Anne Jensen became the site of a federal raid in late April, as U.S. Marshals arrested the couple in connection with a sprawling $300 million oil smuggling and money laundering operation.

According to KSL-TV, the Jensens were taken into custody at their 27,000-square-foot, $9 million estate in Sandy, Utah. That same day, federal agents raided Arroyo Terminals, James Jensen’s business in Rio Hondo, Texas — just miles from the Mexican border.

The couple, along with their sons Maxwell and Zachary Jensen, have been indicted in the U.S. District Court for Southern Texas on charges related to money laundering and smuggling crude oil from Mexico.

The Alleged Scheme
Federal documents outline a complex operation that began in May 2022, involving the import of nearly 2,900 shipments of crude oil falsely labeled as waste oils or petroleum distillates.

Payments for these shipments, investigators claim, were routed to Mexican businesses operating with the permission of criminal organizations. The indictment alleges James Jensen knew the money supported Mexican cartels, making the operation not just illegal but tied to transnational crime.

Seized Assets
If proven, the illegal gains include not only the Utah mansion but also:

A second property in Draper, Utah

Multiple luxury vehicles

Oil tankers and the Arroyo Terminals business

Bank accounts and financial assets
These collectively amount to the $300 million tied to the alleged scheme.

Wider Implications
The case sheds light on the massive scale and impact of illicit crude oil trade, which the Transnational Alliance to Combat Illicit Trade estimates is worth $11.9 billion annually. This black-market industry is not just a financial crime; it:

Disrupts oil supply chains

Delays legitimate shipments

Raises gas prices for everyday consumers

Supports organized crime and terrorist groups

Smuggled oil can also reduce gasoline quality, posing safety risks for vehicles and public infrastructure.

What’s Next?
The indictment marks a major effort by U.S. law enforcement to crack down on oil smuggling and financial crimes tied to cartel activity. All charges remain unproven in court, and the defendants are presumed innocent unless convicted.

Shutting down such operations, authorities say, is vital not only for the economy but for national and global security.

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