SALT LAKE COUNTY, Utah, June 2, 2025 (Gephardt Daily) -- Two Utah family members with ties to south Texas, have been charged with allegedly conspiring to materially support a Mexican cartel previously designated as a foreign terrorist organization, conspiracy to commit money laundering and related smuggling charges, announced U.S. Attorney Nicholas J. Ganjei.
Prosecutors alleged that Maxwell Sterling Jensen, 25, Draper, and James Lael Jensen, 68, Sandy, have illegally imported tens of millions of dollars in crude oil. They say the two conspired to provide material support to the Cartel de Jalisco Nueva Generación (CJNG) in the form of U.S. currency. The Secretary of State designated CJNG as a foreign terrorist organization Feb. 20.
"This case underscores the more aggressive and innovative approach the Southern District of Texas is taking towards combating the scourge of drug cartels," said Ganjei, his quotes shared in a news release issued by the U.S. Department of justice.
"This strategy focuses not just on the traffickers and trigger-pullers directly employed by the cartels, but also targeting their confederates and enablers. Whether you are handing the cartel a gun, providing a car or safehouse for smugglers, or putting money in the cartel’s pocket, you will be held to account."
The Jensens allegedly operated Arroyo Terminals, an enterprise based in Rio Hondo.
Both are also charged with allegedly conspiring to conduct financial transactions to conceal and disguise the nature and source of the proceeds of illegally smuggled goods, crude oil. They also aided and abetted the fraudulent entry of approximately 2,881 shipments of the oil in violation of the Tariff Act, according to the charges.
"Cases like this highlight the often-dangerous relationships between alleged unscrupulous U.S. businesses and terrorist organizations," said Special Agent in Charge Craig Larrabee of Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) San Antonio.
"Through strong collaborations and relentless investigative work, we and our partners exposed a possible large-scale operation that allegedly attempted to move millions in illicit crude oil and launder the proceeds. HSI remains committed to protecting our economy and holding offenders accountable."
Acting Special Agent in Charge William Kimbell of DEA - Houston shared comments:
"What began as a Drug Enforcement Administration (DEA) drug trafficking investigation evolved into a multifaceted case involving an alleged complex criminal operation generating millions of dollars from crude oil – the largest funding source for Mexican drug cartels.
"Given the charges have profound implications for both the United States and Mexico, we will continue to explore all leads and identify any believed to be involved. The collaboration with federal law enforcement, prosecutors, and state agencies proved critical to unraveling these alleged crimes and will continue until such operations are destroyed."
At the time of the initial arrests, authorities seized four tank barges containing crude oil, three commercial tanker trucks, an Arroyo Terminal pickup truck and one personal vehicle. The Arroyo Terminal property in Rio Hondo, crude oil contained Arroyo Terminal storage tanks and additional real properties are also sought for forfeiture. The superseding indictment also contains notice that the United States will seek a $300 million money judgment upon conviction.
The conspiracies to provide material support and to commit money laundering both carry a possible prison term of up to 20 years. If convicted of aiding and abetting the smuggling of goods into the United States and doing so by means of false statements, both men could also face up to 10 and five years, respectively. James Jensen also faces one count of money laundering spending which carries an additional 10 years in prison, upon conviction.
With the exception of the money laundering charge which has the possibility of up to a $500,000 fine or twice the value of the property involved, the remaining counts carry a maximum $250,000 potential fine.
