A Utah father and son with Texas ties have been indicted on charges of conspiring to provide material support to the Cartel de Jalisco Nueva Generación (CJNG), a Mexican organization recently designated as a foreign terrorist entity.
The superseding indictment alleges that Maxwell Sterling Jensen, 25, of Draper, Utah, and James Lael Jensen, 68, of Sandy, Utah, funneled U.S. currency to the CJNG.
U.S. Attorney Nicholas J. Ganjei announced the charges, emphasizing a more aggressive approach to combating drug cartels by targeting not only direct perpetrators but also their 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,” Ganjei stated.
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The Jensens are accused of operating Arroyo Terminals, an enterprise based in Rio Hondo, Texas. In addition to providing material support, they face charges of conspiring to commit money laundering by concealing the proceeds of illegally smuggled crude oil. They also allegedly aided and abetted the fraudulent entry of approximately 2,881 shipments of oil, violating the Tariff Act.
Special Agent in Charge Craig Larrabee of Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) San Antonio highlighted the “often-dangerous relationships between alleged unscrupulous U.S. businesses and terrorist organizations.” He noted that the investigation exposed a “possible large-scale operation that allegedly attempted to move millions in illicit crude oil and launder the proceeds.”
The investigation, initially a drug trafficking probe by the Drug Enforcement Administration (DEA), evolved into a complex case uncovering a sophisticated criminal operation. Acting Special Agent in Charge William Kimbell of DEA – Houston described crude oil as the “largest funding source for Mexican drug cartels” and affirmed the ongoing commitment to identifying all those involved.
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FBI Special Agent in Charge Aaron Tapp of the San Antonio Field Office reiterated the FBI’s priority of depriving foreign terrorist organizations of funding. Similarly, acting Special Agent in Charge Lucy Tan of IRS Criminal Investigation’s Houston Field Office emphasized IRS-CI’s role in tracing the money trail and shutting down illicit cash flows.
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 a personal vehicle. The Arroyo Terminal property in Rio Hondo, along with its crude oil storage tanks and additional real properties, are also sought for forfeiture. The superseding indictment further indicates the United States will seek a $300 million money judgment upon conviction.
The conspiracy to provide material support and the conspiracy to commit money laundering each carry a potential prison term of up to 20 years. Aiding and abetting the smuggling of goods into the United States could result in up to 10 years, and false statements up to five years. James Jensen faces an additional count of money laundering spending, which carries an extra 10 years upon conviction.
With the exception of the money laundering charge, which could incur a fine of up to $500,000 or twice the value of the property involved, the remaining counts carry a maximum potential fine of $250,000.
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