>> Continued From the Previous Page <<
Federal investigators allege James Jensen led the illegal enterprise, knowingly collaborating with his wife and sons to launder massive proceeds from illicit crude oil sales.
“James Jensen conspired with his wife, Kelly Jensen, and two of his sons, Maxwell and Zachary Jensen, to launder proceeds from sales of illegally imported crude oil,” the federal arrest warrant reads.
“The payments for this crude oil were directed to businesses in Mexico that operate only through the permission of Mexican criminal organization. James Jensen was aware that the payments he made were going to these Mexican criminal organizations.”
The indictment, unsealed on April 17 and obtained by The Gateway Pundit, outlines a stunning operation involving nearly 3,000 shipments of smuggled oil. The Jensens are accused of fraudulently labeling crude oil as “waste oils” or other distillates to evade U.S. import laws under the Tariff Act—effectively hiding the oil’s true origin and purpose.
WATCH:
Federal prosecutors also claim the family’s laundering efforts extended far beyond paperwork trickery. The money trail, they say, was intentionally buried through a tangled web of fake business entities, shell companies, and high-end purchases—including exotic cars and luxury real estate.
The Department of Justice has leveled a five-count indictment against the family:
- Count One: All four Jensens face charges for conspiring to launder money linked to smuggling.
- Counts Two and Three: James and Max Jensen are accused of facilitating smuggling operations and submitting falsified customs documents.
- Counts Four and Five: James and Kelly Jensen allegedly used criminal proceeds to buy luxury items, including writing hefty cashier’s checks to car dealerships.
Court documents confirm that each family member has pleaded not guilty.
But the government is already pursuing one of the biggest forfeiture actions of the year, aiming to seize millions in assets tied to the alleged scheme. Among the items prosecutors are targeting:
- Four enormous oil tank barges
- Three top-tier Peterbilt trucks
- A fleet of luxury vehicles, including a 2023 Corvette Stingray and a 2024 GMC Sierra
- A sprawling 12.69-acre estate in Rio Hondo, Texas
- The family’s multimillion-dollar Draper, Utah mansion
- Multiple bank accounts linked to suspicious companies, including Arroyo Terminals, LLC and Big Hog Energy, LLC
On May 6, Magistrate Judge Karen Betancourt approved reduced bail for the elder Jensens: $200,000 for James and $100,000 for Kelly, each requiring only 10% in cash. The judge also relaxed their travel restrictions, allowing them to move freely within southern and western Texas as they prepare their legal defense.
Maxwell Jensen was granted a significantly higher bond—$750,000—with a $75,000 deposit paid on May 9.
The Jensens are scheduled to appear again in federal court in Brownsville, Texas, by Thursday, May 8. Their sons have already had their initial appearances.
If convicted, each member of the family faces a maximum sentence of 20 years in federal prison—a potential end to a once-luxurious life now engulfed by scandal, cartel connections, and federal prosecution.
