U.S. prosecutors have indicted a Texas oil terminal family, the Jensens, for allegedly receiving 2,881 shipments of smuggled oil connected to the Cartel de Jalisco Nueva Generación (CJNG). James L. Jensen, his wife Kelly A. Jensen, and their sons have been charged in a scheme that reportedly involved smuggling operations running since May 2022. This case reflects a broader effort by U.S. authorities to combat drug cartels and their enablers, particularly under the Trump administration, which designated CJNG and other groups as terrorist organizations.
James Jensen operates Arroyo Terminals in Rio Hondo, Texas, where legal documents indicate the family received stolen oil shipped with false documentation. Prosecutors allege the Jensens face significant prison time, with charges including money laundering and aiding smuggling under false statements. The illegal oil operation supports a multi-billion-dollar business for cartels, which constitute a major funding source for their activities.
Experts note that such smuggling schemes are common among smaller Texas oil operations, leveraging high border traffic to evade detection. The pure scope of smuggled oil may seem minor, but it is vital for cartel financing, with American operators reportedly earning substantial profits. The findings suggest a deeper intertwining of U.S. and Mexican operations, emphasizing that American companies are not merely passive players.
The indictment of the Jensens signifies a shift in U.S. law enforcement’s approach, focusing not just on cartels but also on their American connections. The complexity of oil smuggling extends beyond individual operators, involving systemic issues entrenched in Mexico’s oil industry and governance, hinting at a long-standing problem requiring a collaborative and multifaceted response.
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