Utah father and son duo charged for allegedly supporting Mexican drug cartel
SALT LAKE CITY () — A father and son duo out of Utah are facing federal charges after being accused of supporting a Mexican cartel that has been designated as a foreign terrorist organization.
James Lael Jensen, 68, of Sandy, and Maxwell Sterling Jensen, 25, of Draper, have been charged with conspiring to materially support the Mexican cartel, conspiracy to commit money laundering and related smuggling charges, according to U.S. Attorney Nicholas J. Ganjei.
Utah couple arrested for smuggling millions of dollars of crude oil, documents say
Per the indictment, the Jensens allegedly conspired to provide financial support to the Cartel de Jalisco Nueva Generación (CJNG), a group that was in February.
The Jensens allegedly operated Arroyo Terminals, a Rio Hondo-based enterprise, that reportedly helped 'conceal and disguise the nature and source of the proceeds of illegally smuggled goods' such as crude oil. Federal prosecutors further allege the father and son duo aided and abetted 2,881 shipments of oil in violation of the Tariff Act.
At the time of their arrest, authorities reportedly seized four tank barges containing crude oil, three commercial tanker trucks, an Arroyo Terminal pickup truck and a personal vehicle. Authorities are also working on seeking forfeiture for the Arroyo Terminal property in Rio Hondo, crude oil contained in storage tanks owned by Arroyo Terminal and other real properties.
'What began as a Drug Enforcement Administration 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,' said William Kimball, acting special agent in charge of DEA – Houston. '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.'
Nicholas Ganjei said the case underscores the more aggressive and innovative approach the Southern District of Texas is taking towards battling drug cartels. He said the strategy focuses not only on the traffickers and 'trigger-pullers' that are directly employed by cartels, 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,' said Ganjei.
Prosecutors said, if convicted, the charges of conspiracy to provide material support and money laundering both carry a possible prison term of up to 20 years. Both men could also face up to 10 years and five years for aiding and abetting the smuggling of goods into the United States and by doing so through false statements. James Jensen also faces one count of money laundering, which carries an additional 10 years in prison.
The United States is also seeking a $300 million money judgment if the two are convicted.
Charges are allegations only. All arrested persons are presumed innocent unless and until proven guilty beyond a reasonable doubt.
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