A Utah oil dynasty faces federal prosecution after allegedly running a $300 million smuggling operation tied to the Jalisco cartel, raising urgent questions about U.S. business entanglements with foreign criminal syndicates.
At a Glance
- James and Maxwell Jensen are accused of smuggling 2,800 shipments of stolen Mexican crude oil.
- Their Texas company allegedly funneled oil disguised as “waste” and laundered $47 million.
- Prosecutors say the family provided material support to the Jalisco cartel, a U.S.-designated terrorist group.
- Federal charges include money laundering, smuggling, and conspiracy to support terrorism.
- Charges against other family members were dropped without explanation.
Luxury, Oil—and a Cartel Connection?
James Jensen, 68, and his son Maxwell, 29, were arrested at their $9.2 million Salt Lake City mansion in what prosecutors call one of the most egregious smuggling operations linked to a U.S. business family. The Jensens allegedly moved more than $300 million worth of stolen Mexican oil across the border, exploiting their Texas-based firm, Arroyo Terminals, as a front for cartel-linked logistics.
Court documents reviewed by The Independent claim the Jensens sourced crude oil from cartel-controlled companies, disguising shipments as “waste” to evade import scrutiny. Once inside the U.S., the oil was sold to unsuspecting industrial buyers.
Their activities allegedly enriched the Cártel Jalisco Nueva Generación (CJNG), one of Mexico’s most violent and powerful cartels. The group was officially labeled a Foreign Terrorist Organization in 2020, making any support to it a potential terrorism offense under U.S. law.
Cartel Cash and Federal Charges
The indictment alleges that the Jensens “knowingly conspired and agreed together to provide material support and resources, namely U.S. currency, to the Cártel Jalisco Nueva Generación.” This forms the basis for a sweeping set of charges, including:
- Fuel trafficking
- Conspiracy to support a terrorist organization
- Money laundering
- Aiding and abetting smuggling
- Spending conspiracy
Deep Roots, Deep Trouble
The Jensens are politically connected and socially prominent in Utah. Their attorney defended them as a “stalwart Utah family,” deeply involved in church and community life. Kelly Jensen’s parents have held senior government positions, including in the U.S. Department of Housing and Urban Development and the Utah state legislature.
In a curious twist, charges against Kelly and younger son Zachary Jensen were quietly dropped. Authorities have not clarified why, though the focus appears to be squarely on James and Maxwell.
This is not the family’s first brush with controversy. A 2011 case accusing them of buying stolen oil was ultimately dropped, but this time prosecutors appear more prepared. Authorities are seeking to seize up to $300 million in earnings and assets tied to the operation.
What This Means
With jury selection set for June 16—though likely delayed by expanding charges—the case could become a major inflection point in how the U.S. handles white-collar complicity in transnational crime. As businesses expand into emerging markets, federal investigators warn that traditional industries like oil are increasingly vulnerable to cartel exploitation.
The Jensens’ trial may determine not only their fate but also shape future legal precedents around corporate accountability in global crime networks. One thing is clear: the line between high society and high crime just got dangerously thin.
