curiosities

Oil magnate arrested in lavish Utah mansion accused of working with Mexican cartels in $300M scheme

James and Kelly Jensen, a Utah oil magnate and his wife, were arrested after a dramatic raid on their luxurious mansion, accused of smuggling over $300 million worth of oil with the help of Mexican drug cartels

The arrest of Jensen's family comes after a years-long investigation into their alleged illegal operations. Photo: GLR composition/New York Post
The arrest of Jensen's family comes after a years-long investigation into their alleged illegal operations. Photo: GLR composition/New York Post

James and Kelly Jensen, an oil magnate from Utah and the maelstrom that is his wife, have been arrested for allegedly engaging in a $300 million oil smuggling enterprise with Mexican drug cartels. The Jensen's were arrested in what can be resumed as a raid on their mansion in Salt Lake City on April 23, 2023.

Federal officials allege the Jensen's have been smuggling stolen oil from Mexico into the U.S. for the past three years. The Jensen's were arrested as a result of an indictment alleging that they conspired to smuggle over 2,800 shipments of stolen oil, money laundering, and conspiring to smuggle.

Oil magnate accused of working with Mexican cartels

Authorities accuse the couple of smuggling over $300 million worth of oil from Mexico to the United States, allegedly with the help of Mexican drug cartels. The arrest took place on April 23, when U.S. Marshals used battering rams to break into their $9.2 million mansion outside Salt Lake City, according to KSLTV.

Assistant U.S. Attorney Michael Hess stated that the Jensen's were "unwilling to come out" when authorities arrived. The family has significant political ties, with Kelly's father, Gordon Walker, having worked in the U.S. Department of Housing and Urban Development under President Ronald Reagan, and her mother, Carlene Walker, serving as a Utah state senator, as reported by KVEO.

The Jensen's were indicted on April 17 for allegedly conspiring to smuggle over 2,800 shipments of stolen oil from Mexico into the U.S. The smuggling scheme reportedly began three years ago, and according to the feds, the Jensen's made payments to Mexican businesses that operated under the protection of criminal organizations. The family allegedly used the proceeds to buy a new home and cars, and authorities are moving to seize these assets.

The Jensen's' sons, Zachary and Max, were also indicted, but it is unclear whether they were arrested at the family’s mansion. The family operates Arroyo Terminals, a Texas company that buys and sells crude oil near the U.S.-Mexico border in Rio Hondo.

Authorities questioned the Jensens' business

The federal agents raided Arroyo Terminals the same day the family was arrested, detaining employees and questioning them about the business. Some of the employees told CBS 4 News they had no idea where the oil was from and were just unloading trucks and loading barges.

After the Jensen's were taken to Salt Lake City Jail, they were released shortly after their attorney, John Huber, said they had strong community ties and were not a flight risk.

Huber also challenged the claim they refused to cooperate while they were being arrested, saying they were willing to come out, but that officers forced entry into their home. James Jensen was accused in 2011 of buying stolen oil from cartels in Mexico, but that case was dropped.

After their arrest in April, the Jensen's were ordered to forfeit all assets related to the alleged scheme: money, new cars, their second home, their business, and bank accounts -- roughly $300 million according to KSLTV.

The couple and their sons are charged with several counts, including money laundering, conspiracy to spend illegal funds, and helping smuggle goods into the U.S. They could face up to 20 years in federal prison if found guilty.

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