Utah couple arrested at their 27,000 sq ft mansion for allegedly running $300M scam smuggling oil from Mexico — what schemes like these mean for the average American consumer

The same day, authorities raided James Jensen's company Arroyo Terminals in Rio Hondo, Texas, near the Mexican border.

The couple — along with sons Maxwell and Zachary — have been indicted for money laundering in the U.S. District Court of Southern Texas. They are accused of running a $300-million money-laundering scheme, allegedly smuggling crude oil from Mexico.

The federal indictment outlines a complex scheme dating back to May 2022. Here’s what court documents suggest, along with a look at what criminal trade in crude oil costs Americans.

A complex scheme allegedly worth $300M

Court documents state that the Jensens brought 2,881 shipments of crude oil into the U.S. — falsely labeled as “waste of lube oils” and “petroleum distillates.”

The Jensens are accused of directing payments for the crude oil to Mexican businesses that operate “through the permission of Mexican criminal organizations.”

Court documents allege that James Jensen was aware that the payments he made were going to Mexican criminal organizations.

The Jensens’ moneys and assets gained from alleged illegal activities are subject to forfeiture — including the Arroyo Terminals business along with oil tankers, a second property in Draper, Utah, new cars and money in their bank accounts. These assets collectively total $300 million according to KSL-TV.

At the global level, criminal trade in crude oil is a massive operation.

Illegal trade in oil drives prices at the pump

The Transnational Alliance to Combat Illicit Trade estimates that criminal trade in crude oil is worth upwards of $11.9 billion annually, involving up to 227 million barrels of oil every year.

Windward AI, a U.K.-based company that helps organizations deal with maritime challenges, notes that oil smuggling causes supply-chain disruptions that lead to shortages and higher gas prices.