A Utah oil tycoon couple, James Lael Jensen and Kelly Anne Jensen, have been arrested following a massive federal raid, according to multiple news reports.
The two are accused of smuggling oil from Mexico worth at least $300 million and working alongside Mexican cartels to accomplish that, according to Salt Lake City’s NBC affiliate KSL-TV.
The couple, owners of Arroyo Terminals, a crude oil purchasing company in Rio Hondo, Texas, face charges of money laundering and conspiracy to commit money laundering.
The Arroyo Terminals all reportedly operated near the border.
The arrests occurred April 23 at their $9.1 million mansion in Sandy, Utah, KSL reported.
U.S. Marshals conducted the raid as part of a multi-state operation targeting the alleged smuggling scheme. The Jensens are accused of working with Mexican cartels to import crude oil illegally into the United States.
Court documents reveal that the couple and two of their sons, Maxwell and Zachary Jensen, conspired to smuggle 2,881 shipments of crude oil since May 2022.
The oil was “directed to businesses in Mexico that operate only through the permission of Mexican criminal organization,” KSL reported, citing detention documents from the U.S. District Court of Utah. The scheme allegedly funneled millions to the cartels.
James and Kelly Jensen pleaded not guilty to the charges in federal court, according to KVEO-TV.
Do you think Mexican cartel influence is bigger in America than we realize?
Maxwell and Zachary Jensen, also implicated in the scheme, pleaded not guilty in a separate hearing. The brothers face similar charges of money laundering and conspiracy.
The federal indictment details a complex operation involving Arroyo Terminals, a company James Jensen founded.
The business allegedly served as a front for the illicit oil imports, with payments directed to Mexican entities linked to cartels.
The Jensens knew these payments supported criminal activities, according to the charges.
The raid on Arroyo Terminals in Texas was part of a broader crackdown on cartel-related crimes. The company’s website was privatized following the operation, according to the KSL report, indicating a significant disruption to its operations.
The raid on the home compound was a bit more harrowing, as KVEO noted.
BREAKING: Utah oil tycoon James Jensen and wife Kelly arrested in a dramatic raid on their $9.2M mansion for allegedly smuggling $300M in oil from Mexico with cartel help. pic.twitter.com/bHPEahzFC6
— TaraBull (@TaraBull808) May 12, 2025
“They were unwilling to come out,” Assistant U.S. Attorney Michael Hess said during a hearing.
That forced the hand of the Marshals Service, who had to break down the door.
The family, meanwhile, claimed that James had agreed to open the door, but it was broken down anyway.
U.S. authorities have linked the oil smuggling to the broader issue of cartel influence in the region.
According to KVEO, James and Kelly have been released without a bond being set, after their attorneys emphasized their background.
“They come from a stalwart Utah family,” attorney John Huber, who represents James Jensen, said. “His in-laws have served in public service for decades and they don’t want to throw that all out of the window.”
“Kelly Jensen’s father, Gordon Walker, served in the U.S. Department of Housing and Urban Development during President Ronald Reagan’s administration. Her mother, Carlene Walker, served in the Utah State Senate,” the news outlet reported.
Maxwell is being held without bond due to his alleged close ties to the cartel activity, and Zachary’s bond was set at $100,000 with a $10,000 cash deposit.
If convicted of the alleged crimes, each family member could face up to 20 years in prison.
“An estimated $300 million in property owned by the family involved is subject to forfeiture if they are convicted,” KTVX-TV reported. “This includes business property, personal vehicles, and even a home located in Draper, Utah.”
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