Two family members with ties to South Texas have been charged with allegedly conspiring to materially support a Mexican cartel previously designated as a foreign terrorist organisation, conspiracy to commit money laundering and related smuggling charges, following an investigation conducted by U.S. Immigration and Customs Enforcement, the DEAÂ and the FBI with substantial assistance of IRS CI along with Customs and Border Protection, U.S. Marshals Service and Texas Department of Public Safety.
The superseding indictment, returned on May 22, alleges that Maxwell Sterling Jensen, 25, of Draper, Utah, and James Lael Jensen, 68, of Sandy, Utah, conspired to provide material support to the Cartel de Jalisco Nueva Generación in the form of U.S. currency.
The Secretary of State designated CJNG as a foreign terrorist organisation on February 20.
The Jensens allegedly operated Arroyo Terminals, an enterprise based in Rio Hondo, Texas.
Both are also charged with allegedly conspiring to conduct financial transactions to conceal and disguise the nature and source of the proceeds of illegally smuggled goods, crude oil. They also aided and abetted the fraudulent entry of approximately 2,881 shipments of oil in violation of the Tariff Act, according to the charges.
At the time of the initial arrests, authorities seized four tank barges containing crude oil, three commercial tanker trucks, an Arroyo Terminal pickup truck and one personal vehicle.
The Arroyo Terminal property in Rio Hondo, which contains crude oil and Arroyo Terminal storage tanks, as well as additional real properties, is also sought for forfeiture.
The superseding indictment also contains notice that the United States will seek a $300 million money judgment in the event of conviction.
The conspiracies to provide material support and to commit money laundering both carry a possible prison term of up to 20 years.
If convicted of aiding and abetting the smuggling of goods into the United States and doing so using false statements, both men could also face up to 10 years and five years, respectively. James Jensen also faces one count of money laundering, which carries an additional 10 years in prison upon conviction.
Except for the money laundering charge, which carries a potential fine of up to $500,000 or twice the value of the property involved, the remaining counts carry a maximum potential fine of $250,000.
