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Utah oil tycoon accused of collaborating with cartels to traffic illegal oil from Mexico

Recent reports indicate that a high-profile couple from Utah, James and Kelly Jensen, were taken into custody by federal agents on April 23rd. Authorities used a RAM vehicle to force their way into the couple’s $9.2 million mansion just outside Salt Lake City, as noted by KSLTV.

Michael Hess, a U.S. official, mentioned that the family was somewhat reluctant to leave their home. The Jensens have notable political connections; Kelly’s father, Gordon Walker, previously served in the U.S. Housing and Urban Development under Ronald Reagan, and her mother, Carly Walker, was a senator in Utah, according to Kveo.

The Jensens face serious allegations of conspiring to purchase and illegally smuggle over 2,800 shipments of stolen oil from Mexico into the U.S., a suspected operation that reportedly began three years ago.

According to federal authorities, the couple’s business acquired oil from Mexican companies that only operate under the auspices of criminal organizations.

The government claims that the Jensens used illicit profits to purchase new properties and vehicles, prompting a move to seize these assets.

Additionally, their sons, Zachary and Max, were implicated in the case, although it’s unclear if they were arrested at the mansion alongside their parents.

The family runs Arroyo Terminal, a Texas company involved in the oil trade just miles from the U.S.-Mexico border. On the same day as the arrests, federal agents raided Arroyo’s terminal, detaining employees and questioning their business operations.

One employee told CBS 4 News, “We just handle the trucks and barges,” indicating a lack of knowledge regarding the origins of the oil. “We were always out of the loop on where it came from,” he added.

After their arrest, the Jensens were taken to the Salt Lake City Jail. Despite initial concerns over flight risk, their lawyer, John Huber, stated James has strong community ties and didn’t attempt to flee.

Huber emphasized the family’s involvement in community service and their deep-rooted connections in Utah, mentioning that James’ in-laws have dedicated years to public service and have no intention of jeopardizing their reputation.

He also disputed federal claims regarding the couple’s reluctance to exit their home, stating, “Their account differs significantly, claiming they would have complied if not for the damage to their door.”

The family business had faced similar allegations in 2011 when James was sued by a Mexican state-owned oil company for purportedly purchasing fuel from the cartel. He denied any wrongdoing, and the case was dismissed after two years.

Following their April arrest, the Jensens were ordered to forfeit assets acquired through the alleged scheme, including cash, a new car, a second home, and business accounts.

Both sons have entered not guilty pleas. They, along with their parents, are charged with conspiracy to launder money and facilitate contraband entry into the United States, facing potential sentences of up to 20 years in federal prison if convicted.

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