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Feds: Arroyo Terminals crude oil scheme conspired to provide material support to cartel

Feds: Arroyo Terminals crude oil scheme conspired to provide material support to cartel
1 week 6 days 11 hours ago Friday, May 30 2025 May 30, 2025 May 30, 2025 6:00 PM May 30, 2025 in News - Local

The father and son who were arrested in connection with a scheme to smuggle crude oil into the United States illegally have now been charged with allegedly conspiring to "materially support a Mexican cartel previously designated as a foreign terrorist organization," according to a news release.

According to a news release from the U.S. Department of Justice, the superseding indictment alleges James Lael Jensen and his son, Maxwell Sterling, conspired to provide material support to the Cartel de Jalisco Nueva Generación in the form of U.S. currency.

As previously reported, James and Maxwell operated Arroyo Terminals in Rio Hondo and are currently facing federal charges of money laundering and smuggling of goods.

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According to the news release, at the time of the 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, crude oil storage tanks and other real properties were also sought for forfeiture.

The indictment also contained a notice that the U.S. will seek $300 million upon conviction, according to the news release.

Conspiracies to provide material support and to commit money laundering both carry maximum sentences of 20 years, according to the news release. If convicted of aiding and abetting the smuggling of goods, James and Maxwell could also face maximum penalties of 10 and five years.

The news release said James is also facing one count of money laundering, which carries an additional maximum of 10 years in prison.

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