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.
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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.
Port and border agents delay the delivery of legitimate oil shipments while they investigate potential cases of smuggled oil. Those delays are costly for legitimate oil suppliers, who may pass those costs on to consumers.
According to the Energy Information Administration, the cost of crude oil is the largest driver of the price you pay at the pump. Smuggled oil can impact the price of crude oil, making gas more expensive.
Aside from its impact on the price of gasoline, smuggled crude oil can compromise the quality of gasoline, which is a safety concern.
Another safety concern? Trade in smuggled oil supports criminal activity and can fund terrorist organizations internationally and here in the U.S. The Jensens, for example, allegedly engaged in activity that was said to support Mexican criminal organizations.
That’s why shutting down such schemes is not only good for most people’s pocketbooks, but for public safety.
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