Utah Men Facing Terrorism Charges for Alleged Support of Mexican Cartel Designated as Terrorist Group

Two Utah residents, Maxwell Sterling Jensen, 25, and James Lael Jensen, 68, are facing serious federal charges after authorities allege they conspired to support a Mexican cartel that has been officially designated as a terrorist organization. The charges include conspiring to materially support the Jalisco New Generation Cartel—classified as a foreign terrorist group—as well as conspiracy to commit money laundering and a range of smuggling offenses.

According to court documents and officials, the Jensen family members are accused of operating a business, Arroyo Terminals, based out of Rio Hondo, Texas. Through this enterprise, they allegedly facilitated the illegal import and export of crude oil, disguising the origin of shipments and funneling proceeds to the cartel. Authorities state that as many as 2,881 fraudulent shipments of oil were funneled through their operation.

During the arrest, law enforcement carried out a significant seizure, confiscating four tank barges loaded with crude oil, three commercial tanker trucks, one personal vehicle, and an Arroyo Terminal-branded pickup truck. Officials underscored the sheer scale of the operation, highlighting its potential impact on both U.S. and Mexican interests.

The State Department officially labeled the Jalisco New Generation Cartel as a foreign terrorist organization on February 20, a move that escalated federal scrutiny of any suspected affiliated networks on U.S. soil. Federal prosecutors have announced plans to seek a $300 million judgment if convictions are secured against the Jensens.

If found guilty, the defendants could be sentenced to more than 20 years in federal prison. Authorities say this case stands out not only because of the terrorism designation but also due to the high-value infrastructure allegedly exploited for financial gain by the cartel.

William Kimbell, acting special agent in charge of the Drug Enforcement Administration in Houston, emphasized the complexity of the investigation, noting that what began as a typical drug trafficking probe soon broadened into a “multifaceted case involving an alleged complex criminal operation generating millions of dollars from crude oil—the largest funding source for Mexican drug cartels.”

He added, “Given the charges have profound implications for both the United States and Mexico, we will continue to explore all leads and identify any believed to be involved. The collaboration with federal law enforcement, prosecutors and state agencies proved critical to unraveling these alleged crimes and will continue until such operations are destroyed.”

The case is expected to set a precedent as authorities continue to crack down on American-based individuals and businesses accused of aiding foreign organizations considered a threat to national security. Attorneys representing Maxwell Sterling Jensen and James Lael Jensen have yet to issue public statements regarding the charges.