Special to the NEWS
RIO HONDO, TEXAS —Federal agents raided an area business last Wednesday, charging the owner and family members with five counts of allegedly importing fraudulent crude oil, all felony offenses.
According to eyewitnesses, on Wednesday, agents were spotted in the act of raiding Arroyo Terminals, which buys and sells crude oil.
Sally M. Sparks, a spokeswoman for the U.S. Drug Enforcement Administration, confirmed that the agency was operating in the vicinity.
According to online sources, Arroyo Terminals purchased about 7.7 acres near Rio Hondo in 2016.
“The company specializes in domestic and cross-border acquisitions of various blends of crude oil,” according to the Arroyo Terminals website, which has since been pulled down.The website’s prompt now reads, “Private Site,” when accessedon Wednesday.
On paper, Arroyo Terminals stores crude oil near the Arroyo Colorado and transfers that oil to barges which, in turn,transported crude oil to buyers.
“The company owns and operates its own fleet of 30,000 barrel barges, which gives us unique capabilities to transport and market our crude oil product,” read the Arroyo Terminals website prior to being restricted.
According to court records, on April 17, a grand jury indicted James Lael Jensen, who owns Arroyo Terminals. According to his LinkedIn profile, he’s listed as Arroyo Terminals’ Owner and lists The University of Utah and Brigham Young University as schools he’s attended.
From 2022 to 2025, he purchased 2,880 shipments of crude oil that had fraudulent customs paperwork, according to the indictment.
The fraudulent paperwork claimed the crude oil was actually “waste of lube oils” and “petroleum distillates,” according to court records ascertained by the NEWS.
Agents with the FBI, the DEA, Homeland Security Investigations, and the Criminal Investigations Division of the IRS are investigating the case, which is being prosecuted by the U.S. Attorney’s Office for the Southern District of Texas.
Along with Jensen, the grand jury indicted his wife, Kelly Anne, and two of his sons, Maxwell and Zachary.
If convicted the accused face a maximum of 20 years in federal prison. The indictment lists 13 high value items subject to forfeiture, including land and multiple vessels used to transport crude oil.
All subjects are considered innocent until proven guilty in a court of law.