Two brothers charged in connection with a federal investigation into a scheme to smuggle crude oil into the country pleaded not guilty on Tuesday, court records show.

Maxwell Jensen and Zachary Jensen were arrested alongside their parents — James Jensen and Kelly Jensen.

James and Maxwell are facing federal charges of money laundering and smuggling of goods. Kelly and Zachary are facing federal money laundering charges.

The indictment against the four individuals accuses them of smuggling 2,881 shipments of crude oil into the country since May 2022.

“James Jensen conspired with his wife Kelly Jensen and two of his sons, Maxwell and Zachary Jensen, to launder proceeds from sales of illegally imported crude oil,” a warrant filed for James Jensen’s arrests states. "The payments for this crude oil were directed to businesses in Mexico that operate only through the permission of Mexican criminal organization. James Jensen was aware that the payments he made were going to these Mexican criminal organizations.”

READ MORE: 4 people, including Arroyo Terminals owner, indicted in scheme to smuggle crude oil into the country

James Jensen is the owner of Arroyo Terminals, a crude oil purchasing company in Rio Hondo. On April 23, federal agents raided the business. 

In the warrant, authorities allege that over $47 million went from businesses run by James and Kelly Jensen to “Mexican businesses.” 

According to the indictment, approximately $300 million in property owned by the family is subject to forfeiture if they are convicted, including the Arroyo Terminals property.

Federal court records show bond for Zachary was set at $100,000. Maxwell is being held in federal custody without bond. 

James and Kelly were released from federal custody and ordered to self-report to the Brownsville federal courthouse.