The owner of Arroyo Terminals in Rio Hondo was among the four people arrested last week and accused of being part of a scheme to smuggle crude oil into the United States.

James Jensen and his wife, Kelly, were in Utah.

Federal prosecutors are accusing them and their sons of smuggling nearly 3,000 shipments of crude oil into the country.

A warrant filed for James Jensen's arrest says he conspired with his wife and two of his sons to launder proceeds from sales of illegal imported crude oil. The warrant alleges the payments for the crude oil were directed to businesses in Mexico that operate through the permission of Mexican criminal organizations.

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

Federal prosecutors say over $47 million from businesses run by James and Kelly have been sent to Mexican businesses.

A security expert in Mexico explained how this scheme general plays out.

“Many fuel transport companies in the U.S with warehouses and a fleet of tanker trucks sell their fuel and accept payments from the cartel,” Davis Saucedo said. “They launder that money by modifying the inventories in their transactions.”

Court records in Utah show jams and Kelly Jensen were released from federal custody under the condition they hand over their passports.

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