Two men from Utah have been indicted on charges related to supporting a violent Mexican drug cartel and running a large-scale crude oil smuggling and laundering operation linked to criminal organizations, federal authorities announced.

Maxwell Sterling Jensen, 25, of Draper, and James Lael Jensen, 68, of Sandy, face several charges including conspiracy to provide material support to the Cartel de Jalisco Nueva Generación (CJNG), conspiracy to commit money laundering, and smuggling violations. The CJNG was designated a foreign terrorist organization in February by the U.S. Secretary of State.

The superseding indictment, returned May 22, accuses the Jensens of providing U.S. currency to CJNG through an enterprise called Arroyo Terminals, based in Rio Hondo, Texas. Authorities allege they conspired to conceal the origins of funds generated through illegal shipments of crude oil — roughly 2,881 entries — in violation of the Tariff Act.

According to the indictment, the two also aided and abetted the fraudulent importation of crude oil while concealing its source and ownership. The financial transactions allegedly disguised the true nature of the proceeds and were part of a broader scheme to funnel money to a cartel considered one of Mexico’s most dangerous.

“This case underscores the more aggressive and innovative approach we are taking towards combatting the scourge of drug cartels,” said U.S. Attorney Nicholas Ganjei in a statement. “Whether you are handing the cartel a gun, providing a car or safehouse for smugglers, or putting money in the cartel’s pocket, you will be held to account.”

Federal officials said the investigation, called Operation Liquid Death, was part of the Department of Justice’s broader Operation Take Back America initiative, which targets cartels and transnational criminal networks. The operation was led by Homeland Security Investigations (HSI), the DEA, FBI, IRS Criminal Investigation, and several other federal and state agencies.

Special Agent in Charge Craig Larrabee of HSI San Antonio said the case revealed “a possible large-scale operation that allegedly attempted to move millions in illicit crude oil and launder the proceeds.”

The DEA added that what started as a drug trafficking probe expanded into a case involving cartel financing through oil smuggling — a critical revenue source. “We will continue to explore all leads and identify any believed to be involved,” said DEA acting Special Agent in Charge William Kimbell.

Authorities seized four tank barges with crude oil, tanker trucks, a company pickup truck, and other real estate linked to the operation. Prosecutors are seeking a $300 million judgment and forfeiture of those assets.

If convicted, the Jensens face up to 20 years for the material support and laundering charges. Additional counts could bring up to 10 years for smuggling and five years for false statements. James Jensen also faces a separate 10-year sentence for a money laundering spending charge.

Fines range from $250,000 per count to $500,000, or twice the value of laundered property, depending on the conviction.