A luxury megamansion in Sandy, Utah, became the center of a high-profile federal raid targeting oil tycoon James Jensen and his wife Kelly, accused of orchestrating a massive oil smuggling scheme valued at over $300 million. The Jensens and their two sons were arrested on April 23 in connection with allegations of money laundering and illegally importing crude oil from Mexico with cartel involvement.

Federal Raid on Utah Megamansion and Oil Business

U.S. marshals executed the raid on the Jensens’ sprawling 30,989-square-foot mansion, valued at $9.2 million, located on South Eagle View Drive. Assistant U.S. Attorney Michael Hess detailed how authorities had to forcibly enter the home after the couple initially refused to open the door. However, James Jensen’s attorney disputes this claim, stating the door was opened voluntarily.

Simultaneously, federal agents raided Jensen’s company, Arroyo Terminals, based in Rio Hondo, Texas, as part of the ongoing Utah money laundering investigation tied to the illegal oil imports.

Details of the $300 Million Oil Smuggling Case

Court documents reveal that since May 2022, James and Kelly Jensen, along with their sons, conspired to launder proceeds from the sales of illegally imported crude oil. Payments for the oil were funneled to Mexican businesses controlled by criminal organizations, with Jensen allegedly aware of these connections.

Authorities have ordered the Jensens to forfeit assets valued at $300 million, including their Sandy and Draper, Utah properties, bank accounts, oil tankers, and luxury vehicles.

The Jensens’ Community Ties and Background

Despite the serious charges, the Jensens are well-known in their community and church. James’ attorney emphasized the family’s longstanding Utah roots and public service background, including Kelly Jensen’s parents—her father served in President Ronald Reagan’s administration, and her mother was a former Utah state senator.

Utah’s Profile Amidst Federal Crackdown

The arrest and raid occurred in Sandy, a peaceful suburb with a population nearing 92,000. Utah recently secured the top spot as the best state to live in for the third consecutive year, praised for its strong economy, health care, and low crime rates. The Jensens’ case stands out as a stark contrast to Utah’s reputation for fiscal stability and community values.