'The fraud ran deep': Texas oil theft ring bust results in 3 federal indictments
FILE – Abandoned oil wells in West Texas
There are more than 10,000 abandoned oil wells in West Texas that remain unplugged. Last year, state lawmakers pumped a lot of money into the agency that regulates the oil and gas industry, On Friday, a special legislative committee was told more money is needed to keep pace with the problem.
AUSTIN, Texas - Three company executives at Vallee Oil and Gas are now facing federal charges related to their involvement in an oil-theft ring that was operating out of West Texas, the U.S. Department of Justice said Wednesday.
What we know:
Leandro Juarez, the president of Vallee Oil, along with the head of Vallee’s West Texas operations, Moses Juarez, and principal yard manager, Eduardo Lopez, are accused of devising a scheme to purchase crude oil that had been stolen from parts of New Mexico and transported into Texas.
Authorities said Texas-based Vallee Oil was documented as a salt water disposal, giving the company the ability to accept and dispose of produced water, but that they did not have the authority to purchase crude oil.
According to investigators, the three executives directed their employees to pay drivers hauling the oil around half the value of the product. They would issue these payments in smaller increments to try to evade reporting requirements, officials noted.
Timeline:
The FBI began investigating the company in January 2024. Authorities said they learned the fraud spanned years, beginning around Sept. 20, 2023, and stretching to at least Feb. 18, 2025.
$12M seized, 6 arrested in historic Texas oil theft ring bust
Six people have been arrested and about $12 million in assets have been seized as part of an investigation into an oil-theft ring in West Texas.
Dig deeper:
Leandro Juarez, Moses Juarez, and Lopez were arrested in August and later released on bond. They face charges for one count of conspiracy to receive stolen goods and three counts of receipt of stolen goods, aiding and abetting, according to federal prosecutors.
Officials said Leandro and Moses Juarez were also charged with additional counts of conspiracy to engage in monetary transactions with funds derived from a specified unlawful activity.
Three others were arrested in connection with the investigation in August, though their names have not yet been released. It’s unclear how or if they were connected to Vallee Oil.
The backstory:
The investigation into the purported oil-theft ring spanned wide, with 17 total search warrants served across Texas and one in Oklahoma.
Authorities also seized about $12 million in assets, including 2,600 barrels of petroleum, along with vehicles, jewelry and multiple bank accounts.
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What they're saying:
"The fraud ran deep in this case but, essentially, these defendants were just common thieves stealing from those who had spilled their blood, sweat and tears to extract that oil from the ground," said Justin Simmons, U.S. Attorney for the Western District of Texas.
Simmons added that the government plans to continue cracking down on oil theft, especially as consumers continue to see a rise in prices at the pumps.
"When costs for oil and gas producers go up, the cost for the end purchase — the American taxpayer — also goes up," he said. "That’s why we will continue, through this whole of government approach, to take down and hold accountable those who steal oil from other producers."
The Source: The details in this article come from a release from the U.S. Department of Justice and previous information from a news conference that was held by Texas DPS.