Six Defendants Convicted or Plead Guilty in New Mexico Crude Oil Theft Conspiracy

ALBUQUERQUE - Six men have been convicted or pleaded guilty for their roles in a conspiracy to steal crude oil from pipelines in New Mexico and transport it into Texas for resale, resulting in the theft of thousands of barrels of oil.

According to court records, from approximately March through August 2025, the defendants participated in a scheme to steal crude oil from a Plains All American Pipeline facility in New Mexico and transport it to a storage yard in Carlsbad, where the oil was transferred into Texas and sold. The stolen oil was valuable crude oil, rather than waste or "slop" oil, and the conspirators conducted thefts multiple times per week, often multiple times per day.

Maxwell Jensen pleaded guilty to conspiracy to transport stolen property in interstate commerce. According to court records, Jensen orchestrated a scheme to purchase and resell stolen crude oil and directed sources of stolen oil to storage yards in Carlsbad, including the 7 Rivers facility operated by Hound Dog Energy. Businesses owned and operated by Jensen transferred approximately $195,750 to Hound Dog Energy between March 12 and April 23, 2025.

Thomas Rees pleaded guilty to conspiracy, conspiracy to launder money, interstate transportation of stolen property, and laundering of monetary instruments. Stolen oil was delivered to his Carlsbad facility, operated through his company, Hound Dog Energy, and then transferred to Texas for sale. Rees admitted that proceeds from the sale of stolen oil were deposited into Hound Dog Energy's business account and then transferred to another conspirator's business account to make the proceeds appear legitimate.

German Ortiz-Santillano, who worked for an oil company, pleaded guilty to misprision of a felony in concealing crimes of conspiracy and interstate transportation of stolen property. Ortiz-Santillano admitted that he knew his co-conspirators were stealing oil from a pipeline without authorization and allowed them to do so. Ortiz-Santillan admitted that he unlocked gates to provide access to the pipeline, concealed the thefts from other employees, and failed to report reductions in oil production and drops in pipeline pressure that he knew would alert others to the thefts.

Christopher Ortega was convicted at trial of conspiracy to transport stolen property in interstate commerce and interstate transportation of stolen property. At trial, prosecutors presented evidence that Ortega was hired to manage the Carlsbad yard, where he prepared load tickets documenting incoming and outgoing oil and witnessed the movement of stolen oil through the facility. Evidence also showed that the same vacuum truck repeatedly delivered stolen crude oil to the yard, where it was stored briefly before being transported into Texas for resale. Prosecutors presented evidence that Ortega knew the oil was stolen and understood that it was being transported across state lines.

Christian Jesus Contreras-Varela, a Mexican national, pleaded guilty to conspiracy to transport stolen property in interstate commerce, interstate transportation of stolen property, and being an alien in possession of a firearm.

Obed Lopez pleaded guilty to conspiracy and interstate transportation of stolen property. Lopez admitted that he participated in the conspiracy and coordinated with co-conspirators who worked on the pipeline. Lopez provided coordinates identifying where the conspirators should meet, while vacuum truck drivers connected to the pipeline and removed the crude oil. Lopez admitted that he knew the drivers did not have authority to take the oil and that the stolen oil was subsequently sold in Texas.

The defendants' conduct resulted in the theft of thousands of barrels of crude oil over approximately two months and generated approximately $350,000 in proceeds. The conspiracy depended on the defendants' knowledge of the oil industry, including the operation of pipelines, vacuum trucks, storage yards and load tickets used to document the movement and legitimacy of oil.

U.S. Attorney Ryan Ellison and Special Agent in Charge Josiah Andrews of the Bureau of Land Management made the announcement today.

Special Agents with the Bureau of Land Management investigated this case. Assistant U.S. Attorney James A. Dickens prosecuted the case.