BY EMMANUEL OGBONNA
Three executives with Vallee Oil and Gas are facing federal charges in connection with an alleged oil-theft operation that investigators say moved stolen crude oil from New Mexico into West Texas over an extended period.
The U.S. Department of Justice announced the charges Wednesday, saying the investigation uncovered an alleged scheme involving the purchase, transportation and handling of crude oil that had been stolen from oil-producing areas in New Mexico.
Those charged include Leandro Juarez, president of Vallee Oil; Moses Juarez, who oversaw the company’s West Texas operations; and Eduardo Lopez, the company’s principal yard manager.
Federal prosecutors allege that the three men helped organize a scheme in which Vallee Oil employees accepted crude oil that the company was not legally authorized to purchase. Investigators said the company was registered as a saltwater disposal operation, allowing it to receive and dispose of produced water associated with oil and gas production, but did not have authorization to purchase crude oil.
According to federal authorities, the executives allegedly directed employees to pay truck drivers approximately half the market value of the crude oil they delivered. Investigators said the payments were deliberately divided into smaller transactions in an effort to avoid financial reporting requirements that could have drawn attention to the activity.
The investigation began in January 2024 after the FBI started examining Vallee Oil’s operations. Federal authorities said investigators eventually determined that the alleged scheme had been operating for years, beginning around Sept. 20, 2023, and continuing through at least Feb. 18, 2025.
The investigation covered a large geographic area and resulted in numerous searches and seizures. Authorities said investigators executed 17 search warrants across Texas and another search warrant in Oklahoma as they worked to identify people involved in the alleged operation and locate assets connected to the stolen oil.
Federal authorities said approximately $12 million worth of assets were seized during the investigation. The property included about 2,600 barrels of petroleum, as well as vehicles, jewelry and multiple bank accounts.
The seizures represent one of the largest components of the investigation, as authorities work to determine the full financial scope of the alleged theft operation and identify property that may have been purchased or obtained with proceeds from the activity.
Leandro Juarez, Moses Juarez and Lopez were arrested in August and subsequently released on bond, according to federal prosecutors. Each faces one count of conspiracy to receive stolen goods and three counts of receiving stolen goods, with aiding-and-abetting allegations included in the charges.
Federal prosecutors also accused Leandro Juarez and Moses Juarez of additional conduct involving financial transactions. Both face additional conspiracy charges related to monetary transactions involving funds allegedly derived from specified unlawful activity.
Three other people were also arrested in August as part of the broader investigation. Authorities have not publicly released their names, and officials have not established publicly whether those individuals had direct ties to Vallee Oil or the three company executives.
The investigation is part of a broader federal effort to combat theft within the oil and gas industry, particularly in regions where large volumes of crude are transported by truck and where stolen petroleum can potentially be moved through legitimate commercial operations.
Authorities said the alleged scheme involved crude oil taken from producers in parts of New Mexico and transported across state lines into Texas. Investigators allege that the oil was then accepted through Vallee Oil’s operations despite the company not having the authorization to purchase crude.
Federal prosecutors said the investigation revealed an organized process for handling the stolen product and paying drivers who transported it. The alleged practice of splitting payments into smaller amounts is also expected to be examined as investigators determine whether the transactions were structured to avoid detection or reporting obligations.
Justin Simmons, U.S. attorney for the Western District of Texas, described the alleged operation as a significant theft from oil producers whose businesses depend on the legitimate extraction and sale of crude.
“The fraud ran deep in this case,” Simmons said, describing the defendants as individuals accused of stealing oil from producers who had invested significant labor and resources into extracting it.
Simmons also said federal authorities intend to continue pursuing oil theft because the consequences can extend beyond individual producers.
“When costs for oil and gas producers go up, the cost for the end purchase — the American taxpayer — also goes up,” he said.
The federal investigation comes as oil and gas producers continue to face concerns over theft, transportation security and unauthorized movement of petroleum products. Crude oil can be particularly attractive to organized thieves because of its value and the extensive network of pipelines, storage facilities, transportation companies and processing operations through which it can move.
Authorities said the Vallee Oil investigation demonstrates the importance of examining not only the individuals who physically steal petroleum but also companies and intermediaries that allegedly receive or process stolen products.
The charges against the three Vallee Oil executives are allegations, and they are presumed innocent unless proven guilty in federal court.
The case remains active, and prosecutors are expected to present additional evidence as the federal proceedings move forward. Investigators are also continuing to examine the roles of the other people arrested as part of the operation and the full extent of the alleged theft.
The seizure of petroleum, vehicles, jewelry and financial accounts provides investigators with a substantial amount of evidence as they work to trace the movement of the stolen crude and determine where proceeds from the alleged scheme went.
Federal authorities have not indicated that the investigation is finished. Additional charges could potentially follow if investigators uncover further evidence or identify additional participants, although no such future charges have been announced.
For now, the three Vallee Oil executives remain at the center of a federal case that prosecutors say involved stolen crude, unauthorized oil purchases and financial transactions designed to conceal the movement of money.
The investigation highlights the scale of the alleged operation, with authorities conducting searches in two states and seizing an estimated $12 million in assets while pursuing the people they believe were responsible for receiving and moving stolen petroleum.
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