Federal Agents Arrest Five Men in Oil Theft Conspiracy
Federal investigators say a major oil theft scheme in New Mexico has been dismantled. Five men face federal charges after agents documented them stealing hundreds of barrels of crude oil a day, each load worth tens of thousands of dollars.
The accused are Maxwell Jensen, Thomas Rees, Christopher Ortega, German Ortiz-Santillano, and Christian Jesus Contreras Varela. Prosecutors say the men targeted Plains All American Pipeline facilities, siphoning oil into vacuum trucks and moving it to a yard in Carlsbad, New Mexico. From there, they allegedly sold the crude across the border in Texas.
Inside the Oil Theft Scheme
According to the Department of Justice, Ortiz-Santillano used his job at Plains All American to provide access to secure pipeline facilities. Once inside, Contreras Varela allegedly drove the truck to connect to the line and pump out crude. Rees managed the Carlsbad yard through Hound Dog Energy, where he is accused of selling the stolen oil and producing fraudulent load tickets to cover it up.
Ortega reportedly directed truck drivers and recruited more participants to expand the operation, while Jensen organized the effort as the leader.
Agents with the Bureau of Land Management launched the investigation in June 2025. They tracked the group with surveillance, tracking devices, and recorded conversations, documenting more than 20 theft runs over four weeks.
Criminal Charges and Possible Penalties
All five men face charges of interstate transportation of stolen property and aiding and abetting. Contreras Varela, a Mexican national, faces additional firearms charges for allegedly possessing a gun and ammunition while in the country illegally.
Jensen and Contreras Varela remain in custody pending trial. If convicted, Jensen, Rees, Ortega, and Ortiz-Santillano face up to 10 years in federal prison, while Contreras Varela faces up to 15 years.
Industry Impact and Broader Concerns
The case highlights an ongoing challenge in oil-producing states. Energy infrastructure remains vulnerable to theft schemes that can siphon millions in resources while threatening operational safety. With crude oil values fluctuating and demand for petroleum steady, federal officials warn that criminal networks view pipelines as lucrative targets.
By targeting facilities in New Mexico and selling oil in Texas, prosecutors allege the men were able to move stolen product across state lines, elevating the charges to the federal level.
The Justice Department emphasized it will continue prioritizing investigations into oil theft, a crime that undermines both energy security and regional economies.
Below is the formal announcement from U.S. prosecutors.
Federal authorities have charged five men for their roles in a large-scale conspiracy to steal and sell crude oil from pipelines in New Mexico and West Texas.
According to court documents, in June 2025 Special Agents with the Bureau of Land Management opened an investigation after receiving information that Maxwell Jensen, Thomas Rees, Christopher Ortega, German Ortiz-Santillano and Christian Jesus Contreras Varela were engaged in a scheme to steal crude oil from Plains All American Pipeline facilities in New Mexico, store it at a yard in Carlsbad, and transport it into West Texas for resale. Surveillance operations, tracking devices, and recorded conversations documented more than 20 theft runs over approximately four weeks, siphoning hundreds of barrels per day. Each load was valued at tens of thousands of dollars, and the stolen crude was delivered to facilities operated in West Texas.
As alleged, Rees managed the Carlsbad yard through his company, Hound Dog Energy, where he received and sold stolen oil while producing fraudulent load tickets to disguise the thefts. Ortega directed truck drivers, prepared false documentation, and recruited additional participants to expand the conspiracy. Ortiz-Santillano, an employee of Plains All American Pipeline, abused his position to provide the conspirators access to pigging stations where the thefts occurred. Contreras Varela drove to the pipeline to connect a vacuum truck and steal the oil before returning to Rees’s yard. Jensen coordinated the scheme as the leader and organizer.
The defendants are charged with interstate transportation of stolen property and aiding and abetting. In addition to the oil theft charges, Contreras Varela, a Mexican national, faces a firearms-related offense for being an alien in possession of a firearm and ammunition. Jensen and Contreras Varela will remain in custody pending trial, which has not been scheduled. If convicted of the current charges, Jensen, Rees, Ortega and Ortiz-Santillano face 10 years in prison. If convicted of the current charges, Contreras Varela faces 15 years in prison.