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Brad Matthews


NextImg:Feds charge five men with stealing oil from New Mexico pipeline and reselling it in Texas

Federal prosecutors charged five men this week for their alleged roles in a conspiracy to siphon and steal oil from a pipeline in New Mexico to sell it themselves in Texas.

The U.S. Attorney’s Office for the District of New Mexico said Monday that the conspiracy brought millions in illegal proceeds, but didn’t provide an exact figure. Prosecutors said the probe found 20 theft runs covering four weeks.

The alleged theft hit the Plains All American Pipeline, headquartered in Houston. German Ortiz-Santillano, an employee at the company, is accused of letting others enter stations in New Mexico for the heist. Christian Jesus Contreras Varela, a Mexican, is accused of using a vacuum truck to siphon oil for transport.



The oil was taken from the New Mexican pipeline to a yard in Carlsbad in the southeast part of the state for transportation, operated by Thomas Rees through his company, Hound Dog Energy. He is accused of producing fake load tickets to cover up the alleged oil theft.

Christopher Ortega is accused of directing other truck drivers, creating false documents and recruiting other participants, and Maxwell Jensen is accused of leading the conspiracy, the attorney’s office said.

The Bureau of Land Management, part of the Interior Department, started investigating the scheme in June after being tipped off. Each day, the Carlsbad yard received about 600 barrels of oil worth around $39,000, according to the complaint filed against Mr. Jensen.

Mr. Jensen also told the tipster that Hound Dog Energy received 25% of the proceeds.

The five suspects are each charged with interstate transportation of stolen property and aiding and abetting. Mr. Contreras Varela faces additional firearm charges as an alien in possession of a gun and ammo.

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If convicted, Mr. Jensen, Mr. Rees, Mr. Ortiz-Santillano and Mr. Ortega face 10 years in prison, the attorney’s office said. If Mr. Contreras Varela is found guilty, he faces 15 years behind bars.

• Brad Matthews can be reached at bmatthews@washingtontimes.com.