Texas Oil Theft Ring Busted: $12M Seized

Texas law enforcement announced on Wednesday the arrests of six individuals and the seizure of over $12 million in assets as part of a sophisticated multi-state oil theft ring. The alleged scheme, centered around West Texas-based Vallee Oil and Gas, involved the company purportedly buying and moving crude oil, and skimming petroleum products from wastewater. Thousands of barrels of illegal products were reportedly sold across various states.

Arrests were made on August 11 for "Operation Black Market Basin" on state charges including felony oil theft, money laundering, and organized crime. Executives from Vallee Oil, including President Leandro Juarez, were among those taken into custody. Investigators initiated an undercover operation in September 2025, paying individuals to secure stolen or unregulated crude from Texas, New Mexico, and Oklahoma for Vallee to process and sell.

Seized in the operation were 2,600 barrels of petroleum products valued at $220,402, 60 vehicles worth over $2.8 million, $786,215 in cash, luxury items, and eight bank accounts holding more than $8 million. This bust comes after oil theft grew into a multi-billion dollar problem, prompting regulatory reforms and the creation of a Texas Railroad Commission task force last year. The investigation's charges stem from crimes committed after recent amendments to Texas penal codes regarding oil theft.