Six Plead Guilty After Permian Oil Worth $889k Sold for Just $165k

LUBBOCK, TX – Six men and women have pleaded guilty to charges arising from a seven-count indictment alleging that 14 defendants conspired to steal crude oil from Permian Basin oil producers and resell it for significant profit announced U.S. Attorney for the Northern District of Texas Ryan Raybould.  

On July 15, Gyardo Gonzalez, 47, Mario Mendoza, 40, Miguel A. Soto, 41, all of Lovington, New Mexico; Luis Rojo, 51, of Seminole, Texas; Diana Marquez Rojo, 47, and Jesus Martin Hernandez-Borja, both of Hobbs, New Mexico; have all pleaded guilty to participating in a conspiracy to steal crude oil.

In filed plea papers, the defendants admitted to stealing tens of thousands of barrels of crude oil from producers in Eastern New Mexico and selling it to Louis George Edgett, 69, of Lovington, New Mexico, and Brenden Floyd Strickland, 26, of Hobbs, New Mexico, who are also charged in the case. The defendants further admitted that Edgett and Strickland purchased the stolen crude oil at prices significantly below West Texas Intermediate, most often at between $10 and $15 per barrel.  

For example, according to plea papers, one conspirator sold 10,975 barrels of stolen crude oil to Edgett and Strickland between June 2022 and July 2024. That oil had an approximate fair market value of $888,975, but Edgett and Strickland paid only $15 per barrel, for a total of $164,625. Another conspirator sold 9,090 barrels of stolen crude oil to Edgett and Strickland during a six-month period between January and June 2024. That oil had a market value of $724,200.30, but Edgett and Strickland paid approximately $136,350. Another conspirator admitted in plea papers that the crude oil he stole was valued at up to $1.5 million.  

Plea papers also indicated that James Darrell Reid, 65, and Randell Reid, 41, both of Electra, Texas, also charged in the case, purchased the stolen oil from Edgett and Strickland at prices significantly below WTI and transported it across the New Mexico-Texas state line to their business site in Seminole, Texas. The Reids then sold the stolen crude oil to midstream buyers at prices below WTI.

Each defendant who pleaded guilty, except for Diana Marquez Rojo, faces up to five years in federal prison. Diana Rojo faces up to three years in federal prison. These defendants also face a $250,000 fine, payment of restitution to victims of the theft, and forfeiture. The Court has not yet set sentencing dates.

A seventh defendant, Tavares Montrail Cole, 49, has admitted in filed plea papers to participating in the conspiracy and his rearraignment is scheduled for August 3.

The remaining seven defendants who were also indicted in the oil theft conspiracy, some of whom are charged with transportation of stolen property in interstate commerce, face imprisonment for terms ranging from five years up to 65 years imprisonment and millions of dollars in fines.

“Oil theft is not a victimless crime. Every barrel stolen weakens our energy infrastructure and threatens our energy security. The defendants placed personal profits and greed over the pocketbooks of Texans,” said U.S. Attorney Ryan Raybould. “My office is committed to continuing to investigate and prosecute these fuel theft schemes.”

The Bureau of Land Management; FBI; Texas Department of Public Safety-Criminal Investigation Division; Lea County, New Mexico, Sheriff’s Office; and Eddy County, New Mexico Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Jeffrey R. Haag is prosecuting the case. Former Assistant U.S. Attorney Ann Howey previously spearheaded this case.  

“Oil theft isn’t a harmless shortcut. It’s a crime that hurts honest producers and disrupts fair markets,” said Eric Kriley, BLM Director of Law Enforcement. “Conspiring to steal and transport crude oil across state lines is a serious federal offense, and today’s guilty pleas show the commitment the BLM and our law enforcement partners have to pursuing these cases.”

An indictment is merely an allegation of criminal conduct, not evidence.  The outstanding defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

“In collaboration with our local, state, and federal law enforcement partners, we were able to disrupt an organized theft group responsible for stealing tens of thousands of barrels of crude oil across Texas and New Mexico,” said FBI Dallas Special Agent in Charge R. Joseph Rothrock. “The FBI will continue to work with our partners to combat the large-scale theft and distribution of stolen goods.”