U.S. And Mexico Probe Oil Thefts Linked To Cartels

U.S. and Mexico authorities are investigating the purchase by U.S. companies of millions of dollars worth of petroleum products stolen from Mexican national oil company Pemex and smuggled across the border. The operation appears to have been led by Mexican drug cartels expanding their reach.

On Tuesday, the U.S. Immigration and Customs Enforcement Agency will host a news conference with U.S. Department of Homeland Security and Mexican officials in San Antonio to discuss the scheme. The U.S. is returning $2.4 million in funds generated from smuggling to the Mexican government, a spokeswoman for ICE said.

A Houston executive pleaded guilty in connection with investigation after admitting that he and others conspired to buy the stolen products, which were loaded onto a barge in Brownsville, Texas, said Nancy Herrera, Executive Assistant U.S. Attorney in Houston. “We’re working with the Mexican authorities,” Ms. Herrera said.

Donald Schroeder, the president of Trammo Petroleum, is set to be sentenced in December. Mr. Schroeder, court documents say, purchased the product knowing it to be stolen. Mr. Schroeder’s attorney could not be reached for comment.

Ms. Herrera declined to identify what U.S. companies bought the stolen products from Mr. Schroeder. Court filings describe the buyers as “larger companies.”

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