Authorities say a long-running investigation targeted an alleged petroleum-trafficking operation linked to a Texas-based oil and gas company.
MIDLAND, TX — Six people were arrested and more than $12 million in petroleum products, vehicles, cash, jewelry and bank accounts were seized after authorities carried out a series of warrants in Texas and Oklahoma as part of a long-term investigation into alleged organized oil theft.
The Texas Department of Public Safety said its Criminal Investigations Division’s Organized Oilfield Theft Prevention Unit and partner agencies executed search and arrest warrants Aug. 12. Investigators focused on a Texas-based oil and gas company doing business as Vallee, which authorities suspect of participating in the organized theft and trafficking of petroleum products. The investigation, known as Operation Black Market Basin, remains active, and DPS said additional arrests and seizures are possible.
Authorities have executed 17 search warrants in Reeves, Rockwall, Kaufman and Hunt counties in Texas and Garvin County, Oklahoma, according to DPS. Six people, including members of the company’s corporate leadership, were arrested on state charges being handled by the 143rd Judicial District Attorney’s Office. State officials said charges arising from the investigation include felony oil theft, money laundering and organized crime. The allegations have not been proven in court, and those charged are presumed innocent unless convicted.
The seizures included 60 motor vehicles and off-road vehicles valued at about $2.85 million, along with 34 luxury watches and pieces of jewelry valued at about $443,000. Investigators also seized $786,215 in U.S. currency and about 2,600 barrels of petroleum products with an estimated market value of $220,402. Eight bank accounts containing a combined total of more than $8 million were also seized as part of asset forfeiture proceedings, DPS said.
Court records reviewed by the Houston Chronicle identified three of those arrested as Vallee Oil President and Director Leandro Juarez Jr., his brother Moses Juarez and company executive Christian Valdez. The records show the three face charges in Reeves County involving oil theft, money laundering and organized crime. DPS did not identify all six people in its public announcement. The Chronicle reported that Moses Juarez previously served for nearly 30 years with the Dallas Police Department, according to state records.
Investigators received information about the suspected operation in 2023, and an undercover phase began in September 2025, according to court records cited by the Chronicle. Authorities allege Vallee acquired petroleum from unauthorized or stolen sources in Texas, New Mexico and Oklahoma before processing and selling the product. Court records also allege undercover officers and others were paid to obtain petroleum for the company. Those claims are allegations contained in the investigation and have not been established at trial.
The case comes amid heightened concern about theft in the Texas oil and gas industry. The Railroad Commission of Texas said petroleum involved in the investigation was allegedly acquired and sold across several states. Commissioner Wayne Christian praised the cooperation among state and federal authorities after the arrests, describing the operation as an important enforcement action against theft affecting legitimate energy producers. The commission regulates the state’s oil and gas industry but was not identified by DPS as the lead investigative agency in the case.
The DPS operation involved the 143rd Judicial District Attorney’s Office, Reeves and Loving county sheriff’s offices, the FBI’s El Paso Midland Resident Agency, DPS investigators in North Texas and the Oklahoma State Bureau of Investigation. Kermit police and law enforcement agencies in Midland, Ward, Rockwall, Hunt and Kaufman counties also provided assistance. The geographic reach of the warrants shows investigators are examining activity extending beyond a single oilfield or county.
Reeves County District Attorney Sarah Stogner has said her office intends to continue prosecuting petroleum theft cases in the Permian Basin. At a news conference, she described oil theft as damaging not only producers but also jobs and public revenue tied to the energy industry. DPS West Texas Region Chief Jose Sanchez said the investigation could produce additional arrests and asset seizures as authorities continue reviewing the alleged network and its financial activity.
Operation Black Market Basin remains an active investigation. Authorities have not publicly identified all six people arrested or announced a final total for any petroleum they believe was stolen or trafficked. DPS said further enforcement action is anticipated as investigators and prosecutors continue the case.
Author note: Last updated September 2, 2026.