Federal authorities have charged four people in connection with an alleged cross-border drug trafficking operation that used a fake San Diego retail store as a front for a sophisticated tunnel running beneath the U.S.-Mexico border.
The tunnel was discovered under a business called “Buy 4 Less” in the Otay Mesa area of San Diego, near the border crossing with Tijuana, Mexico. According to federal prosecutors, the tunnel was allegedly used to move more than one ton of cocaine into the United States for the Jalisco New Generation Cartel, one of Mexico’s most powerful criminal organizations.
The U.S. Attorney’s Office for the Southern District of California said the seized cocaine was worth more than $45 million. Officials said the drugs weighed about 1,029.60 kilograms, or roughly 2,269 pounds, making the seizure one of the largest recent tunnel-related cocaine busts in the region.
Four suspects have been charged in the case. Prosecutors identified them as Gregorio Epifanio Hernandez Lopez of San Diego, Brandon Escalante Sandoval of Mexico, Jose Jimenez of San Diego, and Antonio Cortez of Mexico. All four are charged with conspiracy to distribute controlled substances, while Hernandez Lopez also faces charges related to the alleged use of a cross-border tunnel.
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Because the case is still in the early stages, the defendants are presumed innocent unless proven guilty in court.
Federal investigators say agents with Homeland Security Investigations began watching the Buy 4 Less storefront in December after becoming suspicious that the location was not operating like a normal retail business. According to the criminal complaint, agents observed activity that appeared unusual for a store, including a lack of ordinary customers and people moving suitcases in and out of the building.
Investigators also reported seeing men carry suitcases that appeared to be empty and sometimes walk them across the border into Mexico. That activity helped strengthen suspicions that the store may have been connected to a hidden smuggling route.
The investigation escalated on May 29, when agents allegedly observed the suspects gathering in several vehicles and loading deep freezers into a truck. Authorities later stopped the truck, and drug-sniffing dogs alerted to the packages inside. Searches of other vehicles connected to the operation also reportedly uncovered suspected narcotics.
After the arrests, federal agents searched the Buy 4 Less location and found the entrance to an underground tunnel concealed beneath the floor of a storage room. Prosecutors said the entrance was accessed through a sophisticated hydraulic lift.
The tunnel was reportedly about 55 feet underground and extended more than 1,000 feet from the U.S. side toward the border. Officials believe it continued hundreds of additional feet into Tijuana, making the full route close to 2,000 feet long. The passage was about 4.5 feet tall and included electricity, ventilation and a rail-and-cart system designed to move materials through the tunnel.
Authorities described the tunnel as highly sophisticated. Cross-border tunnels have been used for years by drug trafficking organizations attempting to move narcotics into the United States while avoiding ports of entry and border checkpoints. These tunnels are often expensive and time-consuming to build, which investigators say points to organized criminal backing.
Homeland Security officials said the discovery dealt a significant blow to the Jalisco New Generation Cartel, also known as CJNG. The cartel has been linked by U.S. law enforcement to large-scale drug trafficking, violence and fentanyl distribution networks. In this case, prosecutors allege the tunnel was used to move cocaine rather than fentanyl.
The discovery also shows how criminal groups continue adapting to border enforcement. While much public debate focuses on walls, checkpoints and patrols, tunnels represent a different kind of challenge because they can be hidden beneath ordinary-looking buildings, warehouses or homes.
According to the U.S. Attorney’s Office, this was the first cross-border tunnel discovered in Southern California since 2022. Authorities say 99 tunnels have been found in the region since 1993, with 28 of them considered sophisticated.
The case is likely to draw renewed attention to border security, cartel operations and the use of underground infrastructure to move drugs into the United States. Law enforcement agencies say they will continue working with local, federal and international partners to identify and dismantle similar routes.
For residents in the San Diego-Tijuana region, the case is another reminder of how close cartel-linked smuggling operations can be to ordinary commercial areas. A storefront that appeared to be a small discount shop was, according to prosecutors, allegedly being used as the visible cover for a major trafficking route.
Federal officials are expected to continue investigating whether additional people were involved in constructing, financing or operating the tunnel. The case may also lead to more scrutiny of nearby properties and cross-border commercial spaces that could be vulnerable to similar use.
Why It Matters
The case matters because it shows the scale and sophistication of cartel-linked smuggling operations along the U.S.-Mexico border. A tunnel equipped with electricity, ventilation and a rail system suggests a significant investment of time, money and planning.
It also highlights the challenge facing law enforcement. Even when border security is tightened at official crossings, criminal groups can attempt to bypass those controls through hidden infrastructure. The seizure of more than a ton of cocaine removes a major shipment from circulation, but officials say the discovery also points to the continuing demand and financial power behind cross-border drug trafficking.
What Comes Next
The four defendants will move through the federal court process, where prosecutors will need to prove the charges beyond a reasonable doubt. If convicted, the suspects could face severe penalties, including the possibility of life in prison.
Investigators are also likely to examine who funded and built the tunnel, whether additional cartel-linked figures were involved, and how long the route may have been operating. U.S. and Mexican authorities may continue searching connected properties on both sides of the border.
A post shared on X showed images connected to the alleged San Diego tunnel operation, where federal officials said more than one ton of cocaine was seized.
NEW: $45 million worth of cocaine seized after an underground tunnel between Mexico and San Diego, CA was discovered under a Buy 4 Less store.
Investigators say they surveilled the store for months after noticing how little customer foot traffic it had.
Authorities found a… pic.twitter.com/UhyMR7usfd
— Collin Rugg (@CollinRugg) June 2, 2026
