SAN DIEGO — Federal agents uncovered a 1,933-foot cross-border tunnel running from Tijuana, Mexico, to a sham retail store near San Diego’s Otay Mesa Port of Entry and seized more than 2,200 pounds of cocaine valued at $45 million, the Department of Homeland Security announced.
Four people — Gregorio Epifanio Hernandez Lopez and Jose Jimenez of San Diego, and Brandon Escalante Sandoval and Antonio Cortez of Mexico — are charged with conspiracy to distribute controlled substances. Hernandez Lopez faces additional counts for conspiracy to use a cross-border tunnel and conspiracy to import controlled substances.
“This investigation and seizure represent a significant blow to the Jalisco New Generation Cartel,” said HSI San Diego acting Special Agent in Charge Kevin Murphy. “The discovery and dismantlement of this sophisticated cross-border tunnel, along with the seizure of more than a ton of cocaine, underscore the commitment and collaboration of Homeland Security Investigations and our Homeland Security Task Force partners.”
The tunnel terminated at a supposed retail store called “Buy 4 Less” and was equipped with reinforced walls, rail and ventilation systems, and electricity. It stretched about 1,064 feet from the store to the U.S.-Mexico border and another 800 feet into Mexico. A hydraulic lift hidden under the store’s floor provided access.
The Homeland Security Investigations Tunnel Task Force began surveilling Buy 4 Less in December 2025 after agents flagged suspicious activity, including minimal customer traffic and individuals transporting empty suitcases between the store and vehicles or across the border. The operation broke open on May 29 when agents watched a man load heavy items into a van at the store and drive to a nearby mechanic shop. Agents observed Escalante conducting counter-surveillance in the area before moving a van and helping transfer three deep freezers packed with cocaine packages onto a truck.
After Escalante departed, Jimenez arrived and drove the truck away. San Diego County Sheriff’s deputies stopped the vehicle and, with help from a K-9 unit, discovered evidence of controlled substances. Deputies later stopped a second truck and van linked to the operation, both of which also tested positive. Agents seized over 1,000 kilograms of cocaine from the vehicles.
“For these defendants, it wasn’t a light at the end of the tunnel. It was lights and sirens,” said U.S. Attorney Adam Gordon. All four defendants face federal prosecution; Hernandez Lopez’s additional tunnel-related charges carry separate mandatory penalties under federal law.