A months-long federal investigation has led to the discovery of a sophisticated cross-border tunnel allegedly used to move more than $45 million worth of cocaine from Mexico into the United States, resulting in charges against four individuals accused of participating in the operation.
According to federal prosecutors, investigators with Homeland Security Investigations' Tunnel Task Force began monitoring a business known as Buy 4 Less in Otay Mesa, California, in late 2025 after observing activity that appeared inconsistent with a typical retail operation. Authorities said the store, located near the Otay Mesa Port of Entry, attracted little customer traffic despite a steady stream of workers and unusual movements in and out of the property.
Investigators alleged that employees frequently transported large amounts of suitcases between the store and Mexico, raising suspicions that the location was serving as a front for a larger smuggling operation.
The investigation culminated on May 29, when authorities observed several vehicles being loaded with heavy packages and transported between the Buy 4 Less location and a mechanic shop in National City. Surveillance teams watched as deep freezers were transferred between vehicles and packed with suspicious packages before drivers departed.
Traffic stops conducted by San Diego County Sheriff's deputies ultimately led to the seizure of approximately 1,029.6 kilograms (well over a ton) of cocaine hidden inside trucks and vans. Federal officials estimated the drugs carried a street value of roughly $45 million.
Authorities said the cocaine was concealed in a variety of ways, including inside deep freezers, duffel bags, and boxes disguised as household items such as microwave ovens and mattresses.
Following the arrests, federal agents executed search warrants at the Buy 4 Less location and discovered what prosecutors described as a highly sophisticated underground tunnel connecting San Diego and Tijuana.
Investigators said the passage stretched nearly 2,000 feet, descended roughly 55 feet underground, and featured electricity, ventilation systems, reinforced walls, rail tracks, and a motorized cart used to move cargo. The exit on the U.S. side was allegedly concealed beneath the floor of a storage area and accessed through a hydraulic lift mechanism.
Federal authorities identified the defendants as Gregorio Epifanio Hernandez Lopez, 29, of San Diego; Jose Jimenez, 32, of San Diego; Brandon Escalante Sandoval, 26, of Mexico; and Antonio Cortez, 18, of Mexico. Hernandez Lopez faces additional charges related to the alleged use of the tunnel and importing narcotics into the United States, while all four are accused of conspiracy to distribute cocaine. Prosecutors said each defendant could face a maximum sentence of life in prison if convicted.
Court filings allege investigators had observed Hernandez at the Buy 4 Less property for several months before the arrests. Prosecutors contend the business operated as a front designed to conceal the tunnel's U.S. exit point.
"For these defendants, it wasn't a light at the end of the tunnel. It was lights and sirens," U.S. Attorney Adam Gordon said in a statement.
Federal officials described the case as a “significant blow” to the Jalisco New Generation Cartel's trafficking operations.
