The tunnel was discovered as part of a monthslong investigation into a warehouse for a supposed discount store, Buy 4 Less, located near the Otay Mesa Port of Entry in San Diego, right across the border from Tijuana, Mexico, according to the U.S. Department of Justice.
By the end of the operation, more than a ton of cocaine and the sophisticated tunnel underneath the store were found, officials said.
“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.
US Attorney’s Office for the Southern District of California/Handout via REUTERS
The U.S. Homeland Security Investigations Tunnel Task Force began surveilling the purported Buy 4 Less store in December 2025 when, federal officials said, a new group of apparent employees was seen in and around the store.
Federal officials keeping an eye on the store noted, “During the surveillance, the activity around the Buy 4 Less location did not appear to be consistent with a normal retail location. For example, investigators observed minimal foot traffic from customers coming in and out of the Buy 4 Less store.”
The employees were allegedly seen taking apparently empty suitcases — based on how they were handled, according to the Department of Justice — across the border into Tijuana by car and sometimes even by hand.
However, federal agents didn’t move in on the location until May 29, when they allegedly spotted “large, heavy items” being placed into a white van at the store. The truck left the location and was parked on a street a short distance away, officials said.
A man on a bicycle was then allegedly observed riding up to the van, taking a key out of a secret spot near the gas cap, and driving the van back-to-back with another van, officials said. A large truck also drove up to the vans and deep freezers loaded with packages were transferred between the vehicles, according to the Justice Department.
San Diego County sheriff’s deputies then moved in and busted the operation, according to the DOJ. At the same time, agents allegedly watched another truck being loaded with packages at the Buy 4 Less store, officials said. That truck was also pulled over by authorities shortly after leaving the parking lot.
US Attorney’s Office for the Southern District of California/Handout via REUTERS 
In the end, federal officials said more than 2,269 pounds of cocaine were found between three vehicles that were pulled over.
The DOJ was granted a warrant to investigate the Buy 4 Less store, upon which they found the exit of the tunnel concealed under the floor of a storage room in the building, officials said. The tunnel was as much as 55 feet deep and extended just over 1,000 feet to the U.S.-Mexico border. It continued on the Mexico side of the border for another more than 800 feet, the DOJ said.
Gregorio Epifanio Hernandez Lopez, 29, from San Diego; Jose Jimenez, 32, from San Diego; Antonio Cortez, 18, of Mexico; and Brandon Escalante Sandoval, 26, of Mexico, were arrested and charged with distribution of a controlled substance. Hernandez Lopez is also facing charges of constructing, financing, or using unauthorized tunnels and importation of a controlled substance. All four men face a maximum of life in prison if convicted.
“This investigation and seizure represent a significant blow to the Jalisco New Generation Cartel,” Kevin Murphy, acting special agent in charge for HSI San Diego, said in a statement. “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 (HSTF) partners.”
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