A storefront in San Diego’s Otay Mesa area that appeared to operate as a small discount shop was instead the U.S. entry point of a sophisticated underground tunnel system stretching nearly 2,000 feet into Tijuana, Mexico. Federal authorities say the passage was used to move large quantities of cocaine and was connected to an operation tied to the Jalisco New Generation Cartel.
The discovery followed months of surveillance by federal agents who began monitoring the location in late 2025 after noticing unusual activity inconsistent with normal retail operations.
The site, operating under the name Buy 4 Less, came under observation after it replaced a previous business at the same address. Investigators with Homeland Security Investigations tracked repeated visits by small groups of individuals and the movement of large suitcases and cargo that did not match typical store activity.
Authorities now say the storefront concealed the U.S. exit of a tunnel that connected directly to a residence in Nueva Tijuana, Mexico.
Surveillance Findings
Between December 2025 and May 2026, agents observed a pattern of activity that raised concerns. Roughly seven to eight individuals were frequently seen at the location, including a San Diego resident identified as Gregorio Epifanio Hernandez Lopez.
Investigators reported that the group regularly handled suitcases and containers that appeared empty or lightly filled, transporting them between vehicles and across the border area. The storefront itself reportedly saw very little legitimate customer traffic.
Seizure Operation
On May 29, 2026, agents observed several coordinated movements that led to an enforcement action. According to federal reports, individuals loaded large items into a white van at the storefront before it traveled to an auto shop in National City.
There, the items were transferred between vehicles, including a stake-bed truck that was later stopped by deputies. A police K9 alerted to the presence of narcotics.
At the same time, additional vehicles leaving the Otay Mesa storefront were also stopped nearby. In total, authorities recovered approximately 1,209 kilograms of cocaine, packaged into more than 850 bundles. Officials estimate the street value exceeded $45 million.
Tunnel Discovery
After securing the site, investigators located the tunnel entrance beneath a storage room floor inside the storefront. The passage descended to a depth of roughly 55 feet and extended about 1,064 feet to the U.S.-Mexico border, with an additional 800 feet on the Mexican side.
Authorities say the tunnel was equipped with lighting, ventilation systems, and reinforced sections allowing workers to move through standing upright in some areas. Access on the U.S. side was reportedly controlled by a hydraulic lift mechanism concealed within the building.
Mexican Side Search
Mexican authorities executed a separate search warrant at a two-story residence in Nueva Tijuana believed to serve as the tunnel’s entrance point. Officials reported seizing methamphetamine, marijuana, ammunition, cell phones, and documents from the property.
Arrests and Charges
Federal prosecutors have charged four individuals in connection with the operation. Those charged include Gregorio Epifanio Hernandez Lopez, 29, Jose Jimenez, 32, both of San Diego, as well as Antonio Cortez, 18, and Brandon Escalante Sandoval, 26, both of Mexico.
Authorities allege the tunnel was used to facilitate large-scale drug trafficking linked to the Jalisco New Generation Cartel.
Broader Context
Cross-border tunnels have long been used by organized trafficking groups to move drugs and contraband between Mexico and the United States. While many are discovered and dismantled, officials say some operations remain active for months before detection due to their concealed entry points and use of legitimate-looking cover businesses.
Ongoing Investigation
Authorities on both sides of the border continue to examine evidence recovered from the tunnel, the storefront, and related properties. Investigators are also working to determine the full scope of the trafficking network connected to the site.
The case remains active as federal prosecutors prepare further legal proceedings against the individuals charged.
Case Summary
| Category | Details |
|---|---|
| Tunnel length | ~1,864 feet total (U.S. and Mexico combined) |
| Location | Otay Mesa, San Diego – Nueva Tijuana |
| Drugs seized | 1,209 kg cocaine |
| Estimated value | Over $45 million |
| Operation type | Cross-border smuggling tunnel |
| Status | Ongoing federal case |
| Cartel link | Alleged connection to CJNG |
The discovery underscores the continued use of concealed infrastructure along the U.S.-Mexico border for large-scale narcotics trafficking, even in areas under active surveillance.
FAQs
What was hidden under the San Diego storefront?
A tunnel leading to Tijuana, Mexico.
How long was the tunnel?
Nearly 2,000 feet in total length.
How much cocaine was seized?
Which cartel is linked to the case?
Authorities say it is linked to CJNG.
Is the investigation still active?
Yes, federal authorities continue to investigate.
