Authorities say this ‘fake’ San Diego store sits atop a nearly 2,000-foot tunnel to Mexico

Federal authorities say a storefront in San Diego that appeared to operate as a discount retailer actually concealed the U.S. end of a sophisticated cross-border tunnel allegedly used to smuggle more than $45 million worth of cocaine from Mexico into the United States. The tunnel, discovered beneath a business known as Buy 4 Less near the Otay Mesa Port of Entry, stretches approximately 1,933 feet between Tijuana and San Diego, according to the U.S. Department of Justice and The Los Angeles Times.

Investigators say the underground passage featured reinforced walls, electricity, ventilation systems, and a rail transport system designed to move large quantities of narcotics. Federal filings state the tunnel ran about 55 feet below ground and stood about 4½ feet high.

Federal investigators began monitoring the Buy 4 Less store in December 2025 after observing what they described in a criminal complaint as activity inconsistent with a legitimate retail operation. Court documents detail how undercover agents witnessed a ghost-town operation: scarcely any customers entered the store, yet a steady stream of individuals routinely hauled suitcases in and out.

Traffic stops yield massive cocaine haul

On May 29, 2026, agents conducting surveillance saw several vehicles allegedly involved in transporting suspected narcotics. Federal prosecutors say authorities stopped multiple vehicles and seized more than 2,200 pounds of cocaine.

Search warrants executed afterward at Buy 4 Less and a nearby property on Coolidge Avenue led agents to the tunnel’s concealed exit point. Prosecutors said the entrance sat beneath the floor of a storage room inside the store and could be accessed through a hydraulic lift system.

On June 1, federal prosecutors announced charges against four men in connection with the operation. The arrests capped a months-long investigation by the Homeland Security Investigations Tunnel Task Force, which is spearheaded by Department of Homeland Security personnel.

Federal authorities identified the defendants as Gregorio Epifanio Hernandez Lopez and Jose Jimenez of San Diego, along with Mexican nationals Brandon Escalante Sandoval and Antonio Cortez. All four defendants were charged with conspiracy to distribute controlled substances, while Hernandez Lopez also faces charges connected to the alleged construction and use of a cross-border tunnel.

Court records reviewed as of June 3 do not show public statements from the defendants regarding the allegations. The defendants have made initial appearances in court as the case moves forward.

Homeland Security Investigations officials said the operation dealt a “significant blow” to the Jalisco New Generation Cartel, also known as CJNG, which authorities believe used the tunnel to move cocaine into Southern California. The Justice Department said it was the first operational cross-border tunnel discovered in the Southern District of California since 2022.

The DOJ noted that this is the 99th subterranean passage discovered in the Southern District of California since 1993. The agency said it’s the 28th considered “sophisticated.”