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Steamboat Springs police arrest 2 men allegedly connected to statewide fuel-theft scheme

Two men were arrested after allegedly stealing over 6,000 gallons of fuel from Pilot Flying J gas station at around 9 p.m. on Thursday.

David Caboverde and Osnel Perez Palacio were charged with theft, third-degree burglary and conspiracy to commit.

Gas station employees had previously reported daily losses that “were not indicative of gradual loss” to law enforcement, according to an arrest affidavit. 



Joey Huerta, a Pilot gas station employee, told law enforcement that a technician had looked at the site and noted, “the keypad and cover to the pulsar removed on the clear diesel pumps, which indicates a tampering of the meter count,” the affidavit stated. 

“There is a string of issues that has been going on across the state for some time now,” said Steamboat Springs Police Chief Mark Beckett. “We’re aware of criminal organizations that are sending folks out to steal gas. We don’t know exactly where (the gas) is going, but there’s a detective on the Front Range that the Colorado Bureau of Investigation is coordinating with. We’ve been working on a lot of stuff up here with the Colorado Bureau of Investigation as well.”



According to the affidavit, Steamboat Springs Police Det. Christian Barnett observed a box truck that began fueling at 6:39 p.m. and departed the gas station at 7:47 p.m.

At the time, Barnett was observing from an unmarked vehicle and wearing “plain clothes,” the document states.

Barnett then requested a check of the truck’s license plate, which was confirmed to be expired. The vehicle registration description also did not match the vehicle, according to the affidavit.

After the truck left the gas station, a detective initiated a traffic stop on Shield Drive, near the intersection of Elk River Road. The driver, Palacio, provided a driver’s license that did not confirm his identity, says the affidavit. 

Palacio claimed that he was not the owner of the vehicle and that he was borrowing it from a friend named Luis, but was unable to provide a last name, the affidavit states. He also claimed that he was driving from Aurora to Luis’s property but could not say where that was.

When asked about why the truck took an hour to fuel, Palacio claimed that he was paying with gift cards and that it took 45 minutes for the cards to activate, the affidavit states. 

Law enforcement confirmed that Palacio did previously purchase gift cards at Walgreens, but the manager stated, “card activation happens immediately upon purchase at the store and it does not take 45 minutes,” according to the document.

The affidavit states that Palacio did not have any receipts for the fuel purchases.

According to the arrest documents, Palacio said that he was hauling trash in the truck, but then stated that the truck was empty. The affidavit states that officers asked for permission to search the truck, but Palacio “denied consent and stated that officers needed an ‘order.'”

The affidavit also states that Barnett is “aware through training and experience that fuel thefts of large quantities may be conducted by having huddle fuel tanks concealed somewhere within the vehicle,” and “similar fuel thefts of this nature can be exploited by overriding manual switches.”

The document adds, “using gift cards is a way that identities can be hidden by criminals conducting fraudulent activity.”

Officers arrested Palacio and Caboverde after they “determined there was belief and probable cause,” according to the affidavit.

After searching the truck, law enforcement seized a cell phone for evidence as well as Mastercard gift cards.

Palacio’s next court date is set for 2:15 p.m. Thursday. Caboverde’s next court date is at 2:15 p.m. Tuesday, Dec. 17. Each is scheduled to appear virtually from Routt County Jail.


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