Three New Mexico men charged in elk tag fraud scheme
Three New Mexico men are charged in an alleged elk tag fraud and tax conspiracy scheme involving Big Horn Outfitters.
Federal prosecutors allege the men used fake hunter accounts, fraudulent medical transfer requests and forged documents to obtain resident elk tags for out-of-state hunters.
Organ Mountain News report
ALBUQUERQUE - Three New Mexico men have been charged in an alleged yearslong scheme to fraudulently obtain New Mexico elk tags through the state resident draw system and sell them to out-of-state hunters.
Danial Adair, 44, Daniel Nicolds, 57, and his brother, Lary Nicolds, 59, are accused of operating the scheme through Big Horn Outfitters from about 2019 through 2022, according to the U.S. Attorney’s Office for the District of New Mexico.
Federal prosecutors allege the men fraudulently obtained New Mexico elk tags through the state resident draw system and transferred them to out-of-state hunters in exchange for payment, along with outfitting and guiding services.
“As a hunter, I know it’s extraordinarily difficult for New Mexico residents to draw elk tags,” First Assistant U.S. Attorney Ryan Ellison said. “In fact, many New Mexicans who apply annually wait years — sometimes decades — to draw a coveted tag and win the opportunity to fill their freezer with elk. Fraudsters who illegally rig the system and make it more difficult for New Mexicans to hunt elk in their own state will be aggressively prosecuted and held fully accountable.”
According to public court documents, the defendants allegedly created fictitious hunter accounts, used false identifying information and paid draw fees with prepaid debit cards to unlawfully secure resident elk tags.
Prosecutors also allege the men submitted fraudulent medical transfer requests and supporting documents to the New Mexico Department of Game and Fish, including fake doctor notes and forged agreements, to transfer tags to out-of-state clients.
The indictment further alleges the defendants concealed the scheme through prepaid debit cards, alternate email accounts and false tax reporting while guiding hunts and facilitating the transport of harvested elk across state lines.
Acting U.S. Attorney John G.E. Marck for the Southern District of Texas said the case involved cooperation across jurisdictions.
“Our office joined forces with our colleagues in the District of New Mexico to dismantle a scheme that has cheated honest hunters and corrupted public resources, according to the charges,” Marck said. “Those who rig the system for profit will be held accountable, no matter where the investigation leads.”
Damien Willis
Doug Ault, assistant director for the Office of Law Enforcement at the U.S. Fish and Wildlife Service, said the agency works with state partners to investigate wildlife crimes that cross state lines and violate federal wildlife laws.
“These collaborative investigations will continue in New Mexico and across the country to ensure that legal hunters have fair access to licensing opportunities and are not disadvantaged by individuals who exploit public resources for their own profit,” Ault said. “These efforts support the conservation and responsible stewardship of our nation’s wildlife resources.”
Acting Special Agent in Charge Rodrick Benton of IRS Criminal Investigation’s Houston Field Office said the case also involves alleged tax fraud.
“IRS-CI is devoted to rooting out fraud in whatever form it takes: whether it’s fraud against the hunters of New Mexico or tax fraud against the United States, IRS-CI will find and prosecute you,” Benton said.
Adair, Daniel Nicolds and Lary Nicolds are charged with one count of conspiracy to commit wire fraud and violate the Lacey Act, five counts of wire fraud and five counts of violating the Lacey Act.
Adair and Daniel Nicolds also are charged with one count of conspiracy to defraud the United States.
The case was investigated by the U.S. Fish and Wildlife Service, IRS Criminal Investigation and the New Mexico Department of Game and Fish. Assistant U.S. Attorney Robert S. Johnson of the Southern District of Texas and Executive Assistant U.S. Attorney Christopher McNair of the District of New Mexico are prosecuting the case.
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