NEWS
NM wildfire claims office director on administrative leave following six-figure payout
Announcement follows revelations Jay Mitchell and wife received $500K far from Calf Canyon/Hermits Peak Fire perimeter
Jay Mitchell, director of a multi-billion-dollar federal claims office for northern New Mexico wildfire victims, has been placed on administrative leave following revelations of a six-figure payout he received for smoke damage at his Angel Fire home, according to an email Source New Mexico obtained Thursday.
Mitchell and his wife, Lisa, received payments totaling more than $500,000 for smoke damage and business losses from the 2022 Calf Canyon/Hermits Peak Fire through a $5.45 billion fund administered by the Federal Emergency Management Agency, according to documents obtained by Source New Mexico and New Mexico PBS.
Since Source first reported on those payments two weeks ago, calls have increased for Mitchell鈥檚 resignation, including from members of New Mexico鈥檚 congressional delegation and Gov. Michelle Lujan Grisham. A group of several dozen protesters gathered outside the Las Vegas branch of the claims office earlier this week calling on him to step down.
In a joint statement Thursday, U.S. Sens. Martin Heinrich and Ben Ray Luj谩n, along with U.S. Rep. Teresa Leger Fern谩ndez, called the development a 鈥渟tep in the right direction to rebuild trust and provide relief for impacted families.鈥� The New Mexico Democrats were the architects of the FEMA compensation program bill in Congress.
The statement notes 鈥渟till outstanding questions鈥� regarding the claims office and its operations and said the delegation 鈥渨ill continue pressing for accountability and stable, trusted leadership.鈥�
In a separate statement, Leger Fern谩ndez, who represents the 3rd Congressional District in which the Calf Canyon/Hermits Peak Fire occurred, said the delegation needs 鈥渁ccurate and timely information鈥� about how many claims have been made, how much funding remains available and the timeline for paying outstanding claims.
鈥淎nd of course, we need the office to comply with their legal duty to report to Congress so we can share that information with the public,鈥� her statement said.
Paul Judson, a Washington, D.C.-based FEMA deputy assistant administrator, wrote an email to claims office employees around 9:20 a.m. Thursday informing them that FEMA had placed the office鈥檚 program manager and deputy program manager, referring to Mitchell and his deputy Jennifer Carbajal, on administrative leave.
Judson鈥檚 email does not provide reasons for the administrative leave, but does note that, 鈥淭his step does not reflect a finding of wrongdoing.鈥�
According to the email, Juan Ayala, a 鈥渟enior FEMA official,鈥� is on-site effective immediately to oversee operations. According to Ayala鈥檚 LinkedIn profile, he currently works as public affairs director for FEMA鈥檚 Region 6 headquarters in Dallas. Region 6 includes New Mexico.
The office鈥檚 work of processing claims will continue 鈥渦ninterrupted,鈥� Judson wrote, and other 鈥渟taff roles, responsibilities, and workflows remain unchanged.鈥�
Source鈥檚 Jan. 28 story revealed that Mitchell, who has run the office since April 2024, and his wife received payments last July for their home and her business far from the wildfire perimeter in an area that his neighbors said was largely untouched in the wildfire.
Meanwhile, some wildfire victims are still awaiting payment nearly four years after the fire began, including those who lost their homes and whose businesses suffered.
Carbajal, the office鈥檚 deputy director, has held that role since the wildfire began. Source also obtained documents showing she accepted payments last August of about $27,000 in business losses for a company called Maia Consulting Inc.
The documents show Carbajal dissolved the corporation at the end of 2022, shortly before she began work at the claims office. An archived version of Maia Consulting鈥檚 website described the company as a veteran-owned small business helping rural businesses embrace digital marketing and other technologies.
A claims office spokesperson, in a statement provided to Source on Thursday afternoon, said that, 鈥渁t this time, there is no finding of wrongdoing鈥� regarding improper payments at the office, and the office鈥檚 work continues.
鈥淔EMA is fully committed to supporting the citizens of New Mexico impacted by the Hermit鈥檚 Peak-Calf Canyon fires. This is yet another mess we inherited from the broken Biden administration and are focused on delivering assistance with integrity and accountability,鈥� the unsigned statement reads.
鈥淔EMA has ZERO tolerance for wrongdoing or misappropriation of funds 鈥� every allegation is thoroughly investigated and taken seriously. Our priority and focus remain on supporting eligible claimants and ensuring all claims are handled fairly and transparently. We will not be distracted from our mission to support recovery and uphold the highest standards at all levels of the Claims Office.鈥�
Judson鈥檚 email urges current claims office employees to avoid 鈥渟peculation or distraction鈥� and to focus their efforts on paying out claimants. The office has paid out roughly $3.4 billion of the $5.45 billion Congress awarded it, according to the latest figures from the office.
鈥淲e expect all employees to remain focused on serving claimants, to safeguard claimant privacy, and to conduct themselves professionally at all times,鈥� Judson wrote. 鈥淚nternal personnel matters should not be discussed externally and internal information should not be disseminated externally.鈥�
Judson also promised that FEMA will communicate with employees as 鈥渘ext steps are finalized.鈥�
