NEWS
Three men charged in NM elk tag fraud scheme
Federal prosecutors say the men created fake hunter accounts and sold fraudulently obtained elk tags to out-of-state hunters through their outfitting business
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Three men have been charged with allegedly obtaining and selling New Mexico elk hunting tags to out-of-state hunters and failing to report profits to the IRS.
Danial Adair, 44; Daniel Nicolds, 57; and his brother, Lary Nicolds, 59, are charged with one count of conspiracy to commit wire fraud, five counts of wire fraud and five counts of violating the Lacey Act, a conservation law that makes it a federal crime to trade or possess wildlife that was taken or sold illegally.
From 2019 to 2022, the three men allegedly operated the scheme by fraudulently obtaining elk tags through Big Horn Outfitters, a big-game outfitting and guiding business they owned and managed, according to a Monday news release from the U.S. Attorney's Office.
The men allegedly obtained elk tags through the state's resident draw system and then transferred them to out-of-state hunters in exchange for payments and guiding services, according to an indictment filed in U.S. District Court.
The scheme began in 2019 when Adair sold a New Mexico elk tag his father had drawn to an out-of-state hunter, according to records.
Adair allegedly submitted fraudulent documents to the New Mexico Department of Wildlife, formerly known as the New Mexico Department of Game and Fish, and requested a medical transfer for the tag, the indictment states.
Big Horn Outfitters guided the hunter and collected outfitting fees and payment for the tag, according to the indictment.
In 2020, Adair allegedly sold his elk tag to another out-of-state hunter and requested a medical transfer of the tag, according to the indictment. Big Horn Outfitters collected fees for guiding the hunt.
Later that year, Adair and Daniel Nicolds allegedly sold an elk tag drawn by a client who had died and submitted false documents under the guise of another medical transfer, according to the indictment. Big Horn Outfitters again collected fees for guiding the hunt.
The three men allegedly created fake hunter accounts on the New Mexico Department of Wildlife website and fabricated information about the hunters in 2020 and 2021, according to the indictment.
"The fake hunters drew a substantial portion of the elk tags for some of the most sought-after elk hunting units in the country," the indictment states.
Adair, Daniel Nicolds and Lary Nicolds allegedly had the department transfer tags drawn by the fake hunters to out-of-state customers of Big Horn Outfitters while falsely claiming medical impairments to justify the transfers, according to the indictment.
The men allegedly submitted fake doctor's notes, fraudulent transfer requests and transfer agreements signed by Big Horn Outfitters clients, the indictment states.
According to the indictment, Adair, Daniel Nicolds and Lary Nicolds sold the fraudulently drawn and transferred tags to Big Horn Outfitters clients, who were typically told they were purchasing valid landowner tags.
"The successful hunters transported the elk they harvested in New Mexico, while hunting with the fraudulently obtained and invalid tags, to locations around the United States," the indictment states.
The men allegedly used prepaid debit cards to pay fees for the fake hunters to participate in tag draws and used a computer at a public library to avoid being linked to the scheme, according to the indictment.
"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. "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."
Nakayla McClelland covers crime and breaking news. Reach her at nmcclelland@abqjournal.com or at 505-823-3857.
