Bill Melot, a farmer from Hobbs, N.M., was sentenced to 14 years in prison today to be followed by three years of supervised release for tax evasion, program fraud and other crimes.
Melot was previously convicted of tax evasion, failure to file tax returns, making false statements to the USDA and impeding the IRS following a four-day jury trial in Albuquerque, N.M.
According to court documents and evidence presented at trial and at sentencing, Melot has not filed a personal income tax return since 1986, and owes the IRS more than $25 million in federal taxes and more than $7 million in taxes to the state of Texas.
In addition, Melot has improperly collected more than $225,000 in federal farm subsidies from the USDA by furnishing false information to the agency. Specifically, Melot provided the USDA with a false Social Security number (SSN) and a fictitious employer identification number (EIN) to collect federal farm aid.
The evidence also showed that Melot took numerous steps to conceal his ownership of 250 acres in Lea County, N.M., including notarizing forged deeds and titling the property in the name of nominees. The evidence also showed that Melot used false SSNs and fictitious EINs to hide his assets from the IRS.
Assistant Attorney General Kathryn Keneally for the Justice Department’s Tax Division and Acting U.S. Attorney Steven C. Yarbrough for the District of New Mexico coordinated the investigative efforts of IRS – Criminal Investigation and the USDA’s Office of Inspector General, as well as Tax Division Trial Attorney Jed Silversmith and Assistant U.S. Attorney George Kraehe, who prosecuted the case.
Bill Melot is also ordered to pay $18,469,998 in restitution to the IRS and $226,526 to the USDA. Melot’s sentence is a result of his conviction in a four-day jury trial in Albuquerque, N.M.
Related Federal Cases
- Frederick C. Berndt, Tax Evasion, Ohio 2004 · Texas
- Frances Jo Mehner, Tax Refund Scam, New Mexico 2010 · Texas
- David William Welbig, Aggravated Identity Theft, New Mexico 2014 · Colorado
- Robert O’Dell Neihart, Bank Robbery with Firearm, New Mexico 2012 · Colorado
- Jessie Hopper, Sr. and Polly Hopper, Kidnapping, New Mexico 2014 · Texas
Key Facts
- State: Federal
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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