Larry Mendoza, Hobbs Act extortion, New Mexico 2017

ALBUQUERQUE – In a brazen case of official corruption, Larry Mendoza, a 44-year-old former Revenue Agent of the New Mexico Taxation and Revenue Department, has pleaded guilty to Hobbs Act extortion charges in federal court in Albuquerque, N.M.

Mendoza, a Santa Fe resident, abused his position as a state Revenue Agent to extort an aggregate of $2,500 from a business owner in return for reducing the business owner’s tax liability between February 2017 and May 2017. The felony information alleges that Mendoza entered into a scheme with the business owner, soliciting $500 in February 2017 and another $500 in March 2017, in exchange for lowering the business owner’s tax obligation to the State of New Mexico.

On May 11, 2017, Mendoza logged onto his work computer and reduced the business owner’s tax liability to the State of New Mexico by $8,000. However, he solicited another $1,500 from the business owner in exchange for further reducing his tax obligation. The business owner gave Mendoza $1,500 on May 24, 2017.

In entering his guilty plea, Mendoza admitted that the money he solicited and received from the business owner was for his personal use and benefit, and that he was not entitled to that money. The former tax agent also admitted to engaging in a similar pattern of criminal conduct with other business owners, resulting in losses exceeding $40,000.

Mendoza’s employment with the New Mexico State Taxation and Revenue Department was terminated shortly after his administrative leave was placed on May 24, 2017. The FBI’s Albuquerque and Santa Fe offices investigated the case, which is being prosecuted by Assistant U.S. Attorney Holland S. Kastrin.

At sentencing, Mendoza faces a statutory penalty of imprisonment for not more than 20 years and a fine not to exceed $250,000. His sentencing hearing has yet to be scheduled.

The case serves as a stark reminder of the pervasive nature of public corruption in New Mexico. As Grimy Times continues to investigate, it is clear that the abuse of power by public officials is a cancer that must be cut out. We will continue to shine a light on these cases and hold those responsible accountable.

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