Three New Mexico Men Charged in Elk Tag Fraud and Tax Conspiracy Scheme

ALBUQUERQUE - Three New Mexico men have been charged with operating a years' long scheme to fraudulently obtain and sell New Mexico elk hunting tags to out of state hunters and conceal the proceeds from the IRS.

According to public court documents, from approximately 2019 through 2022, Danial Adair, 44, Daniel Nicolds, 57, and his brother Lary Nicolds, 59, allegedly operated a scheme through Big Horn Outfitters in which they 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.

The indictment alleges the defendants created fictitious hunter accounts, used false identifying information, and paid draw fees with prepaid debit cards to unlawfully secure resident elk tags. Prosecutors further allege they submitted fraudulent medical transfer requests and supporting documents, including fake doctor notes and forged agreements, to the New Mexico Department of Game and Fish in order to transfer tags to out of state clients. The defendants are also alleged to have concealed the scheme through the use of prepaid debit cards, alternate email accounts, and false tax reporting while guiding hunts and facilitating the transport of harvested elk across state lines.

"As a hunter, I know it's extraordinarily difficult for New Mexico residents to draw elk tags," said First Assistant U.S. Attorney Ryan Ellison. "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."

"This case is a testament to what federal law enforcement can accomplish when we work together across jurisdictions," said Acting U.S. Attorney John G.E. Marck. "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. Those who rig the system for profit will be held accountable, no matter where the investigation leads."

"We work closely with our state partners to investigate wildlife crimes that cross state lines and violate federal wildlife laws" said Doug Ault, Assistant Director for the Office of Law Enforcement at the U.S. Fish and Wildlife Service. "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. These efforts support the conservation and responsible stewardship of our nation's wildlife resources."

"Outdoorsmen are some of our nation's greatest stewards of natural resources and the laws and finances that govern them, but even among the best of us are criminals that steal at the expense of those abiding the laws," said acting Special Agent in Charge Rodrick Benton of IRS Criminal Investigation's Houston Field Office. "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."

"It is great to see the joint effort from these agencies in combating wildlife crime," said Colonel Tim Cimbal. "It has and continues to produce excellent results in stopping violators from stealing the wildlife held in public trust."

Adair, Danial and Lary 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 violations of the Lacey Act. Adair and Danial are additionally charged with one count of conspiracy to defraud the United States.

First Assistant U.S. Attorney Ryan Ellison for the District of New Mexico, Acting U.S. Attorney

John G.E. Marck for the Southern District of Texas, Assistant Director Doug Ault of the U.S. Fish and Wildlife Service, Office of Law Enforcement, Acting Special Agent in Charge Rodrick Benton of IRS Criminal Investigation's Houston Field Office and Colonel Tim Cimbal of New Mexico Department of Game and Fish made the announcement today.

This case was jointly investigated by the U.S. Fish and Wildlife Service, IRS Criminal Investigation and 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.

An indictment or criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.