NM Attorney General warns about fire-related price gouging and fraud

Attorney General Raúl Torrez warned that any attempts at price gouging and defrauding victims of recent wildfires would face swift legal action.

Torrez spoke from Ruidoso, where he was meeting with local officials. He said his department has been receiving reports from Roswell, Alamogordo and even Albuquerque of price increases in hotels

“We have unfortunately seen this kind of shameful conduct in other emergency situations, not only here in New Mexico, but around the country, where people are attracted to communities that are in distress,” Torrez said.

Torrez says his office has initiated civil investigations into several Roswell hotels.

“We can actually demand information from businesses about what their rates were a month ago, and what their rates were last week and today, and we will ask for justification for any increases in those types of practices that have been engaged in,” he said. “If the businesses in these communities think they can justify the practice, they’ll certainly have the right to contest the findings that we have, and they’ll have the opportunity to make a case in front of a jury of their peers.”

Torrez said a second wave of fraud and price gouging often happens after federal disaster funds are distributed.

“And the reason I want to talk about that today is to reassure the people here on the ground that we’re not just going to be committed to this in the short term, but we’re going to be available in the long term,” he said.

He added his office will likely open a branch in Ruidoso to take complaints and referrals from law enforcement on such cases. And he warned that anyone looking to take advantage of people or communities in distress would face the full force of the law.

Lincoln County Manager Randall Camp said the extra help was welcomed.

“We know that the predators will move in,” he said. “This is a welcome relief for us, because we’re dealing with a lot of other issues and the recovery.”

A number of GoFundMe pages have also sprung up in the wake of the fires. Torrez said that is a criminal, not a civil violation. He also warned that facilitating fraud over the internet, which he said is a federal crime.

“And I won’t hesitate to refer any of those matters to my federal counterparts, who, let’s Just say, have more substantial penalties at their disposal,” Torrez said.

Victims of the Calf Canyon/Hermit’s Peak Fire in 2022 reported fraud and identity theft on disaster assistance applications.

Individuals can report potential price gouging or fraudulent behavior to the New Mexico Department of Justice online at www.nmdoj.gov/get-help or by calling (505) 490-4060 option 3.