A Message from the United States Attorney to the Residents of Ruidoso, New Mexico: Combating Disaster-Related Fraud

ALBUQUERQUE – The recent flooding in Ruidoso, New Mexico, has brought devastating loss and hardship to our community. Lives have been lost, homes and businesses have been destroyed, and many families are facing an uncertain future. In the midst of this tragedy, we have witnessed countless acts of generosity and resilience as neighbors, volunteers, and organizations step forward to help those in need.

Unfortunately, history teaches us that disasters like this also attract individuals seeking to exploit the situation for personal gain. Fraudulent activity undermines recovery efforts and diverts critical resources away from genuine victims.

Past disasters have shown that fraud can take many forms, including:

• Individuals not affected by the flooding who attempt to claim disaster benefits.
• The creation of fraudulent charities or the diversion of donations intended for legitimate relief organizations.
• Fraudulent applications for rebuilding grants and loans, such as those offered by the U.S. Department of Housing and Urban Development and the U.S. Small Business Administration.

Our office has zero tolerance for those who seek to steal from disaster victims or misuse funds meant for recovery. We have established a Disaster Fraud Working Group, which includes the U.S. Attorney’s Office, FBI, Department of Homeland Security, Secret Service, HUD, SBA, Postal Inspectors, Internal Revenue Service, and U.S. Marshals Service. This group is actively reviewing potential cases and will work closely with the New Mexico Department of Justice, local and tribal law enforcement, and community partners to ensure that fraudsters are brought to justice.

Anyone considering disaster-related fraud should be aware that federal law—specifically, 18 United States Code, Section 1040—provides for penalties of up to 30 years in federal prison.

We urge the public to remain vigilant. If you observe suspicious activity or suspect fraud, please report it immediately. The National Disaster Fraud Hotline is available toll-free at (866) 720-5721, or you may email disaster@leo.gov. The hotline operates 24/7.

Together, we can protect our community and ensure that help reaches those who truly need it.