Former New Mexico tax official receives 7 1/2 years in prison for fraud, theft

Jan. 26—U.S. District Judge Kia Riggs sentenced former New Mexico Taxation and Revenue Department official George Martinez to 7 1/2 years in prison Wednesday.

Martinez, a former supervisor in the department's Questionable Refund Unit, pleaded guilty earlier this month to dozens of counts of wire fraud, money laundering and identify theft in an agreement with the U.S. Attorney's Office in Albuquerque.

In a written plea entered Jan. 5, Martinez admitted using his position to alter the information on tax returns to increase the amount of refunds and then directing that money to his own accounts.

He diverted at least $689,000 this way, according to his plea — money he'll have to pay back as a term of his agreement.

An internal investigation uncovered the fraud in 2018, and the case was referred to the FBI for investigation, according to the Taxation and Revenue Department. The U.S. Attorney's Office indicted Martinez on more than 90 counts in 2021.

Martinez's attorney did not respond to a message seeking comment Thursday.

The tax department has strengthened its internal controls by overhauling system access privileges and updating business procedures as a result of this case, according to a Jan. 5, statement. "Officials continue to monitor daily business activity for abnormalities and suspicious transactions," the statement said.

"[The] sentence sends a strong message: If you abuse the public trust, you will pay the price," New Mexico Taxation and Revenue Secretary Stephanie Schardin Clarke said in a message sent by a spokesman Thursday.