Roswell Woman Sentenced for Multi-Year Fraud Schemes Targeting COVID Relief and Tax Refunds (Press Release, November 13, 2025)

Summary

Press release of the U.S. Attorney's Office, District of New Mexico, dated November 13, 2025. Melanie Willis, a Roswell woman, was sentenced to 60 months in prison for multiple fraud schemes involving COVID-19 unemployment benefits and federal tax returns that defrauded federal and state agencies and individual taxpayers of more than $312,000. According to court documents, she obtained $29,788 through fraudulent unemployment claims in her own name and caused losses of at least $183,420 from the New Mexico Department of Workforce Solutions. She also filed at least 34 false tax returns, with losses of at least $137,062, and diverted at least $27,200 in economic relief payments. She was ordered to pay $312,468.66 in restitution, with three years of supervised release.

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PRESS RELEASE


Roswell Woman Sentenced for Multi-Year
Fraud Schemes Targeting COVID Relief
and Tax Refunds
Thursday, November 13, 2025

For Immediate Release
U.S. Attorney's Office, District of New Mexico

ALBUQUERQUE – A Roswell woman was sentenced to 60 months in prison for
orchestrating multiple fraud schemes involving COVID-19 unemployment benefits and
federal tax returns that defrauded federal and state agencies and individual taxpayers of
more than $312,000.

There is no parole in the federal system.

According to court documents, between June 2020 and April 2021, Melanie Willis, aka
Melanie Vallejos, 50, submitted fraudulent applications for unemployment insurance
and pandemic unemployment assistance benefits to the New Mexico Department of
Workforce Solutions (NMDWS) in her own name, assisted others in submitting
fraudulent claims, and filed applications in others' names without their
knowledge. Willis obtained $29,788 through fraudulent unemployment claims in her
own name and caused losses of at least $183,420 from NMDWS, much of which she
kept for herself. Investigators linked Willis to over 150 NMDWS accounts through
internet activity.

Further, between at least 2017 and 2022, Willis also filed at least 34 false tax returns in
the names of at least 15 victim taxpayers in the Roswell area while posing as a
community tax return preparer or accountant. All returns contained false information
designed to fraudulently inflate tax refunds and were filed without the victims'
knowledge or consent. The tax fraud scheme resulted in losses of at least $137,062 in
tax credits and refunds issued to the victim taxpayers, but most of
which Willis redirected to addresses and bank accounts that she controlled.

Finally, between April 15, 2020, and June 30, 2021, Willis diverted and stole at least
$27,200 in COVID-19 economic relief and impact payments from taxpayers by similarly
using addresses she controlled and forging victim taxpayers’ signatures to deposit
checks into her personal bank account.

The case originated in February 2022 following a referral from the Roswell Police
Department, which had been investigating Willis for a separate state tax refund fraud
scheme. In September 2021, search warrants executed at addresses used
by Willis uncovered individual tax returns in others' names, notebooks full of personally
identifying information, numerous debit cards and identification documents in victim
taxpayers' names, and letters from NMDWS and the IRS addressed to identity theft
victims.

In December 2024, Willis pled guilty to four counts of wire fraud, two counts of mail
fraud, one count of aggravated identity theft, three counts of filing false, fictitious or
fraudulent claims and eleven counts of theft of public money. Upon her release from
prison, Willis will be subject to three years of supervised release. Willis was also
ordered to pay $312,468.66 in restitution to individual victim taxpayers, the State of New
Mexico, and the United States.

Acting U.S. Attorney Ryan Ellison made the announcement today.

The Department of Labor’s Office of Inspector General and the Internal Revenue
Service’s Criminal Investigation Unit investigated this case with assistance from
Homeland Security Investigations and the Roswell Police Department. Assistant U.S.
Attorney Tavo Hall prosecuted the case with assistance from Department of Justice Tax
Division Trial Attorney Matthew Hicks.

This press release was posted November 13, after the end of the federal government
shutdown.

Updated November 13, 2025

Topic
FINANCIAL FRAUD
Component
USAO - New Mexico
Press Release Number: 24-377


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