A woman from Roswell has been sentenced to five years in federal prison for orchestrating several fraud schemes that targeted COVID-19 unemployment benefits and federal tax refunds, resulting in losses exceeding $312,000 to government agencies and individuals.
Melanie Willis, also known as Melanie Vallejos, age 50, was found guilty of submitting fraudulent applications for unemployment insurance and pandemic assistance benefits to the New Mexico Department of Workforce Solutions (NMDWS) between June 2020 and April 2021. She not only filed claims under her own name but also helped others submit false claims and filed additional applications using other people's identities without their consent. Investigators linked her to over 150 NMDWS accounts through internet records. In total, Willis received nearly $30,000 through fraudulent claims in her own name and caused at least $183,420 in losses to NMDWS.
Authorities determined that from at least 2017 to 2022, Willis filed more than thirty false tax returns using the identities of at least fifteen people from the Roswell area. Posing as a community tax preparer or accountant, she submitted returns with inflated refund amounts without the knowledge or approval of those taxpayers. Most of these refunds were redirected by Willis into accounts or addresses she controlled. The IRS calculated that this scheme led to at least $137,062 in improper credits and refunds.
Additionally, between April 2020 and June 2021, Willis diverted at least $27,200 in COVID-19 economic relief payments by depositing checks intended for others into her personal account after forging their signatures.
The investigation began after a referral from the Roswell Police Department in February 2022 during an inquiry into another alleged state tax refund fraud involving Willis. A search of properties connected to her uncovered documents including individual tax returns prepared for others without their knowledge, notebooks with personal data belonging to victims, numerous debit cards and IDs under different names, as well as correspondence from both NMDWS and the IRS addressed to identity theft victims.
Willis pleaded guilty in December 2024 to multiple charges: four counts of wire fraud, two counts of mail fraud, one count of aggravated identity theft, three counts related to filing false claims, and eleven counts of theft of public money. After serving her sentence she will be on supervised release for three years and must pay restitution totaling over $312,000 to victims including taxpayers as well as state and federal agencies.
Acting U.S. Attorney Ryan Ellison announced the sentencing: "Acting U.S. Attorney Ryan Ellison made the announcement today."
The case was investigated by the Department of Labor’s Office of Inspector General along with IRS Criminal Investigation Unit; Homeland Security Investigations; and Roswell Police Department provided assistance. Assistant U.S. Attorney Tavo Hall prosecuted with help from DOJ Tax Division Trial Attorney Matthew Hicks.
There is no parole available in the federal system.
