Fire in New Mexico destroys over 1,400 buildings, says governor
New Mexico Governor Michelle Lujan Grisham confirmed during a press conference on Wednesday, June 19, that wildfires in the southern part of the state have destroyed over 1,400 structures, including homes.
Price gouging and scammers attempting to take advantage of victims of the South Fork Fires and Salt Fires near Ruidoso, New Mexico, will not be tolerated, authorities said.
“This community has come together and really reached out neighbor to neighbor and friend to friend and helped each other in probably the most difficult situation you can imagine to start rebuilding,” said New Mexico Attorney General Raul Torrez. “We know this is going to be a really long and complicated task. In moments like this, in moments of crisis, you see the best in people. You see what they’re made of. You see the character and compassion they have for each other.”
“Unfortunately, sometimes in moments like these, the worst sides of people come out. People engaging in unfair practices, price gouging, raising hotel prices without justification, people who are at the end of their rope, retailers, people who sell gasoline, and individuals who think this is an opportunity to take advantage of a community in need will not be tolerated.”
The Attorney General’s Office will increase its resources to investigate allegations of price gouging and other fraudulent activities to enable law enforcement and other agencies to continue working on emergency and recovery issues.
“I have communicated to local law enforcement and leaders here that we want them to remain focused on recovery and emergency response,” Torrez said. “We want the public to understand that if they have experienced what they believe is an unfair practice where someone is taking advantage of them, they need to send that information and complaints to the (New Mexico) Department of Justice. Our attorneys and investigators will take all necessary legal action to ensure that the individuals who engage in such activities are held accountable.”
Reports of price increases in hotels
There have been no reports of price gouging or fraudulent activity other than at hotels, authorities said. Authorities are investigating hotels near the wildfires and as far north as Albuquerque for price hikes, Torrez said.
“The Department of Justice will be redirecting much of its consumer protection and law enforcement resources to focus on the reports we’ve already received from Roswell, Alamogordo and the surrounding communities,” Torrez said. “But frankly, we’ve received reports of price increases at hotels as far away as Albuquerque.”
More: Containment of South Fork Fire and Salt Fire near Ruidoso, New Mexico, continues to improve: Live updates
Torrez said he could not provide details about ongoing investigations into hotels that have raised their room rates.
“I can tell you that the first reports that came into our office were directly related to a significant increase in room rates at hotels in the Roswell area, and that will be the first place we will be opening an active civil investigation,” Torrez said. “At this point, I don’t believe there is enough evidence to open a criminal investigation, but by the end of the week there will be.”
Hotels and other businesses accused of price gouging must justify their price increases as part of the Federal Prosecutor’s Office’s investigations.
“We have broad powers to investigate any unscrupulous business activity, any activity where it looks like someone is using their market power to take advantage of others,” Torrez said. “That includes issuing what we call civil investigative orders. We can actually ask companies for information on what their rates were a month ago and what their rates were last week and today. We will require justification for any increases in these types of practices.”
More: How Ruidoso fire survivors can get FEMA help and avoid scammers
As parts of New Mexico continue to be a tourist destination and large crowds are expected for the upcoming annual Roswell UFO Festival, the Attorney General’s Office will consider historical records of what hotels have charged consumers as part of its investigation.
“One of the things we can look back at is historical economic patterns,” Torrez said. “For example, when you look at peak tourism events and the like, which naturally attract a recurring level of activity, there will always be some variability in the prices that people pay in a tourist destination. That’s something normal and not something that’s going to be the subject of an investigation.”
GoFundme, crowdsourcing donations could be investigated
The Justice Department will investigate any reports of GoFundMe or other crowdsourced fundraising accounts if it believes the accounts were set up by scammers attempting to steal money by posing as victims of the wildfires.
“If someone in this community is suffering and in need and is working with family members and community members and setting up a legitimate GoFundMe page, they should definitely do that,” Torrez said. “They should use modern technology and whatever means are available to them to try to get the resources they need to get their life back on track.”
“If someone creates a fraudulent GoFundMe page, our office is not going to respond with a civil response. That’s a criminal offense. That’s fraud. You’re not going to get a letter from the Attorney General’s Office. You’re going to meet some of our special agents who will show up and put handcuffs on you.”
How to report price gouging and fraudulent activities
If you suspect price gouging or other fraudulent activities, you can inform the Attorney General’s Office as follows:
- Online: nmdoj.gov/get-help. Fill out the online complaint form there.
- Phone: 505-490-4060, option 3.
Important information to include when reporting fraudulent activity:
- Name and location of the company in question.
- Description of the suspected price gouging or fraudulent activity.
- Date and time of the incident.
- Any supporting documentation such as receipts, advertisements or photos.
“We rely on the public’s cooperation to protect our community,” Torrez said. “Together, we can combat unethical practices and protect consumer rights.”
Aaron Martinez can be reached at [email protected] or on Twitter at @AMartinezEPT.
