Farmer's sentence includes $18M payback

ALBUQUERQUE (KRQE) - A Hobbs farmer who hid his ownership in Lea County land and hadn't filed a tax return in 25 years is headed to federal prison with more than $18 million in restitution to be paid when he gets out.

During his Albuquerque trial a federal court jury convicted Bill Melot of tax evasion, making false statements to obtain farm subsidies from the U.S. Department of Agriculture and impeding an investigation by the Internal Revenue Service.  On Tuesday he was sentenced to five years in prison and ordered to pay restitution of $18.5 million to the IRS and $226,536 to the USDA.

Prosecutors showed how Melot used false documents to hide  his ownership of 250 acres in Lea County and to hide his assets from the IRS.  He also maintained a Swiss bank account set up through the Bahamas in 1992 and failed to report its existence as required by federal law.