Former WildEarth Guardians employee pleads guilty to $250,000 fraud scheme

An employee of a Santa Fe-based environmental group that is a frequent critic of the New Mexico oil and gas industry pleaded guilty to federal money laundering and wire fraud charges, stemming from an alleged scheme in which he was accused of writing fraudulent checks to himself from WildEarth Guardians.

James Matison, 46, of Pueblo, Colorado stole $242,210 in the plot and via a plea agreement faces up to 20 years in prison and a fine of up to $250,000 for his alleged crimes.

The scheme continued from February 2015 to February 2019 as Matison, then the organization's restoration program director, struggled with personal “financial difficulties,” read the news release.

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WildEarth Guardians, headquartered in Santa Fe, is known for its advocacy work in New Mexico and neighboring Colorado, lobbying on environmental issues and often an opponent of fossil fuel interests.

The nonprofit relies on funding from the State of New Mexico and federal agencies, read a news release from the U.S. Attorney’s Office District of New Mexico. The group also engages in environmental restoration work.

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Court records show Matison was responsible for approving all restoration project invoices submitted by contractors for payment from WildEarth Guardians.

Timberline Environmental was one of the contractors, owned by Mattison’s co-defendant Jeffery Ham who investigators said allowed Matison to submit fraudulent invoices to WildEarth Guardians from Timberline.

Matison would approve the invoices for payment to Timberline, collect the checks and deposit them into Timberline’s bank account, records show, then Ham would provide Matison pre-signed Timberline bank checks.

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Matison would use those checks to move the money to another company he controlled, Phoenix-based Euro-American Development.

Ham pleaded guilty to conspiracy to commit wire fraud on July 17 and faces up to 20 years in prison and $250,000 in fines for his role.

The case was investigated by offices of inspectors general at both the U.S. Environmental Protection Agency and Department of the Interior, with the U.S. Attorney’s Office prosecuting the case.

Upon the arrests of Matison and Ham in February, WildEarth Guardians Executive Director John Horning said the group first learned of the scheme in April 2019 through the lawyers of an anonymous informant.

The defendants were terminated from the organization that month, and in May 2019 WildEarth Guardians submitted a forensic auditor report to the U.S. Attorney's Office showing how the scheme took place and naming Matison and Ham as the perpetrators.

"Since learning of the embezzlement we have been committed to ensuring that those who misled our organization are held accountable for their actions," Horning said in a statement. "Our organization is not only a Guardian of the wild, but we also believe in standing for what’s right and enforcement of our nation’s laws."

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WildEarth Guardians a lead oil and gas opponent in New Mexico

Through several public rulemakings at the New Mexico state level dealing with issues like air pollution, or federal land leasing by the oil and gas industry, WildEarth Guardians often advocated for stronger restrictions on industry.

Most recently in October, WildEarth Guardians was vocal in opposing the federal government's efforts to increase hydrogen power production upon the announcement of $7 billion in funds for hydrogen “hubs” around the country.

The group applauded the denial of funds to the Western Interstate Hydrogen Hub, led by New Mexico and three other states, objecting to the sector as one still reliant on extracted natural gas to produce its product.

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WildEarth Guardians was also at the center of calls to allow a Mexican gray wolf found in northern New Mexico to roam free, as federal regulators sought to capture the wolf and return it to an area in southwest New Mexico where the endangered species is being bred by the government.

The group was also present at a demonstration in September in New York City, representing New Mexico in its call to end the extraction and use of fossil fuels amid the United Nations Climate Ambition Summit.

Throughout air pollutions rulemakings by the New Mexico Environment Department (NMED) and the Energy, Minerals and Natural Resources Department (EMRND), in the last two years, WildEarth Guardians frequently testified and submitted comments calling for tighter restrictions on emissions from oil and gas companies.

These proceedings resulted in a ban on routine flaring, the burning off of natural gas, and required oil companies to capture 98 percent of produced gas by 2026 while also toughening requirements for leak detection and repair at facilities throughout New Mexico.

Adrian Hedden can be reached at 575-628-5516, achedden@currentargus.com or @AdrianHedden on X, formerly known as Twitter.

This article originally appeared on Carlsbad Current-Argus: Official at environmental group pleads guilty to $250K fraud scheme