NM wildfire claims office director on administrative leave following six-figure payout

Jay Mitchell, director of a multi-billion-dollar federal claims office for northern New Mexico wildfire victims, has been placed on administrative leave following revelations of a six-figure payout he received for smoke damage at his Angel Fire home, according to an email Source New Mexico obtained Thursday.

Mitchell and his wife, Lisa, received payments totaling more than $500,000 for smoke damage and business losses from the 2022 Calf Canyon/Hermits Peak Fire through a $5.45 billion fund administered by the Federal Emergency Management Agency, according to documents obtained by Source New Mexico and New Mexico PBS.

Since Source first reported on those payments two weeks ago, calls have increased for Mitchell’s resignation, including from members of New Mexico’s congressional delegation and Gov. Michelle Lujan Grisham. A group of several dozen protesters gathered outside the Las Vegas branch of the claims office earlier this week calling on him to step down.

In a joint statement Thursday, U.S. Sens. Martin Heinrich and Ben Ray Luján, along with U.S. Rep. Teresa Leger Fernández, called the development a “step in the right direction to rebuild trust and provide relief for impacted families.” The New Mexico Democrats were the architects of the FEMA compensation program bill in Congress.

The statement notes “still outstanding questions” regarding the claims office and its operations and said the delegation “will continue pressing for accountability and stable, trusted leadership.”

In a separate statement, Leger Fernández, who represents the 3rd Congressional District in which the Calf Canyon/Hermits Peak Fire occurred, said the delegation needs “accurate and timely information” about how many claims have been made, how much funding remains available and the timeline for paying outstanding claims.

“And of course, we need the office to comply with their legal duty to report to Congress so we can share that information with the public,” her statement said.

Paul Judson, a Washington, D.C.-based FEMA deputy assistant administrator, wrote an email to claims office employees around 9:20 a.m. Thursday informing them that FEMA had placed the office’s program manager and deputy program manager, referring to Mitchell and his deputy Jennifer Carbajal, on administrative leave.

Judson’s email does not provide reasons for the administrative leave, but does note that, “This step does not reflect a finding of wrongdoing.”

According to the email, Juan Ayala, a “senior FEMA official,” is on-site effective immediately to oversee operations. According to Ayala’s LinkedIn profile, he currently works as public affairs director for FEMA’s Region 6 headquarters in Dallas. Region 6 includes New Mexico.

The office’s work of processing claims will continue “uninterrupted,” Judson wrote, and other “staff roles, responsibilities, and workflows remain unchanged.”

Source’s Jan. 28 story revealed that Mitchell, who has run the office since April 2024, and his wife received payments last July for their home and her business far from the wildfire perimeter in an area that his neighbors said was largely untouched in the wildfire.

Meanwhile, some wildfire victims are still awaiting payment nearly four years after the fire began, including those who lost their homes and whose businesses suffered.

Carbajal, the office’s deputy director, has held that role since the wildfire began. Source also obtained documents showing she accepted payments last August of about $27,000 in business losses for a company called Maia Consulting Inc.

The documents show Carbajal dissolved the corporation at the end of 2022, shortly before she began work at the claims office. An archived version of Maia Consulting’s website described the company as a veteran-owned small business helping rural businesses embrace digital marketing and other technologies.

A claims office spokesperson, in a statement provided to Source on Thursday afternoon, said that, “at this time, there is no finding of wrongdoing” regarding improper payments at the office, and the office’s work continues.

“FEMA is fully committed to supporting the citizens of New Mexico impacted by the Hermit’s Peak-Calf Canyon fires. This is yet another mess we inherited from the broken Biden administration and are focused on delivering assistance with integrity and accountability,” the unsigned statement reads.

“FEMA has ZERO tolerance for wrongdoing or misappropriation of funds — every allegation is thoroughly investigated and taken seriously. Our priority and focus remain on supporting eligible claimants and ensuring all claims are handled fairly and transparently. We will not be distracted from our mission to support recovery and uphold the highest standards at all levels of the Claims Office.”

Judson’s email urges current claims office employees to avoid “speculation or distraction” and to focus their efforts on paying out claimants. The office has paid out roughly $3.4 billion of the $5.45 billion Congress awarded it, according to the latest figures from the office.

“We expect all employees to remain focused on serving claimants, to safeguard claimant privacy, and to conduct themselves professionally at all times,” Judson wrote. “Internal personnel matters should not be discussed externally and internal information should not be disseminated externally.”

Judson also promised that FEMA will communicate with employees as “next steps are finalized.”