Belen restaurant owner indicted on 39 tax evasion counts, state says

Big Mike’s Burgers and More owner Michael Montano is facing 39 criminal counts after a 13th Judicial District Court grand jury indicted the Bosque resident on allegations of tax evasion and fraud tied to his restaurant and his personal income taxes.

The New Mexico Taxation and Revenue Department said Montano, 30, was indicted on April 16 and that the case was announced Thursday, May 7. Prosecutors allege 36 fourth-degree felony counts of tax evasion related to gross receipts taxes owed by the business, one third-degree felony count of tax fraud, and two additional fourth-degree felony counts of tax evasion tied to Montano’s personal income taxes.

Investigators say the alleged conduct stretched from January 2021 through December 2023, suggesting a pattern across multiple tax periods rather than a one-time filing problem. The Tax Fraud Investigations Division began investigating Montano in February 2024, extending the case into a long-running enforcement effort before the grand jury returned the indictment.

Under New Mexico law, a third-degree felony carries a basic sentence of three years in prison and up to a $5,000 fine. A fourth-degree felony carries 18 months in prison and up to a $5,000 fine. The indictment is an accusation, not a conviction, but the counts put a Belen business owner squarely in the middle of one of the state’s most serious tax-enforcement actions.

For Valencia County, the case reaches beyond one restaurant counter. Belen had a census population of 7,360 in 2020, and Big Mike’s Burgers and More is a familiar local business in a small city where one storefront can carry outsized weight. Gross receipts taxes also help fund public operations because the Taxation and Revenue Department administers more than 38 tax programs and distributes revenue to state, local and tribal governments. If taxes were not paid, that could mean less money flowing to services residents rely on.

The City of Belen also collects municipal gross receipts components in its tax rate schedule, underscoring how local governments depend on compliance from businesses that operate within city limits. In that way, the allegations touch not just state enforcement but the broader public trust that supports roads, schools, public safety and other local services.

Stephanie Schardin Clarke, the department’s secretary, and Megan Gleason, the agency’s media contact, were identified in the state’s announcement. The Tax Fraud Investigations Division says it enforces criminal statutes tied to the New Mexico Tax Administration Act and related financial crimes as they affect state taxes, making this case a clear example of how closely the state is watching tax compliance in local businesses.