Colorado man accused of defrauding federal employer of $1.2 million over 15 years

A Lakewood man was indicted last week by a federal grand jury for putting more than $1.2 million in personal purchases on his government credit card.

James Montoya, 54, worked as an Information Technology (IT) Specialist for the U. S. Geological Survey in a Lakewood office. The U.S. Department of the Interior, which has oversight of the USGS, recently found questionable transactions on Montoya's government charge card during a routine operation to identify credit card misuse.

According to the indictment, Montoya is accused of altering and falsifying documents to conceal purchases he made for personal goods and services. He is alleged to have paid himself $1,223,009.42 over the course of 15 years (from December 2008 through November 2023).

Specifically, as recounted in the indictment, Montoya created three fictitious vendors which he paid with a government-issued card. More than $1 million of the fraudulent funds was paid to the vendors via Paypal and then transferred to Montoya's personal bank accounts, according to prosecutors. 

Montoya allegedly covered up the transactions with altered or fake receipts and invoices. 

According to the indictment, Montoya used the same tactic to avoid detection of the more than $120,000 he spent with the card on the direct purchase of goods. Most of the items purchased were vintage and collectible toys and car parts, per the indictment. One such purchase was for an aftermarket engine block for a Toyota truck. 

The federal indictment was filed Aug. 20. Montoya appeared in federal court in Denver on Wednesday. He faces eight counts of wire fraud. 

A USGS staff profile indicates James Montoya was employed as an IT specialist in the agency's Water Resources Mission Area. 

A national spokesman for the USGS declined to comment last week on the criminal case against Montoya or his status as an employee.