Lakewood IT Specialist indicted for $1.2 million fraud scheme

James Montoya, a 54-year-old IT Specialist for the U.S. Geological Survey in Lakewood, was indicted on eight counts of wire fraud by a federal grand jury. The indictment stems from a routine review by the U.S. Department of the Interior, which uncovered suspicious transactions on Montoya's government charge card. Over a span of 15 years, from December 2008 to November 2023, he allegedly misappropriated $1,223,009.42 for personal expenses by creating fictitious vendors and using altered documents to disguise his purchases. Montoya's fraudulent activities included payments exceeding $1 million to these fake vendors via PayPal, which were subsequently transferred to his personal bank accounts. The indictment details that he also spent over $120,000 on personal items, including vintage toys and car parts, with one notable purchase being an aftermarket engine block for a Toyota truck. The scheme involved a sophisticated level of deception, as Montoya allegedly covered up his illicit transactions with fake receipts and invoices. His actions not only violated federal laws but also undermined the integrity of the agency he worked for, raising concerns about oversight and accountability within government operations. Montoya appeared in federal court in Denver following the indictment filed on August 20. The U.S. Geological Survey has not commented on the case or Montoya's employment status, leaving questions about the agency's response to the fraud allegations and the potential implications for its internal controls.