Colorado federal employee spent $1 million on self with government credit card
A 55-year-old Lakewood man who worked for the federal government was sentenced to prison this week for fraudulently diverting approximately $1 million from his employer for personal use.
James Montoya was sentenced Tuesday to 41 months behind bars. He was also ordered to repay $1,122,009.47.
Montoya was employed as an Information Technology (IT) Specialist for the United State Geological Survey (USGS) which has offices in Lakewood. He was hired by the agency in 1996 and started working in the IT position in 2002.
A year later, Montoya began falsifying expense reports in order to shift money to personal Paypal accounts, per case documents. The activity wasn't noticed until 15 years later. Then, in 2023, an examination of employee accounts by the U.S. Department of Interior (which oversees the USGS) drew attention to Montoya's accounts.
"An investigation revealed that Montoya successfully concealed improper purchases for years by submitting altered receipts, and fictitious invoices and other documentation to USGS claiming that these purchases were for IT-related items or services," the U.S. Attorney's Office, District of Colorado, stated in a press release. "In fact, the defendant did not provide any IT-related items or services to USGS and many of these purchases were for personal items including, but not limited to, vintage and collectible toys as well as car parts."
The investigation revealed Montoya directed just over $1 million to his three Paypal accounts which he had falsely portrayed as vendors providing products to the USGS. Montoya disputed the total amount, according to court records, and claimed the total was $922,000.
More than $120,000 was falsely attributed to legitimate USGS vendors through fake invoices.
His personal purchases included leather electric seats for his pickup truck and replica toys from a Disneyland Tokyo amusement park ride, according to a case document.
A federal grand jury issued an indictment in August 2024 charging Montoya with eight counts of wire fraud. He pleaded guilty to a single count in March.
"The defendant stole the funds and laid low in the hopes his theft would not be caught," prosecutors proclaimed in a court document in which they argued for a 46-month sentence. "The length of this offense and the frequency of the defendant's theft, nearly every month of the period of the scheme, contribute to its seriousness."
Montoya has until January 12, 2026, to report to the U.S. Bureau of Prisons to begin serving his term.
