Aspen fraud suspect booked in Junction
An Aspen resident and former financial adviser is accused of swindling more than $1.2 million from an elderly man in Washington.
Michael D. Montgomery, 42, was advised Thursday at the Wayne N. Aspinall federal building on an arrest warrant alleging six counts of wire fraud and one count of filing a false tax return.
Montgomery was booked Wednesday into Mesa County Jail by Grand Junction-based agents of the Internal Revenue Service after his arrest in Aspen. He was released Thursday morning on a personal-recognizance bond.
Montgomery, formerly a resident of Gig Harbor, Wash., was selling securities in Washington from April 2005 to September 2007 when authorities believe he wrote checks to himself from a client’s bank account totaling more than $1.2 million, according to an arrest warrant affidavit.
The alleged fraud started after the client had been placed in a nursing home and after Montgomery had obtained power of attorney over the man’s finances, authorities said.
Montgomery had claimed the monies were payments for his services, the affidavit said.
The client died in July 2006 at age 90.
After the client’s death, Montgomery wrote an additional $243,745 in checks to himself and called the payments, “estate services,” but he failed to report any of the monies on tax returns, the affidavit said.
Authorities allege he failed to report just over $842,000 on tax returns during the fraud.