A Cortez man reported losing more than $600,000 after he thought he was investing in cryptocurrency from a legitimate source. Authorities say they believe it was a larger scheme that used the victim’s account for laundering money.
The man told Montezuma County sheriff’s deputy Daniel Ruiz on Jan. 9 that it started when an unknown woman named “Emily Lee” texted him. According to a sheriff’s report, Lee encouraged him to invest in gold through cryptocurrency on BlueCoin (BLU) and at OKCoin.com.
The case involves false profits of more than $1.3 million, demands for upfront fees to withdraw cash, and the manipulation of a phony website posing as real-life financial companies.
The case is one of several recent scams reported across Montezuma County, where residents have been targeted by impostors posing as utility workers, landlords, mortgage representatives and bank officials. Law enforcement and local businesses say the incidents reflect increasingly sophisticated tactics designed to pressure victims into transferring money or providing financial information before they realize they’ve been defrauded.
On Jan. 5 a Cortez woman reported she was scammed out of $1,620 by someone claiming to be her mortgage company.
On Dec. 10, a Mancos resident who thought he was talking to a property owner about rent sent $750 in gift cards to a scammer naming himself Michael Brooker, and never heard back.
Last month, Ballantine Communications Inc., the parent company of The Journal, reported losing $276,000 in a scam in which someone posed as an Alpine Bank representative and obtained account information from a BCI employee.
John Blais, CEO of Ballantine Communications, said the insurance company has settled the claim, calling the outcome “a good thing.” The total settlement came to $271,000 and change, reflecting a $5,000 fee for the wire transfer.
“There’s a whole industry that continues to focus on improving their tactics,” Blais said.
Sheriff Steve Nowlin said fraud attempts of this nature have increased yearly, saying it appears “it’ll will never go away.”
He said they respond to scam reports several times a week in Montezuma County. While the older population remains a frequent target, he added that younger residents are also being scammed.
Nowlin said most scams involve people giving away too much personal information.
He advised people to hang up and always call back the verified phone line in cases of impostor scams pretending to be insurance companies, utility providers or banks.
“There’s insurance company frauds that are starting to pop up now where they get personal information because people are on Medicare or Medicaid,” Nowlin said.
He emphasized: “People need to not give that information, hang up and call the power company, their bank or Google or Amazon or whatever it may be.”
Over several months, the man told deputies he transferred about $617,000 into the platforms. He said he was led to believe those investments raised profits of about $1.3 million.
According to the report: “(Victim’s name) sent numerous bank statements from September 2025 through January 2026. In (victim’s name) bank statements, it shows large sums of money, up to $200,000, being deposited into his account, and then the money gets transferred the amounts that are deposited to other accounts.”
Authorities said in the report they believe the account was used as a hub for laundering money into other accounts.
He was able to complete two withdrawals that appeared to go through – a $100 withdrawal in October and a $20,000 withdrawal early last month, both of which showed up in his bank account. When he attempted to withdraw the full balance, however, he was told he would need to pay a 20% fee because his profits exceeded $500,000.
Investigators said the company refused to deduct the fee from the account balance and instead demanded an upfront cash payment.
When the man did not have the upfront money, the scammers advised him to take out a home equity line of credit to provide the rest in cash.
When deputies asked to see documentation showing the 20% fee requirement, the man was unable to locate any contract or terms agreeing to such a condition, the report states. There were attempts to view forms in his OKCoin app, “but the page appeared blank with no text,” the report read.
Deputies later said that while OKCoin is a legitimate cryptocurrency exchange, the version the man was using was not official.
Investigators noted the man had never met Lee, who initially contacted him, and she had not provided credentials verifying her identity. The two communicated over the phone or a special texting app.
The case remains under investigation.
Nowlin said a few cases lead to accountability, but many scams are never identified. He said his office lacks a dedicated cybercrimes unit.
“We're doing the best we can with what we got. The thing we have to do is rely on the assistance from other agencies whether it be federal or state agencies to help,” Nowlin said, referring to the Colorado Bureau of Investigation or the FBI.
He said early reporting is critical to recovering money because sometimes the bank or credit card companies may step in and reverse transactions.
awatson@the-journal.com
