Nearly two years after an investigation was launched into allegations of theft and fraud against a paving contractor that did millions of dollars of work for Santa Fe city and county governments, the case appears to be moving toward resolution.

Santa Fe County Sheriff Robert Garcia confirmed Wednesday that the First Judicial District Attorney's Office this week began submitting evidence involving Advantage Asphalt to a grand jury.

"My main investigator in the case has been working with them," Garcia said. "That's how I knew they were moving on it. It started Monday, and that's about all I have."

The Santa Fe County Sheriff's Office first began investigating Advantage Asphalt's dealings with Santa Fe County in the spring of 2010 after allegations surfaced that the firm had billed the county for work and materials that was either never completed or was completed using the county's own staff and materials.

The probe involved a search at the home and office of Advantage owner Anthony Montoya. The case was forwarded to District Attorney Angela "Spence" Pacheco's office in December 2010.

Pacheco said Wednesday that she could neither confirm nor deny that a grand jury is considering evidence in the case.

Pacheco described a grand jury as a "secret proceeding" used to determine whether there is probable cause to charge someone with a crime. If, after hearing evidence presented by the state, the grand jury determines there isn't probable cause to file charges, the case is dropped. If the grand jury determines there is probable cause, indictments are issued.

Advantage Asphalt received about $11 million worth of work from the city and county in the period leading up to the investigation and has continued to receive city contracts.

Though no charges have been filed in the case to date, the investigation has had some ripple effects.

The firm's attorney, City Councilor Matthew Ortiz, was fined by the city's Ethics Review Board for failing to disclose his relationship to the firm while voting to approve contracts it had with the city. Ortiz did not return a call seeking comment late Wednesday.

Santa Fe County's former public-works director, James Lujan, was fired in May 2010 after investigators seized documents during the search of Montoya's home and offices.

Lujan has since been hired as Española city manager. The Rio Grande Sun first reported the commencement of the grand jury proceedings Wednesday in a story that examined how it could affect Lujan. According to the Española weekly, Lujan has said he would step down or take a leave of absence if he is charged in the case.

Contact Phaedra Haywood at 986-3068 or phaywood@sfnewmexican.com.