DENVER -- The Denver Department of Human Services was told that a convicted sex offender was living with two young children, but DDHS workers never checked city sex offender records to determine where Angel Ray Montoya was registered, a CALL7 investigation found.

Shari Shink, executive director of the Rocky Mountain Children’s Law Center, said checking where sex offenders are living during a child-abuse investigation is a basic step in protecting children.

"There's a sex offender in this home, what's the first obvious step?" Investigator John Ferrugia asked Shink.

"To check the registry to see where the sex offender is registered, where he's living and to basically do an investigation on that issue," Shink answered.

In the summer of 2006, Montoya was under investigation on an allegation of sexually assaulting Neveah Gallegos, but prosecutors did not press charges for lack of evidence. During that investigation, Neveah's grandmother, Janet, said she told a DDHS worker that Montoya was living with his 1-year-old niece and 3-year-old nephew at his mother’s house.

"I mentioned it to them that he was living with his mother and taking care of his nephew and niece," said Janet, who asked that her last name not be used. "I told them that."

At the time, Montoya was registered as living at 35 E. Center Ave. in Denver and family members confirm that the children lived there.

In December of 2006, Montoya's sister and the mother of the two children, Sharrilynn Abadilla, told a counselor at a halfway home that she was concerned that Montoya was in the home with her children, records show.

The counselor notified DDHS, but they accepted information from Montoya's mother that he was not living with the children. Around January 2007, the family had moved from the Center Avenue address to 550 S. Alton Way in Denver, the records show.

Montoya registered at 550 S. Alton Way in Denver in August 2007 after his release from jail, police records show.

DDHS officials closed both assessments -- the one that they opened after the sexual assault allegation and the referral made after Abadilla’s concerns -- in January 2007, records show.

Neveah died in September. Montoya was arrested in her death and then released when prosecutors said they did not have enough evidence to charge him. Authorities are continuing to investigate.

Human services officials said they could not find Montoya during their checks of the state sex offender registry and several other Web sites, but those only contain felons and violent offenders.

Officials never checked Denver Police Department's sex offender records, which would have confirmed Montoya's address and given Human Services a copy of his signed registration.

"Does that surprise you that systemically that wouldn't be the first thing that was checked?" Ferrugia asked Shink.

"Nothing surprises me anymore," Shink said.