Former Montana Heritage Commission Executive Director Michael Elijah Allen was sentenced Thursday to 10-years in the Montana State Prison with seven years suspended for stealing public funds from the state agency charged with preserving some of Montana’s most significant historic sites.

Lewis and Clark County District Court Judge Kathy Seeley said she took no pleasure in imposing the sentence but told Allen he was the brains behind this operation of years of theft and fraud. On a count of theft by embezzlement as part of a common scheme, Seeley sentenced Allen to 10 years at the Montana State Prison with seven years suspended, and imposed a concurrent, fully suspended 14-year term on a felony money laundering count.

“You have destroyed yourself,” Seeley said. “You understand that. I hope you do. This is not anybody but you that did this.”

Allen was ordered to pay $280,000 in restitution to the Montana Heritage Commission, plus a 10% administrative fee, and a series of standard court costs and fees, including a presentence investigation fee and victim-witness surcharge. He received credit for eight days previously served in custody, from Dec. 27, 2024, through Jan. 3, 2025, and was barred from having contact with the Department of Commerce or related entities as he serves his sentence under conditions laid out in a plea agreement.

Prosecutors urged a stiffer punishment, asking the court to impose a 20-year prison sentence with 10 years suspended, arguing that Allen’s years-long scheme was a serious breach of public trust that demanded a lengthy custodial term. Deputy County Attorney Kevin Downs told the court that every defendant in similar embezzlement and financial-crimes cases submitted for comparison had received multi-year prison time and said a 10-year effective prison term was warranted to deter others from stealing public funds.

“He was the one that made this happen. He greased the wheels to steal from people,” Downs said. “This sentence sends a message to people. The people that work in any state agency, god forbid, that if you steal there will be significant consequence.”

Allen’s attorney asked Seeley for a lengthy but largely suspended sentence, arguing that a shorter period of incarceration — about two years, roughly double that imposed on co-defendant Casey Jack Steinke — would still hold Allen accountable while allowing him to work and pay restitution more quickly. The defense said Allen has suffered enough with the public humiliation and collateral consequences, including the loss of his career, voting rights and ability to serve on a jury or possess firearms.

Brenda Elias, chief legal counsel for the Montana Department of Commerce, told the court Allen had been a long-time state employee with significant autonomy as the Heritage Commission’s director and had been compensated for his work. She said Allen abused trust, manipulating people and resources.

“Hundreds of thousands of dollars that should have gone to preserve Montana’s heritage were diverted to Mr. Allen’s personal use,” Elias said.

Elias said Allen served as executive director from 2012 to 2024 and said the Heritage Commission has never been financially self-sufficient, relying heavily on bed tax revenue and other support from the Department of Commerce.

“The Heritage Commission continues to realize the impact of these crimes to this day, and it will take many years for the Commission to recover,” Elias said.

Detective Nathan Casey of the Helena Police Department, a veteran investigator in financial crimes, testified that he was contacted by Commerce employees in mid-2024 after they uncovered significant irregularities, prompting a wide-ranging probe. Casey said investigators ultimately reviewed roughly 744 pages of documents which included invoices, contracts and procurement justifications tied to a state-issued purchasing card controlled by Allen.

According to earlier court records, Allen used his position as head of the Heritage Commission to channel roughly $350,000 in commission funds to Steinke between 2020 and 2024, often through invoices for work that was not legitimately performed. In addition to those payments, investigators found evidence that Allen used public money to cover rent, educational expenses and other personal costs, and that Steinke lived rent-free in Reeder’s Alley, one of the commission’s historic properties, during the scheme.

Steinke, who was charged with accountability for theft by embezzlement and felony money laundering, previously pleaded guilty to one embezzlement-related charge and the money laundering count under a plea deal that called for prosecutors to recommend a 20-year prison sentence with 15 years suspended. As part of that agreement, Steinke agreed to pay $100,000 in restitution, including a $20,000 upfront payment at sentencing.

The embezzlement case comes as the Heritage Commission, which manages historic properties, is facing financial pressure. According to reporting from the Daily Montanan, the Commission is obligated to provide $1.1 million annually to the state but has only generated an average of about $750,000 in recent years, leaving less available for capital improvements than needed to maintain historic buildings.

Allen, 49, told the court he accepted full responsibility for his actions, saying he was ashamed and that the crimes were an aberration from how he had otherwise lived his life. He described the embarrassment his children have faced as his case played out publicly, and said he hopes to work and resume making restitution payments.

“I apologize to my friends and to my community,” Allen said. “I’m incredibly ashamed of the actions.”

SACRAMENTO, Calif. (AP) — A Lake Tahoe school district is caught between California and Nevada’s competing policies on transgender student athletes, a dispute that’s poised to reorder where the district’s students compete.

High schools in California’s Tahoe-Truckee Unified School District, set in a mountainous, snow-prone area near the border with Nevada, have for decades competed in the Nevada Interscholastic Activities Association, or NIAA. That has allowed sports teams to avoid making frequent and potentially hazardous trips in poor winter weather to competitions farther to the west, district officials say.

But the Nevada association voted in April to require students in sex-segregated sports programs to play on teams that align with their sex assigned at birth — a departure from a previous approach allowing individual schools to set their own standards. The move raised questions for how the Tahoe-Truckee district would remain in the Nevada association while following California law, which says students can play on teams consistent with their gender identity.

Now, California’s Department of Education is requiring the district to join the California Interscholastic Federation, or CIF, by the start of next school year.

District Superintendent Kerstin Kramer said at a school board meeting this week the demand puts the district in a difficult position.

“No matter which authority we’re complying with we are leaving students behind,” she said. “So we have been stuck.”

There are currently no known transgender student athletes competing in high school sports in Tahoe-Truckee Unified, district officials told the education department in a letter. But a former student filed a complaint with the state in June after the board decided to stick with Nevada athletics, Kramer said.

A national debate

The dispute comes amid a nationwide battle over the rights of transgender youth in which states have restricted transgender girls from participating on girls sports teams, barred gender-affirming surgeries for minors and required parents to be notified if a child changes their pronouns at school. At least 24 states have laws barring transgender women and girls from participating in certain sports competitions. Some of the policies have been blocked in court.

Meanwhile, California is fighting the Trump administration in court over transgender athlete policies. President Donald Trump issued an executive order in February aimed at banning transgender women and girls from participating in female athletics. The U.S. Justice Department also sued the California Department of Education in July, alleging its policy allowing transgender girls to compete on girls sports teams violates federal law.

And Democratic Gov. Gavin Newsom, who has signedlaws aimed at protecting trans youth, shocked party allies in March when he raised questions on his podcast about the fairness of trans women and girls competing against other female athletes. His office did not comment on the Tahoe-Truckee Unified case, but said Newsom “rejects the right wing’s cynical attempt to weaponize this debate as an excuse to vilify individual kids.”

The state education department said in a statement that all California districts must follow the law regardless of which state’s athletic association they join.

At the Tahoe-Truckee school board meeting this week, some parents and one student said they opposed allowing trans girls to participate on girls teams.

“I don’t see how it would be fair for female athletes to compete against a biological male because they’re stronger, they’re taller, they’re faster,” said Ava Cockrum, a Truckee High School student on the track and field team. “It’s just not fair.”

But Beth Curtis, a civil rights attorney whose children attended schools in Tahoe-Truckee Unified, said the district should fight NIAA from implementing its trans student athlete policy as violating the Nevada Constitution.

Asking for more time

The district has drafted a plan to transition to the California federation by the 2028-2029 school year after state officials ordered it to take action. It’s awaiting the education department’s response.

Curtis doesn’t think the state will allow the district to delay joining CIF, the California federation, another two years, noting the education department is vigorously defending its law against the Trump administration: “They’re not going to fight to uphold the law and say to you at the same time, ‘Okay, you can ignore it for two years.’”

Tahoe-Truckee Unified’s two high schools with athletic programs, which are located about 6,000 feet (1,800 meters) in elevation, compete against both California and Nevada teams in nearby mountain towns — and others more distant and closer to sea level. If the district moves to the California federation, Tahoe-Truckee Unified teams may have to travel more often in bad weather across a risky mountain pass — about 7,000 feet (2,100 meters) in elevation above a lake — to reach schools farther from state lines.

Coleville High School, a small California school in the Eastern Sierra near the Nevada border, has also long been a member of the Nevada association, said Heidi Torix, superintendent of the Eastern Sierra Unified School District. The school abides by California law regarding transgender athletes, Torix said.

The school has not been similarly ordered by California to switch where it competes. The California Department of Education did not respond to requests for comment on whether it’s warned any other districts not in the California federation about possible noncompliance with state policy.

State Assemblymember Heather Hadwick, a Republican representing a large region of northern California bordering Nevada, said Tahoe-Truckee Unified shouldn’t be forced to join the CIF.

“I urge California Department of Education and state officials to fully consider the real-world consequences of this decision—not in theory, but on the ground—where weather, geography, and safety matter,” Hadwick said.

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