A Montana official entrusted with preserving Montana’s history is accused of embezzling up to as much as $300,000 in state funds to pay for his tattoo, divorce fees and rent.
Michael Elijah Allen, who took over as the Heritage Commission’s executive director in 2012, is accused of embezzling the money between 2020 to early 2024, a criminal complaint filed by Lewis and Clark County.
The MHC’s total annual budget is around $2.2 million, which the agency uses to maintain and preserve three important historic sites in Montana.
Allen allegedly deployed a variety of tactics to embezzle MHC funds and launder the money through fake invoices to a shell company, phony work projects and bogus work trips. He claimed he was acquiring historic artifacts when he was pocketing the money, according to the complaint.
Now Allen faces two counts of theft by embezzlement and one count of money laundering. He was incarcerated in Lewis and Clark County before posting a $100,000 bond on Dec. 30. Allen faces up to 40 years in prison.
The Montana Department of Commerce oversees the MHC, and in a statement Thursday to Cowboy State Daily, its Deputy Director Mandy Rambo said her department, “Takes seriously its obligation to safeguard public funds. Commerce is committed to working with law enforcement to provide any necessary information to further the investigation.”
A Tattoo & Trout
In early 2024, the Department of Commerce noticed what the criminal complaint describes as a “significant budget deficit.” Then in June, the Department contacted the Helena Police Department, which assigned Det. Cpl. Nathan Casey to the case. Casey followed a money trail that started back in January of 2021, when Allen allegedly began making payments with MHC funds to a company called Atomic Business Solutions (ABS), which according to filings with the Montana Secretary of State’s office, provided “business consulting services.”
The criminal complaint now alleges Allen used Atomic Business Solutions (ABS) to embezzle state funds through a series of 19 bogus payments totaling $47,516.
The Commerce Department told Casey it never executed a work contract with ABS and that it was not aware of “any legitimate services” provided by ABS.
Casey’s investigation also revealed a “kickback scheme,” according to the complaint, between Allen and his friend Casey Steinke, who reportedly drew a salary and lived for free at Reeder’s Alley, a quaint collection of historic buildings in Helena. The complaint alleges that Steinke invoiced for work he never did. Allen then approved the invoices, while Steinke followed up by transferring some of the money into an Atomic Business Solutions account controlled by Allen.
Then there was the state credit card Allen was issued to pay for official business. Casey found Allen used the card to pay for personal travel and a fishing trip.
When questioned about the fishing trip, Allen allegedly told Casey that the outfitter in Ennis, Montana, messed up the receipt and that Allen actually bought a pair of fishing poles for kids to use in a local fishing pond.
Allen said payment to a property management company for a condo in Ennis was really for the cost of a storage unit to be used by the Heritage Commission.
And about that tattoo: Allen said he paid Element Tattoo in Bozeman to clean and restore a “Civil War thing.”
When Casey asked about the “cleaning and restoration work,” Allen could not remember the female's name who did the work.
Casey followed up with Element Tattoo, and an employee there produced records showing Allen paid for and received a tattoo on May 27, 2022. It cost $150 for the tattoo and Allen left a $30 tip.
Afterward, in paperwork submitted by Allen to the Department of Commerce, Allen tried to make the tattoo payment look like the money went toward artifact cleaning and restoration.
“Notably, the invoice submitted by Allen included a picture of an artifact. Det. Casey believed Allen included a picture of an artifact to justify the $180 purchase,” alleges the complaint.
Artifacts also figured into around $14,000 in personal travel expenses Allen allegedly tried to pass off as official business. According to the complaint, Allen insisted the travel expenses paid for his legitimate work acquiring historic artifacts and delivering them for use by film production companies.
Cowboy State Daily reached out to Allen’s attorney Peter Lacny in Missoula, but a phone message was not returned.
Gov. Greg Gianforte (right) tours renovation work at Stonewall Hall in Virginia City, Montana. It’s just one of many historic buildings maintained and preserved by the Montana Heritage Commission. (David Madison, Cowboy State Daily) 
(Nevada City)
Heritage Commission Soldiers On
When Montana Gov. Greg Gianforte visited Virginia City in August, the self-described history buff praised the Montana Heritage Commission for protecting, “One of the most significant historical sites in the country, and all the buildings are in the original location. We have so many artifacts and we just love people to come and visit.”
The MHC hired Kal Poole as the new executive director, and he continues to oversee progress on the renovation of Stonewall Hall, the state’s first legislative building.
A 2017 report from the Northern Rocky Mountain Economic Development District indicated that historic tourism supported by the MHC contributes significantly to Montana’s overall economy. It found Virginia and Nevada City generate $74.4 million in economic impact to the state, providing around 1,200 jobs.
As for the MHC contractor who allegedly invoiced for fake job s— Casey Steinke — he also faces charges. According to a separate criminal complaint and an arrest warrant provided to Cowboy State Daily by Lewis and Clark County Justice Court, Steinke is charged with two counts of embezzlement and one count of money laundering.
David Madison can be reached at david@cowboystatedaily.com.
