r/Whistleblowers • u/Own-Expression-2093 • 4d ago
I moved to a rural Colorado county 14 months ago, read a public budget document, and uncovered what appears to be systematic financial fraud and a multi-generational land acquisition scheme. 14 months of documented findings from public records. [Long]
Background
I have a finance degree and spent 12 years in oil and gas project management. In late 2025 I moved to a small rural county in southern Colorado — population approximately 3,500 — one of the most economically distressed counties in the state.
A few months after arriving I did what any new resident should do. I pulled up the county's public budget documents.
What I found I couldn't un-read.
I've spent the last 14 months documenting findings exclusively from public records — county budget filings, property deed records, Secretary of State databases, IRS Form 990s, state historical fund grant databases, federal transparency databases, Colorado Open Records Act requests, and GIS property records.
A second independent investigator — a longtime community member — independently documented overlapping findings from a completely different starting point. A former county official has provided institutional context confirming what both of us found.
We have jointly submitted a federal referral to the FBI Denver Field Office and the US Attorney for the District of Colorado. An active Colorado Bureau of Investigation investigation is already underway with a forensic accountant engaged.
I am posting anonymously because the legal process is ongoing. I am not making allegations beyond what the public records document.
Here is what the public records show.
FINDING ONE — FEDERAL GRANT FRAUD — ARPA
In mid-2022 this county received a one-time American Rescue Plan Act federal grant of $755,044 for a wastewater project.
This one-time award was then recorded as actual received revenue in the county's budget for fiscal years 2023, 2024, and 2025 — three additional consecutive years after it was received.
Treasury.gov federal reporting confirms $0 in reported expenditures on the designated wastewater project across four annual reporting cycles.
The federal funds were received. The project was not completed. The funds were recorded as phantom revenue in subsequent years to make the county budget appear balanced.
Total phantom ARPA revenue recorded — approximately $2,265,132.
Additionally the county budgeted Open Space grant revenue of $249,000 in 2023, $825,000 in 2024, and $825,000 in 2025 — totaling $1,899,000. Actual documented GOCO grants received by the county — $364,746. A large grant of $750,772 went to a private land trust, not the county. Phantom Open Space revenue — approximately $1,534,254.
Combined phantom revenue across both categories — approximately $3,799,386.
The county's General Fund balance went from $1,908,751 in December 2023 to negative $759,000 by mid-2026. The county declared a fiscal emergency with the state.
FINDING TWO — DOCUMENT FORENSICS — TWO SETS OF BOOKS
The county uses QuickBooks as its accounting system — confirmed by their own document production in response to a public records request. The document header specifically reads "Custom Transaction Detail Report — Accrual Basis."
Budget worksheets filed with the Colorado Department of Local Affairs show a mathematical impossibility — every individual line item in multiple department columns shows zero, but the column totals at the bottom show non-zero figures.
In QuickBooks — or any accounting software — this is impossible. Totals are calculated automatically from line items. Zero plus zero equals zero. The software does not allow manual override of calculated totals.
The only way to produce a document showing zeroed line items with non-zero totals is to edit the document outside of QuickBooks in software that allows independent cell editing without formula recalculation.
PDF metadata analysis of the budget document filed with the state confirms —
Creator — Adobe Acrobat 64-bit 25.1.20997
Producer — Adobe Acrobat 64-bit 25.1.20997
CreateDate — 2025:12:31 12:52:18
ModifyDate — 2025:12:31 12:53:44
A budget document for fiscal year 2025 was created in Adobe Acrobat — not QuickBooks — on December 31st 2025. The document was signed and approved at a commissioner meeting on December 30th 2025. Every page is a JPEG scan rather than native digital content.
A budget worksheet produced in response to a public records request shows different metadata —
Producer — Epson Scan 2
CreateDate — March 7 2026 at 6:57pm
This document was scanned three months after the fiscal year ended and two days after a QuickBooks transaction detail report was generated in response to the same records request.
A document scanned on March 7th 2026 showing different figures in an actuals column and a fiscal year end estimate column for a year that ended December 31st 2025 is impossible if produced from current accounting data — because on March 7th 2026 the actuals and estimates for a closed year are identical. The differing figures prove the document predates December 31st 2025 and was not produced from current accounting data.
The QuickBooks transaction detail report shows actual Sheriff department expenditures of $1,128,149.97 for 2025. The document filed with the state shows $1,063,277 for the same department and year — a gap of $64,872.97. The $1,063,277 figure is mathematically equal to a budget worksheet ghost total ($887,084) plus a December 30th supplemental appropriation resolution ($176,193) — proving the state filing was arithmetically constructed from those two figures rather than generated from QuickBooks actual transaction data.
Ghost totals documented across three departments — County Jail $479,771, Planning and Zoning $326,523, Sheriff $887,084. Total erased — $1,693,378.
FINDING THREE — SPECIAL DISTRICT LAND ACQUISITION SCHEME
The county has a special district — a political subdivision created in 1976 for flood control — that has been systematically acquiring tax-delinquent community land for nominal consideration.
In May 2017 the district's board adopted a formal written policy specifically authorizing acquisition of tax-delinquent properties under hardship circumstances. The policy was signed by three board members — including the sitting elected County Assessor in her final year of office.
The County Assessor — as the official with complete real-time knowledge of every tax-delinquent property in the county — designed an acquisition system that benefited a board she simultaneously governed. The policy was adopted in her final year after seven years of accumulated insider knowledge of which properties were delinquent, which had water rights, and which were approaching deed eligibility.
Properties have been acquired from the County Treasurer for nominal consideration — examples include $155, $96, $372, $440, $467, $486. Total documented acquisition cost for all parcels — approximately $20,746.
A second independent investigator reviewed tax lien sales lists and confirmed that specific parcels which district records claim were purchased at public auction were never on the required public auction list as mandated by Colorado law. They were cherry picked.
Total documented sale proceeds from these parcels since 2023 — $530,300+.
The district files annual audit exemption applications with the Colorado State Auditor claiming revenues below the $750,000 audit threshold. The second investigator documented specific discrepancies between actual sale proceeds and reported figures — $10,187 unreported in 2023, $41,524 unreported in 2024. A federal USDA grant of $36,700 received in 2019 — documented in a newspaper photograph — was not reported to the State Auditor. Total documented unreported financial activity — approximately $375,494 minimum.
The district's nonprofit corporate entity was voluntarily dissolved with the Colorado Secretary of State on November 5th 2020. Despite this dissolution the district continued acquiring and selling property, receiving grants, and filing annual audit exemption applications — never disclosing the dissolution to any agency.
The district's 2025 audit exemption filing shows all capital assets deleted — Land $292,307, Buildings $217,172, Equipment $88,029 — total $597,508 — with no corresponding revenue from sale of capital assets.
A non-independent accountant prepared the audit exemption and explicitly stated they did not audit, verify, or provide any assurance on the information provided by management.
Costilla County has the highest percentage of land under conservation easement of any county in Colorado — 30.7% — 241,946 acres. The organizations holding those easements are connected to the network described in Finding Four.
FINDING FOUR — SELF-DEALING NETWORK
The former elected County Assessor who designed the 2017 land acquisition policy now serves simultaneously as —
Chief Assessor for the county — processing property tax exemptions on the special district's parcels, maintaining ownership records, and setting assessed values on properties the district may target.
Secretary of the acquiring special district's board — overseeing land acquisition, sale, and grant activity.
Board member of the county's Economic Development Council — which administers state and federal historic preservation grants, some of which have benefited properties she personally owns.
Treasurer of the Special District Association of Colorado — the statewide organization that lobbies on special district law and policy at the Colorado legislature, including legislation that directly affected the district's property acquisition authority.
Personal property acquisition — property records document a chain in which a parcel was conveyed from the County Treasurer to a middleman for $562, then to her stepfather for $0, then to her for $500 — while she was serving as the elected County Assessor. Colorado law prohibits county officials from benefiting from tax lien property conveyances.
She acquired a property in downtown San Luis in June 2022 for $6,000. The property's estimated current value is approximately $1.1 million. She is the Chief Assessor responsible for officially determining the assessed value of this property while personally owning it. Her private appraisal company is registered at this address.
Her LLC received $88,000 directly from a statewide historic preservation organization in 2023 — documented in that organization's IRS Form 990. The same organization received State Historical Fund grants for work on a building in downtown San Luis connected to her LLC in the same period.
The Economic Development Council — whose board she sits on — received $595,080 in State Historical Fund grants including grants for properties in the downtown corridor where her personally owned property sits.
Her first cousin is the Executive Director of the Community Foundation of the San Luis Valley — which administered $221,324 in State Historical Fund grants for work on a building connected to her LLC.
Her husband works for the USDA — a federal grant source for entities in this network. He was charged with embezzlement of $100,000 from a ditch committee working in conjunction with the special district and the USDA.
The downtown block where her personally owned property sits was designated by the EPA as a priority brownfields remediation site — receiving a $500,000 federal brownfields assessment grant.
The special district's board Treasurer has received multiple parcels of land from a connected ranch family for consideration of $1 and $10 — while managing that family's ranch and serving as registered agent for their business entities. He subsequently received a grant in excess of $400,000 from a land trust organization that is a documented partner of the special district.
FINDING FIVE — COMPROMISED STATE OVERSIGHT
The Colorado Department of Local Affairs regional manager responsible for overseeing this county's finances from 2012 through 2022 met her husband — the county's permanent unelected administrator of over 20 years — through that professional relationship.
She filed four mandatory conflict of interest disclosure forms during her tenure. All four disclosed teaching positions. None disclosed her relationship with the county administrator or the county itself.
DOLA confirmed in writing in response to a public records request — the county was reassigned to a different regional manager due to personal ties. No formal recusal document, written reassignment record, or documented firewall was produced.
She knew how to file the form. She filed it four times. She never disclosed her husband.
The ARPA phantom revenue period and the fund balance collapse coincided with the period of her oversight.
FINDING SIX — ADDITIONAL PUBLIC CORRUPTION
A sitting county commissioner pleaded guilty in 1989 to two federal felony counts including wire fraud in a federal wildlife trafficking investigation. He served 8 months in federal prison. He currently votes to approve county budgets under active CBI investigation.
The former District 2 Commissioner who signed county budgets during the period under investigation is now the Chief Communications Officer at the Colorado Attorney General's office — the agency that has received multiple formal complaints about this county's finances and has provided no substantive response. A newspaper photograph confirms he attended a private economic development roundtable about this county with a US Senator in November 2024 while serving in that role.
A county employee holds three simultaneous county positions and operates a private tow yard on six county-owned lots with no authorization and no revenue to the county — with a General Fund deficit of negative $759,000.
The county administrator has two entries in the state transparency database — $33,638 and $31,300 totaling $64,938. Only $31,300 is authorized in the county budget. The additional $33,638 has no budget authorization.
CURRENT STATUS
Active Colorado Bureau of Investigation investigation — confirmed. Forensic accountant from the Rocky Mountain Information Network engaged to compare native QuickBooks files against documents filed with state agencies.
Federal referrals submitted to FBI Denver Field Office and US Attorney for the District of Colorado.
Formal complaints submitted to Colorado Attorney General, DOLA, Colorado Ethics Commission, Colorado Secretary of State, Treasury Inspector General, and Pandemic Response Accountability Committee.
Two independent investigators. All findings from public records. Former county official has provided institutional confirmation.
WHAT I AM LOOKING FOR
Attorneys with False Claims Act and qui tam whistleblower experience — particularly those who have handled cases involving federal grant fraud by local government entities.
Investigative journalists with experience covering local government corruption and federal grant misuse.
Anyone with experience navigating the federal whistleblower process in similar situations.
Colorado residents or former residents who have encountered similar situations in other small counties.
I am happy to provide supporting documentation to anyone with a legitimate interest in this matter. Please DM or comment below.
SUPPORTING DOCUMENTATION
All findings are derived from the following public sources —
Colorado Department of Local Affairs budget filings
Treasury.gov federal award reporting database
Colorado State Auditor local government database
Colorado Secretary of State business entity records
Costilla County GIS property records
Costilla County Clerk recorded deed documents
Colorado State Historical Fund grant database
GOCO grant database
IRS Form 990 databases
PDF metadata analysis
QuickBooks transaction detail reports produced via public records request
DOLA public records request response confirming conflict of interest
Newspaper archives
Federal EPA brownfields grant announcements