California man pleads guilty to embezzling over $1.4 Million using gift cards

CALIFORNIA – The U.S. Department of Justice announced, June 6, that a California man pleaded guilty to one count of wire fraud after embezzling over $1.4 million from his former employer.

According to court documents, Justin Alexander Payne, 50, of Manteca worked as an IT director for an independent Modesto fuel company from December 2017 to September 2023.

Payne used his company credit card to buy unauthorized gift cards. He then sold the gift cards to online businesses that convert them to cash by purchasing them for less than their value.

Payne hid unauthorized purchases by altering expense reports

The DOJ said the businesses processed over 3,700 gift card transactions, paying Payne in return.

Payne also used the company credit card for unauthorized purchases of personal items, including clothing, sports equipment, and home improvement products.

He hid his unauthorized purchases by altering and falsifying expense reports to appear as legitimate IT expenses, embezzling over $1.4 million during his employment.

Payne faces up to 20 years in prison and a $250,000 fine

Payne is scheduled to be sentenced on October 16, 2025. He faces up to 20 years in prison and a $250,000 fine.

The court will determine the sentence based on statutory factors and Federal Sentencing Guidelines, which consider various variables.

This case resulted from an FBI and Modesto Police investigation and prosecuted by assistant U.S. attorney Whitnee Goins.