Illegal Alien Used Stolen Identity for 30 Years Before Passport Application Exposed Fraud in Billings

BILLINGS — A 48-year-old illegal alien living in Billings who used a false identity for approximately 30 years was sentenced Tuesday to seven months in prison followed by three years of supervised release for passport fraud.

Diego Xiap pleaded guilty in January 2025 to one count of making a false statement in a passport application after attempting to obtain a U.S. passport using the identity of a Puerto Rican citizen he had been impersonating for three decades.

U.S. District Judge Susan P. Watters presided over the sentencing hearing.

According to court documents, Xiap submitted Form DS-11, Application for a U.S. Passport, at a Billings post office on Feb. 3, 2021, claiming to be John Doe 1. He presented a Montana driver’s license issued May 8, 2020, and set to expire Nov. 9, 2027, as proof of identity. For citizenship verification, Xiap submitted a birth certificate filed Nov. 9, 1976, and issued May 1, 2003.

The application raised suspicions and was referred to a Diplomatic Security Service special agent for investigation. The agent quickly determined that Xiap was not the person he claimed to be.

The real John Doe 1 was born in Puerto Rico and has lived there his entire life. Government records in Puerto Rico contained photographs of the actual John Doe 1, who bears no resemblance to Xiap. When a DSS agent in Puerto Rico showed photos of both men to John Doe 1’s brother, he immediately identified the real John Doe 1 and said he had no knowledge of Xiap.

Further investigation uncovered an Oregon Work ID card from the 1990s that Xiap had used under yet another false identity — that of a different person identified as John Doe 2.

On April 24, 2024, the DSS agent tracked down Xiap in Billings. When the agent arrived at Xiap’s workplace, he initially fled but was later located at his home.

During questioning, Xiap maintained he was really John Doe 1 but demonstrated no knowledge of the person’s relatives or history in Puerto Rico. According to court documents, Xiap then told the agent “he might tell the real story but needed to speak to an attorney first.” The interview was terminated at that point.

The case highlights the sophisticated identity theft schemes that can persist for decades before detection. Xiap had successfully maintained his false identity long enough to obtain official Montana state documentation, including a driver’s license that would have been valid for several more years.

The ability to obtain a valid Montana driver’s license using fraudulent documents raises concerns about election integrity, as Montana requires voters to present identification at the polls. While court documents do not indicate whether Xiap used his false identification to vote, the case demonstrates how illegal aliens can potentially circumvent voter ID requirements by obtaining legitimate state-issued identification through identity theft.

The investigation revealed the extensive reach of modern identity verification systems. When Xiap attempted to obtain federal documentation in the form of a U.S. passport, the application triggered security protocols that ultimately unraveled his long-standing deception.

Federal sentencing guidelines for passport fraud can vary significantly based on factors including the duration of the fraud, whether other crimes were involved, and the defendant’s cooperation with authorities. Xiap’s sentence of seven months imprisonment falls within typical ranges for such cases.

The three-year supervised release period that will follow his prison term means Xiap will remain under federal oversight after his incarceration ends. Supervised release typically includes conditions such as regular check-ins with probation officers, restrictions on travel, and requirements to maintain employment.

As an illegal alien, Xiap will likely face immigration proceedings following the completion of his federal sentence, though those details were not addressed in the court documents.

Assistant U.S. Attorney Colin Rubich prosecuted the case. The investigation was conducted by the Diplomatic Security Service, which is responsible for protecting U.S. diplomatic personnel and facilities worldwide, as well as investigating passport and visa fraud.

“An illegal alien who lived in Billings and assumed the identity of a U.S. citizen was sentenced today to approximately 7 months in prison to be followed by 3 years of supervised release,” U.S. Attorney Kurt Alme said in announcing the sentence.