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Crime and Courts


Former head of one of the nation's largest VA centers is indicted
William Montague is accused of kickbacks and money laundering
by WKSU's M.L. SCHULTZE


Web Editor
M.L. Schultze
 
William Montague retired from the Cleveland VA then went to Dayton for less than a year. He's facing three-dozen federal charges.
Courtesy of VA-DAYTON
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In The Region:

The former director of the nation’s fifth largest VA Clinic has been indicted on bribery and other federal charges. WKSU’s M.L. Schultze has more on the accusations leveled today against man who headed the Louis Stokes VA Medical Center in Cleveland.

LISTEN: Federal claims against Montague

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The 51-page indictment says William Montague conspired with developer Michael Forlani and others, accepting kickbacks and covering his tracks as recently as the spring of last year.

William D. Montague

Age: 61

Director of the Cleveland VA Medical Center 1997-2010; retired and went to Dayton VA medical center March-December 2011 

Facing: 36 federal counts, including mail fraud, bribery, money laundering

Charges tied to: Contractor Michael Forlani, Doan Pyramid, and the $125 million consolidation of the Brecksville VA clinic into Wade Park; also to consulting contracts with companies doing or seeking business with the VA.

Released on $100,000 bond

Montague’s accused of sliding Forlani inside information that helped him get financing and other advantages in becoming the primary developer of the $125 million VA Clinic in Cleveland. Montague’s also accused of using insider information when he set himself up as a consultant for companies doing business with the VA.

Forlani has pleaded guilty to racketeering and bribery in other projects and was sentenced in April to eight years in prison. But as part of a plea deal, federal prosecutors dropped charges against him related to the VA project, which consolidated the clinic in Brecksville into an expanded Wade Park.

Montague was the director of the Cleveland VA, who pushed the project.

Last year, a U.S. Inspector General’s report condemned the consolidation, saying it will cost the agency nearly half a billion dollars over 20 years.  The VA project also led to a guilty plea from former Cleveland Councilwoman Sabra Pierce Scott. 

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