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Crime and Courts


Former head of Cleveland, Dayton VA admits to collecting kickbacks, bribes
William Montague will be sentenced in May, and already has promised to pay back nearly $400,000
by WKSU's M.L. SCHULTZE


Web Editor
M.L. Schultze
 
The U.S. Inspector General says the consolidation of the VA in Cleveland was "fatally flawed."
Courtesy of U.S. VA
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In The Region:

The former head of the Cleveland and Dayton VA medical centers has pleaded guilty to accepting hundreds of thousands of dollars in bribes to steer VA projects to favored contractors. WKSU’s M.L. Schultze has more on what William Montague cost the Veterans Administration.

LISTEN: Montague admits guilt

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Sixty four times in federal court, William Montague admitted he was guilty -- of conspiracy, fraud, money laundering, and a series of other felonies. 

The now 61-year-old Montague was director of Cleveland’s VA Medical Center for 15 years. He retired in 2010, then went to work in early 2011 for the Dayton VA center. And according the plea, he accepted kickbacks and bribes at both places. 

A two-year investigation by the FBI says Montague provided help to favored contractors, including the “mother lode” of insider information to a Buffalo company seeking a billion dollars in VA construction projects nationwide. Those included projects in New York, Illinois and California. 

Montague disguised his role by setting himself up as a consultant; he ran a financial services company called “House of Montague.” 

While he was head of the Cleveland VA, it consolidated services into the Louis Stokes medical center. The move was promotedas one that would save $29 million a year.  Last year, U.S. inspector general called the consolidation “fundamentally flawed,” and said it would actually cost the VA close to half a billion dollars over the next two decades. 

Montague is to be sentenced on May 20. He’s agreed to pay nearly $400,000 in restitution.

Listener Comments:

Whatever became of his sentencing on May 20th?


Posted by: Joe on June 12, 2014 12:06PM
His sentencing has been delayed until July 7th.


Posted by: Anonymous on June 12, 2014 2:06AM
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