William D. Montague, 65-Count Healthcare Fraud Scheme, Cleveland OH…

CLEVELAND — William D. Montague, the former director of both the Cleveland and Dayton VA Medical Centers, has been hit with a 65-count superseding indictment for his alleged role in a scheme to enrich himself and his conspirators through fraud, kickbacks, and the misuse of his position.

Montague, 61, from Brecksville, Ohio, was previously charged with conspiracy to commit honest services mail fraud, bribery, money laundering, and multiple counts of wire and mail fraud. The new charges include conspiracy to commit honest services fraud, Hobbs Act conspiracy, violating the Hobbs Act, and additional counts of mail and wire fraud.

The superseding indictment details Montague’s alleged interactions with Business 75, an integrated design firm involved in pursuing over $1 billion in VA contracts. It alleges that Montague provided confidential information about VA construction projects to Business 75 while still employed by the VA, in exchange for personal enrichment.

Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office, emphasized the serious nature of the charges: “As a Veterans Affairs Medical Center Director, William Montague misled staff and misused his position to enrich himself and businesses pursuing contracts with the Veterans Administration.”

Gavin McClaren, United States Department of Veterans Affairs – Office of Inspector General, echoed this sentiment: “VA directors who use their official position for personal enrichment will be held to account. Our nation’s veterans deserve public officials and contracts who serve veterans’ needs and not their own.”

Montague served as director of the Cleveland VA Medical Center from 1995 until February 3, 2010, and then as director of the Dayton VA Medical Center from March 11, 2011, to December 17, 2011. The charges against him are the latest in a series of investigations into corruption within the VA system.

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