CONCORD – David Montoya, 64, and Rhonda Simpson, 55, pleaded guilty in federal court to charges arising out of their making false statements to the Veterans Administration (VA) during its investigation into StoneMakers Academy, U.S. Attorney Jane E. Young announces.
Montoya, the owner and president of Amherst-based StoneMakers Corporation, and Simpson, its registered agent, vice president, and in-house counsel from Bedford, conspired to deceive government investigators. The duo’s actions resulted in StoneMakers Academy receiving millions in VA tuition assistance funds.
The investigation revealed that StoneMakers Academy, which marketed and sold training in concrete landscape methods, had repeatedly violated the “85-15 Rule.” This rule prohibits schools from receiving VA tuition payments unless at least 15% of enrolled students are non-veterans, with no tuition discounts. The defendants took steps to conceal these past violations, creating false and misleading documents to deceive VA-OIG investigators.
Assistant U.S. Attorneys Charles L. Rombeau and Raphael Katz are prosecuting the case, led by the VA-OIG. The charging statute carries a sentence of up to 5 years in prison, 3 years of supervised release, and a fine of $250,000.
Judge Paul Barbadoro has scheduled sentencing for Simpson on September 11, 2024, and for Montoya on September 24, 2024. The U.S. Sentencing Guidelines and statutes will govern the determination of their sentences.
The VA-OIG’s investigation has far-reaching implications for schools and businesses receiving government assistance. As U.S. Attorney Young notes, “those who abuse the system will be held accountable.” Montoya and Simpson’s guilty pleas serve as a stark reminder of the consequences of their actions.
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Key Facts
- State: New Hampshire
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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