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Former Dallas VA Employees Plead Guilty to Embezzlement

embezzlement
Wooden gavel and dollar banknotes. | Image by Garsya, Shutterstock

Two former employees of the U.S. Department of Veteran’s Affairs in Dallas pleaded guilty to embezzling $2.9 million, reported Fox 4.

Randius McGlown, 56, and Charles Gates, 54, pleaded guilty to theft of government funds.

“Using their official government positions to steal millions of taxpayer dollars is an egregious crime that diverts resources from deserving veterans and erodes public trust. These guilty pleas should send a clear message that the VA Office of Inspector General will diligently investigate those who would misuse their positions to commit fraud,” Patrick Roche, acting special agent in charge of the VA Office of Inspector General’s South Central Field Office, said in a statement.

McGlown, who was the former inventory manager and acquisition utilization specialist at the Dallas VA Medical Center, registered a company that he had created into the vendor system of the medical center in 2014.

The company was called G4 Logistics, and McGlown and Gates made fake purchases for equipment and materials, using a purchase card provided by the medical center to pay the bill. The company never actually delivered the items, though. Instead, the money was deposited into an account owned by someone named J.R., court documents revealed.

J.R. withdrew the money, giving the bulk to McGlown and Gates but also keeping some for himself.

McGlown continued to create false orders under a company he created in 2018, Caprice Electronics. He also created fake invoices and used existing items in the medical center’s inventory in an attempt to cover up the fact that he was embezzling money from the VA.

Both McGlown and Gates face up to 10 years in prison.

In another scandal involving the VA, money from a VA program intended to help veterans become homeowners was used to purchase a home in Keller that was, in turn, allegedly used as a short-term rental. According to the VA, a veteran must live in the home he intends on purchasing with the loan to qualify for a VA-backed purchase loan. The VA would not respond to FOX’s request for comment, saying, “As a matter of privacy, the VA Office of Inspector General does not confirm or deny individual complaints submitted. However, the VA OIG reviews all complaints received.”

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1 Comment

  1. Michael Waite

    10 years?! They got off lightly.

    Reply

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