VA Senior Executive Indicted for Concealing Contractor Gifts
A senior executive at the Department of Veterans Affairs (VA) is accused of concealing gifts he received from contractors and subcontractors while leading a multi-billion dollar project to modernize VA health records.
John Windom, a senior executive service (SES) member who previously served as Executive Director of the Office of Electronic Health Record Modernization (OEHRM), was indicted on three counts for failing to report the gifts.
The incidents happened between 2017 and 2021 while Windom was leading the acquisition and deployment of VA’s Electronic Health Records solution, one of the largest IT contracts in the federal government. That contract was awarded to Cerner, later acquired by Oracle and now known as Oracle Health.
According to the indictment, Windom allegedly both demanded and accepted gifts from contractors and subcontractors working on the project with Cerner, including thousands of dollars in cash, an $8,200 Louis Vuitton gift card, casino chips, and other items.
He allegedly met regularly with at least seven owners and employees of minority-owned businesses, whom he referred to as the “Power Group,” who paid for his meals and drinks. According to the indictment, Windom used his position as executive director “to encourage, monitor, and facilitate contracting and subcontracting opportunities for members of the Power Group,” both related and unrelated to the health records project.
“As alleged, the defendant exploited his senior position for personal gain and concealed gifts and financial relationships that created serious conflicts of interest in the health care of our nation’s veterans,” said U.S. Attorney Jeanne Pirro of the District of Columbia.
The indictment charges Windom with concealment of material facts, false statements, and falsification of a record or document in relation to his failure to report his receipt of such gifts, which he had a legal duty to do.
Stalled Project
The indictment comes as the EHR modernization project has stalled under multiple administrations and has ballooned well past its $10 billion estimate with cost estimates now ranging anywhere from $16 billion to $50 billion. The project has been in a “reset” period since April 2023, until persistent outages and usability issues reported by VA medical staff using the system are addressed.
Senate VA Committee Chairman Jerry Moran (R-KS) said that he will be “monitoring any potential impacts this case may have on the upcoming rollout of the Electronic Health Record Modernization program.”
