A former employee of the Dallas VA Medical Center pleaded guilty last week to stealing from the government, the U.S. attorney’s office for the Northern District of Texas announced.
Charles Gates, 54, admitted being involved in a multimillion-dollar embezzlement scheme with another employee at the medical center, Randius McGlown, who was an inventory manager and acquisition utilization specialist. McGlown, 56, pleaded guilty in October to theft of government funds, the same charge as Gates.
Ezekiel Tyson, Gates’ attorney, described his client as an overall good man who “got caught up in an unfortunate circumstance.” He said Gates “looks forward to paying his debt to society and moving forward.”
Gates worked at the medical center from January 2009 through July, according to court documents. He had access to the medical center’s credit card because his responsibilities included purchasing supplies.
McGlown created a company called G4 Logistics and entered the business into the medical center’s vendor system in 2014, according to prosecutors. The pair then created fake orders for equipment and materials — none of which were delivered — from McGlown’s company and used medical center funds to pay the bill.
A person who was only identified as “J.R.” helped Gates and McGlown withdraw money from the G4 Logistics account and took a cut of the funds, authorities said.
McGlown created fake payment documents and used the medical center’s existing inventory to cover up the scheme, according to officials.
Gates was part of the scheme from 2014 to 2018, according to court documents.
McGlown created a second company called Caprice Electronics in 2018 and continued the scheme until about August 2021, court documents showed. McGlown admitted stealing about $2.9 million.
McGlown’s sentencing has been scheduled for March. The date of Gates’ sentencing was unclear. Both men face up to 10 years in prison.
“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,” Patrick Roche, acting special agent in charge of the Veterans Affairs Office of Inspector General’s South Central field office, said in a written statement. “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.”
Staff writer Isabella Volmert contributed to this report.