Former VA procurement supervisor sentenced in $1.7 million fraud scheme

A former procurement supervisor at the Jesse Brown Department of Veterans Affairs Medical Center in Chicago was sentenced to seven years in federal prison earlier this month for pocketing kickbacks from the president of a medical supply company to steer the company orders that the VA paid for but never received.

According to a Department of Justice release, Thomas E. Duncan, 40, of Chicago, pleaded guilty last year to one count of wire fraud. In addition to the prison term, U.S. District Judge Steven C. Seeger on Friday ordered Duncan to pay $1,709,344 in restitution.

While serving as a supervisor in the medical center’s Central Supply department, Duncan received thousands of dollars in kickbacks paid in cash and checks from Daniel Dingle, the president of a medical supply company in Dolton, Ill, the release states. Those checks were made payable to Helping Hands Properties LLC – a third-party entity managed by Duncan – and contained false and misleading memo entries in order to conceal and disguise the existence and purpose of the kickbacks.

In exchange for the kickbacks, Duncan used his official position at the VA to fraudulently initiate and approve purchases of products from Dingle’s company, knowing that many of the products would not be delivered to the VA, the release continued.

The scheme began in 2012 and continued until 2019. After Duncan became aware that the VA Inspector General’s Office was investigating his conduct in late 2018, he “created fake invoices from Helping Hands purporting to document work performed for Dingle’s company,” the release reads. “Duncan also told Dingle to falsely tell investigators that the payments Duncan received from Dingle’s company were for work performed by Helping Hands.”

Dingle, 53, of Riverdale, Ill., also pleaded guilty to a wire fraud charge.  He is awaiting sentencing.

Reach Julia LeDoux at Julia@connectingvets.com .