A Department of Veterans Affairs official who oversaw the effort to modernize VA health records was indicted this week and is accused of leveraging his position to receive gifts from a group of government contractors that he nicknamed “the Power Group.”
John Windom, 64, a retired Navy officer, was charged with making false statements, concealment of material facts and falsification of a record or document tied to a failure to report more than $15,000 in cash, casino chips and other gifts from contractors. The Justice Department announced the charges on Wednesday, accusing him of “accepting, and sometimes demanding, extravagant gifts from a group of contractors and subcontractors who worked on the project he was overseeing.” As the indictment notes, Windom was aware of the rules regarding reporting gifts and receipts, per training for officials.
“An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law,” the Justice Department said in its release.
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The VA began a project to modernize its health records in 2017, aiming to digitize information, an initiative estimated to cost $16 billion, but has since exceeded that and is expected to cost as much as $37 billion. In 2018, the 10-year contract was awarded to Cerner (now known as Oracle Health after Oracle acquired it). Windom was appointed as Executive Director of the Office of Electronic Record Modernization in 2017 and helped supervise the VA’s choice of Cerner for the contract.
According to the grand jury indictment against him, Windom used his position to take money and gifts from a group of business executives from information technology and consulting companies who were contractors on the project. According to the indictment, Windom allegedly called them “the Power Group.” Windom used his role to “encourage, monitor, and facilitate contract and subcontracting opportunities for members of the Power Group, related and unrelated to the EHRM project.”
Windom was allegedly given payment in everything from cash, to $8,200 in Louis Vuitton gift cards and $1,800 in casino chips. He was also given a High Efficiency Particulate Air, or HEPA, filter worth $631. The indictment also accuses Windom of using his position to “coerce” payments and gifts from others.
Per the indictment, Windom “repeatedly reminded Power Group members to remain loyal and directed them to maintain confidentiality and their relationship with him.” In one message at the start of 2020, Windom messaged Power Group members, telling them that “loose lips sink ships.”
Windom’s initial contract was extended, and in 2022 he was reassigned to serve as deputy director of the Federal electronic Health Modernization Office, a joint VA and Department of Defense project.
Nine years after the modernization effort started, the Electronic Health Record program is used by only a handful of VA sites, with the program hit by glitches and usability issues. The VA paused the program in 2023, but is expected to roll out at several sites this year.
Windom faces a maximum sentence of over 20 years in prison if convicted on all counts.
