DEI, Louis Vuitton, And Casino Chips: Inside A Billion-Dollar VA Scandal

A senior official at the Department of Veteran Affairs pushed one of the largest healthcare companies in the country to improve its “diversity profile” while accepting thousands of dollars in poker chips and lavish gift cards from minority business executives, federal investigators say.

John Windom, a 64-year-old Navy veteran, was tasked with spearheading a billion-dollar revamp of the VA’s electronic health records system. He used that perch to steer business to his lover and rake in thousands of dollars worth of luxury gifts and push government contractors to embrace DEI, according to federal prosecutors. 

Windom, who is black, is accused of forming a self-described “Power Group” composed of executives from minority-owned businesses that allegedly sent him expensive gifts while some earned federal DEI contracts. These unreported gifts included $8,200 in Louis Vuitton gift cards, $2,000 in cash, a $631 HEPA filter, concert tickets, and $3,800 in casino chips, according to an indictment. 

Members of the Power Group were left anonymous in federal charging documents though one was described as a “romantic partner” of Windom. Some of the contracts with Power Group companies were related to the VA electronic record project, though not all were. 

Dr. Kurt Miceli, the chief medical officer of Do No Harm, told The Daily Wire that the case showed the danger of implementing DEI initiatives at the federal level.

“Diversity initiatives in federal contracting elevate race, gender, or other demographic traits over merit and proven capability when awarding taxpayer‑funded work,” he said. “The result: set-asides and preferences that explicitly discriminate based on identity rather than awarding projects through competitive bidding and qualifications.”

Windom was, until recently, the executive director of the Office of Electronic Health Record Modernization at the VA. In August 2017, he was tasked with bringing the department’s records system — part of the VA’s notoriously broken healthcare system — up to par with the rest of the federal government.

Prior to his involvement with VA, Windom rose to the rank of captain in the Navy, where he mostly held HR-related management positions involving training personnel and overseeing the Pentagon’s electronic health record system overhaul. He retired from the Navy in 2017 to take the position with the VA.

Two years into leading the electronic records project, Windom allegedly created a “Power Group” of seven executives and employees from minority-owned businesses that contracted with VA. These executives gave Windom a variety of kickbacks while he worked to get them access to federal benefits, federal investigators said. One of the individuals, identified only as “Person 4,” was in a romantic relationship with Windom from August 2016 to December 2018. 

In communications with these executives, Windom reminded them that “loose lips sink ships,” asked one for concert tickets, and told another one to “get the f**k off this ride,” if the arrangement was making them uncomfortable, according to messages included in the indictment. 

“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 Jeanine Pirro. “Such conduct is not only a betrayal of the public trust — it undermines confidence in the institutions dedicated to serving those who have sacrificed for this country.”

Jeanine Pirro (Aaron Schwartz/Bloomberg via Getty Images)

Windom has been charged with concealment of material facts, false statements, and falsification of a record. His first court appearance is set for April 14. 

The charges come as the Trump administration moves to crack down on DEI practices among federal contractors. President Donald Trump signed an executive order last week directing that contractors not engage in “any racially discriminatory DEI activities” for federal government work. 

In June 2017, Veterans Affairs Secretary David Shulkin announced that his department would adopt the same electronic health record standards as the Pentagon. Since that time the program has been plagued with problems, including ballooning costs and patient deaths. The program, which has been paused the last few years, is set to start up again this month. 

A few months after the project was announced, Windom was placed in charge. He directed $10 billion to be allocated to the company Cerner, which has since been acquired by Oracle, for the project. At the time, the contract was one of the biggest information technology contracts for the federal government. 

Soon after, investigators say he created the Power Group of minority business executives and employees. 

“Between August 2017 and June 2021, in multiple locations, Defendant WINDOM attended events with other Power Group members and routinely accepted personal benefits such as gifts, meals, alcohol, entertainment, and other services from members of the Power Group,” the indictment says. 

These events took place at restaurants and bars in and around the MGM National Harbor casino, as he used his position to “coerce” improper personal benefits, investigators said. He would routinely “demand” poker chips for games at the casino, the indictment alleges.

(Evelyn Hockstein/For The Washington Post via Getty Images)

In November 2019, Windom asked for concert tickets for himself and another member of the Power Group from one of the business leaders, according to text messages.

“Damn near sitting on the stage,” he wrote the day of the concert. “You da man.”

These benefits were hidden from VA officials and the Office of Government Ethics, according to investigators. 

At the same time, Windom used his position “to encourage, monitor, and facilitate contracting and subcontracting opportunities for members of the Power Group,” both connected and not connected to the electronic health record project, the indictment said. 

While pushing for personal benefits from members of the Power Group, Windom allegedly pressured them “to make business decisions unrelated to” the electronic records project that “advanced” his “diversity objectives” before he “demanded to be rewarded.” 

He also “threatened economic and reputational harm to members of the Power Group, particularly but not only when they were not meeting his diversity-related networking expectations,” according to the indictment. 

In July 2018, Cerner entered into a diversity contract with Windom’s romantic partner as the lead after he “demanded” that it “improve its diversity profile and inclusion efforts,” the indictment said. Around that time, Cerner started increasing its DEI efforts and it released a DEI report in 2019 showing how the company took steps to “expand” on “diversity and inclusion efforts.”

In 2019, Windom allegedly worked to “pressure” a Power Group member “to complete diversity contract renewal negotiations with Cerner.”

Miceli said pushing DEI in contracting led to the most “qualified contractors” being sidelined and was particularly concerning when done in the healthcare realm. 

“When pushed aggressively at the federal level, DEI policies erode public trust, foster resentment, and violate core principles of equal treatment under the law, while inviting legal challenges and wasteful litigation that further burdens taxpayers,” he said. 

Messages included in the indictment paint a picture of Windom appearing to threaten Power Group members to stay silent about their relationship. 

In an October 11, 2017, message, Windom texted two Power Group members that one had made “a good comment to get you cut out” after that person suggested bringing another VA employee to where Windom was having drinks with a Power Group member. 

“Don’t mention to another person that you know me, interact with me or have any type of relationship with me,” he wrote on August 5, 2019.

One email included in the indictment appears to show that Windom was inadvertently announced to be in the audience of an event hosted by one of the Power Group members. 

“Weird last night. Not your fault personally but cleanup required. Can’t say I like [Person 4’s] cavalier response to these issues either. I was already exhausted but did not want to miss your event,” he wrote in an email. “The PA announcement of me let alone [Person 4] and me was ridiculous and did not kick the evening off right. I am a very discrete person as you know.”

Indictment.

In January 2020, Windom sent an email to the Power Group reminding them that “loose lips sink ships.” 

When one of the Power Group members expressed some concern about the contracting arrangement, Windom reacted angrily, according to a text message included in the indictment. 

“If you don’t like it, get off. You can get the f**k off this ride,” Windom said. 

In June and November 2021, Windom allegedly lied to federal law enforcement when they asked him if he had received any gifts from Power Group members. After being approached by investigators, Windom told Power Group members to tell law enforcement he paid for their meals, according to the indictment. 

Costs of the electronic health records project have quickly climbed from the $10 billion originally estimated. The department now estimates that costs could exceed $37 billion, while the Government Accountability Office said costs could approach the hundreds of billions. 

Over 4,000 veterans have been harmed due to the health record modernization, which has led to four fatalities, according to lawmakers. The Government Accountability Office has continued to pressure the VA to take steps to speed up the rollout. 

The Daily Wire reached out to a publicly listed phone number for Windom and no lawyer has yet been listed yet in court records for his case.