The Denver Post

O∞cial in VA project to testify in Cleveland case Examine documents, a timeline and the costly features of the Aurora VA hospital.

- By Christophe­r N. Osher and David Olinger Denver Post staff writer Mark K. Matthews contribute­d to this report. Christophe­r N. Osher: 303954-1747, cosher@denverpost.com or twitter.com/chrisosher

The national supervisor of the bungled Department of Veterans Affairs hospital in Aurora gave confidenti­al constructi­on planning documents to a VA employee in Cleveland who now faces a corruption conviction for passing the informatio­n on to a contractor, court documents show.

Chris Kyrgos, the VA’s former national acquisitio­n director, has been subpoenaed to testify in the trial of Mark Farmer, an architect accused by federal prosecutor­s of paying a former high-ranking VA official in Cleveland for the sensitive constructi­on informatio­n.

Farmer, 55, of Arlington, Va., is on trial in Akron, Ohio, on charges of conspiracy, racketeeri­ng, embezzleme­nt, theft of public money, mail fraud and wire fraud.

He is accused of conspiring with former VA official William Montague from 2010 through 2013. Montague was head of the Cleveland VA Medical Center from 1995 through 2010 and acting director of the Dayton VA Medical Center from March 2011 though December 2011.

Prosecutor­s say Montague had a side consulting business he named the “House of Montague.”

Montague was able to obtain from Kyrgos confidenti­al constructi­on planning documents he then sold to Farmer, federal prosecutor­s state.

The documents helped Farmer’s firm, CannonDesi­gn, to win the design work for a new VA hospital in West Los Angeles, according to prosecutor­s.

Prosecutor­s said Montague obtained the informatio­n without disclosing to VA employees his true reasons for requesting the records and informatio­n. He also did not disclose he was sharing the informatio­n with a contractor, according to the government.

The documents Kyrgos provided included a constructi­on monitoring report, a schedule of engineer staffing on VA projects and informatio­n on energy upgrades to existing facilities, court documents show.

Kyrgos is identified as one of two VA employees who provided confidenti­al VA constructi­on documents to Montague, which Montague then passed to Farmer. Kyrgos’ name was redacted in most of the documents, but one e-mail from Montague attached as an exhibit in a court filing was not redacted and identified him.

Neither Kyrgos nor the other VA employee who supplied Montague the informatio­n are accused of any wrongdoing by government prosecutor­s.

But the informatio­n Kyrgos provided to Montague was supposed to remain confidenti­al and should not have been provided to the contractor because it gave the contractor an unfair advantage when bidding on projects, according to the prosecutor­s.

Montague has pleaded guilty to 64 corruption-related charges. In a plea deal he agreed to testify during Farmer’s trial.

Prosecutor­s said the Farmer trial stems from an eight-year corruption investigat­ion that included thousands of hours of wiretap recordings.

As VA’s national director of acquisitio­ns, Kyrgos played a critical role in the department’s half-finished Aurora hospital project, which has run a billion dollars over its budget.

He helped select the project’s design team, and he personally rejected a detailed proposal negotiated between contractor KiewitTurn­er and VA project site leaders, contending it was riddled with potentiall­y costly caveats.

That caused an impasse broken by a 70-word handwritte­n agreement obliging the VA to provide a design that could be built for $604 million.

In a successful lawsuit, the contractor alleged that the VA never met that obligation.

»denverpost.com /aurora-va-hospital

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