The Seventh Circuit Court of Appeals has upheld the sentencing of Thomas Duncan, a former supervisor at the Department of Veterans Affairs (VA), for his involvement in a scheme that defrauded the VA of nearly $1.9 million. The court's decision, issued on August 6, 2026, confirms the lower court's ruling that Duncan was responsible for multiple bribes and a significant portion of the financial loss incurred by the VA.

This case highlights the serious consequences of fraud within government agencies, particularly those serving veterans. Duncan's actions not only resulted in his imprisonment but also raised questions about the integrity of procurement processes at the VA.

Background

Thomas Duncan worked as a supervisor at the Jesse Brown VA Medical Center in Chicago. His responsibilities included purchasing medical supplies and overseeing inventory for various VA hospitals. In 2012, Duncan, alongside co-defendant Daniel Dingle, devised a fraudulent scheme involving the submission of fictitious orders for blood pressure cuffs from Dingle's medical supply company. In return for these orders, Duncan received kickbacks from Dingle.

Over the course of six years, Duncan and Dingle executed this scheme, which allowed them to exploit the VA's procurement processes. Duncan's position enabled him to place orders without proper oversight, leading to substantial financial losses for the agency. The scheme came to light following an investigation, resulting in Duncan facing multiple charges, including wire fraud.

The Ruling

The Seventh Circuit, led by Judge Jackson-Akiwumi, reviewed the case after Duncan appealed his sentencing, which included enhancements for multiple bribes and a significant loss calculation. Duncan had pleaded guilty to one count of wire fraud but contested the district court's findings regarding the number of bribes and the total loss attributed to him.

The court ruled, "The scheme occurred over six years, at inconsistent times, for inconsistent amounts, and was negotiated over time."

Ultimately, the court found that the evidence supported the conclusion that Duncan had received multiple bribes throughout the duration of the scheme. Furthermore, the court upheld the district court's loss calculation, which attributed $1.7 million of the VA's losses to Duncan, based on the pattern of fraudulent orders he facilitated.

Impact

This ruling reinforces the legal principle that individuals in positions of trust, particularly within government agencies, can face severe penalties for engaging in fraudulent activities. The court's decision serves as a warning to others who might consider exploiting their positions for personal gain. It also emphasizes the importance of accountability in government procurement processes.

By affirming the district court's findings, the Seventh Circuit has set a precedent that could influence future cases involving public officials and fraud. The ruling highlights the courts' willingness to impose significant penalties on those who violate public trust, particularly in cases involving large financial losses.

What's Next

Duncan's options for appeal appear limited following this ruling. It is unclear if he will pursue further legal action, but the court's decision stands as a significant legal precedent in cases of fraud involving public officials.