Dennis Wagner

The Republic | azcentral.com

Sharon Helman, former director of the Phoenix VA system, was sentenced to two years of probation

Judge Steven Logan rebuked Helman for not accepting responsibility for her crime

Sharon Helman, former director of the Phoenix VA Health Care System, wept in court Monday before a federal judge sentenced her to serve two years of probation for failing to disclose thousands of dollars worth of gifts she received from a lobbyist friend.

Helman, who avoided a prison sentence while pleading guilty to making false statements, apologized during her tearful statement but insisted she was a dedicated public servant who cares for veterans.

"Serving veterans was truly my life's passion, and I am proud of my work," Helman said. "I should have disclosed the gifts I received from a personal friend, but I did not. That was a betrayal. ..."

However, U.S. District Judge Steven Logan rebuked Helman during the proceedings, noting that she had written him a letter indicating she did not realize her failure to report about $50,000 in gifts was an ethics violation. Logan said the letter "almost caused this plea agreement to go away" because it appeared Helman was not accepting responsibility for her crime.

'There's no way this was ... slight oversight'

Logan reeled off a list of gifts she received over several years from Dennis "Max" Lewis, a former VA executive who had mentored Helman before going into private business as a lobbyist with a company that secured millions of dollars in VA contracts. The presents included an $11,000 family vacation to Disneyland, spa and resort visits, air fare and concert tickets.

"When you wrote me that letter and tried to explain to me that you didn't know what you did was wrong, I had a problem," Logan said. "... The reason you didn't report any of it is because deep down you knew … your ethics folks would be looking into every one of those gifts."

"There's no way this was just some slight oversight," the judge said.

In 2014, Helman found herself at the epicenter of a national controversy. Employees at the Carl T. Hayden VA Medical Center in Phoenix reported that patients were dying while awaiting care in a backed-up appointment system, and that hospital officials were falsifying wait-time data in part to collect performance bonuses.

Investigations by Congress, the VA Office of Inspector General and media outlets verified those allegations not just in Phoenix, but as a systemic problem throughout the Veterans Health Administration's more than 150 hospitals. Inquiries also exposed widespread retaliation against whistleblowers, and flawed medical care at some facilities.

The scandal led to replacement of VA Secretary Eric Shinseki, passage of a $16.3 billion VA reform bill and what was touted as the largest overhaul of VA policies and practices in department history.

Amid the turmoil, Helman was suspended, then fired based on charges related to falsified appointment data, whistleblower retaliation and the failure to disclose gifts on her conflict-of-interest statements. A merit system judge threw out the first two charges, but upheld her termination based on the unreported gifts.

Three other Phoenix VA officials also were placed on administrative leave and still face possible termination. Their disciplinary cases have not been completed after more than two years of investigations and personnel actions.

VA seeks removal of three top Phoenix execs

From 'the gold standard' to convicted felon

Helman, 45, was charged criminally after an investigation by the FBI.

In court Monday, she described herself as a dedicated public servant who spent 20 years in the VA, rising from a lowly clerk job to senior executive while giving "my heart and soul to caring for veterans."

Logan acknowledged Helman's service, noting that numerous family members and colleagues wrote letters of support. But he also suggested that a VA employee with such status and tenure should be a paragon of ethics.

"She was the equivalent of a very, very high-ranking military officer," Logan told Helman's attorney, Eric Nitz, "so I'll ask you again: Why should I accept this plea agreement?"

Sharon Helman, ex-Phoenix VA hospital director, pleads guilty

Nitz stressed that Helman was not charged with corruption, fraud or other misconduct alleged in the VA scandal, and she has no criminal history. With a single exception, he said, "Ms. Helman has lived a life of character and integrity ..."

Nitz argued that the interests of justice and deterrence already have been served by his client's suffering, including death threats and humiliation: "She's now a convicted felon, and she's been fired from the job she loves ... She's been publicly vilified."

In issuing the sentence, Logan told Helman she had been "the gold standard for federal employees until you committed this crime." He urged her to recover, adding, "This is not the time to become a victim, because everything that happened to you was self-inflicted."

In a news release, U.S. Attorney John Leonardo said the sentence holds Helman accountable.

"It is crucial that government officials, who are entrusted with authority over taxpayer-funded government agencies, provide accurate information when completing financial disclosure reports," he added.

Hellman and her attorney declined comment as they left the court.

Ruling: Fired Phoenix VA boss gets to keep her bonus