Derwin Montgomery, a former North Carolina state representative and Winston-Salem City Council member, has been sentenced to five years' probation and ordered to pay over $60,000 in restitution and fines after admitting to misappropriating funds from a homeless shelter he directed. Montgomery, 34, pleaded guilty to one count of program fraud, resolving a case that initially involved 15 charges. U.S. District Judge Loretta Biggs handed down the sentence, which includes 120 days of home confinement.
Montgomery led the Bethesda Center for the Homeless for six years, resigning in early 2021. The center received federal funds, making Montgomery's actions a violation of public trust, according to Assistant U.S. Attorney Joanna McFadden. The misused funds, totaling over $38,000, were spent on personal expenses such as travel, an SUV lease, and marketing services provided by Montgomery's own company, violating conflict-of-interest policies.
Montgomery's political career began in 2009 when he was elected to the Winston-Salem City Council while attending Winston-Salem State University. He later served in the state House, filling a vacancy in 2018 and winning a full term later that year. He unsuccessfully ran for Congress in 2020. Expressing remorse in court, Montgomery acknowledged the gravity of his actions and asked for leniency. Judge Biggs stated that letters from community members supporting probation influenced her decision.
Court documents revealed that Montgomery's misuse of funds began around 2018 and continued through 2020. The initial indictment included allegations of using shelter funds for a vacation with a romantic partner in Cancun, stays at luxury hotels, and expenses at a Las Vegas strip club. These charges were dismissed as part of the plea agreement.
