David Montoya, the founder of StoneMakers Academy, and attorney Rhonda Simpson have been sentenced in connection with a scheme that used veterans as unpaid labor while improperly billing the Department of Veterans Affairs (VA) nearly $15 million. The New Hampshire-based masonry school, which operated from 2010 until its closure in 2018, claimed to teach a proprietary rock-building technique to veterans using funds provided through the GI Bill.
StoneMakers Academy offered an eight-day course teaching a quick-drying cement mixture combined with nanofibers, designed to mimic natural rocks for landscaping projects such as patios and retaining walls. The academy advertised full tuition coverage under the GI Bill and touted the program as a lucrative career opportunity. However, veterans who enrolled were reportedly charged $18,500 per course, a fact not clearly disclosed in promotional materials.
Michael Nguyen, an Army veteran from Florida, described his experience in a 2016 class in Orlando, where after a brief introduction, students spent the majority of the course performing labor at job sites rather than receiving proper instruction. Nguyen said the product demonstration they witnessed was flawed, as a sample of the molded rock broke apart during testing. He also reported that the situation felt deceptive and filed a complaint with the VA, though he received no response.
An investigation launched by the VA’s Inspector General in 2017 revealed widespread irregularities and violations of VA regulations, including falsified class rosters and excessive enrollment of veterans receiving GI Bill benefits beyond established limits. The inquiry was prompted by allegations from a whistleblower at StoneMakers, who characterized the operation as exploiting vulnerable veterans, including those with combat injuries and substance use issues.
According to investigators, Montoya and Simpson manipulated enrollment documents and accounting records to conceal these violations. Recorded conversations between Simpson and the whistleblower showed attempts to obscure the VA’s rule restricting GI Bill students to no more than 85 percent of total enrollment. StoneMakers’ practice of using veterans as free labor on jobsites further violated VA guidelines.
Federal prosecutors took the case up in 2019, but progress was delayed following the retirement of the lead prosecutor. Both Montoya and Simpson pleaded guilty to conspiracy to make false statements to federal officials in May 2024. Prosecutors recommended probationary sentences, arguing that despite the misconduct, the courses were conducted as advertised. However, U.S. District Judge Paul Barbadoro rejected this recommendation, citing deliberate deception aimed at securing unentitled government payments.
In June 2025, Barbadoro sentenced Montoya and Simpson to one year of home detention followed by three years of probation and ordered each to pay $200,000 in restitution to the VA. During her sentencing, Simpson expressed remorse, acknowledging lapses in oversight during her tenure. Neither defendant responded to requests for comment. The case highlighted ongoing challenges within the VA’s oversight of educational institutions serving veterans, with critics noting deficiencies in complaint investigations and enforcement mechanisms.