Former State Rep. Derwin Montgomery given five years probation in federal fraud case

Derwin Montgomery, a former Winston-Salem city councilman and state representative, faced a federal judge Thursday for sentencing in connection with a fraud conviction. 

Montgomery was charged in connection with misappropriating money during his time as executive director of the Bethesda Center for the Homeless.

Sentencing guidelines called for 10 to 16 months imprisonment, but both prosecutors and Montgomery’s defense attorneys argued for probation in the case.

One of his attorneys, Michael Grace, said Montgomery’s lifelong goal was to serve in government, and he forfeits that with his guilty plea. For a man who served in both city and state elected offices, there could be no greater punishment, Grace said.

Judge Loretta Biggs of the federal district court in Winston-Salem explained she had to weigh the deterrent effect of the sentence against the context of what Montgomery has done with his life. 

Biggs gave Montgomery a chance to speak. He rose, bowed his head, and softly expressed regret for his actions.

She ultimately decided to go with the plea agreement, under which Montgomery avoids prison time. He will serve five years of probation, pay just over a $22,000 fine, and more than $38,000 in restitution.

Montgomery declined to speak to reporters following the hearing.