Former Winston-Salem Councilman indicted by federal grand jury

Former Winston-Salem Council member and State House Representative Derwin Montgomery has been indicted by a federal grand jury for wire fraud and embezzlement.

The 15-count indictment against Derwin Montgomery was handed down in the U.S. District Court for the Middle District of North Carolina on Tuesday.

It alleges that Montgomery embezzled nearly $26,299 from the Bethesda Center for the Homeless where he served as executive director. He is also accused of charging the nonprofit for travel and lodging associated with his city council role, claiming it was related to staff training.

These personal expenses include a vacation to Cancun, Mexico, stays at luxury hotels in Los Angeles, California, Charleston, South Carolina, and Washington D.C., and expenses at a gentleman's club in Nevada.

He's also accused of charging the Bethesda Center for the personal use of a GMC Yukon Denali valued at nearly $55,000 saying it was for shelter operations.

The indictment also alleges that Montgomery charged the Bethesda Center for expenses related to marketing and media services performed by Uplift Media LLC, a company with which he's affiliated, even though the organization already received those services free of charge as part of a charitable contribution.

Federal officials issued an arrest warrant for Montgomery, and recommended bail in the amount of $100,000 and that he surrender his passport. It's unclear when the case will be scheduled for a hearing in U.S. District Court.

Montgomery also currently serves as a pastor at First Calvary Baptist Church in Winston-Salem.

Correction: An earlier version of this story said that Montgomery allegedly embezzled nearly $24,000 from the Bethesda Center for the Homeless. The correct amount is $26,299.