Former Birmingham CEO Convicted on 98 Counts of Fraud
A federal jury in Birmingham convicted the former CEO of two non-profit health clinics for the poor and homeless on 98 of 112 counts including conspiracy, bank fraud and money laundering.
Fifty-two year-old Jonathan Dunning was convicted for funneling millions in federal grant money to private companies he formed to contract with Birmingham Health Care and Central Alabama Comprehensive Health in Tuskegee, U.S. Attorney Joyce White Vance announced today.
Dunning was the chief executive officer of BHC and CACH for a period of time and left those jobs to run his for-profit businesses. Even after leaving his post as CEO, however, Dunning continued to exercise control over BHC and CACH. Between October 2008 and October 2011, according to testimony. Dunning served as president, board chairman and loan officer of Birmingham Financial Federal Credit Union.
Federal prosecutors say Dunning used his position to laundered money in a variety of ways to conceal and promote his crimes and to spend the money on himself.
Dunning is scheduled to be sentenced in the next 90 days. The maximum prison penalty for conspiracy is five years, for wire fraud and money laundering the maximum is 20 years, and for bank fraud, 30 years.
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