Ex-health clinic CEO guilty of 98 counts in $14M fraud suit

A federal jury has convicted the former CEO of two nonprofit health clinics in Alabama of diverting $14 million in federal funding to private companies he formed to contract with the clinics.

Fifty-two-year-old Jonathan Dunning is the former CEO of Birmingham (Ala.) Health Care and Central Alabama Comprehensive Health in Tuskegee. After leaving his post as CEO in 2008, Mr. Dunning continued to exercise control over the two nonprofit health clinics and diverted $14 million in government funds meant for the clinics to his own for-profit companies.

On Friday, after about three days of deliberation, a jury found Mr. Dunning guilty of 62 counts of wire fraud, 33 counts of money laundering and two counts of bank fraud, according to the Department of Justice. They also found him guilty of one conspiracy count, finding that he conspired with another person to commit wire fraud, bank fraud and money laundering.

Regarding the guilty verdict in the case, Special Agent in Charge Derrick L. Jackson said, "The jury's verdict speaks volumes. Stealing federal money meant to treat the poor and homeless will not be tolerated. We will continue to work with our law enforcement partners to protect the vulnerable beneficiaries of these taxpayer-funded programs from greed-fueled schemes."

Mr. Dunning's sentencing is expected to be scheduled in about 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, according to the DOJ.

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