BIRMINGHAM, Ala.–The former CEO of Birmingham Financial FCU and several other organizations has been found guilt of 98 counts of conspiracy, wire fraud, bank fraud and money laundering.
Jonathan Wade Dunning, who was arrested in 2015, was acquitted on 14 other counts. Dunning was charged with stealing as much as $14 million in property and funds, including federal grants that were supposed to go to provide health care services to poor people, including the homeless.
In addition to the credit union, which Dunning led from 2008-11, Dunning was found guilty of crimes involving Birmingham Health Care (BHC), and a number of for-profit businesses operating as “Synergy Entities.” Prosecutors said that while with the credit union Dunning served as president, board chairman, and/or loan officer.
According to the indictment, over a period of seven years the organizations received millions of dollars in federal grant funds through the Health Resources & Services Administration (HRSA) to provide healthcare services to underserved populations.
According to AL.com, a sentencing date has not yet been set, but U.S. District Court Judge David Proctor said it would be held in about 90 days. In the meantime, Dunning is free on bond but has travel restrictions. 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 U.S. Attorney's Office and AL.com.
Jurors found Dunning guilty on 62 counts of wire fraud, two counts of bank fraud, and 33 counts of money laundering. Jurors found him not guilty on six wire fraud counts, one bank fraud count, and seven money laundering counts, AL.com reported.
AL.com and prosecutors said that Dunning, as the former nonprofit CEO of both BHC and Central Alabama Comprehensive Health Inc. (CACH) in Tuskegee, diverted to his own companies' millions of dollars in federal grant money meant for treating the poor and homeless at BHC and CACH. The prosecutors say Dunning continued to profit from the two agencies, even after he stepped down as CEO in 2008, by setting up companies to contract with BHC for services, including billing, management consulting, and for lease agreements with BHC on buildings.