BIRMINGHAM, Ala. — A federal jury in Alabama has convicted the former head of Birmingham Financial FCU of conspiracy, wire fraud, bank fraud and money laundering.
All told, Jonathan Wade Dunning was found guilty of 98 counts involving conspiracy, wire fraud, bank fraud and money laundering in an 112-count indictment.
The charges related to Dunning's tenure as a chief executive at two non-profit health clinics — Birmingham Health Care (BHC) and Central Alabama Comprehensive Health (CACH) in Tuskegee — which are designed to provide health care services for the poor and homeless.
But Dunning had funneled millions of dollars in federal grant money to private companies that he had formed to contract with the clinics, according to the U.S. Attorney's Office for the Northern District of Alabama.
The jury heard testimony and evidence from eight attorneys who represented Dunning as well as seven prosecutors from the U.S. Attorney's office in Birmingham. Dunning was found not guilty on 14 felony charges.
The scheme also included Dunning's involvement with Birmingham Financial FCU and a group of for-profit businesses called the "Synergy Entities."
The U.S. Attorney's Office said that over a period of years, BHC and CACH received millions of dollars in federal grant funds through the Health Resources & Services Administration.
Dunning served as the chief executive officer of both BHC and CACH for a period of time, but left those positions to run his for-profit businesses. However, even after departing his jobs as CEO, Dunning continued to "exercise control" over BHC and CACH.
Between October 2008 and October 2011, Dunning also served as CEO and president of BFFCU.
In December 2011, Birmingham Financial FCU was liquidated by the National Credit Union Administration while its members, assets, loans and debts were acquired by ?CO Credit Union, now a $132 million institution based in Birmingham.
Birmingham Financial FCU was originally chartered in 1956 and served employees of the Birmingham Housing Authority and Birmingham Health Care, among others.
U.S. Attorney Joyce White Vance said that Dunning "relentlessly stole taxpayer dollars that were meant to provide critical medical care to the poor and homeless in Birmingham," adding that "his shameless devotion to purchasing luxury items like a Jaguar for himself, while leaving to suffer the people he committed to serve, is deplorable."
Dunning is expected to be sentenced in about 90 days. He faces up to a maximum of 30 years in prison for bank fraud, 20 years for wire fraud and money laundering; and five years for conspiracy.
