We expect the CEO of a non-profit to be in business to provide for the weakest and most vulnerable among us. That is certainly what was expected of Jonathan Wade Dunning, who was in charge of 2 non-profit health care clinics that provided urgent care for the indigent in the Birmingham, Alabama region. He ran the financial show for Birmingham Health Care and Central Alabama Comprehensive Health since 2008, and he received federal funds to help do it.
Then, in 2011, the FBI received a tip that Dunning was defrauding the government, and was already under investigation by the state health services and the Inspector General. The Internal Revenue Service-Criminal Investigation Division joined the state investigators and the FBI to investigate.
It appeared that Dunning had created for-profit companies and then steered contracts with the clinics to his companies. After he left the company, he formed a group called the "Synergy Entities" and picked his successor as CEO. This allowed him to continue skimming federal funds through illegal contracts with the clinics. One of the companies he owned was a credit union that he made give him a $85,000 loan without filling out the normal forms so he could buy a Jaguar for his personal use. He funneled the money from his business's illicit dealings in to his own accounts, and his clinics suffered for it.
This lasted for 7 years, and he squeezed $16 million from the federal government. The group of state and federal investigators brought him to court and got him convicted on 98 counts of bank fraud, wire fraud, conspiracy and money-laundering. He was sentenced to 18 years in prison and to pay $13.5 million in restitution. He has to give up any interest in real property he has gotten through his crime.
White collar crime can crop up anywhere, and whenever it involves federal funds, the FBI is not far away. If you think you are involved in a case on the federal level, you want a lawyer with experience. Fortunately, Ashley D. Adams, PLC has done plenty with the federal courts, so feel free to contact us if you want any help.