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November 06, 2014

Ala. Nonprofit's Ex-CFO Charged in Alleged $11-Million Fraud

The former chief financial officer at an Alabama charity that provides medical services to the poor and homeless was arrested Wednesday on charges that she took part in a scheme to divert some $11-million in federal grant funds, assets, and properties from two community health centers, reports The Birmingham News. Prosecutors contend Terri McGuire Mollica, 48, personally pocketed $1.7-million from the alleged fraud, which involved transfers to businesses connected to Jonathan Dunning, chief executive officer of Birmingham Health Care.

Mr. Dunning has not been charged, but he is referenced as "J.D." in an 82-count indictment of Ms. Mollica, who served as the charity's CFO from 2005 to 2008. The document states that at "the initiation and direction of J.D.," assets of Birmingham Health Care and a Tuskegee, Ala., clinic were shifted to Mr. Dunning's companies, largely through service contracts and property deals. Ms. Mollica had roles with some of the firms.

Ms. Mollica could not be reached for comment, and a lawyer for Mr. Dunning and Birmingham Health Care did not respond to a request for comment. Two other former employees of the organization have pleaded guilty in recent days to putting more than $100,000 in charity funds to personal use.