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February 06, 2015

Ex-Head of Ala. Health Charity Accused of $14-Million Fraud

The former CEO of a Birmingham, Ala., nonprofit whose mission is providing health care to the poor and homeless, has been charged with diverting $14-million in federal grant funds, property, and other assets for private gain, The Birmingham News reports. Jonathan Dunning, 51, pleaded not guilty and was released on $50,000 bond following his indictment and arrest Monday.

The 112 counts of conspiracy, wire fraud, bank fraud, and money laundering stem from Mr. Dunning's involvement with Birmingham Health Care; another community clinic, Central Alabama Comprehensive Health in Tuskegee; and a Birmingham credit union. Federal prosecutors allege he drained money from the nonprofits through contracts and property deals involving private businesses he controlled. Birmingham Health Care's former chief financial officer, Terri Mollica, was arrested in November on fraud charges.