Jonathan Dunning is the former CEO of two non profit clinics for the poor and the homeless. He may soon be homeless himself, unless you call a federal prison cell “home.” Last week FBI and IRS criminal division special agents arrested Dunning after he was indicted on 112 counts of wire fraud, bank fraud and money laundering. All the charges appear related to Dunning’s involvement with the clinics and with the Birmingham Financial Federal Credit Union.
Prosecutors say that during a 7 year period, Dunning’s two nonprofit health care companies received millions of dollars in federal grants. The money was to be used to provide healthcare to the poor and homeless.
The healthcare fraud charges relate to a little known federal agency called the Health Resources & Services Administration. That agency provide healthcare to tens of millions of Americans. The agency provides grants to support healthcare in underserved populations such as the homeless, migrant workers and public housing residents. It also administers funds for miners suffering from black lung disease.
Prosecutors say that Dunning abused his position *as CEO at two different clinics to defraud both the clinics and taxpayers of monies earmarked for healthcare.
In announcing his arrest, Birmingham, Alabama U.S. Attorney Joyce White Vance said, “Criminals don’t get to live lavish lifestyles by stealing federal money meant to provide healthcare to the poor and the homeless. My office will vigorously prosecute health care fraud; working to ensure that these funds go to the people they are intended to help, and to see that criminals go to jail.”
An IRS spokesperson said, “Jonathan Dunning is charged with defrauding agencies that received government funding. He is accused of misusing his authority and laundering money to businesses he controlled. He orchestrated a scheme fueled by greed and deceit that ultimately affects all taxpayers”.
Most healthcare fraud involves Medicare and Medicaid monies. As this case illustrates, however, healthcare fraud can take many different forms.
This case also illustrates how multiple law enforcement agencies are banding together to fight healthcare fraud. Although Dunning wasn’t charged with tax evasion or other criminal tax charges, IRS special agents still played a major role in the investigation.
Most healthcare fraud cases are brought because of whistleblowers, brave women and men who step up to fight fraud and corruption. In healthcare cases, whistleblowers are truly heroes for their actions often save lives or insure that patients get the healthcare they need.
Under the federal False Claims Act, whistleblowers can earn an award of up to 30% of whatever the government collects from the wrongdoers. In healthcare fraud cases, the average award is nearer to 20%. Because the government can collect triple damages, the awards can be huge. Last year the government paid $435 million in awards.
To qualify, whistleblowers must have inside or original source information.
Need more information? Call us today. We help whistleblowers earn the largest possible awards and stop fraud. For more information, contact attorney Brian Mahany at or by telephone at (414) 704-6731 (direct). All inquiries are protected by the attorney – client privilege and kept in confidence.
* An indictment is a finding of probable cause by a Grand Jury. Dunning is presumed innocent until proven guilty.