Jesse Dunn, Fraud Scheme, Texas 2015

HOUSTON - Grimy Times has learned that Jesse Dunn, a 56-year-old Houston businessman, has been charged in connection with a major disaster relief fraud scheme. According to a federal indictment, Dunn, the president of Aldine Community Care Center Inc. (ACCC), a registered Texas non-profit corporation, allegedly falsified documents to receive disaster relief funds from the Small Business Administration (SBA).

The indictment, returned on January 28, 2015, alleges one count of participating in a fraud scheme in connection with a major disaster, one count of making a false statement, and six counts of false representations in connection with a major disaster. Dunn faces up to 30 years in federal prison and a possible $250,000 fine for each of the false representations charges and the fraud scheme in connection with a major disaster.

According to the allegations, Dunn applied for a loan on two of his properties for disaster relief funds following Hurricane Ike, which made landfall on the Texas Gulf Coast on September 13, 2008. The former President George W. Bush declared the counties in and around Houston a major disaster area under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act.

Dunn allegedly submitted false invoices to the SBA, resulting in the disbursement of $1,300,800 intended for the repair or replacement of real estate, inventory, supplies, machinery, and equipment damaged during the declared disaster. However, a significant portion of the proceeds was allegedly used for Dunn's own personal use.

The investigation leading up to the arrest was conducted by the SBA and the FBI. Assistant U.S. Attorneys Suzanne Elmilady and Andrew Leuchtmann are prosecuting the case.

An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.

The indictment also alleges that Dunn served as the president or director of several other Texas non-profit corporations, including Paraclete Church Ministries Inc. The case highlights the importance of monitoring non-profit organizations and ensuring that disaster relief funds are used for their intended purpose.

Source: https://www.justice.gov/usao-sdtx/pr/local-non-profit-businessman-charged-alleged-fraud-scheme