Wednesday, September 2, 2009

Former Pennsylvania Executive Charged With $2.3 Million Embezzlement & Tax Evasion Scheme

Richard E. McDonald, 36, of Leechburg, Pennsylvania, and the former CEO of World Health Alternatives, Inc. , has been charged with embezzling some $2.3 million from the company by skimming payroll taxes. McDonald has also been charged with tax evasion as part of a 20 count indictment recently unsealed. McDonald's scheme, which reportedly occurred between 2003 and 2005, caused the company stock to precipitously decline when it was publicly revealed in August 2005, resulting in shareholder losses of some $200 million. World Health Alternatives subsequently filed for bankruptcy and its assets were purchased. McDonald faces up to 30 years in prison. He is due to be arraigned tomorrow.

Read the story here and here.

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