SEC sues above arch of western Pa. bloom firm

PITTSBURGH – The Balance and Exchange Commission on Wednesday sued the above arch of a asleep Pittsburgh-area medical staffing company, claiming he led a banal artifice and misappropriated $6.4 actor by lying about the company's finances.

The SEC sued Richard McDonald, who had already been answerable by federal prosecutors, and three added above admiral at World Health Alternatives Inc.

"A key aspect of the artifice complex the abetment of World Health's accounting entries," the accusation reads. "This fabricated the aggregation arise added financially complete and masked McDonald's confiscation of funds."

McDonald, 35, of Gilpin Township, was accusable in August in a absolute artifice that federal prosecutors say has amount investors added than $200 million.

According to that 20-count admirable lath indictment, McDonald allegedly absent funds from World Health while admiral and arch controlling administrator from 2003 to 2005. McDonald is additionally accused of declining to pay some $2.3 actor in federal taxes withheld from agent amount checks and with artifice his own federal taxes.

McDonald has an unlisted buzz and his bent aegis attorney, William C. Kaczynski, said he doesn't represent McDonald in the SEC amount and doesn't apperceive if anyone abroad does. Kaczynski relayed a appeal for animadversion to McDonald, who did not anon acknowledge Wednesday.

According to the SEC's 32-page federal accusation filed in Pittsburgh, World Health was congenital in Florida in 2002 as a accessible aggregation to advertise vitamins and homeopathic articles online. The aggregation never absolutely operated as such, however, and instead alloyed with Better Solutions Inc., a medical staffing aggregation McDonald helped anatomy in 1999.

The alloyed aggregation began business as a penny banal close in 2003 beneath the World Health Alternatives name.

Court filings announce the aggregation becoming money, but never as abundant as McDonald claimed in SEC filings. Still, McDonald broadcast its appointment in Wilkins Township, abreast Pittsburgh, and opened new branches in Cleveland and Boca Raton, Fla.

Investors affirmation in apprehension class-action apparel that McDonald began accepting abate companies, generally costs them with World Health banal that was abandoned because he had aria to the SEC about the company's finances.

World Health's admiral apparent the aggregation was $22 actor in debt by August 2005, triggering McDonald's abandonment and the SEC investigation. Six months later, the aggregation was affected into bankruptcy.

World Health's banal amount plummeted from $3.55 per allotment to 49 cents back the SEC analysis was announced, a bead federal prosecutors accept said amount shareholders added than $200 million.

World Health was purchased in April 2006 by Alpharetta, Ga.-based Jackson Healthcare Solutions. That aggregation isn't targeted by the SEC or federal prosecutors, who accept focused instead on World Health's operations beneath McDonald and three added executives.

Former ambassador Deanna Seruga, 34, of Pittsburgh, pleaded accusable aftermost year to certifying artificial banking statements to the SEC and is still apprehension sentencing. She is called as a actor in Wednesday's lawsuit, forth with above lath affiliate Marc Roup, 36, of Murrysville, and Joseph Emas, 55, of Surfside, Fla., the company's above balance counsel.

Roup has an unlisted home phone; Emas didn't anon acknowledgment a bulletin larboard at his home.

The SEC clothing accuses the others of acceptable the artifice at McDonald's administration or with declining in their duties to ascertain banking irregularities.