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The former CEO of healthcare staffing provider World Health Alternatives Inc., Richard McDonald, pleaded guilty to five criminal counts Friday in federal court in Pennsylvania, according to court records.
The Associated Press reported federal prosecutors initially claimed McDonald, 38, of Leechburg, Penn., caused a $200 million loss to World Health Alternatives investors but agreed to a figure of $41 million at the guilty plea on Friday.
Criminal counts that McDonald pleaded guilty to include wire fraud, securities fraud, willful certification of false statements to the U.S. Securities and Exchange Commission, failure to pay payroll taxes and income tax evasion. The charges stem from incidents that began in 2004.
McDonald is scheduled to be sentenced on Aug. 17.
World Health Alternatives filed for bankruptcy protection in 2006 and sold its staffing operations that year as well. McDonald had suddenly resigned from the company in 2005. World Health Alternatives had been on acquirer of several staffing firms and made its last buy, Universal Staffing Group, an Orlando, Fla., healthcare staffing firm, in July 2005, just a month before McDonald left.