Western, Pa., man accused of multimillion-dollar scam

PITTSBURGH (AP) — A western Pennsylvania man has been charged in federal court with fraud and tax evasion in a scam that prosecutors say led shareholders to lose more than $200 million.

Richard McDonald of Leechburg appeared in court today where a 20-count indictment was unsealed.

The 35-year-old is accused of diverting funds from World Health Alternatives, Inc. to his personal bank account while serving as president and chief executive officer between 2003 and 2005.

Prosecutors say that in the week between Aug. 12, 2005, and Aug. 19, 2005, when it became known the company’s finances were being investigated, World Health’s stock price plummeted from $3.55 per share to 49 cents. They estimate this caused shareholders to lose more than $200 million.