Man pleads guilty to tax fraud in gifts to hospital employee

The unlawful actions were discovered during an unrelated investigation.
PITTSBURGH (AP) -- The former president of a western Pennsylvania asbestos- and lead-removal company pleaded guilty Friday to a tax charge and to lying to federal agents in connection with gifts to a man charged in an unrelated multimillion-dollar fraud case.
Federal prosecutors alleged that Randall McMillan, 46, of Sewickley, used his former company, Kleen All of America Inc., to give an employee at UPMC Shadyside Hospital in Pittsburgh more than $60,000 in gifts. Kleen All had a contract to remove asbestos from the hospital, prosecutors said.
Prosecutors said McMillan deducted the gifts -- which included lumber to build a home, furniture, hunting gear and an all-terrain vehicle -- as ordinary business expenses and later lied to investigators from the Internal Revenue Service and the Postal Inspectors Service, denying that the hospital employee had received anything from the company.
Authorities said the gifts were discovered during an unrelated investigation of alleged fraud that bilked Mercy and UPMC Shadyside hospitals in Pittsburgh and Allegheny Power Inc. out of $5.6 million. The gifts from Kleen All were not connected to any fraud, prosecutors said.
Demaree Hite, 53, of Clairidge, who was supervising construction at UPMC Shadyside, pleaded guilty last month to fraud, racketeering and tax fraud in the other case. Prosecutors said he accepted kickbacks from another construction company accused of defrauding the hospitals and utility by inflating bills on projects from 1994 to 2000.
McMillan is to be sentenced in July. His attorney, William Manifesto, did not return a phone message seeking comment left at his office after business hours.
Copyright 2005 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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