PITTSBURGH (AP) -- The former president of a western Pennsylvania asbestos and lead removal company was ordered to serve more than a year of probation for lying to federal agents investigating a fraud case and for filing a false tax return.
U.S. District Judge Terrance F. McVerry sentenced Randall McMillan, 46, of Sewickley, to 18 months' probation Friday and ordered him to pay a $10,000 fine.
In April, McMillan pleaded guilty to charges of filing a false tax return and lying to agents.
Federal prosecutors alleged McMillan 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.
McMillan deducted the gifts 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, prosecutors 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, authorities said. The gifts from Kleen All were not connected to any fraud, prosecutors said.