Connellsville Daily Courier – Former World Health Alternatives Inc. Chief Executive Richard McDonald lied, withheld information and even told company executives that a reality television show paid $1million to follow employees at work — all to fill his own pockets, a lawsuit contends.
The lawsuit was filed last week in federal court by hedge funds Columbus Capital Offshore Fund Ltd. and Columbus Capital Partners LP of San Francisco. The suit alleges McDonald, former board members John W. Higbee and Frederick R. Jackson Sr., ex-Chief Operating Officer John Sercu, and accounting firm Daszkal Bolton LLP conspired or didn’t ask proper questions, allowing an intricate illusion to be perpetrated. None could be reached for comment.
The Columbus hedge funds are lead plaintiffs in what they hope becomes a class action suit, saying the two funds lost more than $10 million on their World Health investments during the period Aug. 17-19, 2005.
World Health is the Wilkins-based provider of temporary medical staffing personnel that imploded following the Aug. 15 resignation of McDonald. Six months later the company filed for Chapter 11 bankruptcy protection, and soon after announced a former rival was acquiring its assets.
