Ex-brewery official guilty of conspiracy

Sat. October 17, 2009; Posted: 02:59 PM

Oct 17, 2009 (Pittsburgh Post-Gazette - McClatchy-Tribune Information Services via COMTEX) -- URI | Quote | Chart | News | PowerRating -- The investor who led Pittsburgh Brewing out of bankruptcy has pleaded guilty to a federal conspiracy charge and will serve up to 30 months in prison and pay a $6.3 million penalty in connection with his role in an accounting fraud at a Connecticut company.

John N. Milne agreed to settle civil and criminal charges pending from his service as president and chief financial officer of United Rentals. Regulators allege the rental equipment company, co-founded by Mr. Milne, engaged in a series of fraudulent transactions that resulted in it recognizing revenue early and inflating its profits.

The Securities and Exchange Commission was investigating United Rentals' accounting practices in 2006 when Unified Growth Partners, Mr. Milne's investment group, stepped forward as the savior of Pittsburgh Brewing. The beleaguered Lawrenceville brewery emerged from bankruptcy in 2007 as Iron City Brewing and moved its operations to Latrobe this year.

Mr. Milne is no longer involved in the ownership or management of the brewery. He was removed from the board after the SEC filed a civil complaint against him last year, Iron City President Tim Hickman said.

Mr. Milne pleaded guilty Tuesday to conspiracy to falsify United Rentals' books and records and agreed to serve a sentence of 24 to 30 months.

He also settled the SEC lawsuit, agreeing to pay $6.3 million in disgorged profits and interest. The penalty stems from his sale of United Rentals stock after the company announced inflated results for 2001 and 2002, SEC officials said.

Len Boselovic can be reached at lboselovic@post-gazette.com or 412-263-1941.

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For full details on United Rentals Inc (URI) click here. United Rentals Inc (URI) has Short Term PowerRatings of 6. Details on United Rentals Inc (URI) Short Term PowerRatings is available at This Link.

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