Former Rental Company Executive Sentenced to 2 Years in Prison for Violating Supervised Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOHN N. MILNE, 58, of Westport, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 24 months of imprisonment for violating the conditions of his supervised release.
According to court documents and statements made in court, on March 11, 2010, MILNE was sentenced to 27 months of imprisonment, followed by three years of supervised release, for conspiring to falsify the books and records of United Rentals, Inc. while he served as its President and Chief Financial Officer. In a resolution of a separate civil action brought by the U.S. Securities and Exchange Commission, (SEC v. John N. Milne, 3:08CV505), MILNE agreed to disgorge $6.25 million. MILNE paid $1 million to the SEC prior to his sentencing in 2010. As part of his original sentence, in lieu of a restitution order, MILNE was ordered to pay the remaining $5.25 million to the SEC as a condition of his supervised release.
Since his release from prison in May 2012, MILNE has paid approximately $500,000 of the $5.25 million of disgorgement that was due. Chief Judge Hall found that, based on MILNE’s income and expenditures on luxury services, personal items and travel, he had the ability to pay much more. The Court had previously continued the hearing on multiple occasions to provide MILNE the opportunity to make additional disgorgement payments, but he repeatedly failed to do so. MILNE also violated his supervised release by traveling out of Connecticut without the permission of the U.S. Probation Office.
MILNE is citizen of Canada and a lawful permanent resident of the U.S.
This case was prosecuted by Assistant U.S. Attorney Michael S. McGarry with the assistance of the U.S. Securities and Exchange Commission.