Judge orders former hospital executives to pay $6 million
The former executives who failed to pay employment tax while managing a Hope, Ark., hospital were ordered to pay more than $6 million in restitution and serve time in prison during separate hearings Thursday and Friday in federal court in Texarkana.
James R. Cheek, 68, of Douglasville, Ga., and Herschel J. Breig Sr., 68, of Nixa, Mo., failed to pay payroll taxes deducted from the checks of employees of Hope Medical Park Hospital in 2009, 2010, 2011 and 2012. They were serving as the principal officers of Shiloh Health Services, which operated the hospital.
Cheek and Breig pocketed withholding, Medicare and Social Security taxes from employee paychecks.
The men were given federal prison terms for nearly identical crimes they committed at a hospital they operated in Lubbock, Texas. A federal judge in the Lubbock Division of the Northern District of Texas sentenced the pair on June 5, 2012, to 60 months in federal prison, to jointly pay more than $5 million in restitution and to pay a $10,000 fine.
Read more: http://www.texarkanagazette.com/news/texarkana/story/2017/apr/22/judge-orders-former-hospital-executives-pay-6-million/670882/