TEXARKANA, Ark. (AP) - Two men have been charged with failing to turn over more than $6 million in withholding taxes collected from hospital employees in Hope.
James Cheek, 67, and Herschel Breig Sr., 68, pleaded not guilty in federal court Tuesday to nine charges. They’re accused of pocketing more than $6 million in federal income, social security and Medicare taxes collected from staff at Hope Medical Park Hospital from May 2008 to April 2012.
Cheek and Breig acquired control of Signature Medical Park Hospital in Hope through Shiloh Health Services Inc. in May 2008, according to the indictment. The hospital changed its name in December 2008.
Each of the nine counts in the indictment involves separate fiscal quarters during which taxes were allegedly not paid to the IRS.
Neither the indictment nor a news release from the U.S. Attorney’s office indicates that Cheek or Breig took the employment tax money for their own use.
The men are already serving federal prison sentences for nearly identical crimes committed in Texas.
Each of the counts they face in Arkansas is punishable by a $250,000 fine, up to five years in federal prison, or both. Their jury trial is expected to begin in May.
Please read our comment policy before commenting.