The U.S. attorney for the Western District of Arkansas announced today that James R. Cheek, 67, and Herschel Breig, 68, had appeared before a magistrate in Texarkana today on nine charges of failure to pay employment taxes.
The indictment says the men, who were principals of the Hope Medical Park Hospital, had failed to pay $6 million in payroll taxes for the years 2009-2012.
It’s not their first rodeo. We wrote in 2012 about problems at the Hope hospital along with past charges against the men related to both payroll shortcomings in Lubbock, Texas. They left a trail of disarray and closed hospitals around the country. The Hope hospital survived under new owners. Breig and Cheek are in federal custody, near the end of five-year sentences they received in Lubbock.