LUBBOCK, Texas — Two men who ran a West Texas medical center and now supervise the parent company of a Hope hospital have been indicted.
The U.S. Attorney’s office says Herschel Breig and James Cheek allegedly failed to pay more than $1.8 million in payroll taxes withheld from employees’ paychecks as well as money withheld for health benefits while they ran Highland Medical Center. The indictment also alleges the pair embezzled more than $135,000 from Shiloh Health Services, the company they controlled.
The Texarkana Gazette reports that Shiloh Health Services purchased Medical Park Hospital in Hope in May 2008.
An employee at Medical Park referred questions to the company’s corporate office, where Cheek and Breig couldn’t be reached.