Thursday, September 15, 2016

Former Hope hospital officials plead guilty to failure to pay payroll taxes

Posted By on Thu, Sep 15, 2016 at 3:02 PM

James Cheek, 68, and Herschel Breig, 68,  former principals of the Hope Medical Park Hospital, pleaded guilty today in federal court in Texarkana to failure to $6 million in payroll taxes owed by the hospital.

The plea covers operations 2009-2012.

The Justice Department said sentence will be later. The maximum penalty is five years in prison, but usually is less, a news release said.

The pair was convicted of a similar charge in Texas eight years ago. Other allegations about their operations were made in the linked story at the time the Hope hospital became mired in financial problems in 2012.  The hospital survived and is under new ownership.

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  • New federal charges against former Hope hospital operators

    April 5, 2016
    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 on past payrolls at the Hope Medical Park Hospital. /more/
  • Employees fear for future of Hope hospital

    April 16, 2012
    Leslie Newell Peacock reports on the uncertain future of Hope's hospital, a tangled story that includes a recent federal guilty plea by the hospital's owners related to another property in Texas: Doctors at Medical Park Hospital in Hope have issued a desperate plea to state officials, including the governor, a prosecutor and the U.S. attorney for help in keeping the hospital from bankruptcy or closure. /more/
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