TEXARKANA, Ark. — Two former officials at Hope Medical Park Hospital have pleaded guilty to federal charges of failing to pay more than $6 million in payroll taxes to the Internal Revenue Service.
Online court records show former CEO James Cheek and former senior vice president Herschel Breig pleaded guilty Thursday as part of an agreement in which prosecutors dropped other similar charges against the two and will recommend both be sentenced to three years in prison.
The two were charged with failing to pay payroll taxes for nine of 13 quarterly periods from January 2009 through April 2012.
Cheek and Breig acquired control of Signature Medical Park Hospital in Hope through Shiloh Health Services Inc. in May 2008 and the hospital changed its name in December 2008.