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Ex-Hospital Execs Get Prison, Must Pay $6M in Restitution

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TEXARKANA, Ark. — Two former hospital executives have been sentenced to three years in prison each and ordered to pay more than $6 million in restitution for not paying employment tax.

A federal judge sentenced James R. Cheek and Herschel J. Breig Sr. at hearings last week. The former executives were accused of failing to pay payroll taxes deducted from the checks of employees of Hope Medical Park Hospital from 2009-2012.

They were serving as the principal officers of Shiloh Health Services Inc., which operated the hospital.

The Texarkana Gazette reports that both men were sentenced in 2012 to federal prison terms for nearly identical crimes they allegedly committed at a hospital they operated in Lubbock, Texas.

Both men will be on probation for three years when they get out of prison.

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