Ex-hospital CEO and SVP get prison time for failing to pay taxes

Ayla Ellison -

Two former executives of Hope (Ark.) Medical Park Hospital were sentenced to prison last week for failing to account for and pay the hospital's payroll taxes from 2009 through 2012, according to the Department of Justice.

The hospital's former CEO James R. Cheek and former senior vice president Herschel J. Breig Sr. allegedly failed to pay approximately $6 million in payroll taxes to the IRS during the four-year period.

Both men were indicted by a federal grand jury in 2015 and both pleaded guilty in September 2016 to one count each of failure to collect or pay over tax, according to the DOJ.

"Corporate executives have a responsibility to withhold federal income taxes for their employees and then remit those taxes to the IRS on their behalf," said Tracey D. MontaƱo, special agent in charge. "Failure to pay over withheld taxes is a serious offense, and continues to be an investigative priority for IRS Criminal Investigation."

In addition to their prison terms, Mr. Cheek and Mr. Breig were ordered to pay a combined $6 million in restitution, according to the DOJ.

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