by Shannon Cay
HOPE, Ark. – A man from Nixa is formally charged by U.S. Attorney Kenneth Elser in connection to tax fraud involving a now bankrupt hospital.
According to a release from the Western District of Arkansas Attorney’s office, 68-year-old Herschel Breig, formerly of Nixa, is charged with nine counts of failure to pay over payroll taxes. The indictment alleges he and 67-year-old James Cheek from Georgia never paid the IRS any taxes on payroll for the hospital they owned, Hope Medical Park Hospital, between the years 2009 and 2012.
Elser says the hospital in Hope claimed bankruptcy in 2012, after both Breig and Cheek were convicted of similar charges connected to Highland Medical Center in Lubbock, Texas.
Court records show, in the Texas case, both men were sentenced to 50 months in a federal prison, after pleading guilty to withholding 1.8 million dollars in payroll taxes from December 2006 to May of 2008.
Elser says he believes when the pair owned Hope Medical Park Hospital, they failed to pay approximately 6-million dollars in payroll taxes to the IRS.