U.S. District Judge Sam R. Cummings sentenced Herschel A. Breig, 64, and James Cheek, 64, each to 60 months in federal prison and ordered them to pay $5,049,875.62 in restitution.
Breig and Cheek are accused of failing to forward payroll taxes to the U.S. Department of Treasury. They each pleaded guilty in February to one count of failure to pay over payroll taxes and aiding and abetting, related to their operation of Highland Medical Center in Lubbock, Texas.
men took control of
to court documents,
officials say Breig admitted that he had a duty to collect, to truthfully
account for and to pay over the payroll taxes that were withheld from
Check admitted that payroll taxes were withheld from employees and that he willfully failed to truthfully account for and pay over the payroll taxes.
Breig and Cheek have also paid a total of $120,000 in restitution to individual victims. They remain in federal custody.