Two former administrators of what used to be Lubbock's Highland Hospital made their initial appearance in court Wednesday on allegations of embezzlement. Herschel Breig and James Cheek are accused of seven counts of Failure to Pay Over Payroll Tax and one count of Theft or Embezzlement in Connection with Health Care.
Both were allowed to remain free until their trial date which has not yet been scheduled. The two were not required to enter a plea on Wednesday; that will come in a subsequent court hearing.
Breig was the Vice President and Cheek was the Chief Executive Officer between March 2006 and May 2008. The two are accused of collecting payroll taxes from employee wages but never turning the money over to the IRS.
Court records say the men cheated the government out of $1,856,529. However, it is not clear if the men kept the money for themselves or if the money was kept on behalf of Shiloh Healthcare Services. Either way, court records describe Breig and Cheek both as a "responsible person."
One of the conditions of their release is that neither man is allowed to take on new debt or new lines of credit without permission of a federal supervision officer.
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