CLARKSBURG, WV - Mark Rackley, the 44-year-old former fleet manager for Mylan Laboratories, Inc. named in a 10-count indictment back in July, entered a plea of guilty Oct. 4 to one count of mail fraud, according to a statement released by U.S. Attorney William Ihlenfeld.
Rackley, hired by Mylan Laboratories, Inc. on Feb. 21, 2000 to serve as the fleet manager, was responsible for overseeing company cars leased to Mylan by Enterprise Fleet Services in Houston. The leases, with respect to the vehicles in this case were essentially open-ended or "equity" leases, according to the statement.
Between August 2005 and September 27, 2005, Rackley and Neal Jackson, a car dealer and friend of Rackley, allegedly conducted a scheme whereby Rackley and Jackson resold vehicles for higher prices and shared the profit.
As a part of the scheme, Rackley allegedly caused Enterprise to send an invoice to Mylan Pharmaceuticals, which furthered the scheme in that the invoice overstated the amounts Mylan should have paid because the totals included hidden costs from the kickback to be paid to Rackley. As a result, Mylan then allegedly mailed a check to Enterprise in payment of the invoice.
Specifically, on Aug. 2, 2005, Mylan Laboratories mailed a payment in the amount of $146, 363.83 to Enterprise Fleet Services. In part, the payment included the hidden costs of the alleged kickback Rackley was to receive from Jackson on the profit realized from the sale of disposed vehicles. On Sept. 27, 2005, Rackley allegedly received a $2,500 kickback from Jackson as a part of the fraudulent scheme.
Rackley, currently free on bond pending sentencing, faces a maximum penalty of 20 years imprisonment and a fine of $250,000, according to the statement.
The case was prosecuted by Assistant United States Attorney Randolph J. Bernard. The case was investigated by the United States Postal Inspection Service.
Originally posted on Automotive Fleet