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Former Mylan Fleet Manager Indicted on Alleged Mail Fraud Charges

July 22, 2010

Mark Rackley, a 44-year-old former fleet manager at Mylan Laboratories Inc. in Morgantown, W. Va., was named in a 10-count indictment on July 13, according to a statement from U.S. Attorney Betsy C. Jividen. 

As the fleet manager, Rackley managed Mylan's vehicle fleet under a lease agreement with Enterprise Fleet Services in Houston. The indictment alleges that Rackley devised a scheme to defraud and obtain money and property from Mylan Laboratories by means of false and fraudulent pretenses from February 2000 to October 2005. As part of the scheme to defraud, he deliberately did not use Enterprise's vehicle acquisition and vehicle disposal services, which enabled him to exercise total control over the acquisition and disposal of vehicles. He then allegedly set both the purchase and sale prices of the vehicles leased to Mylan Laboratories in order to carry out his scheme. 

The indictment further alleges Rackley entered into agreements with car dealers and caused Enterprise to purchase vehicles from the car dealers at inflated prices. The car dealers would then pay a portion of the proceeds from the purchases and sales of the vehicles in the form of kickbacks to Rackley in return for gaining access to Mylan Laboratories' vehicle business.

Rackley allegedly received approximately $800,000 in kickbacks from the scheme and is charged with 10 counts of using the United States Mail to execute his scheme. The indictment contains a forfeiture allegation wherein the United States seeks a money judgment from Rackley in the amount of at least $800,000.

If convicted, he faces a maximum penalty of 20 years imprisonment and a fine of $250,000 on each count of the indictment, according to the statement.

The case will be prosecuted by Assistant United States Attorney Sherry Muncy. It was investigated by the United States Postal Inspection Service.


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