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Betsy C. Jividen

1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Fawn E. Thomas, Public Affairs Specialist


July 15, 2010

Employee of Mylan Laboratories, Inc.
Indicted on Mail Fraud Charges

CLARKSBURG, WEST VIRGINIA — A Federal Grand Jury sitting in Clarksburg, West Virginia, returned an Indictment on July 13, 2010, charging a 44 year old Venetia, Pennsylvania, resident with mail fraud.

United States Attorney Betsy C. Jividen announced that MARK A. RACKLEY, who was employed as the Fleet Manager with Mylan Laboratories, Inc. in Morgantown, was named in a 10-count Indictment. As the Fleet Manager, RACKLEY managed Mylan’s vehicle fleet under a lease agreement with Enterprise Fleet Services in Houston, Texas.

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, RACKLEY 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 personally 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 that 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, causing Mylan Laboratories to suffer financial losses. The Indictment alleges that RACKLEY received approximately $800,000 in kickbacks from the scheme. RACKLEY 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, RACKLEY faces a maximum penalty of 20 years imprisonment and a fine of $250,000 on each count of the Indictment.

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

It should be noted that the charges contained in the Indictment are merely accusations and not evidence of guilt, and that each defendant is presumed innocent until and unless proven guilty.