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William J. Ihlenfeld, II

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


October 6, 2010

Employee of Mylan Laboratories, Inc.
Enters Guilty Plea to Mail Fraud

CLARKSBURG, WEST VIRGINIA — A 44 year old Ventia, Pennsylvania, resident entered a plea of guilty on October 4, 2010, in United States District Court in Clarksburg before Judge Irene M. Keeley.

United States Attorney William J. Ihlenfeld, II, announced that MARK A. RACKLEY entered a plea of guilty to one count of Mail Fraud. Testimony at the plea hearing indicated that RACKLEY was hired by Mylan Laboratories, Inc. on February 21, 2000, to serve as the Fleet Manager over company cars which were leased to Mylan by Enterprise Fleet Services located in Houston, Texas. The leases with respect to the vehicles in this case were essentially open-ended or “equity” leases. With the equity lease, RACKLEY had total control of the resale of the vehicles. Both Enterprise and Mylan relied upon RACKLEY and the dealers under RACKLEY’s control concerning negotiation at the back end of the lease (when RACKLEY and the dealers disposed of the vehicles).

During the time frame between August 2005 and September 27, 2005, RACKLEY and a car dealer and friend of RACKLEY named Neal Jackson conducted a scheme whereby RACKLEY and Neal Jackson resold vehicles for higher prices with the profit therefrom being shared by Neal Jackson and RACKLEY. Mylan, his employer and victim, was caused to absorb the losses associated with this fraud.

As a part of the scheme, RACKLEY caused Enterprise to send an invoice to Mylan Pharmaceuticals which furthered the scheme in that the invoice overstated the amounts that Mylan should have paid because the totals included hidden costs from the kickback to be paid to RACKLEY. In response, Mylan thereafter mailed a check to Enterprise in payment of this invoice.

Specifically, on August 2, 2005, Mylan Laboratories (located in Morgantown, West Virginia) mailed a payment in the amount of $146, 363.83 to Enterprise Fleet Services. In part, the payment included the hidden costs of the kickback RACKLEY was to receive from Neal Jackson on the profit realized from the sale of disposed vehicles.

In fact, on September 27, 2005, RACKLEY received a $2,500.00 kickback from Neal Jackson as a part of this fraudulent scheme.

RACKLEY, who is currently free on bond pending sentencing, faces a maximum penalty of 20 years imprisonment and a fine of $250,000.

The case was prosecuted by Assistant United States Attorney Randolph J. Bernard. The case was investigated by the United States Postal Inspection Service.