A federal grand jury in Clarksburg, W.Va., Wednesday indicted a former fleet manager for Mylan Inc. on charges that he orchestrated a kickback scheme to defraud the Cecil-based generic drug giant.

The 10-count indictment, which outlines charges of mail fraud, accuses Mark A. Rackley, of Venetia, of illegally netting $800,000 through various schemes while managing Mylan's fleet of vehicles from 2000 to 2005. The vehicles were leased from Enterprise Fleet Services in Houston, Texas.

The government alleges Mr. Rackley, 44, arranged kickbacks from car dealers in return for gaining access to Mylan's vehicle business and manipulated the price of leased vehicles to finance the kickbacks.

As part of the scheme, Mr. Rackley caused the car dealers to "falsely believe that Mylan executives knew of and also knowingly benefitted from said kickbacks," the indictment said.

Mylan did not immediately return telephone calls or an e-mail seeking comment.

"Mark Rackley is innocent. This indictment was a mistake," said Mr. Rackley's attorney, Stephen Stallings of Stallings LLC in Pittsburgh. "Mark Rackley did not steal from Mylan."

Mr. Stallings said Mylan was aware of how Mr. Rackley ran the fleet operation. "If Mylan thought Mark violated the terms of his employment, they could have and certainly were capable of suing him," he said, noting that the government's investigation had been going on for five years.

The government also alleged that as part of the scheme to put the car dealers "at ease," Mr. Rackley agreed to let them report the kickbacks to the Internal Revenue Service as nonemployee compensation on Form 1099s.

"It is stunning to me that the government believes that paying your taxes and reporting your payments can be part of a scheme to defraud," Mr. Stallings said.

No arraignment date was set. The government is seeking a judgment of at least $800,000. The charges carry a maximum penalty of 20 years in prison.

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