LITTLE ROCK, Ark (Kate) – A New York man who owned dozens of Arkansas nursing homes, including Jonesboro and Batesville, pleaded guilty this week to Medicaid fraud and tax evasion.
Attorney General Tim Griffin announced that 72-year-old Joseph Schwartz has pleaded guilty to one count of Medicaid fraud, a Class B felony, and one attempt to avoid or defeat tax, a Class C felony.
The judge sentenced Schwartz to 12 months at the Arkansas Department of Corrections and suspended the sentence for another 48 months. He was also ordered to pay $2,000 fines, court costs and compensation totaling $1,801,620.53.
Schwartz was the primary owner and president of Skyline Healthcare LLC, which operated multiple nursing homes in Arkansas, including Batesville, Jonesboro, Mountain View, Searcy and West Memphis, according to a news release on Friday.
“These facilities received resident Medicaid payments for their care,” Griffin said. “Schwartz has submitted false and misleading information that affects the rate of daily allowance paid to the facility.”
Griffin also said that Schwartz “has been unable to pay employees' premiums and ignoring grocery bills, forcing staff to buy meals for residents, and paid as employees at multiple facilities.”
The Attorney General said Schwartz also withheld taxes from employee pay but did not submit necessary documents or transfer withholdings to the Arkansas Department of Finance Management.
“Schwartz not only exploited our vulnerable population, but also preyed on Arkansan, who worked at his facility,” Griffin said. By submitting false information to manipulate Medicaid payments and failing to take over employee tax withholding, he betrayed the trust placed on him as the employer and the owner of those nursing homes. ”
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