Schwartz Won a Pardon from Trump. Arkansas Has Other Plans.

Trump’s pardon does not appear to spare former nursing home operator Joseph Schwartz from an Arkansas prison sentence. Schwartz, who pleaded guilty in a serious fraud case, received an unconditional pardon, even as criticism and accusations of crony capitalism continue to surround Donald Trump. Yet Arkansas officials, led by the state attorney general, show no sign of retreat. They want Schwartz in prison now.

Arkansas attorney general Tim Griffin is pressing for the longtime industry figure to serve his state prison sentence for Medicaid fraud and tax evasion. In a court motion filed Tuesday, Griffin asked a Pulaski County judge to order Schwartz to report to prison to serve thirty one days before becoming eligible for parole under his state conviction. He also asked the judge to give Schwartz seven days to report.

Who Is Joseph Schwartz

Joseph Schwartz, who lives in a 1.4 million dollar house in Suffern, New York, once operated 95 nursing homes in 11 states, including 3 in New Jersey, under a company called Skyline Healthcare. The business, described as run like a mom and pop operation, was based out of a second floor office above a pizza parlor in Wood Ridge, New Jersey. He came under mounting scrutiny after Skyline’s financial collapse more than 5 years ago. Some attributed the chain’s problems to its rapid expansion or mismanagement, while others blamed outright fraud. Lawsuits across the country alleged poor or substandard care as some states were forced to take over Skyline properties or relocate residents.

Federal charges filed in New Jersey in 2022 alleged that Schwartz failed to pay millions of dollars in payroll and unemployment taxes for employees at nursing homes and rehabilitation facilities across the country. He was also charged with failing to submit annual financial reports to the Department of Labor for his company’s 401K retirement plan contributions, which were taken from employees’ gross pay.

Joseph Schwartz pleaded guilty in federal court last year. Federal prosecutors stated that Schwartz, who operated the New Jersey-based Skyline Management Group, willfully failed to pay employment taxes for numerous health care and rehabilitation facilities that Skyline managed in 11 states. Between October 2017 and May 2018, he had taxes withheld from employees’ paychecks but did not remit more than 38 million dollars in employment taxes to the IRS, according to the Justice Department.

As part of a plea agreement with the state, Joseph Schwartz was initially sentenced to one year in prison to run concurrently with his federal term. The deal required him to serve one year and one day behind bars and pay five million dollars in restitution. But in May 2024, United States District Judge Susan Wigenton rejected the agreement.

By November of that year, Schwartz entered a new guilty plea, now facing a maximum sentence of 10 years in prison and a 250,000 dollar fine. Under the terms of the revised plea, he also agreed to pay five million dollars in restitution to the IRS at the time of sentencing.

In April of this year, Judge Wigenton handed down a three-year prison sentence. Schwartz reported to the federal correctional facility in Otisville, New York, in August, though he did not remain there for long.

Trump’s Pardon

On November 14, President Donald Trump granted a full and unconditional pardon to Joseph Schwartz of Suffern, New York, for his federal crimes. Schwartz had spent only three months in a medium-security prison before receiving the pardon. The president provided no explanation for the decision.

Critics pointed to concerns about crony capitalism, suggesting the pardon may have been influenced by donations. Documents filed by a Washington-based lobbying firm run by conservative operative Jack Burkman show that the firm was paid 960,000 dollars to advocate for a federal pardon on Schwartz’s behalf. This filing was first reported by the NOTUS news website.

Burkman, who, along with a colleague, was fined 1.25 million dollars and sentenced to probation for a scheme that used thousands of robocalls to discourage Black Detroit voters from voting by mail in the 2020 presidential election, was involved in the lobbying work.

Whatever the motivations, Schwartz received a pardon just 90 days into a three-year sentence for Medicaid and tax fraud.

Arkansas Is Not Ready to Pardon

Joseph Schwartz was also criminally charged in Arkansas for illegally inflating rates at eight of the state’s nursing homes. He faced additional charges for failing to pay taxes withheld from employees’ paychecks and for overstating the company’s costs by 6.2 million dollars. Under Arkansas law, Schwartz must serve one-third of his sentence before becoming eligible for parole. He previously served 90 days in state custody. As a result, the former owner of multiple nursing homes in Arkansas will still be required to serve prison time on state charges, despite having received clemency for his federal conviction. The presidential pardon did not affect his state charges.

The Arkansas Attorney General’s Office is pressing forward to have Joseph Schwartz returned to state prison, undeterred by his federal pardon. According to Jeff LeMaster, a spokesman for Attorney General Tim Griffin, Schwartz is required under his state plea agreement for Medicaid fraud and tax evasion to serve an additional 31 days in an Arkansas prison before he can become eligible for parole.

Late Tuesday, the state filed a motion in court requesting that Schwartz be ordered to report to the Arkansas Department of Corrections within seven days to serve the remainder of his sentence. “In addition to his prison time, he still owes more than 1 million dollars to the state in restitution and fees. We will ensure he fulfills all of his obligations to the state,” LeMaster added.

However, Kevin Marino, who represented Schwartz in the federal case in New Jersey, said, “We do not believe the motion by the Arkansas attorney general is well made and are confident it will be defeated.”

Public Reaction and Oversight Concerns

As news of the pardon emerged, many questioned how someone with a history of fraud could receive such leniency. Even some Republican supporters expressed frustration. When Tim Griffin came forward with his stance, he received widespread support on social media, including from some Democratic accounts.

Laurie Facciarossa Brewer, New Jersey’s Long-Term Care Ombudsman, who had strongly criticized the decision to pardon Schwartz, praised Arkansas prosecutors for their actions. She described Schwartz as “a textbook example of what can go wrong when we cede the care of our most vulnerable citizens to for-profit corporations and private equity funds, because their number one priority is, by definition, making money. I applaud the Arkansas Attorney General for keeping his focus on the residents and staff who were displaced when Skyline facilities closed abruptly across the country.”

Facciarossa Brewer pointed out that New Jersey was fortunate the problems that overwhelmed many of Skyline’s facilities did not occur there. “However, the potential for this type of fraud is always present if perpetrators are not held accountable,” she said.

As of now, Arkansas is moving forward, bolstered by public support, and the federal pardon will not shield Schwartz from facing justice.