Owner of failed nursing home chain accused of $38 million tax fraud scheme pleads guilty
A man who once ran more than 100 nursing homes from an office over a New Jersey pizzeria has pleaded guilty in connection with what federal prosecutors called a $38 million payroll tax fraud scheme.
The former owner of a collapsed national nursing home chain who ran more than 100 facilities out of a tiny office above a New Jersey pizzeria has pleaded guilty in federal court in connection with what prosecutors called a $38 million payroll tax fraud scheme.
Joseph Schwartz, whose Skyline Healthcare nursing home chain was the subject of an NBC News investigation, pleaded guilty to failing to pay the IRS employment taxes withheld from his employees and failing to file annual financial reports with the federal Labor Department.
If the court accepts his plea agreement, he will be sentenced to a year in prison and three years’ supervised release, with a requirement to pay $5 million in restitution. A sentencing hearing is scheduled for May.
“Joseph Schwartz admitted to defrauding the United States by failing to pay the IRS more than $38 million in payroll taxes,” New Jersey U.S. Attorney Philip R. Sellinger said. “Schwartz broke the law when he willfully withheld trust fund taxes from his employees but pocketed the money he had withheld rather than turning it over to the government; he will now be held accountable for his criminal tax violations.”
Kevin Marino, Schwartz’s attorney, did not immediately respond to a request for comment.
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