Arkansas attorney general insists that pardoned nursing home operator must still serve state sentence

LITTLE ROCK, Ark. Arkansas attorney general is pushing for a former nursing home executive, recently pardoned by President Donald Trump, to serve his state prison sentence for Medicaid fraud and tax evasion.

Tim Griffin filed a motion in Pulaski County court on Tuesday requesting that Joseph Schwartz report to prison to serve 31 days before becoming eligible for parole under his state conviction. The motion also asked the judge to allow Schwartz seven days to surrender.

Schwartz previously pleaded guilty in federal court for his involvement in a $38 million employment tax fraud scheme linked to nursing homes he owned nationwide. He received a presidential pardon last month.

As part of a state plea deal, Schwartz was sentenced to one year in prison to run concurrently with his federal sentence. Griffin emphasized in court documents that Schwartz still owes significant financial obligations to the state. In addition to his prison time, he still owes more than $1 million to the state in restitution and fees, said Jeff LeMaster, a spokesperson for Griffin's office. We will ensure he fulfills all of his obligations to the state.

Griffin also noted that Schwartz should be treated as a potential flight risk. Schwartzs attorney, Kevin Marino, countered that the states motion is unlikely to succeed. We do not believe that motion is well-made, and were confident Mr. Schwartz will prevail, Marino stated.

Arkansas law requires Schwartz to serve at least one-third of his sentence before parole eligibility. He has already completed 90 days in state custody.

Federal authorities reported that Schwartz, who ran New Jersey-based Skyline Management Group, intentionally failed to remit employment taxes for numerous health care and rehabilitation facilities across 11 states. Between October 2017 and May 2018, Schwartz withheld taxes from employees paychecks but did not remit over $38 million in employment taxes to the IRS, according to the Justice Department.

Author: Connor Blake