LITTLE ROCK, Ark. (AP) — Arkansas’ attorney general is seeking to have a former nursing home operator pardoned by President Donald Trump serve time in state prison for Medicaid fraud and tax evasion.
Tim Griffin asked a Pulaski County judge in a court motion Tuesday to order Joseph Schwartz to report to jail and serve 31 days before he is eligible for parole based on a state conviction. Griffin asked the judge to give Schwartz seven days to report.
Schwartz pleaded guilty in federal court last year to his role in a $38 million employment tax fraud scheme involving nursing homes he owned across the country. Trump pardoned him last month.
As part of a plea agreement with the state, Schwartz was sentenced to one year in prison, to be served concurrently with his federal prison sentence. Griffin, a Republican, said in court filings that Schwartz still owes the nation a debt.
“In addition to his prison sentence, he owes the state more than $1 million in restitution and fees,” Jeff LeMaster, a spokesman for Griffin’s office, said in a statement. “We will ensure that he meets all of his obligations to the state.”
Griffin also said Schwartz should be considered a flight risk.
Schwartz’s attorney, Kevin Marino, said the state’s request should not succeed.
“We don’t think the motion is well done, but we believe Mr. Schwartz will win,” Marino said.
Under Arkansas law, Schwartz must serve one-third of his sentence before being eligible for parole. He had previously served 90 days in state custody.
Federal prosecutors said Schwartz, who ran New Jersey-based Skyline Management Group, knowingly failed to pay employment taxes related to the numerous health care and rehabilitation facilities Skyline operated in 11 states.
According to the Justice Department, Schwartz withheld taxes from employees’ wages between October 2017 and May 2018 but subsequently failed to pay more than $38 million in employment taxes to the IRS.
