Nursing home fraud defendant begins Arkansas sentence

Joseph Schwartz

A New York man pardoned by President Donald Trump last month reported to an Arkansas prison Monday to serve time on state charges, underscoring the limits of presidential clemency power.

Joseph Schwartz, 72, began serving his Arkansas sentence despite Trump’s pardon in his federal case, Arkansas Attorney General Tim Griffin announced. The case stems from a $38 million employment tax fraud scheme involving Skyline Health Care, a nursing home chain that once operated dozens of facilities nationwide.

“We have worked tirelessly to ensure that Joseph Schwartz fulfills the terms of his state plea agreements and justice is served in Arkansas,” Griffin said. “His reporting to the Department of Corrections today is a critical part of that.”

Schwartz pleaded guilty in April to federal charges and served about 90 days in federal prison before receiving Trump’s pardon. He later pleaded guilty to Arkansas charges and agreed to reimburse the state $1.8 million by May or risk additional prison time.

Earlier this month, Pulaski County Circuit Judge Karen Whatley rejected arguments from Schwartz’s lawyers that his federal prison time should count toward his state sentence. Whatley said that determination rests with the Arkansas Department of Corrections.

Griffin petitioned the court to enforce Schwartz’s plea agreement, requiring incarceration despite the presidential pardon.

Skyline Health Care previously operated the former Batesville Health and Rehab, among other facilities. Schwartz may be eligible for parole after serving 60 days of his state sentence.

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