he Pulaski County Circuit Court has ordered Joseph Schwartz to report to the Arkansas Department of Corrections (ADC) by 2 p.m. on Monday, December 29, to serve the remainder of his prison sentence tied to state felony convictions for Medicaid fraud and attempting to evade or defeat tax.
Arkansas Attorney General Tim Griffin announced the order and emphasized that Schwartz still owes the State of Arkansas nine months of incarceration under the terms of his plea agreement.
“Schwartz still owes the State of Arkansas nine months of incarceration per his plea deal, and I am pleased that the Court has ordered him to report to the Department of Corrections to complete his incarceration,” Griffin said.
Schwartz pleaded guilty earlier this year to one felony count of Medicaid fraud and one felony count of attempting to evade or defeat tax, agreeing to a total of 12 months in prison. His plea allowed him to serve his sentence in a federal facility concurrently with a separate federal sentence.
However, Schwartz served only 90 days before being pardoned last month on his federal charges, leaving the remaining nine months of his Arkansas sentence unfulfilled.
Background: Fraud, Neglect, and Employee Exploitation
Schwartz owned Skyline Healthcare, LLC, the operator of multiple nursing homes in Arkansas, including locations in Jonesboro and Batesville. The facilities relied on Medicaid funding for resident care, but investigators say Schwartz:
Submitted false and misleading information that impacted the Medicaid per diem reimbursement rates.
Failed to pay employee insurance premiums.
Neglected grocery bills, forcing staff members to purchase food for residents out of pocket.
Paid himself as an employee at multiple facilities despite financial mismanagement.
Two Skyline-operated nursing homes were eventually placed into receivership by the Arkansas Department of Human Services.
In addition, Schwartz withheld taxes from employee paychecks but failed to file required documents or turn over the withheld funds to the Arkansas Department of Finance & Administration.
“Schwartz didn’t just take advantage of our vulnerable population, he also preyed on Arkansans who worked in his facilities,” Griffin said. “The status of Schwartz’s federal case has no bearing on his obligations to the State.”
What Happens Next
Schwartz is required to report to the Arkansas DOC on December 29, where he will begin serving the remaining nine months of his state-imposed sentence.
State officials reaffirm that, despite his federal pardon, Schwartz remains fully accountable to Arkansas for his state-level crimes involving fraud, tax evasion, and exploitation of vulnerable residents and employees.
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