Joseph, the owner of an old nursing home chain, including 10 people in the Philadelphia region, said the U.S. law firm in New Jersey did not pay the IRS a $ 29.5 million payroll tax between mid-2017 and June 2018. I have charged Schwartz.
In less than two years, Schwartz’s Skyline Healthcare LLC has accumulated more than 100 nursing homes nationwide, but in the spring of 2018, the company suffered a rapid collapse due to a shortage of cash. Regulatory authorities in Pennsylvania and several other states have urgent operators in place to protect thousands of residents.
Schwartz’s sharp rise and fall will be a rallying point for supporters to drive a more thorough review of nursing home license applicants, including an assessment of the applicant’s financial strength and capabilities, as well as performance in other states. I did.
»Read more: Skyline Healthcare’s rapid growth has attracted questions from industry experts.
Prosecutors are now catching up with Schwartz, 62, a former insurance broker in Suffern, New York.
Last month, Schwartz faced criminal charges in Arkansas for overcharging Medicaid for $ 3.6 million.
On Wednesday, the Nebraska Attorney General disclosed payments to affiliates as his nursing home did not hold proper care records, alleging that Schwartz had stolen $ 59.7 million in the state’s Medicaid program. He filed a civil suit for not being able to do so and for being involved in other Medicaid regulatory violations.
A spokesperson for the US law firm in New Jersey has identified Schwartz’s lawyer as Robert Fedor in Cleveland, Ohio. Fedor did not respond to a request for comment on Friday. A US law firm filed a sealed indictment on January 12. It wasn’t sealed on Thursday.
»Read more: Skyline has run out of money to run.
Federal officials arrested Schwartz on Thursday. Mr Schwartz will be charged with criminal charges in Arkansas next week, but he is currently under house arrest in Suffern, a U.S. lawyer spokesman said.
The unleashed businessman was Schwartz’s 2015 insurance broker, Oxford Coverage Inc. Some industries are wondering why they didn’t retire after selling to Hub International Northeast Ltd for $ 22 million.
Instead, he remained an employee of Hub, with an annual salary of $ 300,000. In addition, he collected fees for insurance policies sold to Skyline’s growing nursing home empire. Schwartz listed the company’s headquarters as an office above a pizzeria in Wood-Ridge, NJ.
Schwartz is one because Skyline acquired dozens of nursing homes in at least 11 states between mid-2016 and December 2017 (many of which came from companies that hold real estate ownership). I became a salaryman in the state of the department. Prosecution in New Jersey.
»Read more: Chaos at Skyline Nursing Home on the final day.
That was the case at the Rosemont Care & Rehabilitation Center on the mainline, where he raised $ 2,500 from his biweekly salary, the Inquirer reported in 2018.
The Pennsylvania Department of Health expelled the Skyline from Rosemont and eight other nursing homes in April 2018 after the Skyline determined that the facility was “financially out of control.” Everything is under new control.
In addition to not sending payroll taxes to the federal government, as federal prosecutors claim, Schwartz is responsible for employee health at some Pennsylvania facilities where SEIU Healthcare Pennsylvania represents nursing assistants and associate nurses. Failed to pay insurance premiums and remittance of union fees. report.
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