Skyline’s Schwartz gets 3 years in prison for scheme that collapsed dozens of nursing homes

Former Skyline Healthcare owner Joseph Schwartz was sentenced Thursday to three years in prison followed by three years of supervised release for his role in a $39 million tax evasion case that stunned helpless onlookers.

His scheme, which included syphoning off employees’ tax payments before they could be sent to the Internal Revenue Service, destroyed his quickly built nursing home empire and dealt a devastating blow to the sector’s reputation.

Judge Susan Wigenton of the US District Court for the District of New Jersey also imposed a $100,000 fine Thursday, according to information shared by the US Attorney’s Office in New Jersey.

The prison sentence tripled what Schwartz agreed to serve in his first plea deal, which was rejected by Wigenton. It also was double the upper range that prosecutors had suggested in a second agreement executed in November.

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