Former Arkansas nursing home owner charged in $3M Medicaid, tax fraud

The former owner of eight nursing homes across Arkansas was charged with eight counts of Medicaid fraud and two counts of tax fraud, according to a Dec. 20 news release from the Arkansas attorney general. 

Joseph Schwartz, former owner of Skyline Health, was accused of submitting false statements in documentation to the state's Medicaid program, allegedly exaggerating costs by $6.3 million and being overpaid by $3.6 million. Mr. Schwartz was also charged with failing to pay more than $2 million withheld from employee paychecks to the state from July 2017 to July 2018. 

Five former Skyline Healthcare employees filed a class-action lawsuit against the failed company in 2020, allegeding it fraudulently took funds from employees' paychecks. Skyline had more than 100 facilities across the country at its peak but fell apart after struggling to secure funding in 2018 and 2019.

Mr. Schwartz is scheduled for a video arraignment hearing Jan. 21, Arkansas Business reported Dec. 20.

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