Griffin: ‘My Office Will Continue To Hold Bad Actors Accountable And Pursue Those Who Exploit Arkansans’
LITTLE ROCK – Attorney General Tim Griffin today issued the following statement announcing the conviction of a New York man who pleaded guilty to Medicaid fraud and tax evasion:
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“On April 30, Joseph Schwartz, 72, of New York pleaded guilty to one count of Medicaid Fraud, a Class B felony, and one count of Attempt to Evade or Defeat Tax, a Class C felony. Schwartz was sentenced to 12 months in the Arkansas Department of Corrections with an additional 48 months suspended imposition of sentence; and ordered to pay a $2,000 fine, court costs, and restitution totaling $1,801,620.53.
“Schwartz was the principal owner and president of Skyline Healthcare, LLC, which operated multiple nursing homes in Arkansas. These facilities received Medicaid payments for residents in their care. Schwartz submitted false and misleading information that impacted the per diem rates paid to the facilities.
“He also failed to pay insurance premiums for employees, neglected grocery bills—forcing staff to buy food for residents, and paid himself as an employee in multiple facilities. Two of his Arkansas nursing homes were later placed into receivership by the Arkansas Department of Human Services.
“In addition, Schwartz withheld taxes from employees’ paychecks but failed to file required documents or remit those withholdings 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. By submitting false information to manipulate Medicaid payments and failing to turn over employee tax withholdings, he betrayed the trust placed in him as an employer and the owner of those nursing homes. My office will continue to hold bad actors accountable and pursue those who exploit Arkansans.
“I want to commend the exceptional work of our Medicaid Fraud Control Unit (MFCU) for their continued commitment to protecting Arkansans. I specifically want to thank Deputy Attorney General Tammera Harrelson, Assistant Attorney General Danny Broaddrick, Investigator Andrea Murdock, Senior Special Agent Rhonda Swindle, Chief Investigator Gregory McKay, Senior Assistant Attorney General Leigh Patterson, as well as the Prosecuting Attorney for the 6th Judicial District of Arkansas, Will Jones. I would also like to thank the Internal Revenue Service, Health and Human Services-Office of Inspector General, and the Arkansas DF&A for their assistance on this case. Finally, I would like to thank South Dakota MFCU, Nebraska MFPAU, and the United States Attorney’s Office-District of New Jersey for their collaboration on this case. This prosecution was the definition of a joint effort.”
The Arkansas MFCU receives 75% of its funding from the U.S. Department of Health and Human Services under a grant totaling $4,685,736 for the Federal fiscal year 2025, of which $3,514,304 is federally funded. The remaining 25%, totaling $1,171,432 for State Fiscal Year 2025, is funded by Arkansas General Revenue.
