Joseph Schwartz

By Ben Crnic From Daily Voice

A former nursing home operator and Rockland County resident who was sentenced to prison for a massive federal tax fraud scheme tied to dozens of facilities he once controlled nationwide has received a full and unconditional pardon from President Donald Trump. 

The pardon, signed on Friday, Nov. 14, grants clemency to Suffern man Joseph Schwartz, who was sentenced in April 2025 to 36 months in federal prison after pleading guilty to failing to pay more than $38 million in employment taxes withheld from workers across his nursing home network and for failing to file required federal financial reports for the Skyline 401K plan.

A Collapse That Spanned 11 States

As Daily Voice previously reported, Schwartz once ran Skyline Management Group, which operated 95 nursing homes across 11 states from an office above a Bergen County pizzeria in Wood-Ridge. 

Some of these facilities included Hudson View Care & Rehab Center in North Bergen, Brookhaven Health Care Center in East Orange, and the Voorhees Care & Rehabilitation Center. 

According to prosecutors, in just seven months between October 2017 and May 2018, Schwartz withheld nearly $39 million in payroll taxes from roughly 15,000 employees, but never forwarded the money to the IRS. 

Authorities said Schwartz diverted company revenues into shell companies while vendors, landlords, and employees went unpaid. As facilities deteriorated, states shut down some nursing homes while forcing others into receivership to protect residents.

Federal prosecutors also said Schwartz failed to file required benefit plan reports, leaving some employees with surprise medical debt after money deducted from their paychecks for health coverage was never remitted.

Before his guilty plea, Skyline faced investigations and lawsuits across several states, including Medicaid fraud allegations in Arkansas and Nebraska, civil suits from former employees alleging stolen health insurance funds, and state actions to remove Skyline from troubled facilities. 

Schwartz remained free on bond while awaiting sentencing and later began serving his federal term.

Pardon Details

In the pardon document, Trump writes that he has granted Schwartz a “full and unconditional pardon” for the offenses listed in the federal case. The order authorizes the Pardon Attorney to administer and sign the clemency on his behalf. The certificate bears Trump’s signature and the Department of Justice seal.

The pardon applies only to federal crimes; any civil liabilities, state investigations, or outstanding lawsuits are unaffected.