Joseph Schwartz was accused of multiple counts of failing pay taxes withheld from employees’ paychecks
NEWARK, N.J. — Monday’s plea of not guilty to failing to pay payroll taxes of nearly $30 million for approximately 15,000 employees was made by the former owner of a failed multistate nursing home chain.
Joseph Schwartz appeared via videoconference before a Newark federal judge. The Suffern resident, aged 62, was charged last month with multiple counts failing in tax withheld by employees’ paychecks. These taxes covered unemployment insurance, Social Security, and Medicare between mid-2017 and mid-2018.
Monday’s message was forwarded to Schwartz’s attorney.
Prosecutors also claim that Schwartz did not file financial reports on Skyline’s contributions to its 401K retirement plan, which are automatically withheld from employees’ gross wages.
According to an Associated Press review, Schwartz’s New Jersey-based company Skyline Health Care operated over 100 rehabilitation and health care facilities under subsidiary companies in at most 10 states, including South Dakota and Kansas. Schwartz has sold most of his nursing homes due to financial insolvency.
In recent months, Schwartz was accused of Medicaid fraud in a lawsuit filed in Nebraska and an arrest warrant issued in Arkansas. Monday messages were left with spokespersons from the attorney general’s offices involved in these actions.