Former owner of national nursing home chain faces 22 federal charges

Joseph Schwartz is in federal custody and expected to appear at a hearing in Newark, N.J., on Thursday afternoon, say law enforcement officials.The former owner of a national nursing home chain that collapsed amid widespread allegations of neglect and mismanagementnow faces 22 federal charges of labor violations and failure to pay federal taxes.

At one time, Schwartz oversaw the care of more than 7,000 older Americans through his company, Skyline Healthcare, which at its peak owned or ran more than 100 facilities in 11 states. With a handful of staff members, Schwartz managed them from a tiny office over a New Jersey pizzeria.

Rutledge alleged Schwartz made false statements in Skyline’s monthly Medicaid cost reports to the state, causing the state to overpay the companies controlled by Schwartz by more than $3 million, a person close to the investigation said. In a deposition from September, which was in relation to a wrongful death suit filed last year in Arkansas on behalf of a resident named Lois Rack, Schwartz insisted that Skyline delivered high-caliber long-term care. An attorney for the plaintiffs, Blake Fromang, asked him, “Did you monitor the quality of care your facilities were providing?” He responded, “I did not monitor but I did make [staff] aware that that is what I want.

Schwartz’s son Louis Schwartz, a former vice president of Skyline, also continues to own nursing homes, such as the facility in Andover, N.J., once known as Andover Subacute II, which has been renamed Woodland Behavioral and Nursing Center.during the early stages of the Covid pandemic, police said.

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