Skyline Management Owner Pleads Guilty to $38M Tax Fraud

Joseph Schwartz admitted to withholding trust fund taxes from 15,000 employees, leading to the collapse of his nursing home chain.

Joseph Schwartz, owner of Skyline Management, pleaded guilty to a $38 million tax fraud scheme involving 95 nursing homes across 11 states.
Schwartz set up separate companies to handle payroll operations for about 15,000 employees, withholding trust fund taxes from their paychecks and pocketing the money instead of paying the IRS.
The fraud took place from mid-2017 to early 2018, leading to Skyline's collapse in 2018 and the installation of caretaker owners at the nursing homes.
Schwartz was initially charged in 2022 and pleaded not guilty in 2023. His sentencing hearing is scheduled for May 22, 2024.
Schwartz's fraud led to a 2023 law in Pennsylvania requiring anyone buying a nursing home to meet more rigorous requirements.