Little Rock, AR — A former nursing home operator who admitted to running a multimillion-dollar tax scheme may still face time behind bars in Arkansas, even after receiving federal clemency.
Joseph Schwartz, a New York businessman who once owned several nursing homes across the state, pleaded guilty in April to orchestrating a $38 million scheme in which taxes were withheld from employee paychecks but never forwarded to the IRS, according to industry reports. He later entered a separate guilty plea in May on related state charges.
Although former President Donald Trump granted Schwartz clemency on Nov. 14 for his federal conviction, Arkansas officials say that does not erase his state-level obligations.
State Pushes for Jail Time
Attorney General Tim Griffin on Tuesday asked the Pulaski County Circuit Court to enforce Schwartz’s previously ordered sentence. The plea agreement had called for 12 months and one day in state custody, though Schwartz’s time to be served was later reduced to 31 days.
Griffin urged the court to require Schwartz to complete that remaining term, arguing that federal clemency does not apply to state cases. The motion keeps Schwartz’s legal troubles active as Arkansas seeks accountability for the financial misconduct that impacted nursing home workers across the state.
A hearing date on the state’s request has not yet been announced.
