President Donald Trump on Friday pardoned former Skyline Healthcare Owner Joseph Schwartz, who pleaded guilty to a $38 million tax fraud scheme.
As of press time, the Office of the Pardon Attorney and Office of Public Affairs did not provide any specific reasons for the clemency, in response to an inquiry by Skilled Nursing News.
Schwartz in April was convicted and sentenced to three years in federal prison, followed by three years of supervised release; the former Skyline executive faced up to 10 years in prison and a $250,000 fine prior to striking a plea deal with the court.
He admitted to a $38 million employment tax fraud scheme, willfully evading taxes and mismanaging employee 401(k) plans. Schwartz diverted employees’ payroll tax withholdings meant for the IRS, severely damaging the once fast-growing Skyline chain and tarnishing the broader industry’s reputation.
Skyline at its largest as a company operated 95 nursing homes across 11 states.
Schwartz is one of many nursing home executives Trump has pardoned of multimillion dollar crimes, following clemency granted to Palm Health partners’ Paul Walczak in May and Philip Esformes, owner of the Esformes Network, during Trump’s first term. Across the aisle, former President Joe Biden last December pardoned James Burkhart, former CEO of American Senior Communities.
Walczak, who failed to pay more than $10 million in taxes, was pardoned after his mother Elizabeth Fago attended a $1 million-per-person fundraiser at Mar-a-Lago, according to The New York Times and other news sources. Esformes’ health care fraud scheme ballooned to roughly $1 billion, the largest health care fraud scheme charged by the U.S. Justice Department, the agency said.
Burkhart, along with several other co-conspirators, led a $19.4 million fraud and kickback scheme involving shell companies and stolen money from the Health & Hospital Corporation of Marion County in Indiana.


