By: Najla Alexander
NJ authorities announced that a New York man was sentenced to 36 months in prison for his role in a $38 million employment tax fraud scheme involving nursing homes he owned across the country.
U.S. Attorney Alina Habba stated that Joseph Schwartz, 65, of Suffern, New York, previously pled guilty to two counts of an indictment charging him with willfully failing to pay over employment taxes withheld from employees of his company, and willfully failing to file an annual financial report (Form 5500) with the Department of Labor for the employee 401K Benefit Plan Schwartz sponsored, before U.S. District Judge Susan D. Wigenton in Newark federal court.
According to documents filed in this case and statements made in court:
Schwartz, an insurance broker and operator of Skyline Management Group LLC (“Skyline”), with headquarters in New Jersey, willfully failed to pay employment taxes relating to numerous health care and rehabilitation facilities that Skyline operated in 11 states, according to NJ officials.
According to the indictment, Schwartz was required to collect, truthfully account for, and pay over to the Internal Revenue Service (“IRS”) trust fund taxes withheld from the pay of employees of Skyline and related companies.
From October 2017 through May 2018, NJ authorities said. Schwartz caused taxes to be withheld from employees’ pay but failed to pay over more than $38 million in employment taxes to the IRS.
NJ officials say that s an administrator of the Skyline 401K plan, Schwartz further had an obligation to file an annual Form 5500 financial report with the Secretary of Labor for calendar year 2018, but knowingly and willfully failed to file the report.