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Insurance producer charged with failing to pay $29.5 million in taxes

The indictment charges that Joseph Schwartz failed to pay over Employment and Unemployment...
The indictment charges that Joseph Schwartz failed to pay over Employment and Unemployment taxes relating to the employees at 95 health care and rehabilitation facilities he operated in 11 different states.(WRDW)
Published: Jan. 21, 2022 at 8:41 PM CST
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SUFFERN, N.Y. (KAIT) - A insurance producer has been arrested for failing to pay $29.5 million dollars in payroll and unemployment taxes, and benefit plan fraud, federal prosecutors said this week.

In a statement released Thursday, Jan. 20, U.S. Attorney Philip R. Sellinger announced Joseph Schwartz, 62, was charged by indictment with 18 counts of willful failure to pay over employment taxes ($29.1 million), two counts of evasion of unemployment taxes ($367,027) and two counts of failing to file annual financial reports with the Department of Labor for the employee 401K Benefit Plan Schwartz sponsored.

He was scheduled to appear in court by teleconference Friday, Jan. 21 before U.S. Magistrate Judge André M. Espinosa.

The indictment charges that Schwartz, the principal owner of Skyline Management Group LLC, failed to pay over employment and unemployment taxes relating to the employees at 95 health care and rehabilitation facilities he operated in eleven different states.

Eight of those facilities were located in Arkansas. Attorney General Leslie Rutledge announced on Dec. 20, 2021, Schwartz submitted false statements in cost reports to the Arkansas Medicaid Program for those facilities.

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