Trump pardoned him after just 90 days in prison for a $38M fraud scheme. Now Arkansas wants him.

Just weeks after winning a presidential pardon, Joseph Schwartz, who ran a huge nursing facility network from a small office above a New Jersey pizza shop, is back in the spotlight. Arkansas officials claim he has unfinished business with their state despite his brief release from federal jail.

Schwartz, 65, was fully pardoned in mid-November after serving three years in federal prison for Medicaid and tax fraud. He served around 90 days of his time. He pled guilty to separate state-level Medicaid fraud and tax evasion charges relating to care facilities he ran in Arkansas, but prosecutors say the pardon does not erase his commitments there.

Schwartz must serve 31 days in prison before being paroled, according to the Arkansas Attorney General’s Office. Arkansas wants him to return and finish his state punishment because he completed only part of his federal sentence before being pardoned.

State prosecutors asked a judge to order Schwartz to report to the Arkansas Department of Corrections within seven days this week. State officials say Schwartz owes more than $1 million in reparations and fees, which must be paid in addition to prison term.

Schwartz’s legal team countered that Arkansas’ endeavor is faulty and will be fought. His federal case attorney was confident the state’s request would fail.

Schwartz owned Skyline Healthcare, a complex nursing home business with 95 locations in 11 states, before his legal difficulties. Despite its size, the business was administered from a small New Jersey office above a pizza parlor. Complaints increased with firm growth. Several governments accused Skyline of mismanagement, unexpected shutdowns, and endangering seniors. Skyline collapse forced regulators in numerous countries to take over facilities or evacuate occupants to safer areas.

Schwartz was eventually charged by federal prosecutors with not paying millions in payroll and unemployment taxes for his nursing facility employees. They also claimed he failed to file retirement plan financial reports. He pleaded guilty to $38 million tax fraud and agreed to pay $5 million in restitution.

Two years were spent on his federal sentencing. A court first rejected a plea agreement that called for just over a year in prison, saying sentence did not represent the offenses. Schwartz pleaded guilty again and faced up to ten years in prison, but he received a three-year sentence. He began serving in August but was pardoned in November without explanation by the White House.

Later, public records indicated a lobbying firm was paid nearly $1 million to advocate for his pardon. A political operative who was just prosecuted for robocalling Detroit voters ran the firm.

The state ombudsman of New Jersey, who condemned Schwartz’s pardon, said it sends the wrong message to families who rely on his nursing homes. They claim the Skyline facilities’ issues show what may happen when vulnerable residents are handled by profit-driven companies.

Advocates hailed Arkansas officials for seeking Schwartz’s remaining sentence, saying accountability is necessary to prevent similar incidents. The collapse of Skyline showed how vulnerable long-term care systems can be when oversight fails, even if New Jersey spared the worst effects.

Schwartz’s legal quest continues in Arkansas courts. If the state wins, the businessman who received a presidential pardon may be sent back to prison.