President Donald Trump has issued a formal pardon for Joseph Schwartz, a nursing home operator convicted in a $39 million fraud scheme. The executive clemency was granted on Monday, March 30, 2026.
Schwartz had served only three months of a three-year prison sentence before the presidential intervention. His conviction followed a guilty plea for withholding tens of millions of dollars in payroll taxes.
Federal prosecutors proved that while Schwartz deducted funds from employee paychecks, he did not remit the money to the Internal Revenue Service. This scheme significantly impacted the financial records of his workers.
Investigations also found that Schwartz paid himself $5 million as a ghost employee within his company. This secondary fraud allowed him to siphon assets while his nursing facilities were under immense legal scrutiny.
The nursing home facilities once belonged to a vast healthcare network that spanned several states. The case against him was a priority for authorities seeking to recover unpaid taxes and lost wages for staff members.
Despite the conviction, victims have been unable to collect any of the $39 million from Schwartz. The pardon issued by President Trump signifies the final closure of the federal case against him.
Critics of the decision highlight that the victims have yet to receive any restitution for the withheld funds. Supporters of executive clemency often point to the president's broad authority to address specific judicial outcomes.
The White House has not released a specific justification for the pardon of the executive. This action comes during a busy week of administrative updates and various executive branch decisions regarding the justice system.
Schwartz’s legal team had previously sought leniency based on several mitigating factors during his sentencing. With the presidential pardon now officially in effect, Schwartz is no longer required to serve the remainder of his federal prison sentence.