The former CEO of a healthcare administrative services company was sentenced Friday to 30 months in prison followed by two years of supervised release for failing to pay more than $10 million in payroll taxes at companies he owned.
Josef Neuman had been CEO of a Lakewood, NJ, company that provided services to nursing homes and other healthcare providers, including around 20 that Neuman also co-owned.
Last week’s sentencing marks the conclusion of another high-profile fraud case involving nursing home operators pursued by federal watchdogs for offenses such as false claims and tax evasion.
Neuman had been legally responsible for the companies’ finances, but failed to make tax payments totaling more than $10.8 million to the IRS between 2017 and 2018, court documents explained following his guilty plea Aug. 9.
Not only had he been responsible for making the payments, but he had knowingly failed to make them, according to information released by the US Attorney’s Office of the District of New Jersey.
At sentencing, Judge Michael Shippe of the US District Court for the District of New Jersey handed down an $11.2 million restitution demand, due within 30 days. The two-year probationary release also includes financial disclosure requirements and limitations on any new debt that Neuman can take on.
Tightening the regulatory environment for nursing homes remains a high priority for state and federal regulators in 2024.
