Four suspects, including two Florida assisted living facility (ALF) employees, were arrested on February 23, 2023, after detectives discovered a large-scale fraud scheme that involved 14 elderly residents at three different ALF locations. Detectives began an investigation on June 30, 2022, after receiving a report from an ALF resident of fraudulent use of a credit card. Throughout the course of the investigation, detectives identified two suspects, a 43-year-old woman and her 28-year-old daughter. The pair were employed at three different ALFs over a period of several months. Detectives learned that the two women would take photos of the victims’ debit cards and credit cards and then share the information via text message with one another.
According to the detectives, the mother also stole $4,000 in cash from an elderly resident, and the daughter had photos on her cellphone of the driver’s licenses of two of the victims. Detectives said there were multiple text message conversations between the women and two other suspects, later identified as a 33-year-old woman and a 20-year-old male. All four suspects communicated via text message and benefited from the fraudulent charges.
Detectives said the suspects made various fraudulent purchases at Adventure Island, T-Mobile, and an online shoe retailer. They also created a Spectrum (Charter Communications) account for a residence with the stolen information. The total loss was approximately $14,000.00. The investigation continues.
Compliance Perspective
Issue
Facilities must exercise reasonable care for the protection of residents’ property from loss or theft, and should be responsive to a resident’s concerns about lost items. F602 in the State Operations Manual, Appendix PP, states that residents have the right to be free from abuse, neglect, and misappropriation of resident property. Misappropriation of resident property means the deliberate misplacement, exploitation, or wrongful, temporary, or permanent use of a resident’s belongings or money without the resident’s consent. Facilities must have systems in place to safeguard against any misappropriation of a resident’s funds.
Discussion Points
- Review your policies on preventing, identifying, and reporting misappropriation of resident’s belongings or funds to ensure that they meet all requirements of federal and state regulations.
- Provide staff training on the CMS regulations for residents’ rights to be free from abuse, neglect, exploitation, and misappropriation of personal property; staff members’ responsibility to prevent these from occurring; and their personal liability if they commit any of these violations. Educate residents and family members on the importance of monitoring their monthly bank and credit card balances and immediately reporting any concerns to facility staff or through the hotline.
- Periodically audit resident fund accounts to ensure that no misappropriation has occurred. Interview residents to determine if they have concerns about the safety of their belongings or funds.
*This news alert has been prepared by Med-Net Concepts, LLC for informational purposes only and is not intended to provide legal advice.*
