A former admissions director of a Massachusetts nursing home has pled guilty in connection with an embezzlement scheme to steal thousands of dollars from an elderly resident at the nursing home. The admissions director pled guilty to larceny over $1,200 from a person over 60 years old, five counts of forgery, and embezzlement by fiduciary.
From August 2018 until May 2019, the admissions director engaged in a scheme in which she misappropriated over $230,000 of an elderly resident’s funds and spent the money on personal expenses such as repairs to her home, meals at restaurants, cash withdrawals, and vacations for herself and her family. She used a forged signature for various promissory notes, letters, and checks in an effort to perpetuate the scheme and in an attempt to cover up the theft.
In May 2019 she left her position when nursing home officials where she was employed became aware of her misappropriation. Prior to leaving, the admissions director did repay a portion of the money to the victim. The matter was referred to the Attorney General’s Office by the Massachusetts Department of Public Health and the District Attorney’s Office. The nursing home where she had been employed fully cooperated with the Attorney General’s Office throughout the case.
The former admissions director has been sentenced to three years of probation, ordered to pay $76,000 in restitution to the victim and a $5,000 fine. The court ordered the following conditions of probation: stay away from and have no contact with the victim, witnesses, and the nursing home facility and staff where she was previously employed; refrain from non-familial fiduciary duties and power of attorney duties; refrain from any licensed social work; refrain from employment in which direct compensation is derived from MassHealth or Medicaid; and refrain from non-familial fiduciary work with disabled individuals or those over 60 years of age.
Compliance Perspective
Issue
It is the obligation of each nursing facility to protect residents from misappropriation and exploitation of funds and other personal property. It is a violation of federal and state laws for any persons, including facility staff, volunteers, visitors, family members, guardians, or another resident to exploit or misappropriate a resident’s funds or personal property. A facility is required to report any allegations of misappropriation or exploitation of a resident’s funds or personal property to local authorities. In addition to criminal charges, it is a violation of F602 Free from Misappropriation/Exploitation. The Med-Net Corporate Compliance and Ethics Manual includes resident financial rights information in Chapter 7 Resident Rights and Freedom from Abuse, Neglect, and Exploitation, Policy RR 1.0.
Discussion Points
- Review your policies on misappropriation of resident’s belongings or funds to ensure that they meet all requirements of the resident financial rights F-Tags. Update as needed.
- Train all staff about abuse, neglect, and exploitation of residents, including misappropriation of personal belongings or funds, and staff members’ personal liability if they commit any of these violations. Document that the training occurred, and place the signed document in each employee’s education file. Provide education to residents and family members so they are aware of the need to monitor resident fund and credit card statements, and to report any concerns immediately to facility personnel.
- Periodically audit residents’ funds to ensure that no misappropriation has occurred.
FOR MORE INFORMATION ON THIS TOPIC view: RESIDENT FINANCIAL RIGHTS.
