On 12/21/2022 prosecutors announced that a nursing home manager pleaded guilty to stealing money from the bank accounts of 11 developmentally disabled residents in her care at a New York nursing facility. She admitted that from January 2020 to March 2021 she stole money from the residents’ bank accounts while she was working as the site manager at a facility in Medford, New York. The facility houses severely developmentally disabled adults who are unable to care for themselves in many ways, including managing their finances.
As a site manager, she had control of and access to the residents’ bank accounts and debit cards. One of her responsibilities was to withdraw money to place in each resident’s petty cash envelope so that they could go on outings to eateries and local stores. She instead took the money for her own use under the guise of purchasing items that residents needed. In total she stole over $50,000 from the residents.
District Attorney Ray Tierney said, “These individuals and their families trusted her, and instead of honoring that trust, [she] stole thousands of dollars from them for her own personal use.”
The manager pleaded guilty to second-degree attempted grand larceny, and as a condition of her plea, has agreed to repay the stolen money in exchange for four months’ incarceration and five years’ probation.
Compliance Perspective
Issue
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. Every nursing facility should have a double check system in place for all monetary transactions, and all transactions should be reviewed and approved by a second party to prevent misappropriation of funds. Facilities are required to report any allegations of misappropriation or exploitation of a resident’s funds or personal property to local authorities as well as the state agency. Misappropriation of funds can result in fines, other sanctions, and imprisonment.
Discussion Points
- Review the facility’s policies and procedures on accounting and the use of facility and resident funds. Update as necessary.
- Train appropriate staff on your policies for financial accounting and the protection and approved use of facility and resident funds. Document that these trainings occurred and file in each employee’s education file.
- Periodically audit to ensure that all monetary transactions have been double-checked and approved by a second party, and that all transactions have been previously approved. Ensure that an independent audit is conducted at least annually. Also audit staff understanding to ensure that they are aware of the steps that should be taken if they suspect theft, and their reporting options, including the use of the anonymous hotline.
*This news alert has been prepared by Med-Net Concepts, LLC for informational purposes only and is not intended to provide legal advice.*
