On March 21, 2025, Maryland Attorney General Anthony G. Brown announced the sentencing of two women involved in the financial exploitation of a vulnerable adult in an assisted living facility (ALF) in Baltimore City. Defendant 1, the owner of the facility, and Defendant 2, a caretaker, exploited the bank account of a resident under their care.
Between August 2022 and May 2023, the defendants used the resident’s bank account as though it were their own. When the resident confronted the defendants, they falsely accused him of being delusional and aggressive. This accusation led to the resident being hospitalized and subsequently relocated to a different facility.
Defendant 1 pleaded guilty to the financial exploitation of a vulnerable adult on March 3, 2025. She was sentenced to five years in prison, with all but 60 days suspended, and three years of supervised probation. She was also ordered to pay restitution of $25,291.80.
Defendant 2 pleaded guilty to the same charge on March 18, 2025. She was sentenced to five years, with all but time served suspended, and three years of supervised probation. Additionally, Defendant 2 was ordered to pay restitution of $3,000 and complete 100 hours of community service.
As terms of probation, both defendants were ordered not to provide care for vulnerable adults or participate in Medicare, Medicaid, or any other federally funded healthcare program.
Compliance Perspective
Issue
Facilities are responsible for protecting residents from abuse, neglect, and financial exploitation. Misappropriation of funds occurs when individuals with access to a resident’s financial resources use them for personal gain. This is especially concerning when those responsible for managing a resident’s finances, such as facility staff, caregivers, or guardians, act inappropriately. Facilities are required to report any allegations of misappropriation or exploitation of a resident’s funds or personal property to the State Agency and to the appropriate local authorities.
Discussion Points
- Review policies and procedures related to safeguarding residents’ financial property, including cash, debit and credit cards, and valuable items like jewelry. Also review your policies and procedures on preventing, identifying, and reporting misappropriation of resident’s belongings or funds to ensure that they meet all requirements of federal and state regulations.
- Ongoing education and training should be provided to all staff, with a focus on recognizing and preventing financial exploitation. Staff must be educated on the legal and ethical responsibilities involved in managing residents’ finances, including the need to protect residents from potential abuse. Additionally, staff should be trained to understand their role in reporting any concerns of financial misappropriation, both within the facility and to external authorities when necessary.
- Audit to ensure that all financial transactions are legitimate and that there are no signs of financial misappropriation. Healthcare facilities should periodically review residents’ financial accounts, including payments for care services, to detect any discrepancies.
*This news alert has been prepared by Med-Net Concepts, Inc. for informational purposes only and is not intended to provide legal advice.*
