A South Carolina man has been arrested for financial transaction card fraud and exploitation of a vulnerable adult who was a resident of a nursing home. It was discovered after a South Carolina Medicaid Fraud Control Unit (SCMFCU) investigation revealed that while the man was employed at a South Carolina nursing home, he illegally obtained a resident’s debit card. He then used the debit card to make unlawful and unauthorized use of the victim’s funds or assets, which exceeded $500 within a six-month period. Due to his past criminal record, he also faces enhancement to the financial transaction card fraud charge. The victim was considered a vulnerable adult during the time when his debit card was stolen.
The South Carolina man faces a felony charge for financial transaction card fraud with a maximum penalty of five years in prison, and a fine between $3000 and $5000. He also faces a felony charge for exploitation of a vulnerable adult, which carries a penalty of up to five years in prison and a fine of up to $5000. The court may order the man to pay restitution. A third or subsequent conviction of certain property crimes could result in a prison term of up to 10 years.
According to Federal regulations, the SCMFCU has authority over Medicaid provider fraud; abuse and neglect of Medicaid beneficiaries in any setting; and the abuse, neglect, and exploitation of individuals residing in assisted living facilities or nursing homes.
South Carolina Attorney General Alan Wilson, whose office arrested the man, stressed that all defendants are presumed innocent unless and until they are proven guilty in a court of law.
Compliance Perspective
Issue
It is the obligation of each nursing facility to protect residents from financial abuse and exploitation. Each facility must take the required precautions in keeping residents’ personal information as confidential as possible. Encourage residents not to give credit cards or banking information to staff. Remind staff that they should not use a resident’s banking information or credit card, even if the resident asks the staff member to make purchases. If residents’ personal information is exposed in a data breach, it is the responsibility of the facility to report the breach as soon as it is discovered. Residents are more likely not to know that they have been a victim of identity theft; therefore, it is the facility’s responsibility to protect the resident from financial abuse and exploitation.
Discussion Points
- Review your policies and procedures on protecting residents’ personal information and preventing financial abuse and exploitation. Update your policies if needed.
- Train all staff who have access to residents’ personal information on your policy and procedure for protecting residents’ personal information. Train all staff on your policy and procedures for preventing financial abuse and exploitation and for immediately reporting any concerns. Document that these trainings occurred and file the signed document in each employee’s education file.
- Periodically audit to ensure that staff who have access to residents’ personal information are aware of the proper procedures to follow to prevent personal information exposure. Also, periodically audit staff understanding to ensure that they are aware of what constitutes financial abuse and exploitation, and what they should do if they suspected financial abuse or exploitation is occurring.
