A 52-year-old South Carolina woman was sentenced to 14 months in federal prison after pleading guilty to wire fraud. The announcement was made by the US Attorney’s Office, District of South Carolina, on June 20, 2024.
According to evidence presented in court, the defendant was an employee at a nursing home in Ridgeway, South Carolina. The defendant, as part of her job, had access to an account at the facility that included funds held for the residents. The defendant diverted some of those funds and used some of the money for her own benefit. Some of the residents of the facility are considered vulnerable adults.
The defendant was sentenced to 14 months imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system. The court also ordered her to pay $58,544.61 in restitution.
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. Provide education to residents and their representatives at Resident and Family Council meetings or via newsletters or postings on facility bulletin boards about the importance of monitoring their bank and credit card statements regularly and keeping credit and debit cards secure.
- 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, including those accessing resident funds. 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.*
