In California, two sisters have been sentenced for stealing approximately $272,000 from an elderly resident at an assisted care facility. One of the sisters was the administrator where the elderly resident resided.
An investigation by the California Department of Justice disclosed that the administrator of the assisted living community convinced the elderly victim to release checks totaling over $272, 000, which she was not entitled to collect. The administrator then had the checks deposited into her sister’s bank accounts. The victim passed away from her medical conditions, and the victim’s will requested that her funds be donated to two different nonprofit organizations.
The administrator pled no contest to the charges of theft from an elder or dependent adult and was sentenced to 180 days in jail, and two years of felony probation. Her sister pled no contest to a misdemeanor charge of receiving stolen property and was sentenced to 90 days in jail and one year probation. The two sisters have been ordered to immediately pay $240,000 back into the victim’s estate, and the administrator will be required to pay back the remaining amount while she is serving probation. The funds collected will be distributed into the victim’s estate and will be given to the two nonprofit organizations per the victim’s will and trust.
California Attorney General Rob Bonta stated, “Two sisters decided to take advantage of an elderly resident for their own personal gain, and now they are facing the consequences of their actions. The stolen money that has been returned will be donated towards its intended purpose, fulfilling the last wishes of a resident who wanted to do good for others. Our senior citizens face financial abuse all too often, and I am committed to raising awareness on this issue and protecting other residents from falling victim to similar crimes.”
Compliance Perspective
Issue
It is the obligation of each nursing facility to protect residents from abuse, neglect, and exploitation. It is a violation of federal and state regulations for any persons, including facility staff, volunteers, visitors, family members or guardians, or another resident, to exploit or misappropriate a resident’s funds. A facility is required to report any allegations of misappropriation or exploitation to local authorities and the state agency. In addition to criminal charges, citations and other penalties for violation of F602 Free from Misappropriation/Exploitation apply.
Discussion Points
- Review your policies on misappropriation of resident’s belongings or funds to ensure that they meet all requirements of federal and state regulations.
- Train all staff about regulations addressing abuse, neglect, exploitation, and misappropriation of residents’ personal property; staff members’ responsibility to prevent these from occurring; and their personal liability if they commit any of these violations. Educate residents and family members on the importance of monitoring their monthly bank and credit card balances and immediately reporting any concerns to facility staff or through the hotline.
- Periodically audit resident fund accounts to ensure that no misappropriation has occurred.
