Failure to Protect Resident from Exploitation and Misappropriation of Property
Penalty
Summary
A facility failed to protect a resident from exploitation and misappropriation of property by a sales consultant employed at a sister facility within the same corporate campus. The sales consultant, who had access to the resident's personal and financial information through the Independent Living facility's intake process, fraudulently obtained a $1,569 refund for the resident's hearing aids after her death by misrepresenting himself as her grandson to an outside company. The refund was deposited into his personal account rather than the resident's estate. The sales consultant did not notify facility administration or seek direction regarding the handling of the resident's property, and only later sent a cashier's check to the resident's Power of Attorney for Finance, which was made out incorrectly. The resident in question had severe cognitive impairment, as evidenced by a BIMS score of 00 and diagnoses including metabolic encephalopathy, altered mental status, and dementia. She was admitted to the Skilled Nursing facility after a period in the Independent Living facility, and her medical records indicated ongoing confusion and vulnerability. The resident's Power of Attorney for Finance was not informed about the sale of the resident's house, which was purchased by the same sales consultant for less than market value, with significant closing fees deducted. The Power of Attorney expressed concerns that the resident was isolated from trusted advisors and did not fully understand the transactions she was involved in. Facility staff and visitors were able to move freely between the three facilities on campus without signing in, and there was no visitor log to track who entered or visited residents. Multiple staff members, including a social worker and an anonymous staff member, were aware of irregularities regarding the sales consultant's involvement with the resident's affairs but did not consistently report these concerns to administration or authorities. The Executive Director acknowledged awareness of the home purchase but did not provide investigation records, and the facility did not provide relevant records from the resident's time in the Independent Living facility, stating they were not relevant to her stay in the Skilled Nursing facility.