Failure to Protect Residents from Misappropriation of Funds and Exploitation
Penalty
Summary
The facility failed to protect residents' rights to be free from misappropriation of property and exploitation, affecting 13 residents with resident funds accounts. The Business Office Manager (BOM) was found to have written checks to herself from resident funds, often without proper authorization or documentation from residents or their legal representatives. In several cases, the BOM purchased items that were not authorized by families or guardians, and many of these items were not found in the residents' possession. The BOM also wrote a check to her father to cash on her behalf, further violating facility policy and resident trust. Multiple interviews and record reviews revealed that the BOM bypassed established procedures for resident fund management, including the division of duties and requirements for receipts and vendor payments. Staff members reported that packages addressed to the BOM would arrive at the facility, and the BOM would direct staff on how to distribute or label the items. In some instances, staff questioned the appropriateness and cost of items purchased, such as expensive electronics and jewelry for residents with cognitive impairments, but did not escalate their concerns to administration. The BOM admitted to writing checks to herself and using her own credit card for purchases, but failed to document family authorizations or maintain proper records for many transactions. Affected residents included those with severe cognitive impairments, such as dementia, and those with legal guardians, as well as cognitively intact individuals. In several cases, families and guardians confirmed they did not authorize the purchases made on behalf of the residents, and some residents reported not receiving the items or not consenting to the expenditures. The facility's internal investigation, supported by police involvement, confirmed that misappropriation occurred, with missing receipts, unauthorized purchases, and funds withdrawn for items not received by residents.