Failure to Protect Residents from Misappropriation and Exploitation of Funds
Penalty
Summary
The facility failed to protect multiple residents from misappropriation of property and exploitation by a former Business Office Associate (BOA). The BOA accepted cash payments for a resident's monthly fees and a Social Security overpayment, but only a portion of the funds was deposited into the facility account, leaving a significant amount unaccounted for. Payment receipts were provided to the resident's family, but the funds were not properly deposited, and the discrepancy was only discovered after the family received a collection notice and reported the issue to the facility. The BOA later admitted to depositing some of the funds after her termination and could not account for the missing amount. In addition, the BOA created and cashed checks from the personal funds of three other residents for supposed purchases of personal need items, such as furniture, without authorization from the residents or their representatives. The residents did not receive the items, and in some cases, signatures were forged on withdrawal records. Interviews with residents, responsible parties, and staff confirmed that the purchases were not authorized, and the items were not delivered. The facility's audit revealed that the invoices used for these purchases were fabricated, with false information and templates found on the BOA's work computer. Another incident involved the BOA instructing a resident's family member to provide blank money orders for payment, one of which the BOA made out to herself and deposited into her personal account without authorization. The BOA admitted to this action, citing personal financial difficulties. The facility's policies required proper authorization and documentation for handling resident funds, but these procedures were not followed, resulting in the misappropriation and exploitation of resident property.