Failure to Prevent Misappropriation of Resident Property by Staff
Penalty
Summary
The facility failed to ensure that all residents were free from misappropriation of property, as evidenced by two separate incidents involving staff and residents' funds. In the first incident, a resident with diagnoses including non-Alzheimer's dementia, schizophrenia, depression, and moderately impaired cognition reported that their billfold and credit card went missing. Subsequent review of bank records revealed multiple unauthorized charges at the facility's vending machine, totaling approximately $55.40. The facility's administrator confirmed that the former Director of Nursing (DON) was present at the facility on each day a charge was made, and video evidence later captured the former DON using the resident's credit card at the vending machine. The police were notified, and the resident's credit card was found in the former DON's possession, leading to their arrest. In the second incident, another resident, who was cognitively intact and diagnosed with psychosis, reported approximately $16,000 in cash missing. The resident had received life insurance payouts and, lacking a bank account, sought assistance from the former DON, who arranged for the facility's IT Person to help cash the checks. The IT Person deposited the checks into their own account, withheld $1,500 as a fee, and delivered the remaining cash to the resident, who then directed significant amounts to be given to the former DON for safekeeping. The facility's investigation could not confirm how much money was given to the former DON or how many times cash was handed over, and no safe or cash was found in the former DON's office after their arrest. Both incidents demonstrate a failure by the facility to protect residents from misappropriation and exploitation, as defined in the facility's own abuse policy. The actions of the former DON and the IT Person resulted in unauthorized use and loss of residents' funds, with the facility unable to account for the missing money or prevent staff from taking advantage of residents' trust and vulnerabilities.