Failure to Report Alleged Financial Misappropriation to Authorities
Penalty
Summary
The facility failed to report an alleged financial misappropriation involving a resident in accordance with state law and facility policy. The resident, who had vascular dementia and a BIMS score of 11 indicating moderate cognitive impairment, had a private fiduciary (RPF) managing finances. On April 22, 2025, the Business Manager documented that the RPF reported filing a victim of fraud claim on the resident’s behalf, stating the resident’s account had been drained of $265,000 and that the police were investigating. The RPF requested that the facility be part of the investigation and asked for copies of financial statements and documentation related to the resident’s private pay status. Shortly thereafter, the Business Manager documented that she informed the then-Executive Director/Administrator of the RPF’s allegations, including that the RPF was asking for facility staff to be investigated for fraud, and the Administrator stated he would reach out to another staff member for advice. Subsequent documentation on September 2, 2025, reflected that the resident had died and that the RPF stated money had been taken while the resident was at the facility, leaving her unable to pay the facility. During interviews, the Business Manager confirmed she recognized financial abuse as a form of abuse and that she immediately informed the Administrator when the RPF made the fraud allegation. The current Administrator, who had been operations manager at the time, stated that after reviewing the prior allegations and speaking with the former Administrator, it appeared that nothing was done in response and that the former Administrator had determined there was nothing to investigate. The Administrator also confirmed that the allegations of fraud were not reported to the state agency. A review of facility records showed no self-reports related to this resident, despite facility policies requiring that suspected crimes, including fraud and forgery, and allegations of abuse, misappropriation, or exploitation be reported to the State Survey Agency and other appropriate agencies within required timeframes.
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