F0602

D

Failure to Prevent Financial Exploitation and Emotional Distress of a Resident

Laguna Hills, California Survey Completed on 02-04-2026

Penalty

No penalty information released

Summary

The deficiency involves the facility’s failure to protect a resident from abuse in the form of financial exploitation by a CNA. The facility’s abuse, neglect, exploitation, or misappropriation prevention policy stated that residents have the right to be free from abuse, neglect, misappropriation of resident property, and exploitation, and the employee handbook prohibited staff from soliciting or accepting loans or borrowing money from residents. Despite these policies, a cognitively intact resident with a history of generalized anxiety disorder loaned $500 to a CNA after the CNA shared personal and financial hardships. The resident reported that the CNA agreed to repay the money within two weeks, but only repaid $250 and then blocked the resident’s phone and stopped communicating.

The resident’s medical record documented a change in condition related to lending money to staff and a care plan identifying risk for emotional distress and anxiety related to the incident. Progress notes showed the resident told the ADON that she felt bad for the CNA’s financial struggles and voluntarily loaned the money, but became worried when the remaining amount was not repaid. During an interview, the resident stated that as the situation progressed and repayment was not completed, she became worried, especially as it was close to Christmas, and that she did not initially want to report the matter. The resident further reported that the CNA later contacted her and asked her to lie and say the money was payment for work the CNA had done for her, which made the resident feel emotional. The SSA confirmed that the resident expressed sadness about the CNA’s situation and a desire to simply have the rest of the money returned.