Former Administrator of Utah Rehabilitation and Skilled Nursing Facility Charged with Embezzling $170K
The former administrator of a Utah rehabilitation and nursing facility was recently arrested and booked on āsuspicion of six second-degree felonies, including fraud, money laundering, communications fraud, pattern of unlawful activity, and three counts of theft by deception.ā While he was the administrator, the defendant allegedly stole hundreds of thousands of dollars from the facility to fund personal family vacations, home remodeling, and numerous other personal items.
The defendantās embezzlement of $169,876 was discovered by the companyās owner the day after he formally resigned to go to work for a competing company.
Police reported, āthat the defendant purchased vast amounts of unauthorized personal items including gift cards, groceries, appliances, flowers for his wife, construction tools and materials to finish his basement, toys, a bike, diapers, furniture, electronics, landscape materials, a barn door, fast food, candy, and energy drinks. The amount the accused spent on his company card in a two-year time period is a staggering $148,794.ā
From November 2016 to the time of his resignation as the administrator, the accused reportedly wrote company checks to himself totally $62,708 and stole $18,768 from petty cash. He devised numerous other ways to steal from the rehab and nursing facility.
Previously, the defendant worked as the administrator for two other facilities, but the police have not disclosed any information about whether the defendant embezzled at those facilities.
The man was released on a $60,000 bail bond the same day of his arrest.
Compliance Perspective
Failing to have accounting check and balance procedures in place to ensure that no one is able to embezzle or otherwise divert monies from resident and facility funds may be considered an administration deficiency and provision of substandard quality of care, in violation of state and federal regulations.
Discussion Points:
- Review policies and procedures regarding the accounting checks and balances that are designed to prevent embezzlement and theft of resident and facility funds.
- Train office staff about policies and procedures and following checks and balances that are designed to prevent misappropriation of resident or facility funds. Train staff to report any suspected embezzlement or other misuse of funds by notifying a supervisor or calling the Hotline.
- Periodically audit the accounting protocols for access to the facilityās and residentsā funds to determine if there are potential or actual thefts occurring, and if protocols to ensure implementation of checks and balances are being followed.
