The former office manager of a nursing home pleaded guilty to embezzling funds from the Resident Trust Account. A 2-year prison sentence was suspended provided the woman makes restitution to the nursing home. She was fined $5,000 and placed on 5-years of probation. The Exploitation and Misappropriation of resident funds is a criminal felony act and can be considered fraud and abuse.
Compliance Perspective – Embezzlement and Exploitation
The Compliance and Ethics Officer with the Office/Accounting Manager and the Administrator will review the facility’s policies regarding the Deposit of Resident Funds, Comingling of Resident Funds and the requirement for Quarterly Accounting and Reporting of Resident Funds. Office/Accounting Staff will receive education and training about having separation of duties in the process of making withdrawals from the Resident Trust Account. Cash withdrawal forms should be completed by the resident or the resident’s legally authorized representative and verified. The Administrator will ensure with the Office/Accounting Manager that the individual, quarterly accounting of funds in the Resident Trust Account is occurring, and a statement of deposits and withdrawals is being provided to the individuals having funds in that account. An audit will be conducted to ensure that the financial recordkeeping is being done according to Generally Accepted Accounting Principles. The facility will periodically remind residents and their family members through the Resident and Family Councils to review their Resident Trust Account Statements and to report any concerns to the Administrator.
After pleading guilty to two felony charges for embezzlement and exploitation of a vulnerable person, the former office manager of a Mississippi Nursing Home was sentenced to a $5,000 fine, a suspended 2-year prison sentence, and five years of probation. The judge sentenced the woman to make full restitution to the nursing home of the $5,423.50 she stole.
Over a period of four months, the former office manager falsified Trust Fund Cash Request Forms that were required for funds to be withdrawn from the facility’s Resident Trust Account. The embezzlement affected the accounts of 91 residents.
The 2-year prison sentence was suspended with the requirement that the woman remain continuously employed in order to pay the fine and make restitution.
