A married Iowa couple recently was sentenced to two years in federal prison after they each pled guilty to charges that they stole more than $200,000 from the man’s elderly mother from September 2013 to September 2017. The victim was an elderly widow and former schoolteacher who resided in an Iowa assisted living facility. She suffered from mental and physical disabilities and was unable to manage her own financial affairs or care for herself.
The couple used various legal forms, including two powers of attorney, to gain access to the victim’s bank account and carry out their fraud scheme. After transferring money out of the victim’s account on the false pretense that the funds would be used for her benefit, the couple used those funds for their own purposes. By October 1, 2017, the victim’s funds had all been stolen and depleted, and she was no longer able to afford her assisted living facility. She was forced to move into the couple’s home where during the next three months she lost over 23 pounds, broke her wrist, and was hospitalized. The mother later died in March 2020.
The prosecution of the couple is part of the Department of Justice Elder Abuse Initiative, which coordinates and supports the Department’s law enforcement efforts and policy activities on elder abuse issues. It plays an integral role in the Department’s investigative and enforcement efforts related to nursing homes and other long-term care entities suspected of delivering substandard care to Medicare and Medicaid beneficiaries.
Compliance Perspective
It is against the law for a long-term care facility to require that residents set up trust fund accounts. This is true whether a resident’s stay is covered by Medicaid and/or Medicare, receives monthly Social Security benefits, or utilizes a combination of financial resources to pay for care. However, a resident may choose to do so. Regulations require that the facility accommodate that request by protecting, managing, and providing quarterly reports about those personal funds. Many states require the facility to obtain a surety bond to secure resident trust funds.
Discussion Points:
· Review policies and procedures regarding the protection and management of residents’ personal funds, and the appropriateness of periodically providing the resident, resident’s family, and/or their representative with information about resident financial rights. Elder Abuse and Elder Financial Exploitation Statutes may be found at https://www.justice.gov/elderjustice/prosecutors/statutes.
· Train staff regarding residents’ rights for protection of their personal funds, and how to report concerns about misappropriation of a resident’s personal funds or other property to a supervisor or through the facility’s Hotline.
· Periodically provide information at Resident Council Meetings about elder financial exploitation and fraud prevention, awareness, and reporting.
