On August 31, 2021, a Connecticut woman was sentenced in federal court for theft from a health care benefit program. The Connecticut woman had pled guilty to the charges on March 31, 2021.
According to court records, beginning in March 2013, the Connecticut woman was employed as the sole administrative assistant and bookkeeper for a health care provider based in Massachusetts. Beginning in November 2013, she began writing unauthorized checks to herself. She would create fraudulent entries in the provider’s accounting software to make it appear that the payments were for legitimate expenses. The thefts continued until January 2018, when the provider learned of her activity.
The Connecticut woman was sentenced to one year and one day in prison and three years of supervised release. She was also ordered to pay $162,135.08 in restitution to the victim.
The Federal Bureau of Investigation investigated the case.
Issue:
Every nursing facility should have a double check system in place for all monetary transactions. All transactions should be legal and checked and approved by a second party to prevent misappropriation of funds. Misappropriation of funds can result in fines, other sanctions, and imprisonment. Additional detailed information is available in the Med-Net Corporate Compliance and Ethics Manual, Chapter 2 Financial Integrity.
Discussion Points:
- Review the facility’s policy on accounting and the use of facility funds. Update as necessary.
- Train appropriate staff on your policies for financial accounting and the protection and approved use of facility funds. Document that these trainings occurred and file in each employee’s education file.
- Periodically audit to ensure that all monetary transactions have been double-checked and approved by a second party, and that all transactions have been previously approved. Ensure that an independent audit is conducted at least annually.
