Two recent cases involving alleged misuse of resident funds illustrate the importance of monitoring financial arrangements and changes in authority for care facility residents.
A New Hampshire man was sentenced to 21 months in prison and one year of supervised release on April 11, 2026, in federal court for stealing $225,200 from an elderly disabled veteran. He was also ordered to pay $225,200 in restitution.
The victim lived in a nursing home and was unable to manage his finances or make decisions independently. Each month, the Department of Veterans Affairs (VA) deposited disability benefits into his bank account. Initially, his mother served as his legal guardian until her death. Afterward, nursing home staff contacted the defendant to ask whether he would serve as the victim’s legal guardian. He never applied for legal guardianship. Instead, he had the victim sign an agreement adding him to the account.
Between August 2020 and December 2023, the defendant stole $225,200 from the account. According to court records, he spent the money on items including a snowmobile, jewelry, and vacations, and deposited approximately $85,000 of the stolen funds into bank accounts he controlled.
In another case, a Missouri man was accused of stealing $735,137 from a retired St. Louis teacher. He was indicted on April 29, 2026, on eight counts of wire fraud and pleaded not guilty on May 11.
The victim entered an assisted living facility on April 25, 2023. The defendant was named as her power of attorney in March 2023 and allegedly began misusing funds that same month. Prosecutors allege he made more than $12,000 in purchases using her checking account and used her credit card for OnlyFans purchases.
He deposited proceeds from the sale of her home and two certificates of deposit into her checking account and later used the funds to purchase four properties in St. Louis, one in Hillsboro, and two in East St. Louis. He also allegedly transferred $20,000 to his personal bank account and $140,000 to his Cash App account, using the funds for food, trips, life coaching, and OnlyFans purchases.
From April 2024 through November 2024, he allegedly made only one payment to the assisted living facility, resulting in the victim’s eviction after the account reached a $38,535 balance, according to the indictment. In November 2024, he moved her to another facility but allegedly failed to pay costs that later grew to $52,502.
Compliance Perspective
Issue
Financial exploitation of residents can occur when another individual gains access to their finances or is given authority over financial decisions. Individuals serving in fiduciary or financial caregiver roles—such as agents under power of attorney, guardians, conservators, trustees, Social Security representative payees, or VA fiduciaries—are expected to use resident funds appropriately for housing, healthcare, food, and other necessary expenses. In some situations, misuse of resident funds may result in unpaid facility balances, lapses in care-related services, or concerns regarding the legitimacy of financial transactions or financial authority documents. Facilities are required to report allegations of misappropriation or exploitation of resident funds or property to the State Agency and appropriate local authorities.
Discussion Points
- Review policies and procedures related to resident funds, misappropriation of property, financial exploitation, and interactions with financial caregivers or fiduciaries. Ensure the facility has a process for verifying financial authority documents, identifying changes in financial responsibility, and addressing concerns related to unpaid balances or questionable financial activity. Facilities may benefit from working with compliance or risk management consultants to review policies, identify potential gaps, and recommend operational best practices.
- Train staff to recognize potential signs of financial exploitation, including unpaid bills, unusual financial activity, missing personal property, abrupt changes in financial representatives, or concerns raised by residents or family members. Appropriate staff should understand reporting obligations, documentation expectations, and the facility’s procedures for escalating concerns involving suspected financial abuse or exploitation. Med-Net Academy offers the course Protecting Resident Finances, which covers appropriate professional behavior regarding gift giving from residents or their families, F-tag 602 prohibiting financial exploitation and misappropriation of residents’ property or funds, the consequences of theft, and best practices for issues affecting residents and their belongings.
- Conduct periodic audits to ensure resident financial records and financial caregiver documentation are current and complete, including powers of attorney, guardianship orders, representative payee documentation, or other authorization records. Review resident account balances and payment histories for patterns that may indicate potential misuse of funds or breakdowns in financial oversight. Periodic reviews conducted internally or with outside compliance support may help facilities identify operational vulnerabilities and strengthen risk mitigation efforts. Contact Med-Net Healthcare Consulting or info@mednetconcepts.com for more information.
*This news alert has been prepared by Med-Net Concepts, Inc. for informational purposes only and is not intended to provide legal advice.*