A 46-year-old Connecticut woman pleaded guilty on June 13, 2025, in New Haven federal court to wire fraud in connection with multiple schemes targeting trust accounts and financial operations at her workplaces.
According to court documents and statements made in court, the defendant worked as a Medicaid Coordinator at an assisted living facility in Stamford (Company A). Her responsibilities included assisting residents in applying for Medicaid reimbursements, monitoring their trust accounts, and ensuring compliance with Medicaid regulations. She also managed journal entries for the residents’ trust accounts, including crediting accounts when funds were received and debiting them when payments were made or cash was distributed for incidental expenses.
Between approximately December 2019 and May 2021, the defendant generated checks from Company A’s system, forged a colleague’s signature, and cashed the checks under the pretense of providing funds to residents. Instead, she kept the cash and falsified accounting entries to conceal the theft. Many of the affected residents were medically or cognitively unable to monitor their account activity.
In some cases, the defendant canceled residents’ supplemental health insurance but continued to withdraw funds from their trust accounts for herself. She also took Economic Impact Payments (COVID-19 stimulus funds) deposited into resident accounts, debiting the funds at a rate of approximately $60 per day until the balances were depleted. During the scheme, she fraudulently negotiated approximately 500 checks, stealing approximately $310,820. When she was confronted by family members of certain residents, she produced falsified account statements to misrepresent the actual balances.
After being terminated by Company A, the defendant obtained a position as a bookkeeper and scheduler at an alarm company in White Plains, New York (Company B). There, she defrauded the company by submitting false overtime claims for herself and her daughter and by using company funds to purchase over $10,000 in products delivered to her Waterbury residence. Company B sustained losses of approximately $23,558.
Following her dismissal from Company B, the defendant worked as a bookkeeper at a law firm in Hartford (Company C). She created fraudulent checks payable to “Petty Cash,” forged the signature of an authorized employee, and recorded the checks in company records as legitimate transactions. She stole approximately $27,179 from Company C.
The defendant pleaded guilty to one count of wire fraud, which carries a maximum prison term of 20 years. She is scheduled to be sentenced on September 10 and is currently released on a $25,000 bond.
Compliance Perspective
Issue
Facilities should implement a double-check system for all monetary transactions. Each transaction should be reviewed and approved by a second party to help prevent the misappropriation of funds. Facilities are required to report any allegations of misappropriation or exploitation of a resident’s funds or personal property to local authorities and the appropriate state agency. Misappropriation can result in fines, sanctions, and criminal penalties, including imprisonment.
Discussion Points
- Review and update the facility’s policies and procedures related to accounting practices and the use of facility and resident funds. Ensure these policies clearly outline roles, approvals, documentation, and oversight requirements.
- Train relevant staff on financial policies, the appropriate use of facility and resident funds, and how to recognize and report irregularities. Document all training and maintain records in each employee’s education file. Provide ongoing education to residents and their representatives—via Resident and Family Council meetings, newsletters, or bulletin boards—on the importance of monitoring bank and credit card activity and securing financial information.
- Conduct periodic internal audits to verify that all monetary transactions are subject to dual review and approval, especially those involving resident accounts. Schedule at least one independent audit annually. Additionally, assess staff understanding of the procedures to follow if they suspect theft, including their reporting options, and the use of the anonymous hotline.
*This news alert has been prepared by Med-Net Concepts, Inc. for informational purposes only and is not intended to provide legal advice.*