The Minnesota Department of Health (MDH) substantiated a finding of financial exploitation after investigating an allegation under the Minnesota Reporting of Maltreatment of Vulnerable Adults Act. The investigation was concluded on February 26, 2026. The resident resided in an assisted living facility with dementia care (ALFDC) at the time of the incident.
The allegation involved a resident whose credit card was used without authorization by a facility staff member. According to the investigation, the alleged perpetrator (AP) admitted to using the resident’s card to make purchases totaling $1,286.23 over a two-month period. The charges included food delivery and online shopping from vendors such as Temu, Uber Eats, Amazon, Jimmy John’s, Noodles & Company, TikTok Shop, and DoorDash.
During an interview, the resident’s community support worker stated that one of the resident’s goals was to check his bank account weekly due to previously compromised banking information. She reported that the resident was forgetful because of a past stroke and did not always remember transactions. When she noticed food charges on the card, she asked the resident about them, and he was unsure whether he had made the purchases. Once charges for Temu and Amazon appeared, she confirmed that the resident had not made them and took him to the bank to close the card. She initially thought the matter was resolved, but when they checked the account a few weeks later, it had only $2 remaining. After additional unauthorized charges appeared on the new card, she suspected that someone from the facility had access to it.
During an interview with law enforcement, the resident stated that he never ordered food with the AP, but she likely overheard him providing his credit card number over the phone when ordering pizza and used it to make purchases. The resident stated he never gave the AP his card or asked her to buy anything on his behalf. He also stated that he typically ordered food in the common area and did not notice the unauthorized charges until a case manager mentioned multiple charges, after which they went to the bank and he was issued a new card.
MDH determined that financial exploitation was substantiated and that the AP was individually responsible for the maltreatment. Interviews with facility staff, the resident’s representative payee, community support worker, case manager, and the resident confirmed that the resident did not authorize the purchases. Review of bank statements, facility incident reports, personnel files, and the resident record corroborated the AP’s admission.
Facility management reported that the AP admitted to using the card, provided a detailed handwritten list of the charges, expressed remorse, and requested to apologize to the resident. The AP acknowledged that obtaining and using the resident’s credit card was wrong and took responsibility for her actions.
Compliance Perspective
Issue
Failure to safeguard residents’ finances and personal property can result in financial exploitation, which may be considered maltreatment under state and federal regulations. Facilities must ensure that staff do not use residents’ funds without authorization, and that any suspected financial misuse is reported promptly in accordance with regulatory requirements.
Discussion Points
- Review policies and procedures for handling resident finances and personal property to ensure they clearly prohibit unauthorized use, outline secure handling of funds and payment methods, and require prompt reporting of suspected financial exploitation. Guidance from an experienced healthcare or compliance consultant can help identify gaps, strengthen internal controls, and support adherence to regulatory standards.
- Provide training for all staff on appropriate professional behavior regarding resident funds and property, including recognizing and preventing financial exploitation. Med-Net Academy offers the course Protecting Resident Finances, which addresses appropriate professional behavior regarding gift giving, the prohibition against financial exploitation and misappropriation of funds or property, consequences of theft, and best practices for safeguarding residents’ belongings.
- Periodically audit financial transactions, resident accounts, and staff handling of funds to ensure compliance with policies and procedures. Audits can also assess staff understanding of reporting requirements and identify any patterns of risk. Engaging an external reviewer or consultant to perform these assessments can provide objective evaluation and targeted recommendations to reduce the likelihood of financial exploitation.
*This news alert has been prepared by Med-Net Concepts, Inc. for informational purposes only and is not intended to provide legal advice.*