ATTORNEY NEWSLETTER
Assisted Living Facility Owner Sentenced
Government Funds For Patient Care Diverted For Personal Use
Investigations Of Fund Diversion And Patient Neglect
Skilled nursing facilities and assisted care communities often receive government funding for the care they provide residents. Fraudulent claims for payments of those government funds may be the basis for a private action to recover those funds under the False Claims Act (FCA), 31 U.S.C. § 3729 et seq. Persons bringing those actions (known as relators) may be rewarded for their efforts. 31 U.S.C. § 3731. But the fraud may also result in the neglect of patients in those facilities where the funds dedicated for their care are diverted for personal use by a facility owner. Evans Law Firm, Inc. represents nursing home and assisted care facility patients and their families who are defrauded or neglected, abandoned or denied the medications they need because funds intended for the care are diverted for personal gain by facility owners. Parties responsible for such fraud, abuse and neglect are liable for their actions under California Law. See Cal. Welf. & Inst. Code §§ 15610.07 (definition of abuse), 15610.57 (definition of neglect), and 15610.63 (definition of physical abuse); Cal. Gov’t Code § 12650 et seq. (California False Claims Act). The parties responsible for the fraud and abuse should be held accountable. If you have a loved one who has suffered from abuse or neglect in any kind of care facility in San Francisco or elsewhere throughout California, call us today at (415)441-8669 or TOLL FREE 1-888-80EVANS (888-503-8267).
Case Of Fraud And Neglect[1]
The former owner of an assisted living facility was sentenced recently sentenced to 2 years in prison for health care fraud after diverting over $800,000 in federal and state benefits that were intended to pay for the care of the facility’s residents.
According to court documents, defendant owned and operated an assisted living facility complex that served primarily elderly and incapacitated adults. For residents who were legally incapable of managing their own funds, defendant’s facility regularly received state and federal benefit payments on behalf of those residents. Representative payees are required to use Social Security benefits to provide for the beneficiary’s needs, including food, clothing, housing, and medical care. Representative payees, moreover, are specifically prohibited from using Social Security benefits for anything other than the beneficiary’s needs. According to the government, beginning around December 2015 and continuing through the facility’s closure in the spring of 2019, defendant converted more than $800,000 of the residents’ federal and state benefits for her own personal use, and used the residents’ benefits to satisfy her personal debts, including her mortgage and bankruptcy payments, and to fund her personal travel, retail purchases, and gambling expenses, including at casinos in Atlantic City, New Jersey, and Las Vegas, Nevada.
The government claimed that defendant’s diversion of resident benefits led to significant and persistent deficiencies in the facilities, care, and services provided to residents, including deficiencies that endangered residents’ health and safety. These conditions ultimately prompted state and federal audits of the facility before its closure, during which defendant also allegedly made false statements about her conversion and use of resident funds.
Contact Us
The human toll of this kind of fraud can be staggering. Patients were in danger of not receiving the care, medications and food they needed. If you have a loved one who has suffered any kind of fraud or abuse or neglect in a nursing home or assisted care facility or hospice program, call us at Evans Law Firm, Inc. right away at (415) 441-8669, or by email at info@evanslaw.com or TOLL FREE 1-888-80EVANS (888-503-8267).
[1] Evans Law Firm, Inc. was not involved in the reported case in any way.
