Complaint·April 26, 2022

incidental funds (P&I). It was also alleged that, R1 was requesting specific items, and the Administrator/Licensee was billing Department of Health Services (DHS) for items R1 was requesting. R1 revealed the items were never requested or received, although the items were billed to DHS. On September 01, 2021, from 10am to 1pm, LPA Wendell Smith initiated the investigation, and conducted interviews with resident #1 (R1) and resident # 2 (R2). LPA Smith also requested various records to be reviewed. The Administrator/Licensee Tina Arutyunyan was contacted telephonically, in which, specific documents were requested: bank records from January 2019 to present; P&I records for all residents who received assistance with their finances, and verification of a valid and current surety bond. According to records received and reviewed, it was determined, that the Administrator/Licensee did not have a valid or current surety bond to handle residents P&I funds. In lieu of the P&I records, the Administrator/Licensee submitted hand-written receipts without residents’ signatures and attached receipts for expenditures. The handwritten receipts submitted, documented an excessive and inflated number of expenditures for special food, charges for cable channels, grooming items/services, clothing, and furniture. Residents interviewed during the initial complaint visit, denied receiving those items and LPA Wendell Smith did not observe described clothing and furniture in the facility. It was determined the Licensee/Administrator misappropriated residents personal & incidental (P&I) funds and did not maintain adequate financial records or expenses for residents’ cash resources. The Licensee/Administrator co-mingled the residents’ (P&I) funds with facility funds, without obtaining a surety bond to handle residents’ cash resources. On September 20, 2021, the complaint was referred to Community Care Licensing Division (CCLD) audit department for further review of the Administrator/Licensee trust and financial accounts. The complaint was assigned to auditor manager Jacqueline Juarez, who reviewed and completed an audit investigation. Auditor Juarez conducted interviews with the County of Los Angeles, Department of Health Services, Housing for Health-Enriched Residential Care Program, and a representative from Brilliant Corners. The auditor obtained information pertaining to the placement of residents to the facility; the programs and their involvement with the residents; the issuance of payments for residents, and the relationship with the Administrator/Licensee. The auditor also reviewed all documents and information obtained by the Regional Office in relation to the complaint. It was revealed, the Administrator/Licensee is issued a monthly lump sum payment for the residents enrolled with Brilliant Corners. There was a signed agreement between the Administrator/Licensee and a Brilliant Corner representative. The agreement specified how the payments for the residents should be allocated for their expenses, such as (rent, personal incidentals, and enhanced services). On March 08, 2022, the audit investigation concluded that the Licensee/Administrator misappropriated residents personal & incidental (P&I) funds; failed to maintain adequate safeguards and records for residents’ cash resources and comingled the residents personal and incidental funds with facility funds. Overall, the investigation revealed that the Administrator/Licensee did not comply with Licensing requirements and regulations, pertaining Safeguards for Residents Cash Resources, Personal Property and Valuables. The Administrator/Licensee also did not obtain a surety bond prior to handling residents’ cash resources. Additionally, the Administrator/Licensee provided Brilliant Corners and DHS inaccurate and inflated expenses of expenditures for R1. Based on the information obtained, the allegation of financial abuse is Substantiated at this time. Citations and deficiencies were discussed with the Licensee/Administrator. Exit interview, appeal rights, and a copy of report was issued.