Showing posts with label Trust Fund. Show all posts
Showing posts with label Trust Fund. Show all posts

Monday, February 17, 2014

For brain-damaged Lauderhill woman, a 'nightmarish situation'

For brain-damaged Lauderhill woman, a 'nightmarish situation'

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For brain-damaged Lauderhill woman, a 'nightmarish situation'
Brain-damaged soon after birth, Cristal Marie McBean has spent much of her life dependent on three things: a ventilator to keep her breathing, round-the-clock nursing care and her father.
But as the quadriplegic Lauderhill woman nears her 22nd birthday, both her future and her health have been cast into doubt because of a depleted guardianship account and the possibility that her father, Glenford McBean, could be deported to his native Jamaica.
"This has created a nightmarish situation for this family," said Gary Fox, an attorney representing the guardianship of Cristal McBean. "This is all very scary for all of us who care about this little girl."
Lawyers representing the nonprofit corporation that acts as McBean's guardian have filed a lawsuit accusing financial services giant Northern Trust Co. of negligence, alleging that over 15 years it failed to protect nearly $5 million of her assets.
Northern Trust said it plans to "vigorously defend" its actions, saying it did its duty to protect and preserve the assets of McBean's estate.
 
Meanwhile, Glenford McBean, a 53-year-old legal permanent resident, has been placed in removal proceedings after he applied for citizenship and immigration officials saw that he had pleaded no contest to a marijuana charge.
If deported, said McBean, his daughter likely would be sent to a nursing home. He said he fears she would die there.

                                                                                                                                                                                                                                

His daughter has little cognitive ability. She does not speak, cannot walk and it is uncertain even to her father what she is able to see, hear and comprehend.
Nurses feed her through a tube every six hours, stretch her limbs and keep her airway clear.
However, she is aware of her father's presence, McBean said. When she hears his voice in the next room, for example, she is able to stop her breathing long enough to set off the alarm in her ventilator, he said.
"That is her way of calling me," he said.
What follow are key events regarding Cristal McBean's care.
Deprived of oxygen
She was born prematurely in April 1992. After a year at a Miami hospital she was moved to a facility in Broward County, where at the age of 18 months she suffered brain damage when deprived of oxygen.
Through a 1995 settlement with her health care providers, McBean received $1 million in cash and an annuity that would pay her more than $13,000 a month. The following year a court appointed Northern Trust as the guardian of McBean's property.
The crux of the lawsuit, filed in Broward Circuit Court, is the allegation by McBean's current guardianship that Northern Trust allowed McBean's assets to be wasted by failing to set up a special-needs trust. If a trust had been created, said Fox, McBean's medical costs would have been paid out of Medicaid funds rather than from her guardianship.
Between 1996 and 2011, those withdrawals totaled almost $5 million, Fox said.
Northern Trust was replaced as guardian in March 2011 and a special-needs trust was set up. By then the funds in McBean's account had dwindled to about $100,000, Fox said.
The lawsuit filed on behalf of MonarchCare — the Fort Lauderdale corporation currently serving as her guardian — claims McBean is owed $4.6 million, plus about $3 million more in what would have been accrued interest on the money Fox says was unnecessarily paid out.
Northern Trust said it repeatedly over the years raised the issue of placing McBean on Medicaid and setting up a special-needs trust. But Northern Trust was rebuffed every time by McBean's parents, who blamed Medicaid for their daughter's condition, the institution said in a statement.

Friday, January 3, 2014

NYC woman claims estranged husband stole $744K from trust fund to spend on Englewood woman

NYC woman claims estranged husband stole $744K from trust fund to spend on Englewood woman


Dan Ivers/NJ.com By Dan Ivers/NJ.com NJ.com
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on December 31, 2013 at 3:18 PM, updated December 31, 2013 at 3:41 PM
gavel.pngA New York City woman has filed suit against her estranged husband, claiming he stole $744,000 from her trust fund and spent it on an Englewood woman. 
NEW YORK CITY — A wealthy Manhattan woman has filed a lawsuit against her estranged husband, claiming he concocted a series of elaborate lies in order to access her trust fund and spend hundreds of thousands of dollars on a Bergen County woman.
According to the New York Post, Candice Feinberg claims she granted her husband, Steven Lalicata, access to $744,000 from her account in order to pay off gambling debts to a group of Queens-based mobsters shortly after they married in March 2011.
However, the money was actually spent on expensive gifts and vacations for Lalicata and his mistress, Englewood resident Diana Fernandez, the suit claims.
Feinberg, who filed the suit in Manhattan earlier this year, is seeking $10.7 million in restitution.
Related coverage
Newlywed tricks bride into spending ‘$744K on his secret gal pal’ | New York Post

Friday, December 6, 2013

Oversight of nursing home trust funds limited

Oversight of nursing home trust funds limited

Nearly half the states do not require background checks for nursing home office workers who handle residents' trust accounts, and only a handful of states require that those accounts be audited.

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WASHINGTON — Many states do not require criminal background checks on nursing home staff who manage residents' trust funds, and few demand audits of those accounts – a regulatory gap that contributes to scores of cases in which the money is stolen or mismanaged.
Nearly every state requires background checks for nursing home staff in caregiving roles, but 20 states don't apply that requirement to office workers who do not routinely have direct patient contact, a USA TODAY review of state laws finds. Those office employees typically manage the trust accounts that nursing homes must maintain for residents who request that the facility safeguard their money.
In an investigation published in October, USA TODAY found that thousands of nursing home residents have had their savings stolen while held in the trust accounts, usually by business managers, bookkeepers and other office staff. Because the accounts generally don't have to be audited, those crimes often go undiscovered for months, even years, and the thefts can reach hundreds of thousands of dollars.
"Obviously, this is a problem that should be addressed, and obviously it's one that hasn't been addressed very well," says Janet Wells, former director of public policy for the National Consumer Voice for Quality Long-Term Care.
Federal law provides the regulatory framework for the nation's 16,000 nursing homes, which have to meet an array of standards to participate in Medicare and Medicaid. Federal rules do not require audits for resident trust fund accounts, and most states take the same approach.
The U.S. Centers for Medicare and Medicaid Services, the federal agency responsible for nursing home regulation, is considering whether additional oversight is needed to address theft and mismanagement of residents' funds.
"We are aware of this situation and are reviewing the (inspection) procedures used to detect these kinds of problems," agency spokesman Aaron Albright said when asked about USA TODAY's findings. "CMS takes safeguarding nursing home patients very seriously."
In addition to the four states that require audits of resident trust accounts, USA TODAY identified four others that mandate partial or occasional audits, such as periodic reviews of a sampling of a facility's trust fund records.
Greg Crist, senior vice president of the American Health Care Association, a nursing home industry trade group, notes that many nursing home operators audit trust accounts themselves as a matter of practice. He says many also do background checks on all staff, regardless of their duties.
"Several (chains) across the country have made the decision to just build these practices into their business model," Crist says.
Nursing homes are required to maintain a surety bond for resident trust accounts, Crist adds, so any funds that are lost or stolen ultimately should be repaid. Still, he says, such crimes should never happen, and the association has launched initiatives to raise awareness and improve training and oversight of staff who manage the funds.
USA TODAY's investigation identified more than 1,500 cases since 2010 in which state or federal inspectors cited nursing homes for failing to pay interest on the accounts, failing to account properly for their holdings, and failing to keep the funds properly insured.
The newspaper also documented scores of cases in which nursing home employees stole money for everything from shopping and gambling sprees to routine household expenses. In many cases, the problems could have been caught far sooner or avoided altogether if audits and background checks were routine practice.
Last year, for example, Joseph Feagin Jr. was convicted on charges that he stole more than $115,000 from resident trust accounts while working as a financial specialist at Wetumpka (Ala.) Health and Rehabilitation Center. During the investigation, the state attorney general's office found that the facility was unaware that Feagin had been convicted in a first-degree theft case in another county and was on probation.
This year, Virginia Soules was convicted on charges that she stole $140,000 from trust funds for multiple residents while working as an accounting clerk at Meridian Manor in Waterbury, Conn. After the nursing home's office manager discovered suspicious checks were being drawn from trust funds, the facility commissioned a forensic audit that revealed Soules' thefts had gone undetected for a year.
After USA TODAY's investigation, Sen. Bill Nelson, D-Fla., chairman of the Senate Committee on Aging, asked the inspector general at the Department of Health and Human Services to examine whether sufficient oversight is in place to make sure nursing homes properly manage resident funds.
Citing trust fund theft cases uncovered by the newspaper, Nelson noted in his request letter that "several of these … culprits were caught merely by accident or due to the suspicions of a co-worker, and not by systemic financial auditing or tight management controls."
The inspector general's office has not announced how it will proceed.
Contributing: Morgan Fecto and Dan Singer