Keith Alan Head, the former owner of Prescott Manor Nursing Center in Prescott, has been charged with looting $43,000 worth of resident trust fund accounts.
Head was booked Monday into the Nevada County Jail on one count of theft of property valued at more than $25,000. He was later released on bond.
All 76 residents at the nursing home lost some money, and 21 of them lost more than $1,000.
Head, 69, of Conway is the registered agent of H.O.P.E. Healthcare, LLC, whose principle address is in Conway, and is the management company for KSJ, LLC doing business as Prescott Nursing Center and four other homes in Arkansas.
The investigation began on September 27, 2019, when the Arkansas Department of Human Services discovered the residents’ trust fund accounts had been emptied or significantly depleted at several facilities by Head. Referrals were also received by the Prescott Police Department.
A joint investigation involved agents from the Arkansas Attorney General's Office, and federal agents with the Offices of Investigation for the Social Security Administration and Health and Human Services.
Laurie Jo Stowers, a senior investigator for the Medicaid Fraud Control Unit of the Office of the Attorney General, presented the 8th District Circuit Court with details of the case in an arrest affidavit.
She said regulations require nursing home facilities to have trust accounts. They require facility owners and employees to keep patient trust fund accounts accurate and accessible to residents.
For Medicaid residents, funds in excess of $50 must be placed in an interest-bearing account, separate for facility operating accounts. Facilities are also required to maintain a system that assures a full accounting of each resident’s personal funds.
Financial ledgers kept by Prescott Manor showed clothing and snack purchases made on behalf of clients, deposits of Social Security checks, and spending money deposits. The money was supposed to be kept on deposit with a Prescott bank. However, evidence showed that electronic transfers were made by Hunt -– the only person authorized to make the transfers.
While there was a ledger balance for all Prescott Manor residents combined of $43,740.48, in fact the actual bank balance was discovered to be $265.48.
Every resident lost money in the scheme. Some lost only pennies, while one resident lost $2,341.61. Twenty-one residents lost at least $1,000.
“From April 2019 to September 2019, Head completed 27 electronic transfers from the Prescott Manor patient trust accounts to the Prescott Manor Payroll, Operating and Petty Cash accounts, and 17 electronic transfers back into patient trust accounts. Head was responsible for the safekeeping of patient funds in the facilities; however, he knowingly took unauthorized control of the property of 76 long-term care facility residents by using their funds without their consent, totaling $43,475,” Stowers alleged.
The case will be prosecuted in coordination with Prosecutor Christi McQueen of the 8th North Judicial District.
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