Complaint Investigation Report

Allegation: "Financial Abuse". It is alleged that Licensee misappropriated Personal & Incidental (P&I) funds of two (2) residents (R1 & R2), who are enrolled in the LA County Department of Health Services/Department of Mental Health [Housing for Help] Enriched Residential Care (ERC) program, that contracts a non-profit organization called Brilliant Corners. The Department of Health Services places persons in licensed facilities. Brilliant Corners is the payee and is responsible for making rent payments and issuing P & I money. Recipients of the program are usually homeless, do not qualify for Social Security benefits, and are provided wrap-around services by Brilliant Corners. Brilliant Corners issues a lump sum payment to the facility for resident participants. The Brilliant Corners Agreement is signed by the Licensee and specifies how the amounts should be allocated (Rent, Personal & Incidental expenses, and Enhanced Services).

Resident (R1) moved in to the facility on 1/6/2021 and resident (R2) moved in on 7/2/2021. Both residents receive $138.00 a month of P & I money. On June 2, 2021, the Department of Health Services conducted a random Quality Assurance audit visit. It was noted that personal and incidental monies were not documented or accounted appropriately. Licensee Tina Arutyunyan was informed of the deficiency and submitted hand-written amounts on the Plan of Correction documents. The receipts documented excess expenditures of items never requested or received by residents (R1 & R2). The items listed do not have resident’s initials or original receipts to support transactions. It is clear from the documents that they are prepared after the fact, as they are dated with 8/11/2021 as a plan of correction. There were no supporting original receipts for items allegedly purchased for the residents with the P & I monies. P & I is strictly to be used for residents personal spending money.

On 9/1/2021, LPA interviewed residents (R1-R5). Residents (R1 & R2) confirmed they have not been given P & I monies. Resident (R2) stated Licensee has not given the resident any allegedly purchased items like an electric razor; resident only owns a regular razor, and a nail trimming services have not been received. P & I records/purchase receipts were not observed in resident files during the initial complaint visit. Ms. Arutyunyan was not present during the initial complaint visit and was interviewed on 9/10/2021. Licensee denied managing or spending resident (R1 & R2’s) P & I money. She stated that resident (R1) is a smoker and “all the P & I money goes to cigarettes.” On November 3, 2021, the licensee was notified and told by CCLD Auditor Jacqueline Juarez how to keep records of and distribute P & I amounts. Per record review, Licensee Tina Arutyunyan provided Department of Health Services and Community Care Licensing inaccurate information and documentation about the distribution of P & I monies and the money was spent.