1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32 | On or about March 6, 2026, the Chief Executive Officer (CEO) informed the Regional Office (RO) that the facility would be unable to meet payroll obligations for the upcoming payroll period scheduled for March 20, 2026. The CEO further stated that the facility would be unable to sustain operations beyond March 20, 2026 due to financial instability.
On or about March 9, 2026, during an office meeting with staff and the RO, the CEO reported that the facility had sufficient food supplies to last approximately two weeks but did not have the financial resources to purchase additional food once those supplies were depleted.
On March 13, 2026, during an office meeting, the CEO acknowledged that employee paychecks had bounced due to insufficient funds. The CEO also stated that third-party check-cashing services had contacted both the CEO and facility employees to report that the facility’s checks were being returned for insufficient funds and were requesting repayment of the funds issued.
Based on statements made by the CEO during meetings with staff and the RO, the facility acknowledged it was unable to meet its financial obligations to sustain facility operations.
Based on LPAs observations and interviews which were conducted and record review, the preponderance of evidence standard has been met, therefore the above allegations are found to be SUBSTANTIATED. California Code of Regulations, Title 22, and the California Health and Safety Code are cited on the attached LIC9099-D.
An exit interview was conducted, and a copy of the report and appeal rights were provided. |