I agree with pstie. You must talk to the facility staff first and confirm the issue with them. I had a word with the staff at Luvida Memory Care and they said that it is normal with the dementia patients to make up such stories.
Contact Adult Protective Services in your brother's city. Also, get in touch with the local Area Agency on Aging. You can get that from Google or on this website. They probably know about the whole thing, and your brother may not be the only victim. Also try to locate the elder care Ombudsman in his area.
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What scum they must be!