After her death in 1992, Hale's work was continued by her daughter, Dr. Lorraine Hale. Unfortunately, the climate at Hale House clearly changed with Mother Hale's death, specifically because it was under the control of her daughter. In 2001, the Hale House was under investigation for skirting the law and misuse of money solicited from the public. An interim board found what it called "credible evidence that Hale House engaged in transactions involving self-dealing and other conflicts of interest, resulting in the waste of corporate assets and the violation of its legal and contractual obligations." Dr. Hale was subsequently forced out amid reports of financial mismanagement. She and her husband were arrested, charged with using more than $1 million in donations to make home improvements, lend money to relatives and prop up an off-Broadway flop. Although the younger Dr. Hale was removed by Hale House, the house continues to operate.