A care home at the centre of a police inquiry over a Covid-19 outbreak has been banned from taking on any new residents.
The Care Quality Commission (CQC) also downgraded the Holmesley Care Home in Sidmouth, Devon from good to inadequate on safety and leadership.
The CQC visited the home in February and March, days before an outbreak of Covid-19 which led to nine deaths.
Two people have been arrested on suspicion of wilful neglect.
The CQC said it had imposed conditions on the operation of the care home, preventing it from admitting new residents, or re-admitting former residents “without prior written agreement from the CQC”.
The care home “must also ensure that systems are in place to prevent and control the spread of COVID-19 to protect patients and staff”, said the CQC.
Amanda Stride, CQC’s head of adult social care, said: “When we inspected Holmesley Care Home, we found that people were not protected from the spread of infection.
“During the first day of our inspection we observed seven members of staff wearing face masks under their chin, or not at all.
“Soon afterwards, the care home experienced a widespread outbreak of Covid-19.
“As the circumstances which led to this are now subject to a police investigation, we are unable to comment further on this.”
She said inspectors found “widespread and significant shortfalls in the way in which the service was led”.
“Residents were at risk of neglect and abuse because systems to monitor the quality of care were either not in place, or not operating efficiently,” she said.
The CQC would “continue to monitor the service closely, in conjunction with the local authority, to ensure that improvements are made and fully embedded”.
It was also meeting managers “to discuss how they plan to make the required changes to improve their rating and we will re-inspect to check the improvements have been made”.