Ex-DETR adjudicator says agency deliberately delays claims

Tens of thousands of desperate, out of work Nevadans are counting on a judge to force the state's unemployment division to pay benefits to people who haven't gotten any CARES Act money yet.

DETR...APPOINTED A "SPECIAL" MASTER TOINVESTIGATE THE UNEMPLOYMENTAGENCY.TONIGHT...THAT INVESTIGATOR FOUNDMULTIPLE PROBLEMS WITHAPPROVALS...AND WHAT THE AGENCY CONSIDERSFRAUD.A RULING IN THE CASE COULD COMEAS SOON AS MONDAY.AS WE WAIT FOR AN OUTCOME INTHAT LAWSUIT AGAINST DETR...WE GET A FIRST HAND LOOKINSIDE THE AGENCY UNDER SOMUCH PRESSURE.13 CHIEF INVESTIGATOR DARCYSPEARS TALKS TO A RETIREDEMPLOYEE WHO SAYS..."DON'T BELIEVE ALL THEEXCUSES"...15:30 LAURA: BROKEN...AND SAD.THAT'S HOW FORMER DETRADJUDICATOR LAURA FEHERDESCRIBES NEVADA'S UNEMPLOYMENTSYSTEM.THOSE WHO COUNT ON IT KNOW JUSTWHAT SHE MEANS.46:48 TABITHA ASARE: I THINKIT'S DISGUSTING THAT LIKE,TAXPAYERS, YOU KNOW, PEOPLE WHOARE THE BACKBONE OF THE ECONOMYHAVE TO GO THROUGH THOSE GREATLENGTHS JUST TO RECEIVE WHAT ISALLOTTED TO THEM.40:09 SCOTT HOWARD: AND I JUSTWANT SOME TRANSPARENCY ANDACCOUNTABILITY.DON'T COUNT ON EITHER ONE, SAYSFEHER.15:31 LAURA: IT'S JUSTCORRUPTED.SHE RETIRED FROM NEVADA'SDEPARTMENT OF EMPLOYMENT,TRAINING AND REHABILITATION IN2019...AFTER 10 YEARS AS ANADJUDICATOR.10:28 LAURA: AFTER WORKING FORUNEMPLOYMENT FOR SO MANY YEARS,I ALWAYS SAID 'IF IT'S LOGICALOR REASONABLE, UNEMPLOYMENT ISNOT GOING TO DO IT.'

AND IT'SUNFORTUNATE, BUT IT'S TRUE.SHE SAYS THE CURRENT SITUATIONWITH PANDEMIC UNEMPLOYMENTASSISTANCE, OR PUA, IS EVIDENCEOF THAT.4:51 LAURA: IT'S EVEN WORSETHAN THE REGULAR UNEMPLOYMENT4:51 LAURA: IT'S EVEN WORSETHAN THE REGULAR UNEMPLOYMENTSYSTEM.IT'S COMPLETELY MESSED UP.SOME OF THE INFORMATION THATTHEY ASK FOR DOESNOT APPLY TO SELF-EMPLOYED ORGIG WORKERS!

AND IT'S EXTREMELYDIFFICULT TO GET THROUGH IT.TENS OF THOUSANDS OFSELF-EMPLOYED AND GIG WORKERSHAVE BEEN WAITING MONTHS WITHNO MONEY, EVEN AFTER BEINGFOUND ELIGIBLE FOR BENEFITS.THE CURRENT CLASS ACTIONLAWSUIT SEEKS TO FORCE A FIX,BUT FEHER AND STEVEZUELKE--ANOTHER FORMER INSIDERWESPOKE TO--8:54 STEVE: I THINKTHERE'S BEEN SOME EXCUSES THATHAVE BEEN MADE--SAY DETR'SDEFENSES TO THE LAWSUIT DON'TPASS THE SMELL TEST.4:59 LAURA: THEY'RE SAYING THATIT'S TAKING LONGER BECAUSETHEY'RE AFRAID OF FRAUD, WHICHIS SUCH A FALLACY!

NUMBER ONE,THERE'S ALWAYS BEEN FRAUD.OK?

AND THERE'S A WHOLEDEPARTMENT THAT WORKS FRAUD.13 INVESTIGATES FOUND SOME OFDETR'S PROBLEMS MAY BESELF-INFLICTED.CAUSED BY SOFTWARE GLITCHESTHEY WRONGLY BLAME ONCLAIMANTS.FOREXAMPLE, DETR CITED A FRAUDCONCERN AFTER A SUDDEN UPTICKIN NEW CLAIMS COMING AFTERA SYSTEM GLITCH WIPED OUTPEOPLES' CLAIM HISTORYFORCING THEM TO REAPPLY.16:29 D: YOU HAVE USED THEWORDS 'SYSTEMIC INCOMPETENCE'TO DESCRIBE DETR.YOU BELIEVE THAT THAT'S THECASE?

LAURA: OH, I DO.ABSOLUTELY.AFTER ASKING ABOUT THE "NEWCLAIM" ISSUE FOR WEEKS, WEFINALLY GOT A RESPONSE FROMDETR ACKNOWLEDGING THAT IT WASTHEIR ERROR.THEIR STATEMENT SAYS, "WEWORKED WITH THE VENDOR ININVESTIGATING AND ADDRESSINGTHIS MATTER.THIS ISSUE WAS NOT UNIVERSAL TOALL USERS" AND WAS RESOLVED"WITH NO LOSS OF CLAIMANTINFORMATION." 2:34 LAURA:THEY CHANGE THE RULES AS THEYPLEASE, TO PLEASE THEM.ANOTHER POTENTIAL FRAUDFALLACY?

DETR TOLD THE COURTTHAT CLAIMS BACKDATED TOFEBRUARY WERE A SIGN OFPOTENTIAL FRAUD.BUT THE AGENCY ITSELF GAVEELIGIBLE PEOPLE THE OPTION TOBACKDATE TO THE WEEK OFFEBRUARY 2.STILL, THEY FROZE THE CLAIMS.7:16 LAURA: I DON'T KNOW WHATKIND OF FRAUD THEY'RE TALKINGABOUT; I JUST THINK IT'S ANEXCUSE NOT TO PAY PEOPLE.ANOTHER DETR RED FLAG IS "OUTOF AREA IP ADDRESSES." BUTACCORDING TO THE LAWSUIT, DETRFAILS TO ACKNOWLEDGE A COMMONNETWORK FEATURE THAT INSERTSFICTITIOUS IP ADDRESSES FORSECURITY REASONS.4:04 LAURA: IT'S A TYPICALBUREAUCRATIC-THEY TRY TO MAKETHINGS SO THAT THEY THINKTHEY'RE MAKING THEMSELVES LOOKGOOD AT THE EXPENSE OF THEPEOPLE THAT ARE SUPPOSED TO BETRYING TO BE HELPED.DETR CONTINUES TO CITE FRAUD,BUT WON'T SAY HOW MANY FRAUDCASES THERE REALLY ARE OR HOWMUCH MONEY HAS ACTUALLY BEENLOST TO FRAUD.THEY SAY THEY CAN'T COMMENT "INORDER TO MAINTAIN THE INTEGRITYOF THESE INVESTIGATIONS."5:18 LAURA: MOST OF THE PEOPLETHAT COMMIT FRAUD ARE VERY,VERY SAVVY ON HOW TO DO IT.YOU'RE DEALING WITH A SITUATIONRIGHT NOW WHERE YOU HAVE PEOPLETHAT ARE NOT REALLY SAVVY, THATARE JUST TRYING TO HELP THEIRFAMILIES GET SOME ASSISTANCETHAT THEY WERE TOLD THEY'D BEABLE TO GET!

THE LAWSUITSAYS, "DETR'S METHOD OFOPERATION IS 'EVERYONE ISGUILTY UNTIL PROVEN INNOCENT.'MEANWHILE, PEOPLE LOSE THEIRHOMES, FAMILIES, SANITY,SELF-WORTH AND BECOME AN EVENBIGGER DRAIN ON NEVADA'SBECOME AN EVEN BIGGER DRAIN ONNEVADA'S ECONOMIC RECOVERY."FEHER SAID DETR HAD THE CHANCETO GET AHEAD OF THE GAME WHENTHEY SPENT $40 MILLION DOLLARSON A COMPUTER SYSTEM UPGRADESEVERAL YEARS AGO.2:24 DARCY: SO WHAT DID WE GETFOR THAT $40 MILLION DOLLARS?LAURA: WE GOT A TERRIBLESYSTEM.ONE SHE CALLS CONFUSING,CONVOLUTED, AND FULL OFDELIBERATE DELAYS DESIGNED TOMAKE CLAIMANTS GIVE UP.3:35 LAURA: I THINK IT'SDEFINITELY SET UP TO SET UPROADBLOCKS AND TO MAKE ITEASIER TO DENY.THE LAWSUIT ECHOES THAT, SAYINGDETR "USES A SYSTEMATICCAMPAIGN TO DENY BENEFITSRATHER THAN APPROVE THEM." 9:00LAURA: THEY WANT TO JUST KEEPAS MUCH MONEY AS THEY CAN,LET'S FACE IT.BUTT TO 17:10 IT HAS TO DO WITHFEHER SAYS THE ONE PERSON WHOCAN MAKEA DIFFERENCE IS ALSO FAILINGNEVADA FAMILIES.8:23 LAURA: IF SOMEONE FROM THEGOVERNOR'S OFFICE CALLS SOMEONEFROM UNEMPLOYMENT...(BUTT TO 8:37) THAT'S WHENSOMETHING HAPPENS.BUT GOVERNOR STEVE SISOLAKCONTINUES TO DEFEND DETR,SAYING THEY'RE OVERWHELMED ANDDOING THE BEST THEY CAN.FEHER BELIEVES HE'S TRYING TOSAVE FACE AFTER FAILEDAPPOINTEES AT THE AGENCY'SHELM.9:28 LAURA: PEOPLE ARESUFFERING.IF YOU REALLY WANTED TO GETSOMETHING DONE, WHY DIDN'T THEYHIRE SOMEONE WHO ACTUALLY KNEWSOMETHING ABOUT UNEMPLOYMENT?SHE AND STEVE ZUELKE SAY LACKOF EXPERIENCED LEADERSHIP HASCONTRIBUTED TO THE CURRENTCRISIS.31:45 STEVE ZUELKE: NOT ONLY INTHE FACE OF A LAWSUIT BUT INTHE FACE OF HUMANITY, IN THEFACE OF TENS OF THOUSANDS OFPEOPLE THAT ARE LOSINGEVERYTHING BECAUSE OF SYSTEMINEFFICIENCIES AND LACK OFSTEADY LEADERSHIP, THAT SOMEONEWOULD COME IN AND SAY WE NEEDTO PULL OUT ALL THE STOPS.LAURA FEHER HAS A SIMPLEMESSAGE FOR HER FORMEREMPLOYER.20:27 LAURA: GET YOUR ACTTOGETHER.TAKE CARE OF YOUR PEOPLE AND DOWHAT YOU'RE SUPPOSED TO DO.DARCY STAND-UP TAG: A NEWPLAINTIFF'S MOTION FILEDTHURSDAY ASKS THE COURT TOORDER DETR TO PAY ELIGIBLECLAIMS IMMEDIATELY...NOTING THERE'S NO APPEALPROCESS AVAILABLE, EVEN THOUGHDETR SAYS THERE IS.WE'LL LET YOU KNOW THE JUDGE'SDECISION ON MONDAY.DARCY SPEARS, 13 INVESTIGATES.DETR IS REPORTING ITS THIRDCONSECUTIVE WEEK...OF INCREASES IN