Conn Clients Remain In Limbo

      From the Associated Press:

As disbarred lawyer Eric Conn sits in a federal prison, hundreds of people in one of America’s poorest regions remain mired in the legal mess he caused by running a $600 million fraud, the largest Social Security scam in U.S. history. 

Many of Conn’s former clients in eastern Kentucky’s Appalachian mountains, who counted on him for help getting their disability benefits, could again lose their monthly support. 

About 1,700 people already went through hearings to prove their disabilities after his fraud was exposed about six years ago, and roughly half lost their benefits as a result. Some 230 of these recipients managed to get their benefits restored years later by court orders, only to learn they may have to prove it all over again. 

That’s the situation confronting Mary Sexton, who suffers from scoliosis and has had two brain surgeries, plus spinal surgery to fuse vertebrae in her neck. Her maladies have left her with a limp and other chronic symptoms including headaches, kidney problems and an inability to concentrate that forced her to quit college. 

A court order restored her $1,100-a-month disability benefit in November. But two months later, she received a letter from the Social Security Administration telling her she would have to appear before an administrative judge to prove she is legally entitled to them. ... 

In a statement to The Associated Press, the Social Security Administration said it is bound by law to “conduct redeterminations of entitlement when there is a reason to believe fraud or similar fault was involved in a person’s benefit application.” The statement said Conn’s fraud, exposed by two agency employees in a whistleblower suit, is “well-documented.” ... 

In a letter to the acting commissioner of the Social Security Administration, Rep. Hal Rogers said the agency has spent millions to deny relatively small sums to unwitting victims of a con job. “These individuals are the victims of fraud, not the perpetrators, and it’s time for their uncertainty and anxiety to end,” the Kentucky Republican wrote, arguing for a process that would keep them out of court.

GAO Report On Telework Security

      The Government Accountability Office (GAO) has issued a report on telework security at several agencies, including Social Security. The report is short on specifics, probably to avoid pointing out areas to attack, but Social Security comes in for mild criticism. I can’t tell whether it’s quibbles over the dotting of i’s and crossing of t’s or whether there have been substantive dangers.

65 Months For Former Social Security Employee

     From a press release:

A Saint Pauls, North Carolina woman, Stephanie Chavis, was sentenced today to 65 months in prison and three years of supervised release for wire fraud and aggravated identity theft.  Chavis was also ordered to pay $760,966 in restitution to the Social Security Administration.  On April 16, 2019, Chavis pled guilty to the charges. 

According to court documents and other information presented in court, Chavis was an Operations Supervisor at the Fayetteville offices of the Social Security Administration (SSA).  SSA administers monetary aid to the public through federally funded programs, including the Supplemental Security Income program (SSI), which authorizes monthly payments to qualifying individuals who are 65 years or older, blind, or disabled, and who meet certain income and resource criteria.

In her capacity as an Operations Supervisor, Chavis had access to SSA beneficiary accounts and associated personal identifying information (PII).  Between approximately August 2010 and April 2018, Chavis caused over $760,000 in SSI benefits to be electronically deposited into nine different bank accounts held in her name, and in the names of various family members, by making false and fraudulent representations to fellow SSA employees, including claims representatives and other supervisors.  ...

New FOIA Disclosures

      Social Security has uploaded a number of "proactive disclosures" to its Freedom Of Information Act (FOIA) reading room. Read and enjoy.

SSI Class Action

      A class action lawsuit has been filed in the Eastern District of New York dealing with the poor service that the Social Security Administration has afforded Supplemental Security Income claimants since the pandemic began, particularly in regard to how that poor service has created or increased overpayments and the agency’s inability to cope with the overpayments other than by seizing current benefits without giving the claimants involved a reasonable opportunity to request waiver of the overpayments.

     Overall, SSI claimants and recipients have fared horribly during the pandemic. Regardless of the merits of this lawsuit, they deserve much better.

Poll

survey software

CR Passed

      Congress has passed and the President has signed a continuing resolution (CR) that allows the federal government to continue operations and spending money at the same rate as in the fiscal year that ended at midnight last night. This goes through December 3. The Social Security Administration received no special treatment in the CR.

MDW Mess

     From a recent report by Social Security's Office of Inspector General:

Objective 

To determine the effectiveness of the Social Security Administration’s (SSA) controls for resolving high-priority requests sent via the modernized development worksheet (MDW) process.

Background 

Because SSA’s processing centers (PC), teleservice centers, and field offices have different processing roles and systems access, SSA employees are often required to contact other offices to request case processing assistance. Employees use MDWs, manually designated as either routine or high priority, to send requests for action to other field offices or PCs. Per SSA policy, high-priority MDW requests should be limited to situations that involve awards and disallowance of claims; start- and stop- payment actions; appeals; congressional inquiries; and public-relations issues. According to SSA’s policy, employees should follow up on unresolved high-priority requests after 20 calendar days. 

From SSA’s Processing Center Action Control System, we identified 121,376 benefit records with high- priority MDWs pending at PCs as of January 28, 2020. Of these, 82,439 (68 percent) had MDWs that were pending for at least 60 days. We reviewed a random sample of 100 benefit records with high-priority MDWs pending at least 60 days.

Findings 

SSA does not have effective controls for resolving high-priority requests sent via the MDW process. As a result, SSA made improper or delayed payments and inflated PC backlogs, which impeded efforts to improve customer service. For 51 of the 100 sampled benefit records, SSA did not resolve the high-priority MDWs or resolved them longer than 60 days after field office and teleservice center employees sent them to the PCs. ...

For the remaining 49 benefit records, employees (1) resolved the high-priority MDWs but did not clear them or (2) made incorrect inputs on MDW requests. We estimate SSA’s management information was inflated by over 40,000 high-priority MDWs, which further decreased the effectiveness of the MDW process. ...

     So much to unpack here. Note that the systems used by the payment centers, teleservice centers and field offices don't really talk with each other very well so Social Security had to come up with the MDW process but that's not really working so well. It sounds like the system has almost completely broken down if it ever worked to begin with. Even when the MDWs are "resolved", often there are errors in the "resolution." And, oh yes, note the special treatment for "public relations issues."

     This isn't a video game. Real people suffer lengthy delays in the payment of benefits owed them. Many of these problems never get resolved without frequent external pressure from attorneys representing claimants.