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Department of Labor Errors are Robbing the Unemployed out of Recovery Aid

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Starting January 1, 2011, the California Employment Development Department began paying me federal emergency unemployment compensation benefits incorrectly and illegally, based on a historic implementation error that the Department of Labor's Robert Wagner, Chief of Special Benefits is responsible for. His mistaken and illegal interpretation of the already existing federal "definition" for the "applicable benefit year" for the federal Emergency Unemployment Compensation Program (EUC08 73-99 weeks), led the Employment & Training Administration to publish a MISTAKE in the EUC08 Program "guidelines", starting August 15, 2008 in UIPL 23-08 change 1, Q&A #7 under section D. Monetary Eligibility ("Multiple EUC Claims").

This historic implementation mistake has caused millions of claimants to be improperly forced onto the remaining balances from older and terminated benefit years. This is often for a lesser weekly benefit amount and for less weeks of EUC payments than the MOST RECENT benefit year would have paid them if not for this mistake. EUC08 determinations are supposed to be made based on the state unemployment claim that has just been "exhhausted".

But the current federal EUC08 guidleines, issued to all states, contain mistakes in the Q&A sections, about "Multiple EUC Claims" that advise them to make determinations on the older and temrinated benefit year, after a claimant has already gone back to work and qualified for a new benefit year, creating "multiple claims" and forcing "improper payments", despite federal regulations and law that contradict this implementation error.

What they government is doing is telling people that they have to fully exhaust any leftover balance that remained on the older EUC08 claim, before than can be paid any money based on the newer most recent state claim that had just run out of unemployment benefits. This is madnes, and illegal, because the federal regulations for extended benefits at Title 20 Chapter V Part 615, refute how the EUC08 pogram is currently being implemented.

The Department of Labor's Robert Wagner has caused millions of claimants to have determinations for EUC08 based upon older and terminated EUC claims, when the federal regulations at 20 CFR 615.5(2) specifically state that there is NO entitlement to ANY remaining balances after people return to work again and qualify for a new state regular unemployment claim. This violates the law and has wasted billions of American Recovery and Re-Investment Act dollars (ARRA). Claimants for EUC08 have been forced out of benefits early and pushed into the "discouraged worker" category quicker than they would have been if the EUC08 program had been implemented correctly and in compliance with federal law and regulations.

The EUC08 Program is a vital part of the Recovery Act (ARRA), but it was implemented incorrectly almost four years ago.This historic EUC08 program implementation error has affected myself and millions of other unemployed struggling workers and families nationwide. The Economy has been denied billions of Recovery Act dollars because of this blunder. Every state has blindly followed the same mistake that was passed down from the federal Department of Labor through their "program guidelines". This has affected millions of claims for ARRA emergency designated funds. EUC08 determinations, payments and adjudication have all been affected by this serious error that contradicts the previous 1990s implementation of the exact same benefits (EUC08). It also violates the same federal regulations for these extended benefits that the Department of Labor wrote themselves.

The federal Department of Labor issues "unemployment insurance program letters" to ALL states nationwide so they can implement the billions of dollars allocated for the federal Emergency Unemployment Compensation Program (EUC08) under Public Law 110-252/111-205 and the American Recovery and Re-investment Act of 2009 (ARRA). Section 5 of the ARRA defines these funds as "an emergency requirement and necessary to meet emergency needs". EUC08 is part of the ARRA under Division B, Title II, Subtitle A, Section 2001.

It was the federal ERROR published in these federal guidelines that caused my state to pay me EUC08 benefits incorrectly and illegally in violation of federal regulations (picked up the remaining balance from an older EUC08 claim for much lesser funds and weekly benefit amount than the most recent benefit year I was in) . This implementation ERROR contradicts what the 1990s Department of Labor did with the same definitions and regulations (see scans of documents below).

I looked this all up online and was able to successfully challenge the State of California, and indirectly the federal Department of Labor Employment & Training Administration in California Unemployment Insurance Appeals Board Case No. A0-265448 on October 20, 2011. This decision REFUTED THE FEDERAL EUC08 POLICY MISTAKES and awarded me back $2786 dollars denied over 26 weeks. Now ANY AND ALL older and terminated benefits years that had left over EUC08 balances ARE IGNORED as they should be according to federal regulations (see below).

This case is very significant, because I directly challenged the ERROR that the federal Department of Labor Employment & Training Administration made, and published in UIPL 23-08 change 1+, that caused the California Employment Development Department to also make a faulty implementation of their state "Deferred New Claim Program", which shares the same FEDERAL ERROR IN IMPLEMENTATION, as does EVERY STATE nationwide.

Federal officials at the Department of Labor have made a historic implementation error in the EUC08 Program that violates three of their own federal regulations at Title 20 Chapter V Part 615. This affects millions of claimants for emergency benefits. This affects the Recovery Act (ARRA of 2009), the Improper Payments Act, The Inspector General Act, Public Law 110-252 and 111-205 (HR4213 that "Part Time Penalty EUC08 Fix"). This also affects the Unemployment Rate and the Extended Benefits last 20 Weeks of emergency aid (triggers for EB are based on the unemployment rate over a three month look back trigger). Billions of ARRA, state and federal dollars have been wasted implementing a recovery program that has serious errors and flaws that violate federal law and regulations.

The problem: the government has been exposed trying to subvert my efforts post appeal. I tried to make this case a precedent so other claimants nationwide would benefit from the same victory against the same ERROR they were affected by. The government ignored the precedent request and got caught (see scans below). They cut a secret deal to keep this out of court and pay me state funds to cover this up (see FOIA documents below that exposed this). They made illegal threats to end benefits for ALL California claimants if a precedent was set (see scans below). I have exposed this all and they still won't respond, especially before the election (the White House was notified about this last November 2011...see scans below).

This is not right. This is not legal. Millions of citizens have had their rights violated. The whistle blower who filed a recovery fraud complaint has been ignored and his efforts delayed and subverted (me). No agency will obey their legal obligation and oversight duty to investigate ARRA fraud and this irrefutable evidence. These are high crimes and abuse of authority by multiple state and federal officials. The Department of Justice and FBI are silent. The Recovery Accountability & Transparency Board refuses to respond nor explain. The Department of Labor won't respond nor will their complicit OIG, they won't take me to court and cannot come up with ANYTHING to refute this evidence with.

The government figures that the poor, struggling and unemployed have no power, so they intend to try to cover this problem up, and get away with it if they can. Even before the election.

We the People should not allow this to go on.Please sign the Petition as I continue to fight the government, to try to force them to obey their own laws and regulations, or seek to take them to court to sue them to do so. Millions of struggling workers and families need your help. So does our Economy, that has been denied billions of ARRA dollars due to this Malfeasance in Office before the Election.

As of 9/30/2012 the Department of Labor, and their Chief of Legislature, for the Office of Unemployment, Suzzanne Simonetta, have been unable and unwilling to attempt to refute my evidence and appeal victory. They could have taken me to Superior Court and had CUIAB Case A0-265448 overturned easily if they were correct. They are unable to explain, in writing their legal backing for the "Multiple EUC Claims ERROR". If they were correct, then they could provide the same legal detail that I have, from their own regulations and program letters. They have not and they cannot. They in fact refuse.

"Technical" Details:
Recovery Fraud Complaint RATB-2011-DOL-9DF2506-0
CUIAB Case No. A0-265448

(A) The Department of Labor published an implementation error in the Emergency Unemployment Compensation Program (EUC08).
(B) This error was published by the Employment & Training Administration in August of 2008, in UIPL 23-08 Change 1, in the Q&A section about "Multiple EUC Claims".
(C) "Multiple EUC Claims" does not comply with 20 CFR 615.5(2). What they advise all states to do violates regulations and laws.

If you are a scholar and researcher of the American Recovery and Reinvestment Act of 2009 (ARRA), then you might want to look into Division B, Subtitle II section 2001, the Emergency Unemployment Compensation Program (EUC08).

The Department of Labor Employment & Training Administration published an error in their EUC08 guidelines Q&As that they issued to all state agencies starting in August of 2008. The Q&A about "Multiple EUC Claims" does not comply with 20 CFR 615.5(2) the "definition of an exhaustee".

What this does is force claimants for EUC08 to "finish off" any remaining balance leftover from any older benefit years EUC08 claim first, before being allowed to start receiving payment for EUC08 based on the most recent benefit year.

1. A Teacher becomes unemployed in 2008.

2. She qualifies for and runs through a 26 week state regular compensation unemployment claim for $81/week based on a part time temp job.

3. She then becomes an "exhaustee" and qualifies for EUC08 at the same $81/week in late 2008 (99 weeks total available on this claim back then).

4. This claimant only uses up 5 weeks at $81/week but she has a 95 week still available when she returns to a much higher paying job again.

5. The EUC08 claim stops payment and ends (according to 20 CFR 615.5(2)).

6. When she loses her job again in 2009, and she goes back onto a new state regular unemployment insurance claim for 26 weeks. This time she qualifies for $450/week. This claim is available for 52 weeks. In her case she started in August of 2009 and the state claim ends in August of 2010.

7. When she runs out of this 26 weeks of state aid for the second time now in early 2010, she becomes an "exhaustee" again for federal EUC08, and the "Multiple EUC Claims" error START (see link for (B) below).

8. Instead of paying her a new 99 week EUC08 claim, based on the 2009-2010 $450 week state claim she just finished, the "Multiple EUC Claim ERROR", incorrectly instructs the states to put her back on the old EUC08 claim from 2008-2009 claim at $81/week for the remaining 95 weeks.

9. This means that when the new benefit year she just entered that paid her $450/week ends in 52 weeks, she will still be stuck on the older $81/week EUC08 claim. She then loses eligibility to the $450/week claim (August 2010).

10. Also when she crosses the last state unemployment claims 52 week benefit year end in August of 2010, she WILL FAIL the Public Law 111-205/HR4213 eligibility test because she is being paid EUC08 from the old 2009 claim and not the 2010 one that would make her eligible for this important law as well. This law requires that the claim she has ENDS after July 22,2010. The old 2009 one does not, but the 2010 one she should have been paid on does (if 20 CFR 615.5(2) had been followed and "Multiple EUC Claims" had been ignored). So she may be forced off the $81/week federal EUC08 and be forced on to a new even lesser state claim for another 26 weeks. On and on...

It is just complicated enough that the feds think we are too dumb to figure this out. That almost worked too. Much less federal aid has been paid out for far shorter time periods due to these errors. You can compare and research the ERROR that the DOL ETA made in these links here (just like I did and used to win my appeal case with):

Here's the problem with the EUC08 program:
(A) Look up the Department of Labor Operating and Implementing Instructions for EUC08:
EUC08 Program pre-errors definition of an "exhaustee"

(B) Then look up what the DOL issued just a month later and pay attention to Section D. Monetary Eligibility, Q&A (7) "Multiple EUC Claims":
EUC08 Program errors begin with this Q&A

(C) Then compare that to the DOL's own regulations for Federal State Extended Benefits at 20 CFR 615.5(2), and the definition of an "exhaustee" found here at (C) is the same as (A):
20 CFR 615.5 (C) Refutes what (B) says and supports (A)

The California Unemployment Insurance Appeal Case I won on 10/20/2011, pointed this same problem out. Case No. A0-265448 prevailed in support of 20 CFR 615.5(2) over the Q&A "Multiple EUC Claims ERRORS" that the Department of Labor published.

So there actually is a harmful and wasteful implementation error mistake in the "Stimulus". Further details can be found here (based on the appeal case mentioned):

an ARRA Implementation Error Exposed

Here is the Recovery Fraud Complaint RATB-2011-DOL-9DF2506-0, that the Recovery Accountability & Transparency Board has "buried", and that the Department of Labor is "ignoring" (they are the "accused party in this complaint").

As for the Obama Administration that is seeking re-election...they got involved in this mess too:

Mr. President there is a serious problem with the EUC08 program

Welcome to our 21st Century Watergate

That teacher is just one example. In her case she would be owed the difference between the $450/week EUC08 she should have been paid, and the $81/week she was paid by mistake due to the "Multiple EUC Claim" ERROR.

If she was denied these emergency designated funds for just 26 weeks (the other half of a state benefit year), then she is owed $450-$81 = $369 x 26 weeks of denial = $9594.00 (my appeal paid me back $2786 dollars from a lesser denial over the same time period).

The feds and state wanted to overturn my case but have not been able to since last October 2011. They are ignoring these problems that may have affected many of these claims over the past four years:

Since 2008 there have been 29,748,954 EUC08 Claims (for all tiers) that have paid a combined 663,688,610 weeks of benefits. The amount spent so far = $97,433,246,688 for EUC08 benefits to present day.

How much money do you think has been wasted if just 1% of those claims have similar problems?

1% of 29,748,954 claims = 297489.54 claims. If just 297,489 claims were affects by the "Multiple EUC Claims ERROR", by denial similar to my appeal case (A0-265448):

$2786 over 26 weeks denied x 297489 claims affected by the "Multiple EUC Claim ERROR" = $828,804,354 !
This is just a low estimate...its much worse than the billions easy...just plug in the $9594 that the teacher was owed in the example above, and it jumps to $2,854,109,466! Now factor in 4+ years of this on all those claims...

If more than 1% have been denied or overpaid...that number is too big and too scary to think about. Maybe that's why the Obama Administration has been trying to subvert my efforts and wants to dodge this hard question before the election? If I were wrong, then why can't the feds refute my appeal victory after almost one year?

Recovery Fraud Complaint RATB-2011-DOL-9DF2506-0 is based on that appeal victory and the errors it exposed. I filed that in March/April of 2012 and it remains unanswered and unchallenged. My Appeal Case A0-265448 still stands.

The Obama Administration can neither refute my evidence nor figure out what to do about this before the election (other than delay and cover up).

Help me stop this. The government is trying to rob millions of unemployed struggling workers and families out of ARRA emergency designated funds. This money would go into the struggling economy as well, so it affects all of us indirectly, especially millions of struggling workers and families.

Meanwhile these criminals, who have committed ARRA fraud to hide their historic EUC08 implementation errors, walk free, while millions of unemployed struggle to survive without the emergency designated funds they were promised BY LAW:

Robert Wagner - Chief of Special Benefits DOL

Suzanne Simonetta - Legislature Chief Division of Unemployment DOL
Dale Ziegler - Unemployment Insurance Division DOL
Gay Gilbert - Employment & Training Administration DOL
Hilda Solis - Head of the Department of Labor DOL

Eder Marcus - DOL OIG

Robert Coyle - DOL OIG
Freddie Howell - DOL OIG
Daniel Petrole - DOL OIG

Donald Cox - RATB

Pam Harris - California EDD

Robert Dresser - California Unemployment Insurance Appeals Board
Alberto Roland - California Unemployment Insurance Appeals Board
Mark Woo Sam - California Workforce
Marty Morgenstern - California Workforce

(all are free and still collecting a paycheck from uncle sam and you are footing the bill with your taxes for their malfeasance in office and ARRA fraud, abuse, waste and harm being committed against our Economy and Citizens while nobody except me investigates. Most of these individuals have "lawyer'd up" and told me so in writing (like the CUIAB judges and EDD). Recent FOIA attempts have been violated, but the last round they accepted showed around 50+ documents per agency being redacted due to "attorney client privilege" ).

Scans of ALL Documents can be found here (and below in the NEWS Section):


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