Los Angeles Times

Critics see ‘major fraud’

- jack.dolan@latimes.com Twitter: @JackDolanL­AT gus.garcia-roberts @latimes.com Twitter: @GGarciaRob­erts ryan.menezes @latimes.com Twitter: @ryanvmenez­es

jury leaves within six months, according to the newspaper’s review of city payroll data and workers’ compensati­on records. Two started leaves on the very next shift, and many didn’t wait much longer. Among them: Los Angeles Police Department Det. Ysaias Valdez, who had previously filed at least nine workers’ compensati­on claims and taken a year off for a knee he hurt standing up from his desk, entered DROP in June 2014. He worked three more shifts before taking another year off for cumulative trauma to his hips, buttocks and tailbone, city payroll and workers’ compensati­on records show. In October 2016, he began a third yearlong injury leave after hurting his back lifting a case of paper at the office. A notation in the records blames the injury on “Lack of Knowledge/Skill/Training.”

Valdez, who has been paid $560,000 for the time off since 2008, did not respond to requests for comment. His attorney, Julie Sherman, said she was unable to discuss details of her clients’ cases.

“The vast majority of LAPD officers love their jobs and want to return to them as quickly as possible,” Sherman added, blaming their long absences on the city’s failure to approve timely medical treatment.

Fire Capt. Donna Lee’s job history includes long leaves for ankle injuries suffered playing volleyball onduty and horsing around with co-workers while washing dishes at the fire station, according to workers’ compensati­on and court records.

She entered DROP in 2012, worked three more shifts, and then spent roughly half of the next five years out on injury leaves. The most recent began last April after she said a computer hard drive fell off a desk and struck her right ankle but also injured her left knee, left hip and lower back, workers’ compensati­on records show.

The city paid Lee more than $1.2 million while she was in DROP, including $579,000 for the time off, according to the payroll data. Lee could not be reached for comment. In an email, her attorney, Amanda Deering White, said Lee’s injuries were numerous and extensive but she declined to comment further.

Before entering DROP in 2013, Daniel McEleney, who worked on fire boats in the Port of Los Angeles, had already filed multiple claims for back and knee injuries he suffered stepping on and off the vessels. After joining the program, he worked four more shifts, then underwent back surgery for an old work injury he had aggravated two years earlier lifting a suitcase at the end of an Alaska cruise. He took 14 months off to recover, payroll records show.

Shortly after McEleney returned to work, he hurt his knee again stepping off a boat and missed another five months. His injuries kept him from working for the city while in DROP but did not keep him from working part time as a longshorem­an at L.A. Harbor, according to a notation in the records from one of his doctors.

McEleney did not respond to multiple requests for comment. His attorney, Gold Lee, said that he didn’t know any details of McEleney’s reported work as a longshorem­an and that he couldn’t comment on his case.

Details of job-related injury claims, which are normally confidenti­al, become public if the case is contested and either party introduces records, such as medical reports, as evidence before the state Workers' Compensati­on Appeals Board. Because the city employees and attorneys mentioned in this story declined to discuss specifics of their cases, The Times relied on the city’s copies of those records. It’s unclear if any of the employees had other injuries not mentioned in the files.

‘This is total abuse’

Fifteen years ago, former City Councilman Dennis Zine, a retired LAPD sergeant, was one of the first city officials to publicly sound the alarm that employees in the DROP program were going on lengthy injury leaves. His warnings went unheeded.

“This is total abuse of the DROP system,” Zine said when presented with The Times’ findings. By allowing cops and firefighte­rs to routinely take such long injury leaves while in DROP, the city “is cheating the people out of public service,” Zine said.

Bernard Parks, who was police chief when the program was created, said he was shocked to learn of the one-day rule. He said he thought officers had to be working “full duty” the entire time they were in the program.

Any rule that allows them to collect twice their usual pay while not working constitute­s “a major fraud against the public,” Parks said.

Jessica Levinson, an L.A. city ethics commission­er and Loyola Law School professor, said the one-day rule “just doesn’t strike me as a straight-faced solution. It’s like a flashing red light saying, ‘loophole ahead.’ ”

Review sought

Five Los Angeles City Council members called for a sweeping review of DROP after a Times investigat­ion, published this month, found that nearly half of participan­ts from July 2008 to July 2017 had taken injury leaves, often for cumulative injuries like sore knees, carpal tunnel syndrome, and high blood pressure.

Under state law, many ailments that afflict aging bodies regardless of profession — including heart trouble, cancer, and back pain — are presumed to be job-related for public safety officers.

The Times’ computer analysis of tens of millions of city payroll and pensions records also found that once in DROP, cops and firefighte­rs were nearly twice as likely to miss work for injury, illness or paid leave. The average absence was 10 months, but hundreds stayed out for more than a year. The city paid more than $220 million in salary and pension to DROP participan­ts for the time off.

Since the program’s inception in 2002, cops and firefighte­rs have received more than $1.6 billion in extra pension payments, The Times found.

Councilman David Ryu is among those calling for a thorough review of the program. “We cannot defend the indefensib­le. It is clear from [the Times’] investigat­ion that abuses of disability leave must be eliminated.”

Villaraigo­sa termed out of the mayor’s office in 2013. He’s now running for governor with the endorsemen­t of the largest law enforcemen­t labor organizati­on in the state, the Police Officers Research Assn. of California. He declined to be interviewe­d for this story.

In a written statement, his campaign spokesman, Luis Vizcaino, said Villaraigo­sa had not been aware of the number of first responders taking long injury leaves while in DROP.

Asked whether Villaraigo­sa realized the reform measure he signed required DROP participan­ts to work only one day, Vizcaino declined to answer.

Vizcaino also would not say whether Villaraigo­sa thinks it’s acceptable for police and firefighte­rs to receive double pay while out on extended injury leaves.

Dropped elsewhere

Many cities and states across the country have experiment­ed with DROP in the last three decades on the theory that pension payments that begin earlier are usually smaller so the cost to the employer will be offset over time. But in recent years, a growing number of jurisdicti­ons, from San Diego to Alabama, have abandoned those programs because they found that the costs were not being offset. In most cases, that’s without calculatin­g the added cost of time missed for injury leaves by DROP participan­ts.

San Francisco instituted a simple rule to prevent long injury leaves in DROP: it suspended pension payments for employees while they received temporary disability payments. But the city still found the program too expensive and discontinu­ed it within three years.

Los Angeles’ DROP program was created after voters approved a ballot measure that promised “no additional cost to the city.” It was supposed to sunset after five years.

But while other local government­s were publicly disavowing DROP programs in the late 2000s, elected officials in Los Angeles made it permanent and added the requiremen­t, without public debate, that participan­ts be on active duty on the day they entered the program. Former Fire Capt.Steve Tufts, a leader of the firefighte­rs union at the time, said in a recent interview that he and a representa­tive from the police union had proposed the rule in order to satisfy city officials’ concerns about long injury leaves.

“We understood how the city was looking at it,” Tufts said. “They didn’t want someone to go into the DROP and then get paid to never work.”

Done in 17 seconds

It took then-City Council President Eric Garcetti 17 seconds to introduce the measure and to get it approved 11 to 0 by his colleagues on Nov. 4, 2008 — a day when most political observers would have been distracted by the election of Barack Obama as the first African American president.

Garcetti has since become mayor.

Asked in an email whether Garcetti realized the measure he shepherded through the City Council in 2008 required participan­ts to put in only one day of active duty, his spokesman, Alex Comisar, sidesteppe­d the question. “The Mayor voted for an amendment to the DROP program that requires participan­ts to be on active duty at the time of enrollment,” he wrote.

Asked whether Garcetti now supports eliminatin­g DROP, Comisar replied, “No.”

In a general statement, Garcetti praised police and firefighte­rs, “who put their lives on the line every day to protect our safety.”

“We are always looking for ways to improve City policies,” he added, “and if any abuse of this program exists, we will move to fix it."

Robert Stern, a political reform advocate who was formerly president of the Center for Government­al Studies, said he was not surprised that City Hall rubberstam­ped a union-conceived provision that didn’t actually prevent abuse of the DROP program.

“It would take a very brave council member to take them on,” Stern said of union leaders. “It’s much easier to go along with them than it is to buck them. You don’t want to be running for election and face the wrath of the police and fire unions.”

 ?? Kirk McKoy Los Angeles Times ?? FORMER Police Capt. Daryl Russell collected $1.5 million over five years in the Deferred Retirement Option Plan. Five City Council members have called for a review of DROP in response to The Times’ investigat­ion.
Kirk McKoy Los Angeles Times FORMER Police Capt. Daryl Russell collected $1.5 million over five years in the Deferred Retirement Option Plan. Five City Council members have called for a review of DROP in response to The Times’ investigat­ion.
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