KEARNEY, Neb. — The Nebraska Department of Health and Human Services (DHHS) is facing mounting scrutiny after a series of disturbing allegations surfaced involving staff at the Youth Rehabilitation and Treatment Center (YRTC) in Kearney. At least four current or former employees have been accused of inappropriate sexual contact with teenagers in state custody, with two staff members resigning, one on leave, and another now facing criminal charges.
Court documents reveal the allegations involve three different teenagers, raising what one public defender described as a possible “systemic problem” within the state-run facility. The revelations have prompted the Douglas County Public Defender’s Office to launch a full review of all cases involving its clients housed at Kearney’s YRTC — roughly 20 boys — to determine whether they should be moved to safer placements.
In one case, a 17-year-old reportedly engaged in a “relationship” with a 23-year-old staff member, while another 18-year-old claimed a different employee sexually assaulted him and exchanged explicit messages referring to him as her “future husband.” Despite internal investigations, court records indicate YRTC leaders failed to promptly inform judges, probation officers, or attorneys, drawing sharp criticism from Judge Amy Schuchman, who called the lack of transparency “disgusting and disturbing.”
During an October 8th hearing, DHHS compliance administrator Shaylee Fortner confirmed that multiple investigations were underway. She testified that one employee had been suspended, another resigned, and a third — identified as Martha Ruiz Palacios, 28 — has been charged with second-degree sexual abuse of a protected individual after allegedly having sexual contact with a 16-year-old boy between July 31 and August 2.
DHHS issued a statement reaffirming its zero-tolerance policy for sexual abuse and stated that all allegations are reported to law enforcement and the state’s Child Abuse and Neglect Hotline. However, testimony revealed that in at least one case, staff failed to directly notify external authorities for months.
Judge Schuchman has since ordered that all youth committed to YRTC facilities must appear in person for hearings with enough time to speak privately with their attorneys. The Nebraska State Patrol and DHHS continue to investigate, as concerns grow about the culture, oversight, and accountability at the Kearney center — one of only three such facilities in the state.
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