Four different employees at the Kearney Youth Rehabilitation and Treatment Center are alleged to have had inappropriate sexual contact with teenagers in custody at the center. Prosecutors have charged one of those employees with sexual abuse of a protected person. (Lori Potter for the Flatwater Free Press)

At least two staff members at the juvenile treatment center in Kearney have resigned, another is on leave, and a fourth faces a criminal charge in connection with allegations of inappropriate sexual contact with teenagers in state custody.

Two of the cases involve months-old allegations, revealed in recent court proceedings. They have sparked concerns about a potential “systemic problem” at the center and prompted the Douglas County Public Defender’s Office to start reviewing its cases involving clients housed at the center.

In one teen’s case, a judge wrote that she was “disgusted and disturbed as to the lack of transparency in this matter.” She ordered the state to relocate the teen to a different center. And she directed all juveniles at state centers with cases before her to appear in person with enough time for private conversations with their lawyers.

The recent court filings and proceedings have referenced at least four current or former Kearney staff members in connection with incidents involving three teens at the center.

In a statement, the Nebraska Department of Health and Human Services, which operates the state’s youth centers, said it takes every allegation seriously and investigates every claim of abuse.

“DHHS has a zero-tolerance policy towards all forms of sexual abuse, sexual harassment or sexual assault. Staff are required to cooperate fully with investigations when allegations are made.”

The allegations, though, proved extensive enough that Douglas County Public Defender Tom Riley said lawyers in his office will examine the treatment of the county’s juveniles housed there — approximately 20 boys — to determine if they want alternative placement.

“Given the very disturbing information that’s come out over the last week and a half or so, it appears that there could be a systemic problem at Kearney,” Riley said.

Kearney is one of three Youth Rehabilitation and Treatment Centers, or YRTCs, that serve juvenile offenders 14 through 18 years old who are placed there by the courts.

Court records show that Douglas County Juvenile Court Judge Amy Schuchman learned during a mid-September hearing that a 17-year-old at the Kearney center had been “in a relationship” with a 23-year-old staff member.

Later that same month, Schuchman learned that an 18-year-old at the same center had disclosed “incidents of sexual assault” by a different staff member, according to a court order.

In both cases, YRTC leaders learned of the alleged misconduct months earlier, but the state didn’t disclose it to probation officials, the boys’ attorneys or the judge.

In the 18-year-old’s case, March emails between YRTC staff and the Nebraska State Patrol showed a cellphone was found with “nude pictures and videos of youth at the facility” and “nude content” from a female staff member, according to an order.

Riley said it appears the employee provided the phone to several teens at the center.

Text messages showed “inappropriate text communication for an ongoing period of time,” with the woman referring to the teen as her “future hubby” and asking whether he’d live with her after he was released. (The staffer is not being named in print, because she has not been charged with a crime.)

The state didn’t disclose any of that information, though the teen had appeared in court in July for an unrelated hearing, according to the court order.

“This Court is disgusted and disturbed as to the lack of transparency in this matter and cannot say that continued commitment to the YRTC at this time would” be in the 18-year-old’s best interest, Schuchman wrote.

The staff member has resigned from the YRTC, according to court proceedings.

In the 17-year-old’s case, YRTC officials substantiated allegations in April. Evidence included a “sexually graphic written conversation” and “sexually graphic videos” between the teen and staff member.

But the center didn’t report the allegations directly to law enforcement and — despite knowing about the allegations at the time of an earlier hearing — it didn’t report them to probation until just before the September hearing.

In both cases, Schuchman ordered the state to move the boys to another facility. On Oct. 2, she issued a broader order requiring that any youth committed to a YRTC be transported to court for their hearings with “ample time for them to consult with their attorneys” and other adults.

At a hearing Wednesday, lawyers and Schuchman pressed DHHS staff about the department’s handling of the 17-year-old’s case.

The staffer initially reported the teen for inappropriate touching, according to Shaylee Fortner, a DHHS facility compliance administrator. (The staffer has not been charged with a crime.)

Within days, a compliance manager reviewed the graphic note and video surveillance, the staff member was placed on paid suspension and she resigned, according to DHHS staff testimony. After further investigation, the compliance manager contacted the Child Abuse and Neglect Hotline, according to Fortner.

“I do not believe my team directly notified anybody else, externally,” she said.

An internal, non-criminal investigation determined the staff member had merely allowed inappropriate contact with the 17-year-old to continue for too long before reporting it, according to Fortner. YRTC’s determination didn’t change as more information surfaced, though Fortner said her office contacted the hotline a second time.

YRTC Kearney reprimanded the 17-year-old, giving him a “major violation for sexual harassment,” which was reported to his attorney and others in a monthly progress letter. The letter didn’t mention any details of the allegations or relationship with the staff member, according to testimony.

When the 17-year-old’s lawyer called his client’s living unit manager, Steven Huffman, to ask about the incident, Huffman told the lawyer that he wouldn’t believe anything the boy said. At the time of the phone call, Huffman had already seen the video surveillance and graphic note.

In court, the boy’s lawyer asked Huffman why he said that he shouldn’t believe his client.

“I really don’t have an answer for you,” Huffman responded.

As a result of the incident, Huffman said he now does more training with new employees about boundaries.

Under state law, it’s a felony to subject someone in DHHS custody to sexual contact. Consent is not a defense. DHHS’s own policy requires the YRTC to contact the State Patrol if evidence supports criminal prosecution, according to testimony.

But Fortner, the DHHS facility compliance administrator, said the video footage only substantiated allegations that the youth touched the staff member.

“We reviewed … copious amounts of video, and we only ever found incidents of him touching her inappropriately outside of the clothing,” Fortner said.

Under questioning, though, Fortner acknowledged that the video showed the staff member smiling and laughing while the teen touched her. And Fortner confirmed that the confiscated note included the staff and youth talking about sex acts and her writing that she likes it when he’s jealous.

Judge Schuchman asked Fortner: “You’ve said several times that, when you reviewed video, you only found incidents of (the youth) touching the staff. But are you aware that that could also be a crime? That sexual contact, as defined by the Nebraska statutes, can be the touching by the victim of the actor’s sexual or intimate parts or the clothing covering it — are you aware of that?”

“I would have to say no,” Fortner replied.

Denis Lemus, the teen’s attorney, said in an emailed statement that progress reports often include that children need to take accountability for their actions rather than avoid negative consequences. It seems the center doesn’t “practice what it preaches,” he said.

“The offending staff member was allowed to resign, while they used the incident as the catalyst to set back my client’s progress at the facility, thereby prolonging his stay,” Lemus said. “I am disheartened, and frankly sickened, that the YRTC seems more concerned with trying to protect [its] reputation than trying to protect the children in their care.”

In its statement, DHHS said it complies with requirements and procedures laid out in state and federal law and adheres to standards set by the American Correctional Association.

Once abuse is reported, the department immediately separates the teen from the implicated staff member, who is escorted off the property, according to DHHS. The teen is provided immediate medical and mental health care, and the department reports each case to the abuse and neglect hotline. Reports are sent to law enforcement for investigation. The department cooperates with the Nebraska State Patrol and follows protocol to notify the Office of Inspector General and probation.

Two additional cases surfaced during the questioning Wednesday.

Fortner said she very recently learned that a confidential reporter had called the child abuse hotline alleging inappropriate sexual contact between the same 17-year-old and another Kearney staffer. It prompted a new investigation and alert to the State Patrol, Fortner said. That staffer is now on paid suspension, according to Fortner.

And in September, authorities charged former Kearney YRTC staff member Martha Ruiz Palacios, 28, with second-degree sexual abuse of a protected individual. Court filings allege she had sexual contact with a 16-year-old at the center sometime between July 31 and Aug. 2. Ruiz Palacios’ employment with the department ended Aug. 4, according to DHHS. She is scheduled to appear in court Oct. 17.

At one point during Wednesday’s hearing, Schuchman asked Fortner how many staff members since March 2025 had resigned or been fired due to “inappropriate sexual allegations.”

Fortner said she didn’t know.

The Flatwater Free Press is Nebraska’s first independent, nonprofit newsroom focused on investigations and feature stories that matter.

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