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Abraxas I Youth and Family Services Center, Marienville, Pennsylvania
February
22, 2008 The Derrick
Two Philadelphia men were charged for their actions during separate riots
that broke out this week at Cornell Abraxas I in Marienville. State police
said Joseph Clark, 18, and Lenny Scott Cabrera, 18, were involved in both
riots that occurred at the facility Monday and Tuesday. Clark was charged
with one count of aggravated assault and two counts of riot, police said.
They said Cabrera was charged with two counts of aggravated assault and two
counts of riot. Both men were arraigned before District Judge George F.
Gregory in Tionesta. They were placed in the Warren County jail on $25,000
bail. A preliminary hearing was scheduled for Tuesday. Police said three juveniles
involved in both riots and five other involved in the Monday riot will face
similar charges.
January 11, 2007 The Courier Express
In a last-ditch effort to forestall a strike, representatives of
Abraxas I and members of PSSU Local 668 have agreed to meet Friday,
according to a press release issued by Abraxas Wednesday. Abraxas I is
planning to operate through any strike with qualified employees from other
facilities and all employees who want to continue to work, according to the
press release. "Any employee who wishes to work may do so at the
current wages, benefits and other terms or conditions of employment,"
the release said. "Abraxas I will not implement its final offer until
an agreement is reached." Abraxas I has informed its client-referring
agencies about the strike and the company's plans to operate in the
interim. It has also decided to stop admitting new residents and plans to
accelerate the discharge of residents who are approved for discharge by the
courts, said the press release. On Jan. 3, Abraxas Youth and Family
Services received notification that the members of SEIU Local 668 rejected
the company's offer of Dec. 21. Local 668 also issued a 10-day strike
notice, which indicates it plans to strike at 12:01 a.m. Sunday. James
Newsome, program director at Abraxas I, said, "We are very
disappointed that the union and its members rejected this offer. It was a
very fair offer given the economic realities of the Youth and Family
Services business. "Our most recent offer includes wage increases
ranging from 8.5 percent to 12.25 percent over the proposed three-year
agreement," he said. "While we propose increases in employee
contributions for medical benefits, our wage proposal also ensures that all
employees would receive a real wage increase to offset the increased
employee medical contribution. Our request for increased employee medical
contributions is consistent with what many unions and employers have agreed
to in the face of rising costs of health care." Abraxas I proposes
maintaining an HMO medical plan for current employees, but employees hired
after ratification would only be able to participate in a PPO plan. Newsome
said the HMO plan is a very expensive benefit. "The only way we can
continue to afford to provide the HMO is to make it available for current
employees only," he said. "The union recognized the fairness of
our economic proposals, because they told us that if we were willing to
agree to a union shop or fair share - union security - they would recommend
ratification. We refused to agree to a union shop or fair share because we
believe employees should have a right to decide for themselves whether they
wish to belong to the union and pay union dues, not be forced to do
so," Newsome said. Abraxas I houses approximately 274 adolescents and
provides drug and alcohol counseling, as well as operating a private
school, for its residents.
Abraxas
Center,
Forest, Pennsylvania
July 8, 2004 Morning Call
A Tamaqua 16-year-old, who was committed to a juvenile center after being charged
with shooting a friend in the face with a gun he stole from a borough pawn
shop, escaped after attending a funeral Wednesday, police said. Duane
R. Allen II was court-ordered to attend the funeral and told two workers
taking him back to the Cornell Abraxas center in Marienville, Forest
County, that he was sick, state police at Hazleton said. The workers
stopped about 2:30 p.m. at Pilot Truck Stop in Sugarloaf Township, Luzerne
County, where Allen fled from the worker accompanying him to the restroom,
police said.
Abraxas Ohio, Shelby, Ohio
August
4, 2010 Mansfield News Journal
A judge modified bond Tuesday for a former youth counselor at a Shelby
residential treatment center who is accused of raping a 16-year-old girl.
Randy Scott, 35, of Mifflin Township, had been held on a $500,000 cash bond
after his May arrest. Last week, Richland County Common Pleas Judge James
Henson granted a defense request to reduce the bond to $10,000 with 10
percent posting allowed. The state objected and requested Tuesday's
hearing. Following testimony from two witnesses, Henson rescinded the
previous bond. The new terms are $100,000 with 10 percent posting. If Scott
posts bond, he will be monitored electronically and cannot have contact
with the alleged victim. Scott is charged with four counts of rape, four
counts of sexual battery, four counts of gross sexual imposition and one
count of kidnapping with a sexual motivation specification. The alleged
victim was not a resident at Abraxas, a residential program for males ages
12 to 18. Assistant Prosecutor Bambi Couch-Page wanted Henson to reconsider
his previous decision to reduce Scott's bond. "The defendant cannot
control himself sexually around minors," she said. Couch-Page called
sheriff's deputy Pat Smith as a witness. Smith said there are two pending
investigations against Scott. The more recent case involved alleged sexual
conduct between Scott and a 16-year-old Abraxas boy. Scott has been fired,
said Charles Seigel, a vice president for Cornell Companies, which operates
Abraxas. The older case involved Scott's alleged sexual conduct with three
females -- ages 13, 14 and 18 -- while he worked at Foundations for Living,
a residential treatment facility on Ohio 39 South.
May 11, 2010 Mansfield
News Journal
A youth counselor at a Shelby residential treatment center was arrested and
charged with the rape of a 16-year-old, officials said Monday. Randy Lamont
Scott, 35, of Mifflin Township, is incarcerated at the Richland County Jail
on $500,000 bond after pleading not guilty Friday morning to a single count
of rape, a first-degree felony. A spokesman for Abraxas, the Shelby youth
rehab center where Scott worked, said he was placed on nonadministrative,
unpaid leave last week. The child, who is not part of the Abraxas program,
has received a medical exam and counseling, according to Carl Hunnell, a
Children Services spokesman. "We were notified on May 5, at 5:34 p.m.,
on the allegations," Hunnell said. "We're working with the
sheriff's department on the investigation of the victim due to the
age." Richland County Sheriff's Deputy Pat Smith declined to say much
about Scott, citing the ongoing investigation, but alluded to a
"period of abuse." Scott was a "life skills worker" at
Abraxas and was responsible for leading group sessions and supervising
group activities on weekends, said Charles Seigel, a vice president for
Cornell Companies, which operates Abraxas. Scott had worked at the facility
for less than two years and passed a background check and drug tests, which
Seigel said were routine for incoming employees. While he has not been
fired, Seigel said the company likely wouldn't wait for the legal case to
be resolved. "Anything that would be a felony would be pretty much
automatic," Seigel said. "We'll take a look at the situation."
The Shelby facility's 108-bed residential program, "incorporates an
intensive group curriculum focusing on decision-making, goal-setting,
self-esteem, sex education and relapse process/prevention," according
to the company's website.
Alaska
Legislature
January 29, 2011 Anchorage Daily News
Former Alaska halfway house mogul Bill Weimar, who pleaded guilty to
conspiracy and financial wrongdoing in Alaska's political corruption
scandal, is being sought by Florida authorities on a charge of child sexual
battery. According to the Sarasota County Sheriff's Office, an arrest
warrant was issued for Weimar, 70, on Monday. The alleged victim was under
12 years old, according to warrant information posted on the sheriff's
website. The sheriff's office gave Weimar's last known address as a boat
slip at the prestigious Marina Jack's in Sarasota harbor. A spokesman for
the Sarasota Police Department, Capt. Paul Sutton, said Friday that reports
of Weimar living on a boat in a marina turned out to not be true. A man answering
the phone at the dockmaster's office at Marina Jack's said a cabin cruiser
was docked at the slip referred to in the warrant but that it wasn't a
residence. "We don't allow live-aboards here," he said. He said
he didn't know whether Weimar was renting the slip. The website of
Crimestoppers of Sarasota County posted a wanted picture of Weimar and gave
his date of birth as identical to the former Alaskan's. Sutton said the
case against Weimar was being investigated by a detective in the sheriff's
office. Reached after work on her cell phone, a spokeswoman for the
sheriff's office said she couldn't get any information about the case after
hours. A friend of Weimar in Alaska, attorney Jon Buchholdt, said Weimar
lived on the west coast of Florida but he didn't know the town. Buchholdt
said he knew nothing about the accusations and hadn't spoken to Weimar
recently. The Seattle attorney who represented Weimar in his federal
criminal case in Alaska, David Bukey, said he also knew nothing about the
Sarasota allegations. Weimar was once the principal owner of the Allvest
Corp., which had a chain of halfway houses around Alaska that contracted
with the Alaska Department of Corrections to house state prisoners, usually
six months before their terms were up. Allvest also had a drug and alcohol
testing facility. He sold the halfway house business to the national
private prison company Cornell Corrections Inc. He later partnered with
Cornell and the oil-field service company Veco in an effort to persuade the
Legislature and some Alaska communities to build a large private prison in
Alaska. But that effort was mingled with corruption. A legislative
candidate's complaint to the FBI that Weimar tried to hand him an envelope
stuffed with cash became one of the impetuses in 2004 for "Polar
Pen," the investigation that eventually resulted in indictments or
guilty pleas of six legislators and U.S. Sen. Ted Stevens. One case is
still pending. The rest were convicted, though Stevens' case was later
thrown out over prosecutorial misconduct.
November 10, 2008 Anchorage Daily News
Bill Weimar, who once ran a lucrative Alaska halfway house business and is
now retired and living in Montana, will face a federal judge Wednesday morning
for sentencing on two felonies. Weimar pleaded guilty in August to a role
in a scheme to illegally funnel $20,000 in 2004 to a political consultant
for an Alaska legislative candidate, knowing that if the candidate won, he
would back a private prison long sought by Weimar. Prosecutors want Weimar,
68, to serve a year. Weimar's lawyer says a sentence of five months'
incarceration and five months of home detention, as proposed by the federal
probation office, would be fair. But Weimar asks that he be allowed to do
five months of community service rather than home detention.
August 12, 2008 Anchorage Daily News
Bill Weimar, who made his fortune off private halfway houses in Alaska,
pleaded guilty Monday to two federal felonies in U.S. District Court in
Anchorage. He admitted his role in a conspiracy to secretly funnel money to
a political consultant for an unnamed state Senate candidate, knowing the
candidate would back a private prison if he won. Weimar had a long-standing
relationship with the candidate running in the 2004 primary, a charging
document filed Monday said. Weimar held a "contingent interest"
in a private prison project worth $5.5 million, but only if the project was
completed, the charges say. He faces prison time in the plea deal and may
have to forfeit "certain property." Prosecutors estimate a
sentence of 10 to 16 months. U.S. District Judge John Sedwick isn't bound
to that. He set sentencing for Oct. 29. Weimar, who owned Allvest Inc.,
becomes the 11th person charged in the broad, ongoing investigation by the
FBI and U.S. Department of Justice into political corruption in Alaska.
Weimar, 68, now lives in Big Arm, Mont. At the brief hearing on Monday,
Weimar answered the judge's routine questions. Assistant U.S. Attorney Joe
Bottini outlined the two charges: conspiracy to commit honest services mail
and wire fraud, and illegally manipulating currency transactions to avoid
reporting them to the Treasury Department. Weimar has admitted paying the
consultant a total of $20,000 during the primary in August 2004 to cover
expenses for the candidate, without reporting the payments and without
routing them through the campaign. How do you plead? Sedwick asked.
"Guilty," Weimar answered, to each charge. LAWMAKER NOT NAMED --
For years, Weimar pushed plans for a private prison in Alaska, but the
project was always controversial and no prison was ever built. A Democratic
activist in the 1970s, Weimar later became close to the Republicans who
controlled the Alaska Legislature. Neither the Senate candidate nor the
consultant -- both accused of conspiring with Weimar -- is named in the
charging document. Prosecutors declined to expand on it Monday. But the
candidate described in the documents, and in court Monday, appears to be
former state Sen. Jerry Ward. He didn't return phone calls or e-mail
messages on Monday. Ward, a Republican elected from Anchorage in 1996 and
the Kenai Peninsula in 2000, fervently pushed private prison projects as a
legislator. The charging document says the candidate running in 2004 had a
long relationship with Weimar, and held elected office part of that time.
Ward and Weimar were "buddies," according to a statement that
former lobbyist Bill Bobrick, who worked for Weimar, gave to the FBI in
September 2006. Bobrick also has pleaded guilty in the corruption
investigation. He declined to comment on Monday. In 1997, a plan for a
private prison in South Anchorage with Allvest and Veco Corp. as partners
crumbled under strong public opposition. As that project evaporated, Ward
emerged as the lead architect of a new plan to build private prisons in the
Mat-Su and Seward. "By God, this really solves the problem,"
Weimar was quoted as saying at the time. In 2001, Ward signed on as the
only Senate sponsor of a House bill pushing a private prison on the Kenai.
The charging document against Weimar doesn't say whether the candidate won
in 2004 and does not call the person a legislator. Ward lost his seat in
2002 to Tom Wagoner. He was trying to regain it in 2004, but lost in the
Republican primary to Wagoner. SEATTLE CONSULTANT -- In court Monday,
Bottini told the judge the consultant was from Seattle. Some of Ward's
biggest campaign expenses in 2004 were more than $43,000 in fees charged by
Madison Communications, an advertising and public relations firm based in
suburban Kirkland, Wash. Numerous calls left for Madison principal Brett
Bader on Monday were not returned. The charges against Weimar and other
court documents quote details of a number of telephone conversations he had
with the consultant and the candidate from Aug. 17 to Aug. 23, 2004. In a
telephone conversation on Aug. 17, 2004, the consultant told Weimar that
the campaign was having money trouble, court documents say. "I'm
worried we're reaching the limit now. I don't know where we find 10 grand
unless (Candidate A) can get more in," the consultant said
"There's no legal way to do that. At least not on that scale,"
Weimar responded. Later that day, Weimar arranged to cover the next
advertising mailer for the candidate, and told the candidate so, the
document says. On Aug. 20, 2004, Weimar told the candidate of an unpaid
invoice of $20,000 with the consultant. The candidate's campaign funds were
depleted, the charges say. The candidate said he had only $300 to $400 left
in his account. On Aug. 23, 2004, Weimar made arrangements with the
consultant to pay off the debt, the charges say. He then called the
candidate and told him "he would not be receiving any further bills
from Consultant A," the charging document says. Weimar sent the consulting
company a $3,000 check on Aug. 23, 2004, then sent $8,500 in cash that same
day by express mail, and another $8,500 cash the day after, the charges
say. "WE'VE MOVED ON" -- The charges also do not name the private
prison company, but Cornell Corrections Inc. tried to build a prison in
various Alaska communities, including Delta Junction, Kenai and Whittier.
The charging document describes the unnamed company's Alaska interests as
halfway houses, a planned juvenile treatment center, and a private prison
project, and that matches Cornell's interests. In 1998, in the midst of
planning for a private prison in Delta Junction, Weimar sold five Alaska
halfway houses to Cornell for $21 million. He also formed a partnership
with Cornell to pursue the Delta prison and subsequent deals for a private
facility. One goal of the conspiracy was to get the private prison company
to give campaign contributions to the candidate to help win election,
according to the charges. A spokesman for Cornell said the company was unaware
of the charges but supports the prosecution. The executives now in charge
of Cornell weren't there at the time of the events that involved Weimar,
spokesman Charles Seigel said Monday. Company records don't show any
evidence of wrongdoing, he added. "We've moved on and we are very
different and have it behind us," Seigel said. Cornell also has not
pursued a private prison in Alaska for years and is no longer interested in
that, he said. "We're glad this investigation is going on but whatever
was going on or may have been going on in the past, that is not the Cornell
that exists now, both in the policy on the private prison as we've talked
about and in general about the way we do business." By 2004, Veco was
no longer involved in the prison project, Frank Prewitt, a former state
corrections commissioner, Cornell consultant and FBI informant, has said.
ANDERSON INVOLVED -- The failed private prison effort was also central in
the government's case against former state Rep. Tom Anderson, R-Anchorage,
now in prison. At Anderson's corruption trial last summer, Prewitt was a
key witness who testified at length about his undercover work to collect
evidence against Anderson, and also about questionable acts in his own
past. From the witness stand, Prewitt said that in 1994 -- when he was
corrections commissioner and Weimar owned Allvest -- he accepted $30,000
from Weimar. Prewitt testified that he considered the money a loan, which
he repaid the next year, after he left his state post, by working four
months for Allvest for free. Weimar helped start Allvest in 1985, then
bought out his partners and turned it into a multimillion dollar
corporation with operations in Alaska and Washington state. Its government
contracts were worth an estimated $10 million a year. Allvest also operated
a lab that did contract urinalysis work, and used to run the city's Animal
Control Center and the Community Service Patrol. In 2002, Allvest was
forced into bankruptcy because of unpaid judgments in civil suits against
the company. The bankruptcy case eventually was settled.
November 27, 2007 Anchorage Daily News
State Sen. Lesil McGuire was accused Tuesday of making veiled threats to
dissuade a lobbyist from testifying in the corruption case against her
husband, former state Rep. Tom Anderson. The surprising information came up
during the sentencing hearing of Bill Bobrick, a once-prominent lobbyist
who began cooperating in September 2006 with the FBI in its investigation
of corruption in Alaska politics. In an interview after the hearing,
McGuire denied making any threats and said Bobrick was deflecting attention
from himself onto her "on the day of his reckoning with the
public." Bobrick, 52, pleaded guilty in May to conspiring with
Anderson to push the interests of a private prison firm in exchange for
money. He funneled nearly $24,000 to Anderson, money put up by a prison
consultant who was working undercover for the FBI. In all, Anderson
received nearly $26,000. The prison company, Cornell Cos., didn't know
about the scheme, federal officials have said. U.S. District Judge John
Sedwick ordered Bobrick to serve five months in prison, followed by five
months of house arrest on the felony conspiracy conviction. That's the
minimum sentence under federal guidelines, which are advisory. It's far
less than the two years to 30 months that Bobrick would have faced if he
didn't cooperate. And it's much less than the five years that Sedwick
sentenced Anderson to serve. The Republican who represented East Anchorage
in the Legislature for two terms also initially cooperated with the FBI,
then decided to fight the charges against him. He was indicted in December
2006 and a jury convicted him in July of seven felony counts including
bribery and money laundering. Anderson reports to a federal prison on
Monday in Oregon.
November 22, 2007 Anchorage Daily News
Once-prominent lobbyist Bill Bobrick almost surely is going to prison. But
not for long. His sentencing on a single felony charge of conspiracy, part
of an ongoing federal investigation of political corruption in Alaska, is
set for Tuesday morning before U.S. District Judge John Sedwick. Bobrick
has been cooperating with the government, so will get much less time than
the five years slapped on the only other defendant sentenced so far in the
corruption probe, former state Rep. Tom Anderson. "I take full
responsibility for my crime," Bobrick, 52, said in a brief telephone
call on Wednesday. "I can never apologize too much to my fellow
Alaskans for the damage I have done to our political system." Prosecutors
are asking that he be sentenced to a year and a day, which triggers a rule
that requires he do all the time in prison, less only good time. With good
behavior, he could be out after about 10 1/2 months. They also want two
years of probation, prosecutors wrote in a memo to the judge. The defense
wants a sentence of less than a year and is asking that Bobrick be allowed
to serve at least part of it under house arrest or in a halfway house. That
would allow him to do community service as he's serving his time, which is
what his attorney said he really wants. Federal prisoners don't get
"good time" for sentences of less than a year. "Bobrick is
not pleading for mercy," his attorney, Doug Pope, wrote in his
sentencing memorandum. "He is requesting that the court credit him
with providing substantial assistance to the government, and give him a
chance to atone for his crime." If he hadn't cooperated, he'd be
facing two years or longer for the conspiracy conviction under sentencing
guidelines. Bobrick is married and has lived in Alaska for 32 years. His
wife is in her third year of medical school. Pope filed in court more than
50 letters of support, many trying to convince the judge to fashion a
sentence that puts Bobrick to work doing community service rather than
serving time in prison. At least six former Anchorage Assembly members and
several law enforcement representatives are among the dozens who wrote in.
Bobrick's not the type to get in trouble again, his supporters said. Many
mentioned good work he's done as a volunteer for years. They said he
apologized to his friends, clients and colleagues one by one long before
his case became public. "I believe that Bill Bobrick knows that his
actions were wrong and that he is full of remorse about the choices he made,"
wrote Jane Angvik, a former Anchorage Assembly member. She met him in 1986
through political activity and has served on boards with him. She wrote
that she's talked with him about the crime and he wept as he described his
regret. "He said he had 'lost his way,' that he has changed, and that
he is prepared to accept whatever punishment the court deems
appropriate." Bobrick pleaded guilty in May to conspiring with
Anderson to push the interests of a private prison firm in exchange for
money. He became one of the main government witnesses against Anderson in a
trial this summer. A consultant to Cornell Cos. funneled $24,000 to Bobrick
in the scheme, and Bobrick eventually passed almost all of it on to
Anderson. The consultant, former state Corrections Commissioner Frank
Prewitt, was working undercover for the FBI and Cornell knew nothing of the
bribes, officials have said. Until he was caught up in the ongoing,
multipronged FBI investigation last year, Bobrick was a powerful player in
the city. He didn't lobby the state Legislature but was active politically
and served as executive director of the Alaska Democratic Party in the late
1980s. He then registered as a lobbyist in the municipality. For years, he
had more clients than anyone with city business. He's lost all that now.
The FBI confronted him in late September 2006 with secretly recorded
telephone calls and meetings about the scheme with Anderson. He began
cooperating on Sept. 28, 2006. The defense expects the government to agree
that his help "has been as broad and as extensive as the government
requested, that his assistance extended beyond the 'Cornell Corrections
conspiracy' which was the subject of the Anderson indictment and trial, and
involved actively assisting in collecting evidence, including recording
conversations." Bobrick was vaguely threatened before the Anderson
trial, according to Pope. He described it as "contacts implying
threats of economic injury." "Those threats were credible,"
Pope wrote. "It is reasonable to conclude that they were an attempt to
influence Bobrick's testimony or to dissuade him from testifying at
all." Pope didn't provide details but indicated in his memo that more
information was in another filing, which was not made public. The
government is seeking a $5,000 fine. But Bobrick no longer can make a
living and should not be fined, Pope wrote.
November 13, 2007 AP
A former Alaska lawmaker convicted of seven counts of conspiracy and
bribery will begin his five-year federal prison sentence next month. Former
Rep. Tom Anderson on Monday told Anchorage television station KTUU that he
will report to a federal prison south of Portland, Ore., on Dec. 3.
Anderson, 40, a two-term Republican from Anchorage who chose not to run for
re-election in 2006, was convicted in July of taking nearly $24,000 he
thought was coming from a private prison firm, Cornell Industries Inc., in
exchange for his assistance on legislation. The money was supplied by the
FBI through an informant under contract to Cornell, Frank Prewitt, a former
Alaska Department of Corrections commissioner. Prewitt secretly recorded
his conversations with Anderson and a co-conspirator, lobbyist Bill
Bobrick, between July 2004 and March 2005. Cornell Industries was not aware
of the bribery scheme or investigation. The 60-month sentence fell within
the presentencing report guidelines of 51 to 63 months. Anderson was the
first of four former Republican Alaska lawmakers arrested on federal
corruption charges. Former House Speaker Pete Kott was convicted in October
of conspiracy to solicit financial benefits, extortion and bribery. He will
be sentenced Dec. 7. Former state Rep. Vic Kohring was convicted earlier
this month of bribery, conspiracy to commit extortion and attempted
interference with commerce by extortion. He was acquitted of another count
of interference with commerce by extortion. Sentencing was set Feb. 6. The
corruption trial of former state Rep. Bruce Weyhrauch has been delayed.
November 7, 2007 UPI
The Alaska Public Offices Commission is coordinating with the U.S. Justice
Department to probe what Veco Corp. illegally did to benefit Alaska
politicians. The commission, which investigates campaign-finance
violations, is focusing on matters such as polls the oil-services company
may have illegally bought for legislators, as well as illegal Veco campaign
contributions, The Anchorage Daily News reported. The Justice Department,
the FBI and the Internal Revenue Service are conducting a widespread
investigation into alleged political corruption of lawmakers in the Alaska
Legislature, focusing in particular on lawmakers' official actions in
connection with the oil industry, fisheries and private corrections
industry. Former Alaska lawmaker Pete Kott, accused of trading his
legislative influence for bribes, was convicted of corruption charges in
the scandal Sept. 27. Veco founder and Chief Executive Officer Bill Allen
and Vice President for Community and Government Affairs Rick Smith pleaded
guilty May 7 to charges of bribery and conspiracy. Because of the chances
of overlap between the state and federal probes, the state commission is
cooperating closely with the Justice Department, particularly on the issue
of subpoenas, the newspaper said.
October 9, 2007 KTUU
For the first time since facing federal corruption charges, former
Anchorage Representative Tom Anderson is publicly admitting he broke the
law. Anderson was convicted on bribery and conspiracy charges in July. His
admission comes about a week before his sentencing. In a memo filed with
U.S. District Court yesterday (Monday), Anderson says "I accept full
responsibility for the choices I've made and the damge I've done...."
Anderson's lawyer says he is seeking leniency - specifically, no more than
33 months behind bars. Assistant U.S. Attorney Joe Bottini says prosecutors
will likely request a sentence of 5 to six years. Bottini says it's too
late for Anderson to acknowledge he did wrong, since he could have pleaded
guilty before the trial. Anderson was found guilty for taking money he
thought was coming from a private prison company. The nearly $26,000
actually came from an FBI informant who secretly recorded conversations
with Anderson and former municipal lobbyist Bill Bobrick.
September 19, 2007 KTUU
Cornell Cos. claims it will no longer attempt to sell projects here in
Alaska. The company has made big headlines in Alaska over the last several
months as the private prison firm used a decoy by government informant
Frank Prewitt in crafting a bribery scheme with former Anchorage lobbyist
Bill Bobrick and former Anchorage Rep. Tom Anderson. Both Anderson and
Bobrick have been convicted of corruption and bribery in the scheme.
Cornell has tried building a private prison in Alaska three times -- in
Delta junction, Kenai and Whittier -- and has been unsuccessful in each instance.
Now Cornell CEO James Hyman said he's done. "We understand how the
[Department of Justice] had to use bait to get what they needed. We are a
little chagrined to be that bait," Hyman said. Although the government
successfully used Cornell as bait to take down Anderson and Bobrick, the
company was not involved in the kickbacks and knew nothing of Prewitt's
arrangement with federal agents. Instead, Cornell was simply part of an FBI
cover in order to keep the bribery framework it was monitoring with Anderson
and Bobrick believable. Unbeknownst to Cornell, Prewitt sought Anderson's
help on matters key to the company's future plans, including muscling
through the complex bureaucracy to prove to the state those projects were
needed. During the Anderson trial, Prewitt told the court he made an
illegal campaign contribution utilizing money from a former Cornell
executive. After hearing that, Hyman said the company wanted to ensure its
activities in Alaska had all been above board. Hyman said the company talked
to current and ex-employees to try and discover any wrongdoing. He said he
is confident there have been no issues since he took over in 2005 and said
there's no evidence it happen in prior years either. Among the projects
Cornell was pursuing in Alaska, and Prewitt was using to snare Anderson,
was a new juvenile residential treatment facility for Anchorage. The
project suffered from poor community support for the Downtown location it
chose for a detention facility in addition to the paperwork and bureaucratic
snags. Cornell currently operates six halfway houses across the state,
including three here in Anchorage. A company executive announced that is
where its focus will remain for the foreseeable future. "We are not
interested in the juvenile sector here. We are not interested in building a
private prison here or operating a private prison here. That is not where
we are going to focus," Hyman said. Alaska Department of Corrections
Commissioner Joe Schmidt said the department's relationship with Cornell is
still strong. "Right now, they want to work with us instead of against
us, and I think we have a pretty good partnership right now," Schmidt
said. The possibility of constructing a private prison in Alaska was taken
off the table three years ago when the state legislature passed a bill
requiring any prison expansion in the state to be state-run and
state-operated.
July 30, 2007 Anchorage Daily News
Federal law enforcement agents are currently searching the Girdwood home of
Alaska U.S. Sen. Ted Stevens, an FBI agent said. "All I can say is
that agents from the FBI and IRS are currently conducting a search at that
residence," said Dave Heller, the assistant special agent in charge of
the FBI's Anchorage office. The search began this afternoon, he said. It's
the only such search warrant currently being served, he said. He directed
other questions to the U.S. Justice Department's Public Integrity Section
in Washington. A spokesman there had no comment. Federal investigators and
a grand jury looking into public corruption in Alaska have been asking
questions about a 2000 remodeling project at Stevens' home, particularly
the involvement of the oil field services firm Veco. Three contractors who
worked on the project told the Daily News that their records had been subpoenaed
by a federal grand jury, and others connected with the work and with
Stevens had been interviewed. One of the contractors who worked on the job
said he was hired by Veco CEO Bill Allen for the job, and while his bills
were paid by Stevens and his wife, Catherine, invoices were reviewed first
by Veco. Allen and a Veco vice president pleaded guilty in May to bribery,
extortion and other charges connected with paying off state legislators.
July 10, 2007 KTVA TV
Cornell Cos., whose lobbyist became the federal government's chief witness
in the corruption case against former Anchorage Rep. Tom Anderson, wants it
known it had nothing to with the bribery scheme. The Texas-based
corrections company runs five halfway houses across the state. It hired
lobbyist Frank Prewitt to help advance its interest in those and other
areas, including developing a privately run prison in Alaska and a juvenile
treatment facility in Anchorage. Cornell says while Prewitt may have told
now-convicted co-conspirators Bill Bobrick and Anderson that the bribe
money he had to offer was coming from Cornell, in reality, the company says
they had no knowledge of what was going on. The company also claims it had
no idea Prewitt was an FBI informant. However, Prewitt did admit under oath
that he had been implicated but not yet charged in an illegal contribution
scheme involving a Cornell Cos. executive in 2003. Prewitt testified he
helped funnel $3,000 from that executive to an Alaska politician that same
year. The FBI has acknowledged the money Prewitt used in the bribe scheme
involving Anderson came from them and not Cornell. Cornell Cos. Consultant
Charles Seigel said the company does not support bribery.
July 10, 2007 KTVA TV
Alaska Senator Ted Stevens says he's worried about how a corruption
investigation could affect his run for re-election next year. The
83-year-old Republican has drawn Justice Department scrutiny over a
renovation project in 2000, that more than doubled the size of his home in
Girdwood. The remodeling was overseen by Bill Allen -- a contractor who has
pleaded guilty to bribing Alaska state legislators. Allen is founder of
VECO Corporation -- an Alaska-based oil field services and engineering
company that has reaped tens of millions of dollars in federal contracts.
Allen is cooperating with the FBI. It appears investigators are looking at
whether VECO got anything in return for the home improvement help. Alaska's
senior senator is caught up in a larger probe that included FBI raids last
summer at offices of six Alaska legislators. Those legislators include
Stevens' son, Ben, who was then the president of the state Senate. Ted
Stevens told The Associated Press recently that, "The worst thing
about this investigation is that it does change your life in terms of
employment potential... "It doesn't matter what anyone says, it does
shake you up. If this is still hanging around a year from November, it
could cause me some trouble." Monday, a federal jury convicted former
state Representative Tom Anderson on all seven counts in a corruption trial
in Anchorage. Anderson was charged with seven felonies, including
conspiracy, bribery, money laundering and interfering with commerce, a
charge connected to a demand for payments. Prosecutors said he conspired to
take money he thought was coming from a private prison firm, Cornell
Industries, Incorporated. The conspiracy called for Cornell to invest in a
Web-based public affairs newsletter that Anderson would write for,
something a private prison firm would not normally sponsor, as a way to pay
off Anderson.
July 10, 2007 Anchorage Daily News
Federal jurors said they relied on former state Rep. Tom Anderson's own
words to convict him Monday of conspiracy, bribery and other charges
related to political corruption. Eleven jurors returned seven guilty
verdicts around 1:30 p.m., finding Anderson, 39, guilty of all felony
charges against him. Witnesses testified Anderson took money to do the
bidding of a private prison firm. In all, Anderson received $25,838 in 2004
and 2005, witnesses said. The money was supplied by the FBI through Frank
Prewitt, a consultant for Cornell Cos., who secretly recorded his
conversations with Anderson and a co-conspirator, former lobbyist Bill
Bobrick. Juror No. 9 was dismissed Monday after a closed hearing for reasons
that weren't explained. Both sides agreed to go forward with fewer than 12.
Jurors at first were split over whether Anderson had been entrapped by the
government, said several reached after the verdict. Jury forewoman Wendy
Gilbert of Valdez said the key evidence came from a July 28, 2004,
recording of a conversation among Anderson, Prewitt and Bobrick -- the
first after the conspiracy began, according to the government. Jurors asked
for it to be replayed on Monday and found that Anderson had an idea of what
was expected of him from the start. "They started talking about what
he could do for Cornell," juror Travis Gardner of Chugiak said. And
when Anderson was asked about his credentials, Gardner said, the first
thing he said was that he's a legislator. It didn't matter if Anderson
would have taken the same actions anyway, such as getting on key budget
committees, because he accepted money for doing so, said Gardner, 23.
Another juror said she felt prosecutors presented a "substantial
amount of evidence." Asked what was key in their decision, juror Marie
Gieryic of Eagle River replied in an e-mail: "the recorded
conversations of Anderson and others." Those conversations, along with
other evidence, showed "Anderson understood he was taking part in
illegal activities," wrote Gieryic, a mother of three who works in a
child care center. MESSAGE TO JUNEAU The verdict should help "reinject
ethics" into the Legislature and send a message "that there is a
significant price to pay for abusing the public's trust in this
manner," she wrote. Legislators need to think twice before they sell
out. Anderson and his attorney seemed stunned by the verdict. When the jury
left the room, Anderson uttered a weary sigh. "I'm devastated,"
he said. He said he'd appeal. "The prosecution has criminalized being
a legislator over this past year. And I think I fell victim to that,"
Anderson said. Anderson's attorney, Paul Stockler said Anderson will need
to think over what to do next after consulting with his wife, state Sen.
Lesil McGuire, and a circle of advisers. "I'm speechless right
now," Stockler said. "But when you go up against the government,
you risk losing." Anderson never tied the payment of money to any
official acts as a legislator, Stockler said. "He was always willing
to help, and it had nothing to do with money." For the reading of the
verdict, the courtroom quickly filled with FBI agents, prosecutors and
staff members. McGuire wasn't there. She and other friends and family came
to the trial but couldn't get to the federal building in downtown Anchorage
in time after jurors announced they had reached a verdict, Anderson said.
McGuire was not accused of wrongdoing. In fact, prosecutors used the fact
that Anderson hid the payments from her as further evidence of a shady
deal. NO ENTRAPMENT With seven counts and an entrapment defense, the case
was particularly complex, said Gilbert, the jury forewoman. "There's a
lot on the line and a lot on your shoulders, and you want to make sure you
do the right thing," said Gilbert, a pipeline lab technician and
mother of three. A common thread for jurors was that none knew much about
the case beforehand from news coverage. In the end, jurors concluded
Anderson had not been lured to commit crimes by a government agent. He was
not "entrapped." Juror Gardner, who works for a trucking company,
said the case was a lesson in Alaska politics. "I didn't even know
what lobbying was," he said. But it didn't make him cynical, he said.
Businesses should have a way to get their interests heard -- just not by
paying legislators, he said. The public corruption case against Anderson
provided the first real test for the FBI and prosecutors in their ongoing
investigation of Alaska state legislators. Three other politicians are
awaiting trial, though the schemes alleged in those cases are different.
Those cases involve allegations of bribes paid by executives with oil field
services contractor Veco. Lawyers for indicted former Reps. Bruce Weyhrauch
and Pete Kott, whose trial is set for Sept. 5, said the guilty verdict
won't have any impact on their strategy because the facts are so different.
State Rep. Vic Kohring, whose trial is set for Oct. 22 and who is stepping
down from his post next week, said he was saddened for Anderson but that
his own resolve to fight the charges against him had not waned. Nick Marsh
and Joe Bottini prosecuted the case against Anderson. They didn't comment
on the verdict, nor did the FBI in Alaska. The only government statement
came out of Washington, D.C. "Anderson has been held accountable for
his crimes thanks to the hard work of federal prosecutors and FBI agents,
and the Department of Justice will continue its pursuit of public
corruption at all levels of government," U.S. Assistant Attorney
General Alice S. Fisher said in a written statement. KEY WITNESS One of the
government's main witnesses was former lobbyist Bobrick. Gardner said
jurors didn't find Bobrick that believable. Bobrick pleaded guilty in May
to conspiracy in the scheme and agreed to cooperate with the government in
the hope of getting a lighter sentence. Bobrick told jurors about a series
of checks he wrote to Anderson or his consulting business that went far
beyond the initial payments revealed before the trial: $3,000 on Feb. 14,
2005, $1,500 on Feb. 25, 2005, and more, on into June 2005. In all, Bobrick
passed nearly $24,000 through to Anderson, and Prewitt gave him another
$2,000 directly, according to their testimony. Bobrick testified he had an
idea for a political Web site that he had hoped would become a real business
with Anderson, but it never did. Anderson was paid "for being a
legislator," Bobrick told jurors. But, as jurors indicated, Anderson's
own words were most damaging. On a Nov. 16, 2004, recording of a meeting in
his Anchorage legislative office, Anderson brought up money and told
Prewitt he didn't want to split the next payment with Bobrick. Anderson
served in the state House from 2003 to this year. He didn't run in 2006.
U.S. District Court Judge John Sedwick set sentencing for Oct. 2. Anderson
faces certain prison time and significant fines.
July 6, 2007 Anchorage Daily News
On June 13, 2005, an FBI agent left a message on then-state Rep. Tom
Anderson's cell phone asking for his views on an upcoming federal
appointment because he had been such a friend of law enforcement in the
past. But when Anderson showed up at the FBI building in downtown Anchorage
the next day, he discovered that was just a ploy. He was the target of an
undercover FBI investigation. Huge blown-up pictures from a five-hour-long
Prince William Sound sailing trip on the boat of Cornell Cos. consultant
Frank Prewitt were on the wall. Agents played secretly made recordings of
his conversations with Prewitt and lobbyist Bill Bobrick. The agents wanted
to get Anderson to cooperate in its ongoing corruption investigation. And
for a time he did, prosecutors said. The defense in Anderson's corruption
trial wrapped up Thursday after five quick witnesses. The case is expected
to go to the jury today after closing arguments. Anderson is charged with
seven federal felonies, including bribery, extortion and money laundering.
Defense lawyer Paul Stockler maintained that Anderson never took any
legislative actions for money. He tried to portray Anderson as a man who
had no inclination to do anything shady but was lured in to doing
questionable things by the FBI. Anderson didn't take the stand. After court
ended for the day on Thursday, Anderson said he trusted Stockler's judgment
in directing his defense. With the case about to go to the jury, he said he
felt anxious but didn't want to say much. Earlier in the trial, Bobrick
testified that he created a business that was supposed to produce a Web
site about Alaska politics. But he told jurors that it ultimately became a
sham used to funnel illegal payments from Prewitt to Anderson. Prosecutors
assert that the money was used to get the legislator to do Cornell's
bidding on halfway houses, a juvenile treatment center and a private
prison. Though Anderson was supposed to have produced material for the Web
site, witnesses have testified that he never did. Bobrick has pleaded
guilty and Prewitt worked undercover for the FBI, making recordings
"as a cooperating witness."
July 4, 2007 Anchorage Daily News
On the stand for a second day in federal court Tuesday, former lobbyist
Bill Bobrick told jurors that his idea for a political Web site started as
a real business venture in 2004 with then-state Rep. Tom Anderson. It
wasn't supposed to be a way "to bribe Tom Anderson or channel him
funds. But it certainly ended up that way," Bobrick testified.
Ultimately, its only real purpose was to disguise payments to Anderson, he
told jurors. Anderson never did any real work for the Web site and received
the money "for being a legislator," Bobrick said. The Web site
never got off the ground. Prosecutors rested their corruption case against
Anderson on Tuesday afternoon after calling eight witnesses over four days.
The trial began June 25 with jury selection, which lasted 2 1/2 days.
Prosecutors contend that Bobrick's Web site business was used to funnel
payments from a Cornell Cos. consultant to Anderson so that he would do the
company's bidding on halfway houses, a juvenile treatment center and a
private prison. Anderson faces seven felony counts. Bobrick has pleaded
guilty to conspiracy and said he is cooperating with the government in the
hope of getting a lighter sentence. In all, Anderson received a total of
$25,838, based on testimony about various checks. That's much more money
than was previously disclosed. The charges list $12,838 in payments to
Anderson. The FBI actually provided the money. Cornell was unaware of any
scheme, the government has said.
July 2, 2007 AP
Government informer Frank Prewitt had plenty of chances to call off a
scheme to funnel payments to former state Rep. Tom Anderson but did not,
Anderson's attorney contended in federal court Monday. In a second day of
questioning of the prosecution's star witness in the corruption case
against Anderson, defense attorney Paul Stockler hammered away at conversations
secretly recorded by Prewitt and his motives for doing so. Prewitt is a
former Corrections Department commissioner and a consultant for a private
prison company, Cornell Industries Inc. At least 10 times, Stockler said,
Anderson or the man he's accused of conspiring with, Bill Bobrick, posed
questions to Prewitt as to his comfort level with their plan to have
Cornell spend money on their proposed Web-based public affairs newsletter.
Prewitt, cooperating with an FBI investigation, acknowledged he did not halt
their plan. "My role was not to advise them as to what was and wasn't
illegal ... My role was to have conversations and see where they
went," Prewitt said. Anderson was arrested Dec. 7 and charged with
single counts of conspiracy and bribery, three counts of money laundering
and two counts of interfering with commerce, a charge connected to a demand
for payments. He's accused of conspiring with Bobrick, a former municipal
lobbyist in Anchorage, to solicit and obtain money for Anderson's influence
as a lawmaker. According to prosecutors, the newsletter company was a front
for Cornell to pay Anderson money that could not be traced directly to
Cornell. Prewitt testified that Cornell, whose entire business in Alaska
comes through government contracts, had no use for advertising in a
newsletter or sponsoring it. Bobrick in May pleaded guilty to bribing
Anderson. Following testimony by Prewitt and former Corrections
Commissioner Marc Antrim, Bobrick took the stand for the last half hour of
proceedings Monday. Stockler contends Prewitt cooperated with investigators
because Prewitt himself also was being investigated, and that Prewitt
steered recorded conversations with Anderson to payoffs. In his cross
examination of Prewitt, Stockler's questions followed several themes: —
Prewitt never gave his opinion that Cornell's payments would be illegal or
directly tied Anderson's help to them. — Even before the alleged
conspiracy, Anderson supported Cornell's interests. — Anderson's interest
in shielding his link to Cornell was connected to his re-election and not
offending corrections constituents whose jobs could be threatened if
Cornell's private prisons were built. Stockler also closely questioned
Prewitt on his instructions for recording conversations from the FBI, and
whether he was instructed to lie. Prewitt acknowledged one lie — his
promise to run the newsletter and payment scheme "up the
flagpole" to the principles at Cornell. He never did. "So that
was a lie?" Stockler asked. "I guess that would be true,"
Prewitt said. But Prewitt kept his composure as he methodically responded
to Stockler's other questions. He acknowledged that other lawmakers,
including Rep. Mike Hawker, R-Anchorage, had intervened for Cornell, even
fielding "talking points" composed by Prewitt for making
Cornell's case. The difference was, Hawker did not receive payments,
Prewitt said. In some instances, Bobrick's concern that Prewitt might
consider the arrangement over whether Prewitt considered the scheme a
"bad idea" or "sleazy" was because Bobrick was afraid
it would jeopardize his own $5,000 per month annual contract with Cornell,
Prewitt said. In another, Bobrick expressed concern that Prewitt would
experience "sticker shock" over the amount of money requested —
three payments of $8,000. Under a questioning by Nicholas A. Marsh, a trial
attorney in the Public Integrity Section of the U.S. Department of Justice,
Prewitt said that acknowledging the illegality of the payments to Anderson
or Bobrick would have defeated the purpose of the investigation. "That
would have had an immediate chilling effect on the inquiry," Prewitt
said. He denied that he was ever told by the FBI that he had to "bag a
state legislator." Marsh asked whether Anderson had "many
times" acknowledged that Cornell had no interest in the newsletter and
knew it was a sham. "No question about it, the purpose of this
arrangement was not the Web site?" Marsh asked. "No
question," Prewitt replied. In the half hour he was on the stand,
under questioning from Assistant U.S. Attorney Joseph W. Bottini, Bobrick
had time only to lay out his background as a construction worker, union
official, director of the Democratic party and legislative aide. Bobrick
said he befriended Anderson in 2001 when Anderson was a member of the
Anchorage School Board and they eventually discussed going into business.
Anderson, a moderate Republican, would lobby in Juneau and Bobrick, then a
Democrat, in Anchorage. Anderson approached him in early 2004 and told him
he needed money. He asked Bobrick if he could find him contract work.
"He was my friend and I wanted to help him out," Bobrick said. He
is scheduled to continue testifying Tuesday.
July 1, 2007 Anchorage Daily News
A former deputy corrections commissioner whose name came up Friday in
the Tom Anderson corruption trial was working as an informant for the FBI
in 2004 when he asked a prison company consultant for money, an FBI
spokesman said Saturday. Former Cornell Cos. consultant Frank Prewitt
testified Friday that he worked with deputy commissioner Don Stolworthy
that year to develop a compromise on competing bills to build a new prison.
One measure could have led to a Cornell-run prison in Whittier. The other,
supported by the Murkowski administration, pushed a state-run prison in the
Valley. Prewitt, a state corrections commissioner in the 1990s, testified
Stolworthy told him he was worried about losing his job because of union
opposition to a private prison. Prewitt said he assured Stolworthy that
“people would be there for him” if that happened. Prewitt told jurors that
Stolworthy eventually began seeking money, as a sort of insurance policy,
if he lost his job. But he only did that because the FBI asked him to, FBI
spokesman Eric Gonzalez said Saturday. Stolworthy was working for the FBI
as a “cooperating witness,” he said. “We approached him out of the blue,”
Gonzalez said. “We asked for his help and he said he’d be glad to help us.”
Stolworthy “was squeaky clean,” Gonzalez said. The fact that Stolworthy was
working undercover for the FBI never came up during the trial on Friday.
Prewitt testified that he was shocked that Stolworthy was asking for money
and read him the ethics act. The FBI won’t discuss what evidence it may
have collected on Prewitt through Stolworthy. But in his opening statement
on Wednesday, federal prosecutor Joe Bottini said that Prewitt may have
tried to improperly influence a state corrections official. The matter came
up because Prewitt is the government’s star witness in the corruption case
against Anderson, a former state representative. Defense attorney Paul
Stockler cross-examined Prewitt on Friday about possible illegal activities
in his background and pressed him on whether he was just testifying against
Anderson to save himself. Efforts to reach Stolworthy Saturday were unsuccessful.
When the state issued a statement announcing his resignation in January
2005, it said he accepted a job for the U.S. Justice Department as warden
of a prison in Iraq. Anderson’s trial resumes Monday as Stockler’s
cross-examination of Prewitt continues.
June 28, 2007 Anchorage Daily News
Prosecutors say Tom Anderson was a debt-ridden politician who sold his
office for $12,838 and knew exactly what he was doing. The defense says the
real culprit is former state corrections commissioner Frank Prewitt, who
was under investigation himself and exploited Anderson to save himself.
Anderson was a hard-working legislator who never took any official actions
in exchange for money, said defense attorney Paul Stockler. Jurors on
Wednesday heard those contrasting views as the two sides gave opening
statements in the public corruption trial of Anderson. The first witnesses
will be called today. Anderson, a two-term state representative who didn't
run again in 2006, is fighting seven felony charges including bribery,
extortion and money laundering. A jury of eight women and four men, plus
four alternatives, was seated Wednesday afternoon. They were picked from a
pool of 102 after hours of questioning by U.S. District Judge John Sedwick
and lawyers spread over three days. Some scribbled notes as the lawyers
gave their opening statements. A small crowd of spectators came to hear. A
friend of Anderson's who has been collecting money for his defense sat in,
but Anderson's wife, state Sen. Lesil McGuire, didn't attend. Jurors will
be asked to absorb complicated information over the next few days,
prosecutor Joe Bottini told them. Neither of the central figures in the
case against Anderson -- Prewitt and former lobbyist Bill Bobrick -- are
"squeaky clean witnesses," Bottini acknowledged. Bobrick has
pleaded guilty to a conspiracy charge in the case and has agreed to testify
against Anderson. Bobrick came up with a scheme to create a phony company
and use it to funnel payments from the private prison firm Cornell Cos. to
Anderson, prosecutors assert. Cornell didn't know about the scheme, and
after the FBI got involved it provided the payments. PREWITT'S PAST: The
other key witness will be Prewitt, whose own flaws the prosecutor discussed
at length. Prewitt, who became a consultant to Cornell after leaving his
state post, was being investigated for various actions when the FBI
confronted him in April 2004, Bottini said. He agreed to help the FBI in
its "broad public corruption investigation," the prosecutor said.
Anderson is one of four legislators or former legislators indicted in the
past seven months. Cornell had been trying for years to open a private
prison in Alaska, and Prewitt may have tried to improperly influence a
state corrections official regarding it, the prosecutor said. He also was
being investigated for a practice in political campaigns known as
"conduit contributions" in which someone gives money to other
people to pass on to candidates. That is done to bypass campaign
contribution limits. Bobrick also was involved in "conduit
contributions," Bottini said. In addition, while Prewitt was state
corrections commissioner, he accepted $30,000 from a friend who had
business with the department, Bottini said. The government has no deal with
Prewitt that he won't be charged with any crime in exchange for his help,
but certainly he's hoping for a break, the prosecutor said.
June 22, 2007 Juneau Empire
Former state Rep. Tom Anderson, R-Anchorage, goes on trial Monday in
Anchorage, in a case which may be linked to the ongoing political
corruption investigation involving VECO Corp. executives and other state
legislators. Also involved, likely without her knowledge, may be Anderson's
wife, Sen. Lesil McGuire, R-Anchorage. Regardless of VECO's involvement,
Anderson's attorney has already begun preparing for a trial under increased
public scrutiny of political corruption cases. Paul Stockler, an Anchorage
attorney representing Anderson, has already asked a federal judge for
permission to question potential jurors about how much they know about
"this and other well publicized cases." He also wants to be able
to ask about what they know about Anderson "or the other well
publicized witnesses." The FBI investigation in Alaska, led by the
U.S. Department of Justice's Office of Public Integrity became publicly
known in August of 2006. At that time FBI agents served search warrants on
the offices of six members of the Alaska Legislature, though not Anderson,
as well as VECO and other offices. Three of the six legislators and two top
VECO executives have been indicted on corruption charges. The executives
have pleaded guilty, while the legislators have pleaded not guilty and are
awaiting trial. A series of indictments, guilty pleas and legal
maneuverings have kept those VECO-related issues in the news for months.
According to documents filed by U.S. attorneys to outline their case, the
investigation had been in the works for more than two years before the
raids. It was in the summer of 2004 that an unnamed lobbyist with ties to
Anderson approached a confidential source working undercover for the FBI
with a scheme to bribe Anderson, the documents say. The confidential
source's "efforts at the time were directed to other, unrelated
investigative matters," the DOJ documents said. It did not specify
whether those matters involved VECO. The charges against Anderson accuse
him of using his position as a legislator, including the chairmanship of
the Administrative Regulations Review, to benefit Cornell Companies, a
Texas-based firm which operates private prisons. In Alaska Cornell was
seeking state approval to build a private prison and a juvenile psychiatric
treatment facility, as well as regulatory changes to help its Alaska
operations, which include a string of halfway houses around the state. The court
documents allege that Anderson pressured state officials, such as former
Department of Corrections Commissioner Mark Antrim, to benefit Cornell. He
also advocated for Cornell at a public meeting in Anchorage, but said he
was there not on the company's behalf but as chair of the regulatory review
committee. Cornell is not accused of any wrongdoing, federal and Cornell
officials have previously told the Empire. Prosecutors said they expect to
take a week to present their case.
June 19, 2007 KTUU TV
New details are emerging in the government's corruption probe against
former state Rep. Tom Anderson as attorneys prepare for his trial Monday.
The government has filed a trial brief laying out who is involved, how the
pitch was made and the meetings and actions it says Anderson took.
Anderson's attorney wouldn't comment on the details, but said he is
outraged at the inclusion of what appear to be references to Anderson's
wife, Sen. Lesil McGuire. The brief also makes it clear that other,
unrelated investigations were underway when the federal government's
unnamed source was approached to participate in a bribery scheme. Based on
court records and sources close to the investigation, Channel 2 News
believes the confidential source who allegedly recorded every move is
former lobbyist Frank Prewitt. Prewitt worked for Texas-based Cornell
Companies, a private firm looking to open a private prison in Alaska and a
juvenile treatment facility in Anchorage. The company also runs halfway
houses throughout the state. Anderson is accused of taking money from the
government source on behalf of Cornell in exchange for official acts.
Another lobbyist, Bill Bobrick, has already entered a guilty plea in
connection with the scheme. He is expected to testify at Anderson's trial.
In the trial brief, prosecutors cite a recording in which Bobrick tries to
convince the informant the scheme was worth the money, suggesting Cornell
would have two legislators working for them in Juneau because of Anderson's
romantic involvement with another lawmaker. "Cornell would get two
legislators," Bobrick is quoted as saying. "You know, chair of
labor and commerce, and chair of judiciary ... That's the minimum we're
going to have next year." At the time, Anderson was dating Rep. Lesil
McGuire, chairwoman of the House Judiciary Committee. The couple went on to
wed during the summer of 2005. In its filing, the government goes on to
cite a recorded conversation between an unnamed state representative and
the Cornell lobbyist. In it, the representative talks about contacting a
state commissioner overseeing regulations Cornell needed help with.
"Tom called me on the phone and he said, ‘I don't care what you are
doing, I need you to get on the phone right now ...'" states the
brief. The representative said Anderson asked for calls to be placed to the
lobbyist and the Cornell representative and goes on to say, "I was on
the phone because of Tom." During late 2004 and early 2005, Anderson
joined subcommittees key to Cornell's interests and, according to the
government, pushed Cornell's agendas without disclosing he was being paid.
Anderson's attorney, Paul Stockler, maintains Anderson's innocence and said
they are ready to clear his name at trial. Stockler also added that no
allegations have been made against Anchorage Sen. Lesil McGuire, and there
is no indication she has done anything inappropriate. There has been no
public link between the prison case and other corruption cases, including
the VECO bribery claims. However, VECO Corp. and Cornell do have a relationship
-- in 2003, VECO and Cornell Companies teamed up on trying to get a private
prison built in Whittier.
June 19, 2007 AP
State Rep. Vic Kohring said today he will resign after nearly 13 years
of public service so he can concentrate on defending himself against
federal bribery and extortion charges. He told The Associated Press that he
will leave office July 19. "I take the job as a legislator very
seriously, but my life is on the line, so I have chosen to defend myself so
I can prevail in court," Kohring said. "It's a very, very ugly
decision to have to make, frankly." Kohring said he plans to disclose
his decision during a luncheon at the Greater Wasilla Chamber of Commerce
later today, as he previously announced. "The easy route would be not
face the people who supported me and not to face those people who oppose
me," said Kohring, a Wasilla Republican. "I could just issue a
press release and be done with it, but that’s not the right way to do
it." Kohring and two former state lawmakers were indicted May 4 on
bribery and extortion charges related to alleged dealings with Anchorage-
based oil field services company Veco Corp. Also charged were former
Republican Reps. Pete Kott and Bruce Weyhrauch. All have pleaded not guilty
and have had their original July trial dates pushed back to the fall.
Federal prosecutors accuse the lawmakers of selling their votes to Veco
officials while they were considering a rewrite of the state’s petroleum
production tax, which could have levied a 20 percent tax on profits and a
20 percent credit on capital investments.
June 17, 2007 Anchorage Daily News
A federal grand jury in Washington, D.C., heard evidence last month
about the expansion of U.S. Sen. Ted Stevens' Girdwood home in 2000 and
other matters connecting Stevens to the oil services company Veco Inc. As
the far-reaching federal investigation into corruption in Alaska politics
spreads to Washington, Stevens family friend and neighbor Bob Persons was
ordered to appear before a grand jury in Washington on May 25. The government
directed him to produce documents related to the work on Stevens' Girdwood
house, especially to work that might have been performed by Veco and
contractors who were hired or supervised by Veco. Another close associate
of Stevens, Anchorage businessman Bob Penney, testified two weeks ago
before the federal grand jury in Anchorage that has been gathering evidence
in the corruption cases. The house expansion project, first reported in the
Daily News on May 29, more than doubled the size of the home. The Stevenses
had asked Persons, who lives above the Double Musky restaurant he owns in
Girdwood, to help them oversee the addition while they were in Washington.
The existence of the Washington grand jury investigation is the strongest
indication to date that Stevens himself has become a subject of the
wide-ranging federal probe that surfaced with FBI raids on state
legislative offices last August. Former State Sen. Ben Stevens, Ted
Stevens' son, was among the legislators whose offices were searched. Ben
Stevens has denied wrongdoing. The FBI said at the time that it also had
executed a search warrant in Girdwood, among other places, although the
location of that search has never been disclosed. VECO GUILTY PLEAS: The
investigation by the FBI and the Justice Department's Public Integrity
Section has so far led to guilty pleas by former Veco chief executive Bill
Allen, former Veco vice president Rick Smith and private-prison lobbyist
Bill Bobrick. Four current or former state legislators have been indicted
and are awaiting trial on corruption charges, three for taking bribes or
attempting to take bribes from Veco, the other for taking bribes from the
private prison interest. How the Girdwood home fits in with the broader
investigation, or what possible crimes are being investigated, is not
clear.
May 29, 2007 Anchorage Daily News
The FBI and a federal grand jury have been investigating an extensive
remodeling project at U.S. Sen. Ted Stevens' home in Girdwood that involved
the top executive of Veco Corp. in the hiring of at least one of the key
contractors. Three contractors who worked on the project said in recent
interviews with the Daily News that the FBI asked them to turn over their
records from the job. One said he was called to testify about the project
before a federal grand jury in Anchorage in December. The remodeling work,
which more than doubled the size of the house, occurred in the summer and
fall of 2000. The four-bedroom home, about two blocks from the day lodge
parking lot at the Alyeska ski resort, is Stevens' official residence in
Alaska. An old friend of Stevens in Girdwood, longtime Double Musky
restaurant owner Bob Persons, has been questioned by the FBI about the
project. He monitored the remodeling for Stevens and his wife while they
were in Washington, D.C. "I will be testifying. That's all I can tell
you," Persons said in a brief interview last week. "It is an
ongoing investigation that I'm not supposed to talk to or see anybody about
it." Persons would not elaborate on whether he meant that he would
testify before a grand jury, at a trial, or both, or for whom. He said he
believed Stevens did nothing wrong. Ted Stevens and his wife, Catherine,
declined to answer questions about the Girdwood house. In a prepared
statement issued by his office, Stevens said: "While I understand the
public's interest in the ongoing federal investigation, it has been my
long-standing policy to not comment on such matters. Therefore, I will
withhold comment at this time to avoid even the appearance that I might influence
this investigation." The FBI and the U.S. Justice Department's Public
Integrity Section, which are in the midst of a broad investigation of
corruption in Alaska, would not comment. "This is a pending
investigation and we're just not going to confirm or deny any aspect, any
rumors, any allegations out there," said FBI spokesman Eric Gonzalez.
May 7, 2007 Anchorage Daily News
Bill Allen, a welder who took the Veco Corp. from a small Kenai oil-field
company to a billion-dollar international contractor and a major political
force, pleaded guilty Monday to bribing at least four Alaska legislators,
including former Senate President Ben Stevens. In a plea bargain with the
U.S.Justice Department’s Public Integrity Section, Allen and Rick Smith,
Veco’s vice president for community and government affairs, each pleaded
guilty to three identical felony charges — bribery and two counts of
conspiracy. Both men accepted responsibility for making more than $400,000
in illegal payments and benefits to public officials or their families.
More than half the money went to Stevens in the form of phony “consulting”
fees, the government charged. Stevens, son of U.S. Sen. Ted Stevens, has
not been charged. He was named in the plea documents as “State Senator B,”
but his identity was unmistakable. In return for special consideration at
sentencing, Allen, 70, and Smith, 62, agreed to cooperate in the ongoing
federal investigation. The government also promised to not seek charges
against Allen’s son Mark, a Veco official, his daughter Tammy Kerrigan, or
any other relative. The federal plea bargain doesn’t bar state prosecutors
from seeking additional charges against Allen and Smith. Both men
acknowledged violating state campaign finance laws in their plea. The plea
deals were formalized in secret last week and opened in U.S. District Court
Monday morning in unannounced back-to-back hearings before Judge John
Sedwick, each lasting about 40 minutes.
May 6, 2007 Anchorage Daily News
The chairman of a key state House committee was deposed and Alaska's most
important oil tax law fell under new scrutiny Saturday as lawmakers reacted
to the arrest of one current and two former legislators on federal
corruption charges. Rep. Vic Kohring, R-Wasilla, will lose his chairmanship
of the Special Committee on Oil and Gas, House leaders said. Kohring was
charged with selling his vote on oil taxes last year to oil field services
company Veco. The House committee had an important early role in shaping
gas pipeline legislation this year. Republican majority leaders placed
Kohring in charge of the committee this session, even though he was one of
six legislators whose offices were raided by the FBI in a Veco-related
probe last fall. Kohring appeared before a federal magistrate Friday in
handcuffs to face charges of bribery, extortion and conspiracy. Also
appearing were two Republican colleagues from last year's legislative
session, Pete Kott of Eagle River and Bruce Weyhrauch of Juneau. All three
pleaded not guilty. In detailed indictments, the three were charged with
selling their votes and influence over other legislators for money and jobs
during the 2006 legislative session. The legislation in question was an
overhaul of the state's oil production tax, which pays for most of state
government and adds to the Alaska Permanent Fund. Veco wanted to keep the
oil tax low and also was pressing for construction of a gas pipeline from
which it would profit, according to the indictment.
May 5, 2007 Alaska Daily News
Three more state legislators were arrested on federal corruption
charges Friday, accused of selling their votes and influence to the oil
field services company Veco Corp. and its chief executive, Bill Allen,
during last year’s debate on oil taxes. Acting on felony indictments
brought by the Justice Department's Public Integrity Section, federal
agents arrested the three Republicans in Juneau — one a sitting legislator,
Rep. Vic Kohring of Wasilla, and two others who left office in January,
Reps. Pete Kott of Eagle River and Bruce Weyhrauch of Juneau. Each was
brought in handcuffs before a federal magistrate judge, and each pleaded
not guilty to bribery, extortion and conspiracy and was released on $20,000
bond. The charges carry penalties of between five and 20 years in prison
and $250,000 in fines. The indictments, unsealed with the arrests, describe
a conspiracy among the legislators, Veco, Allen and Veco's vice president
for government affairs, Rick Smith, to steer an oil-production tax bill
favored by the industry through the Legislature last year. The bill was
seen as a prerequisite for the North Slope oil producers to agree to build
a natural gas pipeline. Ultimately, Veco, Allen and Smith wanted to see a
gas line built that would help the company through contracts with the oil
companies, the indictments charged. Veco, Allen and Smith were neither
charged nor directly named in the indictments. But “Company A,” “Company
CEO” and “Company VP” are described in long passages in the indictments,
and those descriptions point unmistakably to them. Veco’s attorney, Amy
Menard, confirmed the identifications. Allen’s lawyer, Bob Bundy of
Anchorage, wouldn’t comment on what might be in store for his client. “Veco
and Bill have cooperated completely with the government’s investigation,”
Bundy said. WADS OF CASH The charges describe the three lawmakers seeking
money, jobs or both for themselves or family members, and Veco willing to
oblige. Much of the activity described in the charges took place in Veco’s
suite in Juneau’s Baranof Hotel, Room 604, during the 2006 legislative
session. Direct quotes attributed in the indictments to the three
legislators and to Allen and Smith suggest the FBI conducted some form of
electronic surveillance in the room and perhaps on telephones as well.
Kott’s lawyer, Jim Wendt, said the room contained a hidden camera. He
learned about the surveillance when the prosecutors offered to make a deal
with him. They revealed snippets of their evidence, including video from
inside a Baranof room, Wendt said. FBI spokesman Eric Gonzalez wouldn’t
confirm whether agents used wiretaps or hidden cameras. A Baranof employee
on Friday said the hotel would not discuss the use of the suite.
May 4, 2007 Anchorage Daily News
Former Alaska state legislators Pete Kott and Bruce Weyhrauch have been
indicted by a federal grand jury on several counts of extortion, bribery,
wire fraud and mail fraud. Kott was arrested at home in Juneau around 9
a.m. Friday, a spokesman for the FBI said. Weyhrauch was arrested later in
the morning. Both are being held in the federal courthouse in Juneau. FBI
spokesman Eric Gonzalez would not say if additional arrests are coming.
"It’s a continuing investigation," he said. Some of the charges
against Kott and Weyhrauch involve the Legislature’s consideration last
year of a natural gas pipeline and a petroleum production tax proposed by
former Gov. Frank Murkowski. Kott, a former House speaker from Eagle River,
is accused of seeking and accepting bribes to push positions favored by executives
of a company that is not named in the indictment. Weyhrauch traded votes
for the promise of a job, according to the charges. The company is referred
to throughout the indictment as "Company A" and is described as a
privately owned company that "provided services to the energy,
resources and process industries" and "took an active
interest" in the Legislature. The indictment also refers to a prison
in Barbados the company was constructing. That description matches Veco
Inc., a huge Anchorage-based oil-field services company that has been
active in lobbying the Legislature for years. Kott lost his Eagle River
seat in the state House in last year’s Republican primary. Weyhrauch, an
attorney, did not seek re-election to his House seat representing Juneau.
Both left office in January. Both were among the six lawmakers whose
offices were raided by federal agents in August as part of an investigation
into corruption. Kott was scheduled to be arraigned in Juneau at 1:30 p.m.
today. The indictment covers a period from September 2005 until the end of
August 2006. The Legislature considered the pipeline and oil tax proposals
during regular and special sessions during that time. Lawmakers in both
political parties reacted to the indictment today with disgust.
April 17, 2007 Anchorage Daily News
High up in City Hall on Friday, the Anchorage Assembly talked for hours
about road projects and budgets and the kind of things you usually don't
sit through unless you're paid to be there. Listening from the back of the
room was lobbyist Bill Bobrick. Four months after Bobrick was linked to a
federal bribery case that led to the indictment of Anchorage state Rep. Tom
Anderson, he remains one of the busier lobbyists of the city. He's got to
earn a living, he says to friends and acquaintances. He also tells them his
role in the bribery case is about to get bigger. "My understanding,
real clear, is that Bobrick's going to go in and plead guilty here real
quick to a felony," said Assemblyman Dan Coffey. Coffey said Bobrick
told him just that after a late March town hall meeting at a local school.
Mayor Mark Begich, who was best man at Bobrick's wedding in 1998 and has
known him for more than 20 years, said the longtime city lobbyist told him
something less precise: "He told me he was going to plead. I don't
know what that means. And honestly, I didn't dive into it. That's an issue
that, again, doesn't relate to the city." Bobrick hasn't been charged
with a crime. He fits the description of an unnamed conspirator described
in the indictment of Anderson, who is accused of money laundering, bribery
and extortion. Public records show Bobrick as owner of a company that
federal prosecutors say was set up to funnel Anderson bribes. In exchange,
Anderson helped promote in the Legislature a private prison and juvenile
treatment facility, the indictment says. Anderson left office when his term
expired in January. Bobrick declined to be interviewed for this story.
January 14, 2007 Juneau Empire
Federal prosecutors who accused Rep. Tom Anderson of bribery and other
crimes say he also used another, unidentified legislator to carry out
illegal acts. While Anderson was advocating for Cornell Companies, a
Texas-based developer of private prisons, he also tried help Cornell win
approval for a juvenile mental-health treatment center in Alaska. To do
that, he got another legislator to try to pressure the state Department of
Health and Social Services to grant a certificate of need for Cornell's
project, according to the Anderson indictment. In competition with Cornell
was North Star Behavioral Health Systems, an Alaska nonprofit that already
had operations in Anchorage and Palmer. It was supported by a number of
influential legislators, including Senate Minority Leader Ethan Berkowitz,
D-Anchorage, and Sen. Lyda Green, R-Wasilla, president-elect of the Senate.
The indictment says Anderson, an Anchorage Republican, prevailed upon an
"elected public official" to lobby for the certificate. Documents
obtained by the Empire show that Kohring was the only legislator who wrote
a letter in support of the certificate during the time frame described in
the indictment. Kohring did not return repeated phone calls last week. In
Kohring's letter to Health and Human Services officials, he wrote, "It
has come to my attention" that Cornell was seeking a certificate of
need for its project, but he didn't say how it had come to his attention.
Anderson's attorney, Paul Stockler, denied that the unnamed elected
official was Kohring. The only other letter to the state on behalf of the
certificate was written by Rep. John Harris, now speaker of the House of
Representatives. Harris said he did not recall how his letter came to be
written. "I write letters for a lot of people," he said. Harris
said he didn't recall talking with Anderson about the matter. "He and
I were never close," Harris said. Prosecutors say in the indictment
that they have tape recordings of Anderson and the "elected public
official." In them, the official allegedly confirms that he contacted
the department commissioner at Anderson's request. Anderson already had
been pushing Cornell projects. Bringing in six-term representative Kohring
or Harris, then the Finance Committee chairman, may have increased
Cornell's chances. The company dropped the project, however.
January 9, 2007 Anchorage Daily News
Indicted state legislator Tom Anderson wants to delay the start of his
trial so his lawyer can better prepare. In a court motion filed Friday,
Anderson's attorney, Paul Stockler, wrote that he is still working his way
through 20 discs "which contain hours of audio and video recordings
involving the defendant taken over an extended period of time." The
trial is now scheduled for Feb. 12, and Stockler said he wants to delay it
until April 23. The three-page motion provides the first mention of video
recordings in the FBI corruption investigation of Anderson and other
legislators. Anderson was indicted by a federal grand jury in December on
seven felony counts including money laundering, extortion and bribery. The
indictment contains a number of references to recorded conversations
between Anderson and two others: a local-government lobbyist for a private
corrections company and a confidential source who had worked for the same
company. The indictment doesn't specify whether any of the recordings were
on video. The indictment describes a conspiracy that began in July 2004 in
which the lobbyist set up a shell company that existed to launder money to
Anderson. The FBI gave money to the informant, who passed it on to Anderson
and the lobbyist in exchange for Anderson pushing the interests of the
corrections company. Anderson received less than $13,000, according to the
indictment. Anderson has pleaded not guilty to all the charges.
December 25, 2006 Juneau Empire
In 2004, a privately owned Texas prison firm had a problem in Alaska. Its
chain of halfway houses that took in prisoners under contract with the
state Corrections Department was struggling. It had facilities in
Fairbanks, Bethel, Nome and several Anchorage locations. Low occupancy
rates were hurting profits, especially in Anchorage. Cornell Companies, the
Houston-based owner of the facilities, also had some top lobbyists on their
payroll, including a former commissioner of corrections for the state. Also
on its payroll was a key state legislator, Rep. Tom Anderson, R-Anchorage,
according to the U.S. Department of Justice. The lobbyists' affiliation was
legal, but Anderson's wasn't, according to an indictment filed in U.S.
District Court for Alaska earlier this month. Anderson was arrested Dec. 7
on charges of bribery, extortion and money laundering. He has pleaded not
guilty. If convicted on all counts, he faces a possible sentence of 20
years or more in prison and hundreds of thousands of dollars in fines.
Anderson was unavailable for comment for this article. On federal wiretaps,
two Cornell lobbyists were heard discussing efforts to bribe Anderson, who
they said was willing to be "our boy in Juneau" in exchange for
cash payments, according to the Department of Justice indictment. Cornell,
whose stock is traded on the New York Stock Exchange, reported revenues of
$346 million last year. It was not identified in the indictment. Company
spokeswoman Christine Taylor confirmed the company had been notified of the
Anderson investigation by the Department of Justice. "We've been
notified of the indictment, but no wrongdoing has been alleged," she
said. The indictment said the company was unaware of the actions of its
lobbyists. A confidential FBI source had at various times been a lobbyist
for the company. He used funds provided by the FBI, not the company, for
the bribes. He didn't notify Cornell because of "the undercover nature
of the operation," the Justice Department said. "The corrections
company was not implicated in the corrupt activities that are alleged in
the indictment," according to the Department of Justice press release
announcing the arrest. Tom Anderson: Anderson worked unsuccessfully to help
Cornell expand its private prison and juvenile detention operations into
Alaska but was more successful helping out the company's halfway houses.
That effort, not previously reported, is detailed in the indictment and in
Alaska Department of Corrections documents obtained under the state Public
Records Act. When Cornell's halfway houses were struggling, the company
lobbyist approached Anderson, who allegedly agreed to try to influence the
Department of Corrections. In exchange, Anderson apparently received
thousands of dollars in cash from the lobbyist. On Oct. 20, 2004, Anderson wrote
a letter to then-Corrections Commissioner Marc Antrim, urging more use of
the halfway houses and requesting a personal meeting. "Since private
contractors only get paid for occupied beds, severe underutilization
creates serious budget challenges when beds are left empty," Anderson
wrote to Antrim on legislative letterhead. In the letter, Anderson also
noted that he was a member of the House Finance Committee's Corrections
Subcommittee. The indictment alleges that a lobbyist wrote the letter for Anderson.
On. Oct. 29, 2004, Antrim met with Anderson, Department of Corrections
records show. What happened in the meeting? "I'm not able to comment
on that," Antrim said in a phone call to his Juneau home. He is no
longer with the department. Antrim declined to say why he could not
comment. There are no indications that Antrim is under investigation.
However, prosecutors sometimes ask potential witnesses not to speak
publicly about matters that might come up in court. Federal investigators
obtained bank records showing that a Cornell lobbyist on Oct. 21, 2004,
wrote a check to Anderson's consulting business from Pacific Publishing, a
company created by another Cornell lobbyist. The check was purportedly for
writing public policy articles for a Pacific Publishing Web site. The
indictment alleges that there was no web site and that the money was
laundered through Pacific Publishing to deceive the Alaska Public Offices
Commission. On the wiretaps, Anderson was overheard acknowledging to the
lobbyist that that payment and others were "not really for your Web
thing," the indictment states. The Department of Justice called
Pacific Publishing a "sham corporation" formed for the sole
purpose of disguising bribe money. In the 2004 fiscal year, Cornell received
$12.1 million in state payments for its halfway houses, $12.3 in 2005 and
$12.4 in 2006, according to Richard Schmitz, spokesman for the Department
of Corrections. Alaska state law bars a legislator from accepting money in
exchange for official acts, but courts have found the state Constitution's
free speech provisions make prosecuting legislators for such actions
difficult. Anderson has been charged under federal law, however. Federal
investigators continued their investigation of Anderson for more than two
years after the Cornell lobbyist investigation, during which time Anderson
was re-elected to the House of Representatives. The U.S. Attorney for
Alaska did not say why it took so long to indict Anderson. Anderson chose
not to run for re-election this year and leaves office in January after
serving two terms in the House.
December 9, 2006 Anchorage Daily News
State Rep. Tom Anderson pleaded not guilty Friday to a series of
federal charges accusing him of selling his legislative office for $12,828
in bribes from a lobbyist representing private prison interests. Anderson,
a 39-year-old Republican who has represented Muldoon's District 19 since he
was elected in 2002, was ordered freed Friday by U.S. Magistrate Judge John
Roberts on an unsecured $10,000 bond after his arrest Thursday by FBI
agents. Roberts said Anderson could travel to Mexico on a previously
scheduled vacation next week with his wife, Republican state Rep. Lesil
McGuire, who was elected to the state Senate in November, and their infant
son. The 18-page indictment against Anderson said the lobbyist was secretly
recorded July 21, 2004, boasting that for a price, Anderson would be
"our boy in Juneau." A week later, the same lobbyist was recorded
telling a confidential informant, "If I was a Soviet spy and I was looking
for a legislator to recruit, (Anderson) would be the one I'd get."
Anderson "needs the money," the lobbyist said. The government
didn't charge the lobbyist. He is identified only by the letter
"A," but the facts in the case point to Bill Bobrick of
Anchorage, who represented Cornell Companies, a private prison firm
Outside. Bobrick didn't return messages left on his home and cell phones
Friday, and his business number wasn't working. On Thursday, before
Anderson's arrest, Bobrick said in an interview that he was getting out of
the lobbying business and was in the process of handing off his clients. He
cited "health issues" as the reason. Anderson, who did not seek
re-election this year and formally leaves office next month, is the first legislator
charged with corruption in office since two state senators faced charges in
the early 1980s. One, George Hohman, was convicted of bribery in 1981,
while the other, Ed Dankworth, successfully appealed his 1982
conflict-of-interest charges and never faced trial. Anderson's seven-count
indictment accuses him of going into league with Lobbyist A to promote a
private prison somewhere in Alaska and a private juvenile treatment
facility in Anchorage. In return for the money, it said Anderson got
himself appointed to legislative committees with jurisdiction over prisons
and treatment, lobbied other elected officials, agreed to align his votes
with the correction company's interests, wrote letters and publicly spoke
on behalf of company projects. Anderson disguised the source of the money
in his reports to the Alaska Public Offices Commission, the indictment
charged. A second private prison advocate secretly worked with the
government to record conversations of the lobbyist and Anderson. The
informant, identified only as "CS-1," used money provided by the
FBI in the payoffs. The private prison company was identified only as
"Corrections Company" in the charges, but the facts squarely
match Cornell Companies Inc. of Houston, Texas, a publicly traded corporation
with facilities in 17 states. Cornell operates six halfway houses in Alaska
from its buyout of Anchorage-based Allvest Corp. With partners Veco and
Allvest founder Bill Weimer, Cornell failed to win public support for
private prison proposals in Anchorage, Delta Junction, Kenai and Whittier.
The proposals were all highly controversial in the communities, though they
often sailed through legislative committees. During a House Finance
Committee hearing May 9, 2004, Rep. Eric Croft, D-Anchorage, said the
effort was corrupting the state. "What I see, over and over, is
repeated sole-source, pre-arranged, heavy-money deals that go to specific
contractors. ... It's never been a clean, competitive proposal," Croft
said at the time, the only member of the committee to object. "We are
going to see somebody indicted and probably imprisoned over this series of
proposals." A prepared statement from the Justice Department released
Friday said the corrections company was never told about the payments to
Anderson "due to the undercover nature of the operation." It said
the company "was not implicated in the corrupt activities that are
alleged in the indictment." Christine Parker, a spokeswoman for
Cornell in Houston, said, "There's nothing that we knew of, or were
aware of, until this indictment was issued." Anderson arrived for his
arraignment in federal court Friday wearing a bright yellow jumpsuit with
the word "PRISONER" across his back. His legs were shackled as he
rose for the judge alongside his defense attorney, Jeffrey Feldman of
Anchorage. The hearing lasted 19 minutes. His trial was set for Feb. 12. If
the government was making a point to other potential defendants in its
ongoing investigation into corruption, the message was tough. Nicholas
Marsh, a trial attorney from the Justice Department's Public Integrity
Section in Washington, D.C., told the court the charges carried penalties
ranging from a maximum of five years and a $250,000 fine for conspiracy to
a maximum of 20 years and $500,000 for each of three money laundering charges.
Anderson was also accused of two counts of extortion (20 years and
$250,000) and one count of bribery (10 years and $250,000). The activities
alleged in the indictment took place long before the coordinated raids of
Aug. 31, when the FBI searched the offices of 10 percent of the 60-member
Legislature. Anderson's office wasn't among them, and it's unclear how his
case is related. Marsh, assistant U.S. attorney Joseph Bottini and FBI
agent Mary Beth Kepner, a leader of the corruption probe, left quickly
after the arraignment and declined to answer questions. The conspiracy
alleged in the indictment began in July 2004 and continued through the
following March. It said that Lobbyist A set up a shell company called
Pacific Publishing that existed solely to launder money to Anderson. The
company would pay Anderson to write articles about politics that would be
published on its Web site, but Anderson was paid without ever scribbling a
line. CS-1 paid Lobbyist A $24,000 in three payments. The cover story was that
the money was for advertising on the Web site, but they agreed the money
was really for Anderson's pocket, with "A" taking a sizable cut.
The indictment said CS-1 had worked for the corrections company as a
lobbyist "at various times." The identity closely matches Frank
Prewitt, a former Alaska corrections commissioner appointed by Gov. Wally
Hickel and who later went to work for Cornell. In an e-mail exchange with
the Daily News on Friday, Prewitt suggested he was the source, though he
stopped short of confirming it. "At this time it is inappropriate for
me to talk about the voluntary role that I and others may have played in
the Anderson investigation," Prewitt wrote. "Over the next year I
believe you will find that this was only the beginning of the end of a sad,
but healthy chapter in Alaska history. My prayers are with Representative
Anderson and his family during this difficult time for all." The first
recorded conversation cited in the indictment occurred July 16, 2004, when
the lobbyist suggested to the confidential source that they "try with
(Cornell) to help out Tom Anderson." Five days later, the lobbyist
told the source that Cornell should hire Anderson through him. Rather than
report Cornell, with its interest in legislation and other government
action, as the source of the money, Anderson said he was paid for writing
for the Pacific Publishing Web site. Anderson himself was recorded Aug. 17,
2004, telling the confidential source: "APOC only needs to know
(Bobrick) pays me and then we're all safe." The source paid the
lobbyist the first $8,000 Aug. 19, 2004, the indictment charged. Out of
that, Anderson received $3,328, which he deposited Aug. 23 into the account
of his personal consulting firm, Alaska Strategic Consultants. In a recorded
call Oct. 20, 2004, the source told Anderson he had prepared the next
$8,000 payment and planned to pass it on to the lobbyist. "Awesome.
Awesome. I appreciate it," Anderson is quoted as saying. Anderson
received a $3,500 advance from that payment, the indictment charged. The
source made his last $8,000 payment on Dec. 21, 2004. Anderson got $4,000.
But late in the scheme, the indictment alleged, Anderson was showing signs
of unhappiness over splitting the money with the lobbyist. According to
excerpts of recordings, the confidential source appeared at first to
encourage the disaffection, saying it wasn't the lobbyist who was speaking
out and voting for Cornell, but rather Anderson. "I know,"
Anderson said. But then the source suggested the lobbyist might become "estranged"
if he were cut out of the deal. The source thought that he could make a
separate payment direct to Anderson. "If there's a way you can think
of that, that would be nice," Anderson replied. The source obliged,
handing Anderson a $2,000 check Dec. 21, 2004. The indictment said the
check was made payable to Tom Anderson.
December 8, 2006 Anchorage Daily News
A federal grand jury has indicted an Alaska lawmaker on charges of
extortion, conspiracy, bribery, and money laundering, federal officials said
Friday. A seven-count indictment was returned against state Rep. Thomas T.
Anderson, R-Anchorage, on Wednesday, assistant Attorney General Alice S.
Fisher said. Anderson was arrested Thursday, and was being held at the city
jail. The indictment charges Anderson with two counts of extortion, one
count of bribery, one count of conspiracy, and three counts of money
laundering in connection with the use of a sham corporation to hide the
identity of the bribery payments, Fisher said in a prepared statement. The
indictment also alleges that Anderson solicited and received money from an
FBI confidential source in exchange for Anderson's agreement to perform
official acts to further a business interest represented by the
confidential source. The indictment alleges from July 2004 to March 2005,
Anderson and an individual described in only as "Lobbyist A"
solicited and received $26,000 in payments from an FBI confidential source
in exchange for Anderson's agreement to act on his behalf in the
legislature, according to the statement released from the U.S. Department
of Justice. Anderson and the unnamed lobbyist created a sham corporation to
conceal the existence and origin of the payments, and used the corporation
to funnel a portion of the $26,000 to Anderson, the indictment says. The
FBI's source was a consultant for a private corrections company located
outside the state of Alaska, and Anderson and the lobbyist initiated
contact with that confidential source in order to solicit bribery payments,
the indictment alleges. The source, however, never communicated any
information to the corrections company due to the undercover nature of the
operation. The corrections company was not implicated, federal officials
said. If convicted, Anderson faces a maximum penalty of 20 years and a
$250,000 fine on the extortion counts; a maximum penalty of 20 years and a
$500,000 fine on each of the money laundering counts; a maximum penalty of
10 years and a $250,000 fine on the bribery count; and a maximum penalty of
five years and a $250,000 fine on the conspiracy count. Anderson was
scheduled to be arraigned Friday, assistant U.S. Attorneys Joseph W.
Bottini said. It was not immediately known if he had hired a lawyer.
Anderson is married to former state Rep. and now state Sen.-elect Lesil
McGuire, who did not return messages left on her cells phones Friday.
Anderson, who was elected to the state House four years ago, did not seek
re-election. He leaves office this month.
October 9, 2006 Anchorage Daily News
When FBI agents searched the Wasilla office of Rep. Vic Kohring on Aug.
31, they weren't just looking for documents related to Veco Corp., its
executives and ties to lawmakers. They also wanted information about
developer Marc Marlow as well as the state Department of Corrections. That
element of the ongoing FBI investigation emerged last week when Kohring's
attorney, Wayne Anthony Ross, provided a copy of the search warrant to the
Daily News, along with the list of items taken. Those documents, though
lacking detail or context, suggest that the probe is wide-ranging and not
focused on any one company, issue or individual. No one has been charged in
the investigation, and federal authorities have declined to discuss it
except to say that it continues. The lead prosecutors are from the Department
of Justice's Public Integrity Section in Washington, D.C., which often
handles government corruption cases. In all, offices of six lawmakers have
been searched, along with Veco offices and additional undisclosed
locations. Other lawmakers whose offices weren't searched have said they
were interviewed by the FBI. The warrant also sought all correspondence
between Kohring and the Alaska Department of Corrections. Ross said Kohring
was questioned by the FBI about efforts to build a private prison in
Whittier. "He indicated it was a facility that Cornell was hoping to
build in the past and that's apparently all they asked about that,"
Ross said. Cornell Cos. had teamed with Veco in the private prison
endeavor, which ultimately died last year after the city of Whittier
dropped its support. Along with those of Kohring and Stevens, FBI agents
searched offices of Sen. John Cowdery, R-Anchorage; Sen. Donny Olson,
D-Nome; Rep. Pete Kott, R-Eagle River; and Rep. Bruce Weyhrauch, R- Juneau.
Messages left for them were not returned. Kohring is the only one of the
six still facing an election battle in November. Kott lost in the primary,
Stevens and Weyhrauch aren't running again and the others aren't up this
year. What's known: • Dozens of FBI agents executed about two dozen search
warrants Aug. 31 and Sept. 1, though in some cases individuals agreed to
the search. • Six legislative offices were searched, and so was Veco Corp.
Searches were conducted in Anchorage, Juneau, Eagle River, Wasilla, Willow
and Girdwood. The office of Senate President Ben Stevens was then searched
a second time, on Sept. 18. • One search warrant, provided by Sen. Donny
Olson, said the FBI was looking for "any and all documents"
related to Veco, four of its executives and two political pollsters, as
well as information on Olson Air Service, among other matters. When agents
searched Stevens' office, they seized materials related to controversial
fisheries organizations. In the search of Rep. Vic Kohring's office, agents
also sought information on developer Marc Marlow and on the state
Department of Corrections. • The lead prosecutors on the case are from the
Justice Department's Public Integrity Section in Washington, D.C., which
handles public corruption cases. • No one has been charged. What's not
known: • Perhaps the biggest of the many unanswered questions is this: Who
or what is being targeted? • Authorities also won't say how many FBI agents
or prosecutors are working on the investigation, when it began, when it
might end or how they are proceeding.
September 24, 2006 Anchorage Daily News
Last month, state Rep. Tom Anderson testified before the Anchorage
Assembly in favor of Wal-Mart's plan for two stores in his old
neighborhood. Assembly chairman Dan Sullivan introduced him as Representative
Anderson, but the lawmaker for Muldoon corrected him. He was there
representing the home builders association, Anderson said. Anderson, who
was a consultant before he was elected to the state House four years ago,
has never stopped making money on the side as a paid adviser for clients
who do business with state and local government. His dual role may have
surprised the Assembly in August. But it would not have surprised some
members of the Northeast Community Council, the neighborhood group that opposed
the stores. They recall seeing Anderson at their meetings all though 2003.
They assumed he was there as the local state legislator. But Anderson's
state financial disclosure form, filed the following year, revealed he was
also working as a $10,000 consultant on community councils and local
government for the oil field services and construction company Veco.
"We are all going, 'This is so bogus,' " said council president
Peggy Robinson, who publicized Anderson's Veco connection in an unsuccessful
bid to topple Anderson from his House seat in 2004. Now Anderson's role as
a consultant to industry is coming under scrutiny again, following last
month's FBI searches of six legislative offices seeking information on
legislators' links to Veco. A rule insisting on proper qualifications would
probably have done little to crimp Veco's employment of legislators.
Stevens and Anderson were both consultants before they ran for office.
Arrangements between Veco and two other lawmakers show up in state
disclosure forms dating back to 2002. One was for a boat rental from a
fisherman, one was for legal work from a lawyer. In 2002, Veco paid $17,600
to use a boat owned by Rep. Paul Seaton, R-Homer. The contract came in the
summer before Seaton, a commercial fisherman who owns several boats, was
first elected. He said his fish tender just happened to be available in
upper Cook Inlet when Veco needed a standby safety vessel during a short
oil rig construction job. The legal payments went to then-Sen. Robin
Taylor, who got into a jam with critics in his home town of Wrangell over
that work. Taylor, a lawyer and longtime chairman of the Senate Judiciary
Committee, reported being paid $15,700 for legal work by Veco in 2000,
$19,300 in 2001 and $16,800 in 2002. He also served as city attorney for
Wrangell during that period. Critics accused Taylor of hiding his Veco ties
when the city council considered taking up a private prison project in
2001. Veco had been part of the consortium whose prison plan had just been
turned down in Kenai. Taylor insisted he had disclosed his Veco ties on
state forms and didn't need to announce them. Taylor retired from the
Senate and his private legal practice in 2003 and is now head of the state
marine highway system. He was among the current and former legislators
known to have been interviewed by the FBI in the current investigation.
Taylor said last week that he had never been lobbied by Veco over the
prison. As far as he knew, he said, Veco wasn't interested in a Wrangell
prison. "It's a breach of attorney-client privilege, but I can tell
you up front: That client never talked to me once about that project,"
Taylor said.
September 7, 2006 Anchorage Daily News
For two decades, oil man and political financier Bill Allen has been a
familiar presence in the halls of the Alaska Capitol. But toward the end of
this year's regular legislative session, the Veco chief executive may have
taken that familiarity a step too far. Allen was watching the state House
debate oil taxes on the next-to-last night of business in May when he began
passing notes to legislators across the railing of the small spectator
gallery, according to Rep. Harry Crawford, D-Anchorage. Rules say the
public can pass notes through the front door to be delivered by a page.
Direct engagement from the visitor gallery is forbidden once the speaker's
gavel sounds. Crawford said he saw Rep. Tom Anderson, R-Anchorage, carry
several notes from Allen to other legislators. Anderson has received Veco
campaign contributions and has also reported $30,000 in consulting
contracts with the company since 2003. Several other legislators say their
staff observed similar goings-on. "He was definitely directing traffic
back there," Crawford said of Allen. Veco's role in Alaska's political
process is under intense scrutiny now. Last week the FBI served search
warrants on legislative offices and others seeking a wide range of
information related to Allen and other Veco executives, including gifts to
public officials. But much of Veco's influence, dating from the early
1980s, comes from sources in plain sight. This includes close to $1 million
in state and federal campaign contributions over the past decade as well as
consulting contracts with individual legislators. Veco's presence in Juneau
is distinctive not just for its role in helping finance many campaigns but
for the personal role played by Allen and several other company executives.
Veco has hired top-drawer professional lobbyists in the past, as it did
while pushing for a private prison between 1996 and 2002. But Allen, 69, is
known for taking a personal hand in promoting his priorities, in a manner
often described as gentlemanly rather than bullying. In 1996, the
Legislature added a new twist -- anyone registering as a lobbyist was
barred from giving campaign contributions outside his or her home district.
The idea was to prevent favor-seeking lobbyists from working a building
full of people they'd given money to. Allen spent a lot of time in the
Capitol in 2002, pressing the Legislature to pay for a private prison in
Whittier (Veco was teamed with a national prison company, Cornell, to build
the project) and to authorize a property tax break for construction of a
North Slope natural gas pipeline. Allen was in the Capitol so much that
APOC ordered him to register as a lobbyist. Allen protested, saying
business owners looking out for their own interests should not be treated
like professional lobbyists who represent a variety of clients. Allen
eventually complied, registering for 2002 and 2003 and reporting his hourly
wage as $156.25. That meant he had to forgo writing campaign checks in
those years. (Not that candidates were starved for Veco money: Other
company officials gave more than $200,000 to state candidates in 2002
alone.)
September 1, 2006 Alaska Report
The FBI served four more search warrants today in its investigation of
the relationship between lawmakers and oilfield services company VECO
Corporation, an Anchorage-based oil field services and construction company
whose executives are major contributors to political campaigns. Bill Allen,
owner of VECO, and his firm, were involved in a renovation of Alaska
Senator Ted Stevens' chalet in Girdwood in the recent past. The Associated
Press is reporting that the search warrants seek "from the period of October
2005 to the present, any and all documents concerning, reflecting or
relating to proposed legislation in the state of Alaska involving either
the creation of a natural gas pipeline or the petroleum production
tax." An Anchorage FBI spokesman says that about two dozen search
warrants have been executed so far, including three today in Anchorage and
one in Willow. No arrests have been made as of yet. AlaskaReport has
learned that a staffer in one of the offices raided has been providing
information to federal authorities. In an interview with KTUU-TV in
Anchorage, Wev Shea, a former U.S. attorney for Alaska says he knows who
created the climate that he alleges allowed corruption to flourish.
"The Republican Party is going to rue the day in this state for allowing
Randy Ruedrich (chairman of the Republican Party of Alaska) to remain as a
chair. He's bringing this party down and it's bad." KTUU also
interviewed Rep. Eric Croft. He says he saw this coming two years ago,
during a legislative committee meeting concerning VECO’s pitch for a
sole-source contract award for a private prison. "I said at the time,
in 2004, on the Whittier proposal, someone's going to jail over this 'cause
I could see how corrupt the process was," said Croft, D-Anchorage.
August 31, 2006 Anchorage Daily News
Federal agents swarmed legislative offices around the state Thursday,
executing search warrants in a coordinated series of raids that appeared to
target the longstanding relationship between the oil-field service company
Veco and leading lawmakers. Above Anchorage’s 4th Avenue, FBI agents spent
most of the afternoon behind the closed doors and drawn blinds of the
fifth-floor offices of Senate President Ben Stevens and Senate Rules
Committee Chairman John Cowdery, both Anchorage Republicans. Through slits
in the blinds, one agent in Stevens’ office, wearing rubber gloves, could
be seen packing away evidence in a container. In Juneau, tourists and
residents were greeted with the extraordinary sight of FBI agents hauling
out files form the Alaska State Capitol after searching offices there.
After the FBI searched his Wasilla office and questioned him, Rep. Vic
Kohring, R-Wasilla, the chairman of the House Special Committee on Oil
& Gas, said the investigation was focused on Veco. Other legislative
offices known to have been searched Thursday included those of Reps. Pete
Kott of Eagle River and Bruce Weyhrauch of Juneau, and Sen. Donny Olson of
Nome. Kott, a former House speaker, and Weyhrauch are Republicans. Olson is
the only Democrat in the group. FBI spokesman Eric Gonzalez said federal
agents executed about 20 search warrants Thursday, not all in legislative
offices. The warrants were executed in Anchorage, Juneau, Wasilla, Eagle
River and Girdwood, he said. Ray Metcalfe, a former legislator and the
founder of the independent Republican Moderate Party, said he has been
trying to get the authorities interested in what he described as the
“corrupt” relationship between Veco and the Republican-lead legislature,
principally Ben Stevens. “I put all the stuff in front of federal
prosecutors a year and a half ago,” Metcalfe said Thursday, clearly
relishing the turn of events. “I laid hundreds of pages of detailed
information alleging bribery, and I distributed it to federal authorities,
I distributed it to the U.S. Attorney’s office, I distributed it to the
(state attorney general’s) Office of Special Prosecutions, and we held a
demonstration in front of the attorney general’s office that hardly anyone
showed up for.” Metcalfe attempted to initiate a recall campaign against
Stevens, but his effort was rejected by Lt. Gov. Loren Leman on legal
grounds. After first announcing he’d run for re-election in November,
Stevens changed his mind in June and opted to retire.Tamara Cook, a lawyer
who heads the nonpartisan legal services division of the Legislature, said
Thursday evening that she reviewed a couple of the search warrants at the
request of legislators or aides upon whom they were served. The search
warrants allowed the FBI to search computers and office files including
financial records, she said. The warrants named Veco Corp., she said, but
could not say whether Veco was a target or whether the investigation
concerned oil taxes, its failed push to build a private prison in Alaska or
something else.
July
1, 2005
In the closing days of the regular legislative session, Republican Sen.
Gene Therriault of North Pole amended an elections bill to allow big
corporate money into Alaska politics. Undeterred by the fact there had been
no public notice or public hearing, Senate Republicans approved the change.
But the state House balked, and the amendment was removed. A triumph for
democracy, right? So what's Therriault really trying to do? Simple.
Alaska law does not allow corporations to make political contributions to
candidates or groups. Therriault wants to change that because the
Republican Party would get more corporate money than other parties. This is
about nothing more than fattening the Republican Party's bank accounts.
Would it? You bet. How do we know? Well, a court ruling allowed corporate
contributions for a brief period in 2001, and the Republican Party
mistakenly reported some of what it got: $25,000 from Veco, $12,000 from
Cornell Companies Inc., $10,000 from Gray Line of Alaska, $8,000 from Philip
Morris USA, $7,500 from Holland America and so on. Selfless giving? Hardly.
Veco and Cornell wanted a private prison; Gray Line and Holland America
didn't want a cruise ship tax; Phillip Morris didn't want higher tobacco
taxes. You get the picture. Alaskans don't want big money in their state's
politics. They've said so at the polls. But Gene Therriault doesn't care
about that. He wants the dough for his own partisan purposes. Better keep
an eye on him.
October 16, 2004 Salon
In any other election year, Alaska's conservative electorate could be
expected to chill Democratic hopes of taking over a United States Senate
seat held by a Republican incumbent. Republicans hold every statewide
elected office, enjoying a powerful base of support from the dominant
energy, fishery and development industries, as well as an ideological
advantage among the state's many gun-toting libertarians and fundamentalist
Christians. But this year is not
like any other election year in Alaska, principally because of what may
well turn out to be a fateful mistake by Gov. Frank Murkowski when he
ascended to his current office from the Senate two years ago. In an act of
hubris that outraged critics across the political spectrum, the new
governor appointed his daughter Lisa Murkoswki to succeed him in the
Senate. In the Murkowski political clan, the father has become the
daughter's weighty albatross, and vice versa. For the past several months,
the governor and the senator have assiduously (and somewhat oddly) avoided
public appearances together. For obvious reasons they would prefer not to
remind anybody that they're related, at least not until after Election Day.
Amazingly, the official biography on her Web site neglects to mention the
existence of her father, the governor. But the most generous donors to Murkowski's Senate campaign
seem well aware of her filial relationship to Alaska's most powerful public
official. Major corporations and other special interests needing favors
from the governor have poured money into his daughter's war chest. And
perhaps not surprisingly, their generosity has coincided with favorable
action by the governor. But for Lisa Murkowski, the truly big
money has flowed in from Veco Corp., a major Anchorage construction firm.
Veco is not only the largest single donor to the Republican senator but is
regarded by many Alaskans as the most powerful company in their state.
While its interests are broad and varied, from the oil industries to local
construction, the Halliburton-like firm has an important potential stake in
one of the state's most controversial projects: a private prison in the
port town of Whittier that could ultimately cost the state more than $1
billion. Alaska currently rents space for more than 700 state prisoners at
a privately run correctional facility in Arizona, under an arrangement that
harms convicts' families, while draining money from the state. Pressure to
ameliorate this situation has been growing. For several years, Cornell
Companies of Texas, a major corporate prison operator, has proposed
building a new privatized prison in Alaska. Their fortunes began to improve
after they teamed up with Veco in 2002. Facing opposition from state
correction officials, unions and local communities, Frank Murkowski
declared his firm opposition to any private prison construction when he ran
for governor in 2002. Since taking office, however, the senior Murkowski
has gradually backed away from that position over the past year. Although
Gov. Murkowski's aides said he still opposed the Veco-Cornell prison plan
in the spring of 2003, he then turned around and told legislators that the
issue still required "further study." This was a substantial
victory for Veco and Cornell, whose executives insist their plan would be
cheaper than building and operating new public prison space. By last April,
Murkowski's aides were floating plans for a "compromise" that
would allow construction of the privatized prison, financed by state bonds,
if it met certain conditions imposed by state authorities. What caused the
governor to change his strongly stated opposition to privatized prisons? He
hasn't explained his shift yet. But in May 2003, a prominent Anchorage
architect named Mark Pfeffer met with his aides to promote the Veco-Cornell
prison project. Pfeffer had recently joined the prison consortium, and he
had also signed on as treasurer for Lisa Murkowski's reelection campaign.
Around that time, her father began to back away from his pledge to oppose
private prisons, issuing a vague announcement that his administration would
take a "fresh look" at the Veco-Cornell prison plan. Meanwhile,
money from Veco and its lobbyists has flowed into Lisa Murkowski's
campaign. The first $2,000 check from Veco chairman Bill Allen showed up on
May 13, 2003, only days after the Anchorage Daily News reported the
governor's shift on his project. Allen, who registered as a lobbyist in
Anchorage to push the project, has given regularly and generously -- as
have other Veco executives, whose total of $43,750 is Murkowski's largest
single donation. Lobbyists from Patton Boggs, which represents Veco in
promoting the prison deal, have given her an additional $12,000. The pattern appears plain enough. While the
Murkowskis pretend not to know each other, the special interests that know
them both have invested heavily in her campaign while awaiting his nod.
Alexander Youth Services Center,
Alexander, Arkansas
(AKA
Arkansas Juvenile Assessment and Treatment Center)
June
19, 2007 The Morning News
A new report identifying problems in the special education program at
the former Alexander Youth Services Center -- some of which were previously
identified in a 2005 study -- drew frustrated comments Monday from
legislative panels that oversee the state's youth lockups. "It seems
we're planning ourselves to death but we're not getting anything
accomplished," said state Rep. Bobby Pierce, D-Sheridan, during a
joint meeting of the House and Senate committees on children and youth. In
a report released this month, the state Education Department cites about 50
practices at the facility, now known as the Arkansas Juvenile Assessment
and Treatment Center, that don't comply with state and federal regulations
under the Individuals with Disabilities Education Act. The department has
directed the Division of Youth Services to develop a plan of action for
correcting the problems. Sen. Sue Madison, D-Fayetteville, said that on
visits to the facility in Saline County she has been "extremely
unimpressed" with the educational practices she saw, which she said
seemed to consist of youths playing on a computer. "Do we have any way
of determining if they're really learning something, or if we're just
letting a computer baby-sit them?" she asked. The House chairwoman,
Rep. Linda Chesterfield, D-Little Rock, said a lack of sufficient
information gathering is one of the problems highlighted in the report.
Chesterfield said scrutiny is needed for the educational services the state
provides to all youth in custody, not only those in need of special
education. Scott Tanner, ombudsman coordinator for the state Public
Defender Commission, testified that the Division of Youth Services has had
chronic problems with its education system at least since 2000, the year he
became an ombudsman. Education services at the facility are provided by
Group 4 Securicor, the private company that took over operation of the
facility in January. The state fired the facility's previous operator,
Cornell Companies, in November after a state investigation found evidence
that psychotropic drugs may have been administered improperly to some
youths as a restraint. The facility also was investigated in 2005, after
17-year-old Lakeisha Brown died from a blood clot in her lungs two days
after complaining to staff that she felt ill. Cornell was ordered to revamp
some of its policies as a result of that investigation. Madison asked
Monday whether it would be more appropriate for the education of youth in
custody to be undertaken by the state rather than a private company.
Education Department attorney Scott Smith said he did not believe it would.
Trying to incorporate students in custody into the state's public education
system would require compliance with numerous state and federal mandates
that currently are waived, he said. "The reason I ask is, there's something
wrong with the picture in my mind when you have state agencies ..... firmly
committed to a free public education, and then we turn around and hire a
private company to deliver that," Madison said. "I just have a
hard time thinking that that's a good idea." Steve Jones, a former
state representative who recently became deputy director of the Department
of Health and Human Services, told the committee the Division of Youth
Services is working on a plan to correct the problems. Rep. Dawn Creekmore,
D-Hensley, noted that the division developed a plan of action previously,
after a 2005 report cited problems with the facility's educational system.
"It's time to quit putting plans of action on paper and time to bring
something to the table, take some action, physical action, for improvement.
These children are still here, and we're just letting them down
continuously, year after year after year," she said. "It is
children that the state Department of Education is all about, and it is
children that DYS is all about," Chesterfield said. "Somewhere
the bureaucratic -- we're not going to use the alliterative -- the
bureaucratic stuff, if you will, has got to be overcome for the
children." Jones assured the committees the division would achieve real
results.
January 11, 2007 Arkansas News Bureau
The state Department of Health and Human Services has agreed to enter
into a short-term contract with a company to operate the troubled Alexander
Juvenile Correctional Facility in Saline County, agency officials said
Wednesday. The agency has signed a $4.5 million contract with G4S Youth
Services in Richmond, Va., a division of the British-based Group 4
Securicor, for the company to operate the facility from Jan. 21 through
June 30, DHHS spokeswoman Julie Munsell said. The contract is pending
approval by the Department of Finance and Administration. At the end of the
six-month period, the state will have the option of renewing the contract
for an additional year, Munsell said. Munsell said no bids were taken
because the agreement was reached under emergency procedures. The agency
considered the situation an emergency because of safety and welfare
concerns for the 143 youths at the facility, she said. The state fired
Cornell Companies, the Pennsylvania-based company that previously ran the
facility, in November after a state investigation indicated psychotropic
drugs may have been administered improperly to some youths to restrain
them. Munsell said Cornell is still at the site, but the state has been in
charge since Nov. 3.
November 5, 2006 Arkansas Democrat-Gazette
An advocacy group that has been monitoring Alexander Youth Services Center
for months said Saturday that Arkansas isn’t meeting the mental health,
education and special education needs of the children at the troubled
facility as required by the U. S. Department of Justice and state law.
Problems at the center are systemic, said Dana McClain, a senior attorney
with the Disability Rights Center, a federally funded Little Rock nonprofit
that assists disabled Arkansans. “We don’t think this is rehabilitation,
and state law says it is supposed to be [for youthful offenders ]. I think
it’s punishment,” she said. “I feel like these children are being set up to
go to adult prison.” At some point, she said, the youthful offenders at the
lockup will get out, “and you hope when they do they’ve got a better shot
at being productive members of society.” A draft copy of the group’s
lengthy report detailing “failures” at the center in Saline County was
given to the Arkansas Democrat-Gazette on Saturday — a day after the state
unexpectedly ended its contract with Cornell Cos. Inc., a Houston company
that ran the center for the past five years. An internal investigation
found that employees were “inappropriately” drugging youthful offenders
with psychotropic drugs to control bad behavior. The state was paying
Cornell about $ 10 million annually. News about the forced medications,
sometimes given without a doctor’s order, prompted some legislators and
others to renew calls Friday to shut down the state’s largest lockup for
youthful offenders. The Disability Rights Center report, which outlines
about 50 problems, is expected to be released publicly later this week.
McClain said her group will meet with the Department of Health and Human Services
on Monday to discuss the findings. Monitors for Disability Rights have been
making unannounced visits, as allowed by federal statute, to the center at
least three times a month since March. “Under the contract these are things
Cornell was responsible for providing,” McClain said. “I hope [Health and
Human Services ] doesn’t just address that one issue [about the medication
]. This is a good time to do more because they are starting anew.” The
agency has been responsive so far, McClain noted. Cornell, however, didn’t
address some of the major concerns that Mc-Clain said she repeatedly talked
to company employees about. Julie Munsell, Health and Human Services
spokesman, said her agency has received a copy of the report but she
declined to comment about the details until it is published and officials
meet with the group’s representatives. Health and Human Services is the
umbrella agency over the Youth Services Division, which now operates the
youth lockup. In general, Munsell said, the state has made many strides
since entering into a settlement agreement with the Department of Justice
in March 2003 after a federal investigation found civil rights violations
in the delivery of mental-health care, education, fire safety and freedom
of religious expression at the center. Still, more work is needed,
particularly with the center’s education system, she acknowledged. “We do
still struggle with education issues at Alexander, and we’ve been working
with the Department of Education to improve those issues,” she said. “We
will always strive to get to an ideal setting, but it will take us time to
get there.” The Justice Department hasn’t visited the center since January.
Over the years, the youths at the Alexander center have complained that
employees kicked, slapped and even threatened them with death. Others
killed themselves. One boy, known for days to be suicidal, was able to hang
himself a few years ago with a bedsheet. An investigation later found that
his guard didn’t check on him. Another boy hanged himself in the same cell
just a few months later — just as the state hired Cornell to take over the
facility and fix its problems. And last year, a 17-year-old girl at the
center died of blood clots in her lungs. She complained to nurses and
supervisors that she was ill, but they didn’t believe her, even as she lay
dying, according to a subsequent investigation. Munsell said her agency
plans to work with the Disability Rights Center to address the group’s
concerns. The Department of Justice couldn’t be reached for comment
Saturday. During visits to the lockup, McClain said monitors found: Youths
watching Harry Potter movies during science class on more than one
occasion. A student sleeping on his keyboard, even though a teacher was
sitting at a desk in the same classroom. No teacher-led reading program,
even though at least 50 percent of the youthful offenders at the center
have difficulties reading, and in some cases, can’t read at all. (An
ombudsman who regularly visits the center said the youths are supposed to
use a computer-based reading program at their own pace, but he has seen no
evidence that such a system has.
November 4, 2006 Arkansas Democrat-Gazette
Arkansas terminated its contract with Cornell Cos. Inc. to run the
troubled Alexander Youth Services Center on Friday after learning that
employees were drugging youths to control unruly behavior — in many cases
without doctors ’ orders, in violation of facility policy and against the
children’s wills. A preliminary investigation found that from Sept. 1 to
Oct. 15, nurses at the center gave 63 injections ofanti-psychotic drugs
that have a sedative effect, including Thorazine, to 25 children in the
center’s custody. “There is an appropriate circumstance under which you can
give a chemical restraint,” said Julie Munsell, spokesman for the state
Department of Health and Human Services. “Our concern is that in many of
these cases, they appear not to have been appropriate.” The internal
investigation into the use of chemical restraints triggered a series of
events: The Health and Human Services Department placed three Alexander
employees on administrative leave, the state Board of Nursing was notified,
and Gov. Mike Huckabee ordered a review of Cornell’s policies as well as an
Arkansas State Police investigation into what happened. State police
investigators are working through the weekend so that they can give
Huckabee a preliminary report Monday. Munsell said her agency gave state
police its investigative file, which is a foot thick. “Although we hired a
nationally reputable contractor to provide services, this appears to be a
second major breakdown in the facility’s medical system, and we are no
longer confident in the management at the Alexander campus,” Health and
Human Services Director John Selig said Friday afternoon. Last year,
investigators with the Health and Human Services Department uncovered
widespread problems with the medical system at Alexander after 17-year-old
inmate Keisha Brown died from blood clots to her lungs. Brown had
repeatedly complained that she was ill but some nurses and supervisors at
the center did not believe her — even in the last minutes of her life.
“Some of us have had concerns with the contract ever since the incident of
Keisha Brown’s death,” said Sen. Sue Madison, D-Fayetteville. “We were
concerned that her medical care was not what it should have been.” After
Keisha’s death, Sen. Terry Smith, D-Hot Springs, urged the Health and Human
Services Department to end its contract with Cornell and blasted state
officials for not better monitoring the for-profit company. Upon learning
about the state’s decision Friday night, Smith said, “I told you so.
“Apparently this company is not on top of things, and the state employees
[who ] are over this are not on top of things. No one is checking on anybody,
and this is what happened. It’s just terrible.” In a five-page summary,
Health and Human Services Department internal investigators outlined
several policy violations and other findings from the 45-day review:
Evidence of “falsifying” doctors’ orders on at least two occasions to show
that the child should receive injections “as needed.” The original orders
did not include that option. Evidence from video surveillance tapes and
interviews with the children that some of the inmates were given the injections
against their will. Policy allows youths to refuse the injections so long
as it is not an emergency situation in which the child may endanger himself
or others. Physician order sheets for some of the children that did not
include orders for the injections. Eleven incidents during which the doctor
gave a verbal order to use the medication but never signed any documents,
which is required. No evidence that orders for use of “PRN medications,”
which means give as needed, were reviewed annually as required. No evidence
that a second physician reviewed orders for forced injections as required.
No evidence that an independent psychiatrist reviewed the orders for forced
injections, as required to ensure the children’s right to due process.
Evidence that employees did not properly document the use of the
injections. The lack of documentation made it harder for investigators to
piece together exactly what happened during those 45 days, Munsell said.
Over the years, the inmates at Alexander have complained that employees
kicked, slapped and even threatened them with death. Others killed
themselves while there. One boy, known for days to be suicidal, was able to
hang himself with a bed sheet because his guard didn’t check on him.
Another boy hanged himself in the same cell just a few months later — just
as the state hired Cornell Cos. Inc. to take over the facility and fix
problems there. In 2002, the U. S. Department of Justice found that dozens
of problems remained. Most have since been resolved. The center also is
used as an intake facility for all children who come into the state
detention system.
December 29, 2005 Benton Courier
A report on the escape of two 17-year-old prisoners in the state youth
lockup at Alexander says guards sleeping on the job was one of the reasons
the boys were able to break free. The report also says someone inside the
facility may have known of the escape plans. Four staff members have been
fired from the facility run by the private Cornell Companies. The 12-page
report by the state Division of Youth Services says staff members lied
about a head count and that a number of guards were asleep when the two
escaped. In the short time before Bryant police caught Villegas and
Lamberth, the two allegedly burglarized and vandalized Zion Lutheran Church
in the Avilla community. The teenagers allegedly stole $140 and took off in
the church's van. The report says one of the boys admitted taking a key
from the staff desk and unlocking the door to their dorm a week before the
escape. The report said the boys got over razor wire by putting a bath mat
over it. State Department of Health and Human Services spokeswoman Julie
Munsell said the agency is addressing the problems outlined in the report.
"It does show them walking past the staff member who was not moving at
the time which indicates perhaps that employee was asleep and, according to
interviews with clients, that's what happened at the time," Munsell
said. "We had multiple system failures; that's what we really want to
address," Munsell said. Munsell said one worker falsified a log
"because she did not know how long the youth had been gone. ... She
was nervous about the outcome of that." "It is very
disconcerting. I think that you have employees exhibiting gross negligence
on the job, which is why the expectation is that you take aggressive
action," Munsell said.
December 10, 2005 Arkansas Democrat-Gazette
Two 17-yearold boys face adult prison time, and a private corrections
company suspended five employees without pay after an early Friday morning
escape from the Alexander Youth Services Center near Bryant. Police said
they tracked Benjamin Lamberth and Rusty Villegas as they attempted to flee
toward Lamberth's home in Cherokee Village by intercepting cell phone
calls, nabbing them about nine hours later in a stolen church van near Cave
City. Lamberth and Villegas asked to go to the bathroom, then reportedly
bolted through an emergency exit door at Alexander about 1 a. m. They
scaled the perimeter fence, draping a shower mat over the razor wire, said Julie
Munsell, spokesman for the Department of Human Services. The emergency exit
door should have been locked, she said, guessing that the boys had a key.
"This was not something spontaneous. They had been planning this for
several weeks," she said. Apparently, the teenagers opened the doors
without touching a bar that would have triggered a security alarm, she
said. Bryant police were not notified until 4 a. m., when the boys were
found missing during a routine check. The three hours it took for center officials
to realize the boys had escaped will be the subject of an internal
investigation. Several security checks should have been made during that
period, Munsell said. The state reached a legal agreement with the U. S.
Department of Justice in 2003 to eliminate deficits in training and unsafe
conditions at the youth lockup. Some minor education and health record
issues remain to be resolved before the state can be released from federal
supervision, Munsell said Friday. In April 2005, 17-year-old LaKeisha Brown
died of blood clots to her lungs while at the center. State and company
investigations found lapses in care and violations of state and facility
policy in her treatment. A programs supervisor and nursing manager resigned
and three employees were disciplined.
October 26, 2005 Record Times
LaKeisha Brown likely had been suffering from blood clots in her lungs for
at least two days and possibly as long as two weeks before she collapsed at
the Alexander Youth Services Center and then died on April 9, the state
medical examiner said Tuesday. A preliminary autopsy report released soon
after 17-year-old "Keisha" died listed the cause of death as
blood clots from her legs that traveled to her lungs. Last week, her
mother, Juana Michelle Brown, gave the Arkansas Democrat-Gazette a copy of
the final autopsy report, which she had just received. Autopsies are not
public records in Arkansas. Dr. Charles Kokes, the state medical examiner,
explained aspects of the final report in an interview Tuesday. "I
think if she somehow had been diagnosed in the days prior to her death,
it's possible she could have survived," Kokes said, but added that a
pulmonary thromboembolism - the medical term for a blood clot in the lungs
- can be difficult to detect. Keisha's medical records show that both
nurses and some facility managers believed she was faking sickness for
attention at the time of her death. An investigation this summer by the
state Board of Nursing found that nurses at Alexander did not provide the
teenage inmate with adequate medical care in the days before her death and
violated facility policy and state nursing laws. Another investigation by
the state Youth Services Division found that senior management "was
negligent" because it did not ensure systems were in place to provide
Keisha the medical care she needed. Because of Keisha's death, the Youth
Services Division of the state Department of Health and Human Services
uncovered widespread problems with the medical system at the state's
largest lockup for youthful offenders, the head of the Youth Services
Division told state legislators this summer. The problems, Kenneth Hales
explained, have been or are being corrected. For one, the state, which has
contracted with the private company Cornell Cos. Inc. to run Alexander, has
begun auditing medical files of youths at the facility to ensure they are
receiving proper care. Before Keisha's death, the state only audited the
company to make sure it was meeting contractual obligations in operating
the facility. This summer, Cornell fired two contract nurses, the center's
nurse manager and its program supervisor, who also is the second-in-command
at the Alexander center, Jane Miller, director of behavioral health
services for Cornell, has said. Three other employees were disciplined, and
more than a dozen quit. Cornell has apologized for Keisha's death but
maintains it is not at fault.
October 22, 2005 Arkansas News
The company that operates Alexander Youth Services Center has revamped many
of its medical policies in response to the death of a teenager at the
center earlier this year, a company representative said Friday. Testifying
before the Arkansas Legislative Council, the employee of Cornell Companies
Inc. said more nurses were hired and "sick call" rules for youth
housed at the facility were changed following the April death of
17-year-old Lakeisha Brown. A state investigation found nurses at the
349-bed juvenile detention center may not have immediately responded to
Brown's health complaints. The cause of Brown's death was a blood clot in
her lungs. An investigation by Cornell found no direct link between Brown's
death and inaction by Cornell personnel. Four employees resigned and one
was fired after the incident. According to Cornell's corrective action
plan, no nurses employed at Alexander at the time of Brown's death are
still working at the center.
August 11, 2005 AP
The death of a 17-year-old at the Alexander Youth Services Center in April,
and the investigation that resulted, uncovered widespread problems at the
facility, a state official says. Kenneth Hales, director of the Division of
Youth Services in the state Department of Human Services, told state
legislators Wednesday that "systematic weaknesses" turned up when
officials took a close look at the circumstances of LaKeisha Brown's April
7 death, after she had collapsed at the youth lockup from a blood clot in
her lungs. "It was not just LaKeisha," Hales said. Investigations
showed that staff members violated the policies of the facility, operated
under contract by Cornell Companies Inc. of Houston, as well as DHS
regulations and state regulations for nurses. Julie Munsell, a spokesman
for the agency, said DHS had regularly audited the Alexander center to
confirm that Cornell was meeting its contractual obligations. But she said
those auditors were not trained to evaluate the medical procedures and
policies being used by the company. "That is something that we have
had to ask for some additional assistance to evaluate, because our auditors
are not clinicians," Munsell said. "The audit is just not
designed to do that." Hales told the Legislature's Joint Performance
Review Committee that a review of procedures showed that, when an inmate
reported being sick, "it was difficult to tell what the response to
that sick call was." "When the nurses examined a youth, you
couldn't tell what they saw or what they concluded to do following that
examination," he said. The
investigations also found that nurses at the facility lacked supervision,
were poorly trained and weren't given good instruction on what their
supervisors expected of them, Hales said.
August 3, 2005 AP
Two top managers lost their jobs at a state youth lockup where a teenager
died and three other employees received reprimands, according to the
private firm that runs the facility. Houston-based Cornell Cos. Inc. also
said Tuesday that, in response to the April death of 17-year-old LaKeisha
Brown, it had put in place an action plan that includes better orientation
and training procedures for all staff and an organizational chart with
clearly defined lines of authority. DHS spokesman Julie Munsell said
Tuesday evening that Cornell officials had informed the agency that program
director Joann McCoy and nurse manager Polly King were no longer employed
at the Alexander center. She said the officials did not say whether the two
were fired or resigned. Additionally, three employees received written
reprimands: licensed practical nurses Holly Clark and Kim Clough and an
unnamed member of the facility's clerical staff, Munsell said. The company
found more than a dozen problems with Brown's care. Among them were: The
center's top managers did not adequately review Brown's care after her
death and nurses inadequately responded to her when she collapsed
repeatedly and complained of shortness of breath and exhaustion in the days
and hours before her death.
July 28, 2005 Arkansas
Democrat-Gazette
Disciplinary action expected against some employees at Alexander Youth
Services Center for the way they handled 17-year-old LaKeisha Brown has been
delayed, a spokesman for a private company that runs the youth lockup
facility for the state said Wednesday. Cornell Cos. Inc. spokesman Lisa
Tauser had said Tuesday that a team of company employees were meeting that
night to implement personnel changes recommended after the Houston-based
company investigated the April 9 death of "Keisha." In a report
released Tuesday, a team of Cornell employees suggested the company suspend
nurses who responded to or cared for Keisha when she collapsed repeatedly
and complained of shortness of breath and exhaustion in the last days and
hours of her life. A preliminary autopsy report shows that Keisha died of
blood clots to the lungs. The team also said "senior management"
should be held "strictly accountable" for failing to ensure the
necessary systems were in place so that Keisha would receive the proper
medical care. An unidentified clerical employee also should be
"disciplined" and placed under stricter supervision for making a
decision about Keisha's care without calling a doctor or nurse, the report
shows. Cornell's investigation found more than a dozen problems with her
care. The team noted that the facility's top managers did not adequately
review Keisha's care after her death and that nurses "inadequately"
addressed Keisha's medical concerns. Her records show that the nurses did
not believe she was really sick and did not call a doctor until she was
unconscious. Keisha had been at Alexander, the state's largest juvenile
lockup, for nearly two years after being adjudicated for drug possession,
rape and inciting a riot. Last week, the State Board of Nursing released a
report saying that six nurses at the center violated state nursing
regulations in the way they dealt with Keisha. The board now is conducting
additional investigations to determine discipline for each nurse.
July
27, 2005 Arkansas Democrat
Senior management at Alexander Youth Services Center should be "held
accountable" for failing to ensure 17-year-old LaKeisha Brown received
the proper care before she died, and nurses there should be suspended for
inadequately addressing her needs, a private company that runs the facility
for the state has decided. A clerical employee working in the
facility's medical unit also should be "disciplined" and placed
under stricter supervision for making a decision about the care Keisha
received without consulting a doctor or nurse, according to a Cornell Cos.
Inc. report released by the Department of Human Services on Tuesday
evening. Facility Director Bob McCracken, a Cornell employee, did not
return a message for comment Tuesday. The recommendation to dole out
punishment is part of a twopage report detailing the investigation Cornell
conducted last month of its own operations after Keisha died April 9 of a
suspected blood clot to the lungs. Cornell's investigation comes
after critical investigations by the state Division of Youth Services and
the Arkansas State Board of Nursing, both of which found that employees and
nurses broke protocol in the way they handled Keisha. Cornell's
investigation, conducted by a team of employees of the Houston-based
company, found more than a dozen problems with her care. The team noted
that the facility's top managers did not adequately review Keisha's care
after her death. The Cornell investigation also found that nurses at
the facility "inadequately" responded to Keisha's needs when she
collapsed repeatedly and complained of shortness of breath and exhaustion
in the days and hours before her death. Keisha's medical records show that
the nurses did not believe she was really sick and did not call a doctor
until she was unconscious. Keisha had been at Alexander, the state's
largest juvenile lock-up, for nearly two years after being adjudicated for
drug possession, rape and inciting a riot. The report also states
that the facility's ability to handle medical emergencies at the time was
"inadequate or nonexistent," that "senior management"
was negligent when it failed to ensure all systems were in place to provide
Keisha with the care she needed and that nurses were more focused on
dealing with Keisha's complaints internally than evaluating her medical
condition. The Nursing Board investigated the actions of nurses at the
facility. Last week, the board released a report saying that six nurses at
the center violated state nursing regulations in the way they dealt with
Keisha. The Nursing Board is now conducting additional investigations
to determine what discipline each nurse will receive and whether they will
be able to keep their licenses. State legislators also have been
critical of the company. In the past two months, they have called for
additional investigations into Keisha's death, leading to the Nursing Board
report. Other legislators suggested that the state find another company to
oversee the Alexander center, but no such action has been taken.
July
25, 2005 Arkansas Democrat
Now that we know that workers at Alexander Youth Services Center broke the
rules, what are we going to do about it?
Someone in a position of real power and authority ought to be asking this
question, because breaking rules is serious business, you know. Break
enough of them, or at least the wrong ones, and somebody could get hurt or
even die.
Which, of course, somebody did. Her name was LaKeisha Brown. She was 17.
The official cause was blood clots in her lungs, but just between us, I
believe she was ignored to death. The state Board of Nursing has
completed its inquiry and found that a state law and several regulations
were violated by some of Keisha's purported caretakers. Altogether, four
staff nurses and two contract nurses were identified as being involved in
one or more of the infractions. In case you missed reporter Amy
Upshaw's comprehensive report, found in Thursday's editions, here are the
highlights of the board's inquiry. No evidence has been found that
the registered nurses on duty when Brown repeatedly collapsed before
succumbing were supervising the licensed practical nurses on the
scene. Three of the workers who assessed Keisha's condition and made
decisions about her (lack of) medical care were LPNs, not RNs as
required. Five workers knowingly or consistently failed to accurately
or intelligibly report or document Keisha's condition. Five staffers failed
to notify the designated physician of Keisha's worsening condition over the
course of three days. Now that this inquiry is over, what's next?
According to Upshaw's report, the nursing board now plans to investigate
each nurse's particular involvement in the case with an eye toward
considering whether to take some action against them. Isn't that
special? OK, so due process is the path we follow in these parts, and
it's better to take things one step at a time rather than jump the gun. But
a 17-year-old girl is dead and someone needs to answer for that. Clearly,
state law enforcement officials, who also investigated this
"sudden" death that was several days in coming, have closed the
books on it and no prosecutors have been heard from. Apparently, continued
investigation by the nursing board is the only avenue still open.
State Sen. Shane Broadway, one of the handful of lawmakers who have
expressed shock and outrage at Keisha's death, the details of which were
first publicized by Upshaw, understands that there are two points of
concern here. The first, obviously, is the death of one person. The second
is the quality of the care given to others still in her circumstances,
i.e., consigned against their will to the juvenile detention facility at
Alexander. "You're talking about a lot of children's
lives," Broadway said last week. "The quality of care is very
important. It's important that we treat each child even though they have
many difficulties. They're still in state custody, and they are our responsibility."
I suppose technically they are in state custody. Practically speaking, they
are in the custody of people who work for a private company that operates
Alexander under a contract with the state. And the private company, Cornell
Companies Inc., of Houston, Texas, doesn't seem too exercised about the
situation. Oh, they say that they're "very sorry" about Keisha's
death, of course, and that "corrections and revisions" are being
made to policies and procedures, but so far the company honchos have mad e
no decisions concerning personnel. I'm very sorry Keisha is dead,
too. I'm very sorry every time someone confined at Alexander dies. What I
want to know is when someone in authority is going to do something about
it. Apparently there is no such person at this time, so it's up to
us, the voting public, to find someone. It'll take time-the next election
is more than a year away-but if we start with the next prosecutorial,
legislative or gubernatorial candidate we meet, if we ask that person what
he or she intends to do to make Alexander fit for human habitation, and if
we keep asking this of candidates, we'll get it cleaned up. Frankly,
I don't hold out much hope. I've been writing about that hell hole for
almost a quarter-century, so my main consolation today is that I won't be
around long enough to do it for a quarter-century more. But hope dies hard.
There must be someone somewhere who expects more for tackling the Alexander
problem than a cush ride on a fast track to higher office.
July 21, 2005 Arkansas Democrat
The state Board of Nursing has found that the way six nurses at the state's
largest juvenile lockup handled 17-year-old LaKeisha Brown as she fell ill
and died violated a state nursing law and several regulations, according to
a report released Wednesday afternoon. The Nursing Board, which was
asked by state officials to investigate how the nurses dealt with Brown,
now plans to investigate each nurse's involvement in her care at Alexander
Youth Services Center and could discipline them or revoke their licenses,
said Deborah Jones, assistant director of nursing practices for the state.
As of Wednesday evening, all six nurses still were working at the Alexander
center, said Lisa Tauser, a spokesman for Cornell Cos. Inc., the
Houston-based private company that runs the lockup as a contractor for the
state. The company still is trying to decide whether any of the nurses or
other employees should be punished regarding the April 9 death.
Meanwhile, the Arkansas Medical Society, which was asked to review pediatrician
Robert Choate's involvement in Brown's care, said it was not
"possible" to do so because the nurses failed to tell Choate
about her worsening condition on April 7, 8 or 9. Choate could not be
reached Wednesday for comment. Among the Nursing Board's findings:
There's no evidence that the registered nurses on duty when Brown
repeatedly collapsed before her death "supervised" the licensed
practical nurses, who have less training and are required by the Arkansas
Nurse Practice Act to work under RNs, physicians or other more qualified
medical professionals. Five nurses violated facility policy and the
Board of Nursing rules and regulations for "knowingly or consistently
failing to accurately or intelligibly report or document a patient's symptoms,
responses, progress, medications and/or treatment." Five nurses
violated center policy and Nursing Board rules and showed
"unprofessional conduct" by failing to notify Choate of Brown's
condition. A Youth Services Division internal investigation into her
death found evidence that facility employees violated several policies in
the days and hours before her death. On the day Brown died, for example, a
supervisor dismissed an employee's request to call an ambulance, and nurses
did not call a doctor until Brown was unconscious.
June
18, 2005 AP
A Houston-based company responsible for managing the Alexander Youth
Services Center has apologized for the death of a female teenage inmate who
died while in Arkansas custody. "On behalf of my company and all of
the employees at Alexander, we're sorry," said Jane Miller, director
of behavioral health services for Cornell Cos. Inc. "There's nothing
more horrible than a child dying in our care." LaKeisha Brown, 17,
died from a blood clot that traveled to her lungs on April 9. The girl was
to be released May 1. An internal investigation by the Arkansas Department
of Human Service's youth division suggested that medical personnel and
others at the center may not have responded properly to the girl's repeated
complaints about her health condition.
June 16, 2005 AP
The state fired a prison guard for having sex with an inmate. Now, the man
has been hired by state- and county-run youth lockups. John Berry, 40,
monitors children part-time at the Alexander Youth Services Center, which
the state runs through a private contractor, and full-time at the juvenile
detention center in Pine Bluff, a Jefferson County facility. Berry has
denied allegations from an internal affairs investigation that he had sex
with an inmate at the Tucker maximum security prison. The 16-year
Department of Correction employee rose to the rank of sergeant before he
was fired in October 2002. Alexander Youth Services director Bob McCracken
was surprised when asked Wednesday by the Arkansas Democrat-Gazette newspaper
about Berry's rehiring Wednesday. He said a criminal background check, a
child-molestation registry check and reference checks were conducted on
Berry and turned up nothing.
June 16, 2005 Arkansas
Democrat-Gazette
State legislators
Wednesday were critical of Alexander Youth Services Center employees
responsible for 17-year-old LaKeisha Brown on the day she died and said her
death should be investigated further. "No one was
satisfied with the results of the investigation so far," Sen. Sue
Madison, D- Fayetteville, said of the Youth Services Division internal
investigation into the case. "I think we are going to be monitoring
Alexander a lot more closely." The Youth Services
Division investigation found credible evidence that employees violated
several policies in the days and hours before "Keisha" died.
Specifically, the investigator found that a supervisor dismissed an
employee's request to call an ambulance for Keisha and that nurses did not
call a doctor for Keisha when they should have. But no one has
been disciplined in connection with her death. The private company that
runs the Alexander lockup, Cornell Cos. Inc., has been asked by the state
to better train employees and to ensure that better documentation is kept
in regard to medical concerns and treatment. "Why hasn't
someone been terminated?" Madison asked after a joint meeting of the
Senate Committee on Children and Youth and the House interim Committee on
Aging and Legislative Affairs. "The nurse just turned a
deaf ear to this because she was tired of her." Madison said neither
Cornell nor the Youth Services Division provided her with the internal
investigation or detailed information about Keisha's death. Instead, she
found details from reading the Arkansas Democrat-Gazette. Keisha, who had
lived at the lockup for youthful offenders for nearly two years, collapsed
at least three times and complained of tiredness during the two days before
her April 9 death, records show. However, nurses said nothing was wrong
with her. On the day she died, Keisha could barely walk or get out of bed,
according to records. She had lost color in her lips and complained of
being cold, having difficulty breathing and of being tired. Again, the
nurse said everything was fine. A preliminary
autopsy report shows that Keisha died of a blood clot in her lungs.As
legislators peppered Hales and McCracken with questions, Sen. Terry Smith,
D-Hot Springs, interrupted the meeting so the two officials could speak to
a committee down the hall that was reviewing Cornell's contract. "From
one oil pan to another," Smith told Hales and McCracken. As he walked
to the other meeting, Smith said he wants to end Cornell's contract with
the state because of the way Keisha was treated. "What happened was
totally unprofessional. They didn't follow their own protocols," he
said. "[Keisha] wasn't sent down there with a death sentence. Madison
also said Scott Tanner, a juvenile-services ombudsman with the state Public
Defender Commission, could have done more to help Keisha. "It seems to
me that your office was created to prevent this kind of incident," she
said. "Something doesn't seem to be working here."
April 16, 2005 Arkansas Democrat
Gazette
A day after Lakeisha Brown collapsed at the Alexander Youth Services Center
and died, her mother, Juana, found a white envelope with penciled script on
the dresser at the family’s home in Luxora. The return address: Keisha
Brown, Alexander, Ark. Keisha, as she was known to her family, had written
the letter to her maternal grandmother, Elizabeth "Granny Pooh"
Brown, on Feb. 19. At the time, "Granny Pooh" clung to life on
round-theclock oxygen in a hospital. So Juana kept the letter but didn’t
open it, respecting the bond her mother and daughter shared. But now she
had to know what her only daughter had written. "Hey Granny
Pooh," Keisha begins, drawing a smiley face next to the salutation.
Three lines in, the letter turns somber. "Things are getting a little
shaky for me. I plan on hanging in there though.... I been sick a lot
lately. These nurses suck here. My back hurts a lot. When I breathe a
certain way it hurts in my left rib. They tell me I’m not hurting but I
stay strong anyhow." Forty-nine days later, on April 9, 17-year-old
Keisha Brown died at Southwest Regional Medical Center in Little Rock from
a blood clot that traveled to her lungs, according to a preliminary cause
of death released Friday by Pulaski County Coroner Mark Malcolm. Elizabeth
and Juana Brown wonder whether Keisha received the medical care she needed
during her two-year stint at Alexander, the state’s largest juvenile jail.
Scott Tanner, a juvenile services ombudsman with the state Public Defender
Commission, said Keisha complained to him within the last nine months that
she wasn’t receiving proper treatment for the irregular periods. Nurses
monitored Keisha, Tanner said, but it took two months to get center medical
staff to send her to a gynecologist. The U.S. Department of Justice
criticized the Alexander unit in a November 2002 report for violations of
several civil rights, including the right to religious freedom, mental
health treatment, educational services and a safe environment. State
officials signed a settlement with the Justice Department in March 2003
agreeing to correct problems found. In addition, the Youth Services Division
conducted an internal review Oct. 4 that found several problems, including
a delay in responding to medical needs. The youth lockup is operated by a
private company called Cornell Cos. Inc.
Four teenagers who escaped from the state’s largest youth
lockup face from 10 years to life in prison if convicted of felony
kidnapping counts filed against them Wednesday. The four youths — three age
17 and one age 15 — are accused of locking a worker at the Alexander Youth
Services Center inside a cell during the April 10 escape. The April escape
was the second since Cornell took over the Bryant facility in September
2001. The first happened the evening of March 16, 2002, when authorities
said two 16-year-olds broke away from a group of inmates and ran from the
facility. (Arkansas Democrat-Gazette, June 5, 2003)
Four inmates at the state’s largest youth lockup escaped early Thursday
morning after threatening a guard, stealing her car and driving it through
the facility’s front gate, authorities said. Two of the four teenage boys
who escaped from Alexander Youth Services Center were caught several hours
later. Authorities, however, believe the remaining escapees, ages 17 and
15, had a gun and could be dangerous. Alexander has had a history of
problems managing the state’s youthful offenders. In 2001, two teenagers
killed themselves only a few months apart. Since spring 2002, the U.S.
Department of Justice has been investigating possible violations of
inmates’ civil rights at the lockup. In March the Youth Services Division,
Cornell and the Justice Department agreed to a court settlement that
required improvements in education, mental health care and fire safety.
Thursday’s escape was the second in just over a year. When two 16-year-olds
escaped March 16, 2002, neighbors of the lockup complained they had not
been notified. The teenagers scaled the fence and were found early the next
morning. (Arkansas Democrat-Gazette, April 11, 2003)
Failure to deal properly with allegations of abuse of two teen-age boys at
the state's largest youth lockup have resulted in the dismissal of four
workers. The three life-skills workers and a treatment supervisor at the
Alexander Youth Services Center were fired last month after a Department of
Human Services investigator looked into the matter. The boys, 16 and 17
years old, were reportedly taken from the facility's main campus to the
high risk offender unit Dec. 16 after they had misbehaved. The two boys
said that, once there, they were put in a small room with about seven other
inmates who threatened them, and one of the two reported being hit, though
no marks were found. A report issued this week also said that the boys said
the other youngsters in the high-risk unit threatened to sodomize them with
a broom handle. DHS investigator Gary Staggs found "credible
evidence" that two members of the Alexander center's supervisory staff
failed to report the allegations or failed to ensure that they were
reported. (AP, February 14, 2003)
A counselor at a youth lockup who
resigned after questions arose about her qualifications has been charged
with making up credentials. Carolyn Skaggs was a counselor at the Alexander
Youth Services Center, but resigned after officials found out she didn't
have a counseling license, as she had claimed. Cornell Companies Inc. of
Houston runs the youth lockup under a contract with the Youth Services
Division of the state Department of Human Services. The Saline County
prosecutor's office filed a misdemeanor charge against Skaggs last week.
The Alexander lockup has been plagued by problems. The Justice Department
is investigating the center after a series of problems in recent years,
state officials said. (AP, November 23, 2002)
The Justice Department is investigating the state's Alexander Youth
Services Center after a series of problems at the facility, a state
official said Wednesday. Doyle Herndon, director of the Division of Youth
Services of the state Department of Human Services, told a legislative
committee Wednesday the agency is enacting new policies to quell concerns
about the Alexander facility and to offer incarcerated youth more
rehabilitative programs. Herndon said Justice Department officials began
the investigation after visiting the Alexander facility in June. Justice
Department spokesman Casey Stavropoulos said the investigation would fall
under the Civil Rights of Institutionalized Persons Act and is meant to
"see if there's a pattern or practice of misconduct." In October,
a state investigation concluded that Cornell Companies Inc. of Houston, which
runs the Alexander center under a DYS contract, failed to supervise inmates
at risk of suicide while the staff conducted a meeting. (Go Memphis,
October 3, 2002)
A woman hired in July to supervise counseling at the state's largest youth
lockup saw about 15 youths and testified in one court hearing before
officials say they learned her credentials were fake. Carolyn Skaggs
resigned Aug. 20 after an employee at Alexander Youth Services Center
questioned whether she was licensed, as she claimed and even provided a wallet-sized
license card as proof, said Bob McCracken, director of the facility. (The
Arkansas Democrat-Gazette, September 25, 2002)
In the suicide letter he left in a cell at Alexander Youth Services Center
a little more than a year ago, 16-year-old James Baumbach Jr. said one last
time what he felt the staff there refused to hear -- he needed help. The
help didn't arrive in time to prevent him from hanging himself with a bed
sheet tied to an overhead sprinkler cover. Officials acknowledge Baumbach,
who was placed on suicide watch days before he carried out his threats,
wasn't monitored as he should have been. State officials admitted at the
time that the facility's suicide prevention plan hadn't been followed. A
guard responsible for monitoring Baumbach eventually was convicted of
falsifying logbooks and fired. But the admitted bungling did not bring
measures to prevent another suicide, and neither did turning management of
the facility over to a private company, Houston-based Cornell Inc. On Sept.
16, less than a month after Cornell took over from the Department of Human
Services, 15-year-old Kenneth McClain II committed suicide by hanging
himself in the same cell where Baumbach took his own life. Since Cornell
took over in September, finding qualified workers has been difficult,
company officials say. (Arkansas Democrat-Gazette, May 26, 2002)
Two teen-agers accused of escaping from a youth lockup last month will
appear in court April 22 for a judge to consider transferring their cases
to juvenile court. Stephen Andrew Menasco of Conway and Bennie David Guy of
Marion are accused of breaking away from a group of inmates at Alexander
Youth Services Center about 7:30 p.m. March 16. They were apprehended the
next morning about 6:30 a.m. in Bryant. (The Arkansas Democrat-Gazette,
April 9, 2002)
A former Alexander Youth Services Center guard set to go to trial today on
a charge he falsified logbooks instead pleaded guilty to a lesser charge
and received a suspended sentence. Eugene Girley, 54, of Pine Bluff was arrested
in July. He was accused of lying in documents to make it appear he
monitored a 16-year-old who committed suicide in his cell at the youth
lockup May 13. (Arkansas Democrat-Gazette, April 3, 2002)
The Saline County prosecuting attorney's office plans to treat two
16-year-olds accused of escaping from a youth lockup last week as adults, a
spokesman for the office said Monday. Bennie David Guy and Stephen Andrew
Menasco are accused of breaking away from a group of inmates at Alexander
Youth Services Center about 7:30 p.m. March 16. Last week, Cornell
officials and Youth Services Division Director Doyle Herndon also met with
neighbors of the facility who complained they weren't contacted soon enough
after the escapes. Some said they weren't contacted at all. (The Arkansas
Democrat-Gazette, March 28, 2002)
A Division of Youth Services guard accused of trying to hurl a juvenile
inmate to the ground is charged with third-degree battery and terroristic
threatening. The alleged incident at the Alexander Unit occurred last
August, though Saline County authorities did not bring charges until
Tuesday against Keith Kelley, 34, of North Little Rock. Authorities say a
surveillance videotape shows Kelley lifting a 15-year-old boy over his head
and trying to throw him. Court papers say Kelley administered body and head
blows to the boy, twisted his genitals and told the youth, "I'm going
to kill you." Several months before the Kelley incident, an inmate
hanged himself inside the facility. A short time after Cornell took
control, a second youth committed suicide in the same cell. Last week, two
inmates escaped and were captured the next day. (AP, March 23, 2002)
The private company running Alexander Youth Services Center fired a youth
services employee last week after he was accused of trying to sell drugs to
a guard at the facility, officials there said. Chandler Armstrong, 22, of
Benton was arrested and charged with possessing a controlled substance
after security officers at the center alerted police. Scott Tanner, juvenile
ombudsman coordinator for the Arkansas public defender's office, said
Cornell handled the situation appropriately. However, he was concerned he
hadn't heard about the incident until contacted by a reporter. (The
Arkansas Democrat-Gazette, March 13, 2002)
The state Department of Human Services could lose access to all state and
federal education dollars if the agency does not quickly correct
deficiencies in special education and mental health services for youths in
state custody, legislators heard Thursday. State Department of Education
monitors planned to inspect special education services at the Alexander
unit Friday after giving youth services official 30 days on Jan. 28 to
correct educational shortcomings that included $100,000 in missing textbook
and educational equipment. "When our staff visited, we had children
not in classes, no textbooks and limited numbers of teachers," Marcia
Harding, the Education Department's special education director, told a
joint meeting of legislative Joint Performance Review subcommittees. She
said conditions are worse now than four years ago, when the DHS' Division
of Youth Services began employing private contractors to provide education
services at Alexander, the state's biggest juvenile facility. (AP, February
21, 2002)
Two guards at the Alexander Youth Services Center were suspended Friday
pending an investigation into their conduct during a fight among detainees.
Three boys beat up a fourth Wednesday night in the bathroom of the
facility's serious offender unit -- called the Juvenile Upward Mobility
Program -- while two of the facility's staff stood by, according to police
reports. Joe Quinn, spokesman for the Arkansas Department of Human
Services, said the allegation that guards failed to intervene is "a tremendously
serious situation." (Arkansas Democrat-Gazette, February 2, 2002)
A state investigation has concluded that the private firm that runs the
juvenile lockup at Alexander failed to supervise inmates at risk of suicide
while the staff conducted a meeting. A 15-year-old boy had hanged himself
on Sept. 15. That death came after a 16-year-old died last May in the same
cell and by the same method, while a guard was supposed to have been
watching him. On Oct. 19, staff at the facility run by Houston-based Cornell
Co. had a two-hour meeting, and left the at-risk youths without someone
watching, according to a report by the Division of Youth Services, which is
an arm of the state Department of Human Services. "We are tremendously
frustrated that we are once again discussing an issue like this with
Cornell," DHS spokesman Joe Quinn said Tuesday. (AP, October 31, 2001)
It was shocking enough to read about another suicide at the Alexander Youth
Center. This was the third suicide at a state youth center since 1997, and
these deaths are getting no easier to explain. In this case, according to
the report from the private company that now runs the center, the details
are nightmarish: A frenzy of other inmates shouting "Do it. Do
it." Guards who called to the inmate but didn't bother to look in on
him even when he failed to respond. Scheduled checks that weren't made. A
staff new to their jobs and unprepared for their duties. Any suicide in
detention is awful, but this one was worse than we thought. It was worse
than we could have imagined. If its own report is accurate, the private
outfit contracted to operate the youth center -- Cornell Companies Inc. --
has painted a damning picture of its own stewardship. What does the
Huckabee administration have to say about all this? "We still are
extremely troubled by the suicide," says Joe Quinn, who's become an
expert by now at making apologies for the state's ironically named
Department of Human Services. Anybody would be troubled by what has
happened. The mystifying part of poor Joe Quinn's statement was the next
sentence: "But we still have confidence in Cornell." Why, for the
love of Heaven? No wonder Joe Quinn draws big bucks. Imagine being called
on to express confidence in the company that presided over this macabre
mess. Here's one question not addressed in Cornell's otherwise admirably
candid report and painful recitation of one terrible mistake after another:
Why should the people of Arkansas have confidence in an administration that
contracts with such an outfit to guard its troubled young people?
Confession is good for the soul, but it shouldn't guarantee a state
contract. (Arkansas Democrat-Gazette, October 4, 2001)
A report on the apparent suicide of a 15-year-old boy at a juvenile lockup
says the youth was taunted by other inmates but no one looked in on the boy
for more than an hour. Kenneth McClain II heard calls of "Do it, do
it," and "Kill yourself, kill yourself," prior to his death
on Sept. 16, according to a report by Cornell Companies Inc. The private
for-profit firm had just taken over management of the facility. The report
says McClain, who had threatened to take his own life, covered his cell
windows. Guards called to him but none looked inside despite policy that
requires checks ever 15 minutes, the report said. (AP, October 2, 2001)
If a fire breaks out at the state's Alexander Youth Services Center, most
of those detained there can't count on sprinklers to douse the flames.
That's because most of the cells at the lockup for troubled youths don't
have sprinklers -- a situation that concerns both the private company hired
to run the facility and state officials responsible for monitoring
construction by state agencies. The four detention buildings at Alexander
were built years ago -- nobody with the state is quite sure when -- well
before the fire code required sprinklers in such facilities. (The Arkansas
Democrat-Gazette, September 22, 2001)
The father of a 15-year-old boy who was found hanged at a juvenile lockup
said officials refused to let him visit his son on the day the youth died.
Kenneth McClain Sr. said Wednesday that staff at the Alexander Youth
Services Center told him on Sunday that his son had been moved to a serious
offender unit after being involved in an altercation. The visit was denied.
Monday, the father was told his son, Kenneth McClain Jr., hanged himself
with a bed sheet. (AP, September 20, 2001)
Arkansas' experiment with privatization of an adult prison facility was a
bust. Now the state is going to have another go at it with a juvenile facility.
Responsibility for the snake pit known as the Alexander Unit is about to be
turned over to the third private owner-operator of correctional facilities
in the nation, Cornell Companies Inc. of Houston, Texas. Under the initial
two-year contract, the state will pay Cornell about $13 million to do a
better job, presumably, than the state could do at almost twice the cost.
Although no sound estimate of the projected cost-savings exists, since the
state will continue to pick up the costs for medical insurance associated
with Alexander's young inmates, DHS officials anticipate a minor windfall
that they say they'll use to build still more juvenile detention
facilities. Sen. Kevin Smith of Stuttgart, who has been in the Legislature
since 1993, is one of the skeptics. The thought that a for-profit company
can do much better for much less must boggle his mind. (The Arkansas
Democrat-Gazette, June 17, 2001)
Baker Community Correctional Facility, San
Bernardino, California
November 18, 2009 Desert Dispatch
The Baker Community Correctional Facility is being closed due to a
statewide decrease in low-security inmates. The California Department of
Corrections and Rehabilitation is opting out of its contract to house
inmates at the facility with Cornell Companies, Inc., according to CDCR
spokeswoman Terry Thornton. The CDCR has a $4.9 million contract with
Cornell to house inmates at the Baker facility and roughly half of that
will be lost due to the closure. The contract was set to expire in June,
but will end on December 26. The CDCR’s decision comes as the state has
seen a drop of around 2,500 low-security inmates from 2008 to 2009,
according to Thornton. The Baker facility itself is built to hold 262
inmates living in a dorm setting, but only housed 180 inmates at the end of
October. “We’re seeing a demographic shift in the inmate population,”
Thornton said. “We are seeing that the trend is moving away from a need for
low-security facilities. The state needs more beds for higher-level
offenders. It doesn’t make sense to operate the facilities at low housing
levels.” The remaining inmates in Baker will be transferred to other
facilities in the state before the closure, according to Thornton. The
Baker facility currently employs 80 people, according to Cornell spokesman
Charles Seigel. Seigel said the employees may face layoffs, but Cornell is
looking at other uses for the facility that would allow them to keep their
jobs.
October 26, 2009 AP
California officials say a drop in the number of minimum-security
inmates is allowing them to end contracts with the companies that operate
three private prisons. The move will save the Department of Corrections and
Rehabilitation about $15 million a year. The private prisons in Baker,
Bakersfield and McFarland once housed a total of 822 inmates. Department
officials said today they may seek new proposals to use the prisons for
female inmates. About 2,500 fewer minimum-security inmates are in prison
than a year ago. The department credits a new policy that diverts many
parole violators who commit relatively minor offenses to community programs
instead of sending them back to prison.
July 4, 2008 The Sun
Two private correctional officers were hospitalized Friday after a
fracas at the correctional facility here triggered by unruly inmates,
officials said. About 1 p.m., a correctional officer attempted to handcuff
an inmate who was being disruptive. The inmate resisted, and several other
inmates came to his aid, resulting in a scuffle between the inmates and at
least two correctional officers, said Charles Seigel, spokesman for Cornell
Corrections, the company that operates the minimum-security Baker Community
Correctional Facility. A sheriff's deputy assigned to the Baker station was
called in to assist, and patrolled the perimeter of the prison for about an
hour until the situation simmered down, sheriff's spokeswoman Cindy Beavers
said. Two correctional officers were taken to a hospital in Las Vegas for
medical care. The severity of their injuries was unclear, although one
appeared to be in need of more care than the other, Seigel said. The
officer who suffered the more serious injuries was reportedly doing OK.
"He's awake. He clearly has some injuries that need to be treated, but
he's awake and OK," Seigel said. A lockdown was implemented after the
fracas and an inventory taken of all inmates. All were accounted for,
Seigel said. The Baker correctional facility, in a dusty outpost between
Barstow and the state line, is a minimum-security facility where inmates
are typically transferred from other prisons to carry out the last 18
months of their sentences before being paroled, Seigel said.
March 29, 2007 Contra Costa Times
A race-related fight broke out at a minimum-security community prison,
sending four inmates to the hospital with minor injuries, state prison
officials said. The fight at the Baker Community Correctional Facility in
San Bernardino County occurred at 7 p.m. Wednesday and lasted a few
minutes, said Terry Thornton, a spokeswoman for the California Department
of Corrections. Twelve black and white inmates started brawling in the yard
of the all-male prison and guards rushed to break up the melee. About 80
inmates were in the yard at the time. Four inmates were taken to the
hospital with minor bumps and bruises. The cause of the fight was under
investigation. "They started to fight. They were told to stop and they
did," Thornton said Thursday. The 12 inmates were later transferred to
state prisons, she said. Baker, with 250 inmates, is operated by Cornell
Companies Inc., which provide services to state governments on a contract
basis. The facility is 155 miles east of Los Angeles.
A prison riot that left 17 inmates
injured at a private correctional facility in the Mojave Desert may have
been triggered by the arrival of a jailhouse "snitch" just hours
before, a transfer that countered normal safety protocols, a prison
official said Wednesday. A preliminary investigation suggests the brawl
between white inmates and Latino inmates, broke out after the informant --
who was white -- was attacked in the prison yard, said Marvin Wiebe, a
senior vice president of Houston-based Cornell Companies Inc., which
operates the prison. The disturbance escalated into a riot because of a
policy that bars guards at privately owned prisons from using force to
quell a violent uprising, said Russ Heimerich, a spokesman for the
California Department of Corrections. (Los Angeles Times, December 8, 2003)
Autopsy planned in inmate's death Sheriff's
homicide detectives are investigating the death of an inmate Sunday at
Baker Community Correctional Facility, coroner's officials said Monday.
Jamie Bengtson, 22, of Baker was found dead in his bunk about 7 a.m., the
San Bernardino County Coroner's Department reported. The death was
determined to be suspicious and the San Bernardino County sheriff's
homicide detail was called to investigate. (The Press-Enterprise,
Riverside, CA, August 28, 2001 )
Ben
Reid Community CF, Houston, Texas
November
16, 2010 Houston Press
The man charged with killing a Good Samaritan during a purse-snatching is
the third person to escape the same state-contracted halfway house in the
last 20 months. Anthony Ray Ferrell had fled a "halfway house in the
10900 block of Beaumont Highway" in October, according to the Houston
Chronicle. The home in that block is the Ben A. Reid Community Correctional
Facility, from which sex offender Bruce McCain escaped in October 2010 and
Richard Williamson Griffin Jr. escaped in February 2009. (McCain was
arrested in the Rio Grande Valley three weeks after his escape). The home
was operated by private prison group Cornell Companies, which was bought by
its main competitor, the Florida-based GEO Group, last April. The facility
"provides temporary housing, monitoring and transitional services for
500 minimum-security adult male offenders," according to Cornell
Companies literature. Its "security measures include 24-hour custodial
supervision, 12-foot perimeter fence, outdoor lighting, close circuit
cameras, secure entrances and frequent census checks." Cornell
Companies/GEO also operate Houston's Leidel Comprehensive Sanctions Center.
In 2005, before GEO bought Cornell, a Leidel resident who got a day-pass
for church and never bothered to return; he fled to Fort Worth, where he
killed three men. Ferrell is accused of murdering Sam Irick at a Meyerland
convenience store last week. Irick tried to intervene as Ferrell allegedly
was robbing a customer.
September 9, 2004 Houston Chronicle
Drug use by employees at a privately run halfway house for paroled felons
led to seven resignations this week after the facility's corporate owners
called for staffwide drug tests. The departure of the seven workers —
including administrators, security guards and caseworkers — was the latest
problem at the Ben Reid Community Correctional Facility, which houses up to
500 felons in northeast Houston. The facility is operated by the Houston-based Cornell
Companies Inc. The seven employees who resigned did so after testing positive
for drug use. In May, its director of employee training, Roy Thomas, 50,
was arrested after a police officer, acting on a tip, searched his car and
found 212 tablets of hydrocodone, an addictive painkiller, and 123 tablets
of Xanax, an anti-anxiety drug, police said. Cornell fired the Ben Reid
House's director and several high-level managers last year, citing poor
management and violations of numerous company policies.
Big
Spring Complex, Big Spring, Texas
November 9, 2010 NewsWest 9
An accidental shooting on Tuesday at the federal prison in Big Spring put
an inmate in the hospital. The shooting happened right before noon at the
Flight Line Prison, located at the airpark in Big Spring. According to
medics, a Hispanic man was accidentally shot by a gun in the upper arm. The
wound was not serious, but he was taken to Scenic Mountain Medical Center
for a follow up. He was alert and conscious while being transported. We
still don't know how the prisoner was shot. Details are limited at this
time, but we've learned the shooting is under investigation. NewsWest 9 has
contacted the Geo Group, which currently runs the prison, and they have not
commented on the incident. NewsWest 9 will continue to follow this story
and will bring you the very latest information when we get it.
September 14, 2008 Permian Basin 360
Questions remain unanswered concerning Friday night's prison riot in Big
Spring. Fires reportedly broke out in several buildings at the Big Spring
Correctional Center's FlightLine unit. Ambulances were seen leaving the
scene. Cornell Companies currently operates the site. "All we do is
establish a perimeter. That's all we do in these instances. They handle all
the security inside the fence," said Sgt. Tony Everett of the Big
Spring Police Department. The unit is specifically for prisoners who commit
immigration violations. At this time, Cornell Companies has yet to respond
to our calls.
September 13, 2008 NewsWest 9
Questions still remain unanswered after a prisoner fire and riot on Friday
night. Facility officials are being very cautious of what information is
being disclosed. Big Spring authorities rushed to the scene of a riot and
fire from the Flightline Correctional Center near the Big Spring airport.
The facility takes prisoners from the U.S. Immigration and Naturalization
Services, but since it is a privately owned facility the plan for police
was to secure a perimeter. "The only reason we are here, our only
purpose is if spills outside of the fenced facility," Sergeant Tony
Everett, with the Big Spring Police Department, said. In total, about 15
police officers stayed outside managing traffic while Big Spring
firefighters went inside. "My understating is that may be one or two
buildings were on fire," Everett said. Several ambulances left the
scene towards Scenic Mountain Medical Center where family members were
advised not to disclose any information. But the mother of one of the
injured employee was thankful to hear her son was doing better. "I
feel a whole lot better, I feel relieved that he is O.K. Like I said
earlier, I just left it in the hands of God and he is the one who pulled me
through," Inez Heins, Mother of a facility Employee, said. NewsWest 9
also received a couple of calls from relatives who say that seven facility
staff were injured and were treated for minor injuries. According to
officials from the correctional center the riot never posed danger to the
public.
September 13, 2008 KWES TV
State and local authorities have responded to a private prison near the
airport in Big Spring after an apparent riot. Big Spring Police responded
to the riot around 9:00p.m. Friday night, and quickly set up a perimeter
around the prison. There have unconfirmed reports of injuries, but a mother
of an injured guard tells NewsWest 9 that her son did sustain injuries to
the face. We were also told that three ambulances also left the prison
after the riot, which is run by Cornell Companies. Viewers also reported
seeing smoke coming from the prison, but our crew did not see any smoke
when they arrived to the scene. Sgt. Tony Everett with the Big Spring
Police Department did confirm that a fire was started in the prison but it
is now under control. Authorities tell NewsWest 9 that the situation has
calmed down for the night. The prison handles INS cases for the federal
government. There have been no reports of inmates escaping the prison at
this time.
September 12, 2008 KOSA CBS 7
Emergency officials are currently responding to a fire at the Flightline
Prison located at the Big Spring airport. CBS 7 News has confirmed that a
riot broke out at the prison about 9:00 p.m. Several ambulances were seen
leaving the prison. Fire crews confirm there are six to eight people who
were injured and taken to the hospital. No word yet on the severity of the
injuries. According to Big Spring Police spokesperson Tony Everett, the
riot is under control and Big Spring police have set up a perimeter around
the facility. CBS 7's Greg Sherman was the first reporter on the scene. He
says thick black smoke was seen coming from the prison. The Flightline unit
handles low-risk inmates who are primarily incarcerated for immigration
violations.
August 16, 2005 AP
Investigators
want to know what started an inmate disturbance at a privately run prison
in West Texas that left five workers hurt. The assaults happened at the
Flightline Unit of the Big Spring Correctional Center. Center spokeswoman
Janice Bishop says one staffer required hospital treatment, while the other
four suffered minor injuries. Bishop says the unit was slightly damaged in Saturday
night's incident. No inmates were injured. Bishop today declined to release
further information about the assaults. Big Spring police say the
disturbance was contained inside the prison. Texas troopers and the Howard
County sheriff's department also responded to the center run by the
Houston-based Cornell Companies.
A Cornell Corrections inmate escaped over
a fence late Sunday night but his freedom was short lived. The inmate,
29-year-old Ernesto Soto-Olivarez climbed over the fence at the Airpark unit
around 9:30 p.m. Sunday and was spotted by correctional officers who took
after him on foot. He lost the officers in the darkness. (Big Spring
Herald, March 13, 2001)
Bernalillo County Detention Center, Bernalillo, New
Mexico
April 8, 2009 KRQE
A 13-year-old lawsuit over jail conditions that has already cost
Bernalillo County taxpayers millions of dollars may have to start over, a
federal judge has ruled. U.S. District Judge Martha Vasquez has thrown out
a 2005 settlement in the case after lawyers for inmates claimed the county
misled them. Prisoners sued Bernalillo County in 1995 over conditions at
the jail, which at that time was located in downtown Albuquerque at 415
Roma NW. The prisoners cited inhumane conditions which included
overcrowding and lack of access to health and psychiatric care. In 2005,
two years after the Metropolitan Detention Center opened west of
Albuquerque, the prisoners and the county negotiated a settlement. That
deal required the county to meet 14 criteria including controlling overcrowding
and providing better mental health and psychiatric care. The county
reported it has since met 13 of those criteria leaving only psychiatric
care still to work out. In a court filing the inmates' attorneys claimed
they recently became aware that the county still plays a major role in the
former downtown jail which it still owns. That jail now houses federal
prisons through a contract with Cornell Corrections, a private company.
Under that contract Cornell must provide monthly reports on jail operations
to the county which include population numbers, inmate grievances and
disciplinary action taken against inmates and staff. In her new ruling the
judge ordered the county to provide the inmates' attorneys access to the
downtown lockup. County Manager Thaddeus Lucero said the county objected at
the hearing and will fight the ruling.
December 26, 2005 Albuquerque Journal
Bernalillo County still doesn't have a valid contract with the private
company running the Downtown jail- even though it opened 11/2 years ago.
New Mexico law requires that contracts with private jail companies be
approved by the state Attorney General's Office before taking effect. The
office has warned Bernalillo County, in a series of letters this year and
last, that it hasn't approved the contract yet and still has a few
concerns. For one, state lawyers say, the contract needs to address what
would happen if the county must send local inmates to the Downtown jail.
Right now, that lockup handles only federal and state inmates and is operated
by Houston-based Cornell Companies. County inmates are housed at a new jail
on the West Mesa, where the skyrocketing population has caused overcrowded
conditions. The county's intention is to create a separate agreement if it
ever needs to send local inmates Downtown, but that's "not
acceptable," Assistant Attorney General Zachary Shandler told the
county in a letter last year. "This is the time to work out the terms
of the Management Agreement," Shandler said. The state had a host of
other concerns, such as making it clear in the contract that the county has
"ultimate say" over the jail, not Cornell. Shandler said his last
letter to the county was in February and that he hadn't received a formal
response. Shandler wouldn't discuss what action the state might take if
Bernalillo County never gets the contract approved. Meanwhile, the county
could face legal "exposure" because of the lack of approval, he
said. "The problem generally is that if something went wrong
contractually with their partner or some situation occurred in the inmate
population, they would not have an effective contract ... that protects the
state from certain liabilities," Shandler said.
October 15, 2003
The county refused to put the jail lease out to bid. Instead, it negotiated
a five-year deal after Cornell responded to a request for
information. Although Gov. Bill Richardson expressed reservations
about the no-bid process, Board of Finance Director Mark Valdes said the
board did not have the authority to direct Bernalillo County to put the
lease out for competitive bid. He cited changes made in state
procurement law during the last legislative session. "The board
does not have the authority to not approve the lease and direct the county
to do competitive bids," Valdes said. Board members did not
question the role of Cornell's hired consultants, Albuquerque attorney
Edmund "Joe" Lang and former Democratic Party National
Committeeman Art Trujillo. The two originally were hired to help
Cornell get the lease on the Downtown jail. Lang was to be paid $2 a day
per inmate and Trujillo 25 cents a day per inmate. They potentially
stood to make more than $2 million off the deal combined. Cornell
says those agreements are no longer in effect. The company says Lang's
contract is now "dramatically different" and that Trujillo is no
longer working on the project. (ABQ Journal)
October 13, 2003
A private jail operator that has been awarded a controversial no-bid
contract to operate the old Bernalillo County Detention Center at one point
agreed to pay two politically connected consultants big dollars to help
secure the deal. Former state Sen. Edmund "Joe" Lang and
former Santa Fe Mayor and Democratic Party figure Art Trujillo had the
potential to receive nearly $2.5 million combined from Cornell Companies
over a five-year period— an amount that would hinge on how many inmates
were housed in the jail. Cornell says the agreements are no longer in
effect. Lang, a Corrales Democrat and former Sandoval County
commissioner, stood to earn the biggest payday. Cornell, in a
memorandum of understanding dated April 15, 2002, agreed to pay Lang $2 a
day per inmate for the "consulting work that you will perform in
conjunction with Cornell's attempt to lease or purchase ... the Bernalillo
County Jail (Downtown Jail facility)." Cornell had a similar
agreement with Trujillo, a former Bernalillo County Democratic Party
chairman who at the time was conducting what turned out to be a successful
campaign for his party's nomination for state Land Commissioner. Trujillo,
however, was only to be paid 25 cents a day per inmate— a potential payout
of about $273,000 over five years. Trujillo has a history of friction
with County Commission Chairman Tom Rutherford. Lang and Rutherford are
longtime friends and colleagues. The memorandums to both Lang and
Trujillo said payments would commence only after the "complete
execution" of a valid contract between Cornell and the county.
Payments would begin "after the first full quarter of a fully executed
contract and be issued quarterly thereafter for the original term of the
contract." Cornell estimated the capacity of the jail at 540
inmates after renovation. The county's estimate is about 600 inmates.
Assuming the jail was full, that would translate into a potential fee of
$1,080 to $1,200 a day for five years with a possible five-year
renewal. Five years of operation with 600 inmates would have meant a
payment in excess of $2.1 million to Lang. Those estimates are based on a
jail operating at full capacity, 365 days a year. Paul Doucette,
Cornell vice president for development and public affairs, said in a
telephone interview Friday that both documents are out of date.
"Neither is in effect today," he said. Doucette said
Cornell's current agreement with Lang is "dramatically different"
than the one outlined in the April 2002 memorandum. Doucette would
not, however, discuss specifics. "We consider the details of
that agreement proprietary," Doucette said. "We are still in a
very competitive situation on this project, as the sending of these
documents to the Journal illustrates. Someone is trying to manipulate the
process." He said Lang is a "very valuable consultant who
knows New Mexico very well." Doucette said, "We are no
longer working with Art Trujillo on this project." Trujillo
believes his original contract with Cornell is still valid but says he has
been cut out of any negotiations between Cornell and the county. The
contracts between Cornell and the consultants have not been discussed
publicly in the talks leading up to county approval of the pact with
Cornell. Cornell's contract with Bernalillo County to operate the
jail still faces the hurdle of approval by the state Board of Finance,
which balked at approving the pact earlier this month. Members of the
Board of Finance, which is chaired by Gov. Bill Richardson, questioned how
they could be sure the county was getting the best deal, since the contract
never went out to bid. The board asked for more information and is
scheduled to take up the contract again on Tuesday. Cornell
negotiated a five-year lease with the county to renovate and house inmates
at the now-vacant jail. The negotiations, including talks between Lang and
then-County Manager Juan Vigil, were based on Cornell's reply to a Request
for Information sent to private jail contractors. Under the contract
approved on a 4-1 vote by the county commission in January, Cornell would
pay the county about $1 million a year the first two years of operations
with a gradual increase over the next three years. The company
originally offered to pay the county $5 a day per inmate with a ceiling of
$1 million a year. In addition, Cornell would spend roughly $5 million to
renovate the old jail Downtown. The county sent out the request for
information in 2001. It never issued a formal request for proposals that
would state what the county wanted and how the proposals would be
judged. Cornell's competitors and one county commissioner criticized
that decision. All of the county commissioners contacted by the
Journal said they were unaware of the terms of the consulting
contracts. "I wouldn't know about that," Rutherford said.
"I do know that he (Lang) did a lot of work on this."
Commissioner Steve Gallegos said, "Wow. I've never been a lobbyist, so
I don't know what they receive. I don't know if that's high. It doesn't
sound right to me." Commissioner Michael Brasher, who has been
critical of the process and was the sole vote against the lease for
Cornell, questioned the arrangement. "I think we need to have
full disclosure of situations like this. The entire deal has been very
curious." Corporate spokesmen from Wackenhut Corrections
Corporation and Corrections Corporation of America declined comment for
this story. Commissioner Alan Armijo said he would like to see the
(Cornell-Lang) agreement. "Without looking at it and knowing all
the details, I don't know if it bothers me or not ...," he said.
Commissioner Tim Cummins said, "Sounds like he's (Lang) a partner.
Whatever arrangement they do is none of my business." Consultant
agreements Doucette, Cornell's vice president for development and public
affairs, confirmed that Lang currently has a contract with Cornell and that
Cornell does enter into contingency agreements like the one obtained by the
Journal. "Like everything else, we factored it into our
costs," Doucette said. "Our proposal to lease and remodel the
jail provides an outstanding value to the county." But he would
not discuss specifics of the consultant agreements. Lang in a
telephone interview said he wouldn't comment on his contract, also saying
that it was "proprietary." Doucette confirmed that Trujillo
did work for Cornell on the jail contract early in the process, although
Lang said he was unaware of Trujillo's involvement in the lease. The body
of the memos from Cornell to Lang and Trujillo are almost identical except
for the amount to be paid. They have the same date and are signed by the
same Cornell official. The memoranda state that they are good for six
months and could be renewed. In a telephone interview, Trujillo said
his contract is still valid, but no one the Journal interviewed in county
government recalled Trujillo being involved. "I told them
(Cornell) how to get this project done ... but Lang has cut me off totally,"
Trujillo said. Trujillo was defeated in November by Republican
Patrick Lyons in the Land Commissioner race. Lang is registered as a
legislative lobbyist for Cornell and said that work is separate from his
work on the county jail lease. State law prohibits legislative lobbyists
from working on a contingency fee like the one outlined in the memorandum
of understanding. "I haven't talked to any legislators on
Cornell's behalf," he said. There is no state prohibition on
contingency fees for lobbying local governments on jails. Friendship
is separate Lang and Rutherford acknowledge a longtime friendship.
They attended high school together and served in the state Senate at the
same time. They are both lobbyists and sometimes work for the same clients.
Both said their friendship had nothing to do with the Downtown jail
lease. Rutherford said he is also friends with the lobbyists who
represent Cornell's competitors— Corrections Corporation of America and
Wackenhut. Those two companies asked the commission to put out a request
for proposals. There is a small group of people who do lobbying, and
they all know one another. I sat on the Senate committee that approved Ed
Mahr (lobbyist for Corrections Corporation of America) as Corrections
secretary back in the 1970s. I served in the Senate and on the commission
with Les Houston (lobbyist for Wackenhut Inc.) for years," Rutherford
said. "We're all friends," Lang said of his competing
lobbyists. "We (Cornell) gave the only responsive price which
the county asked for in its request," Lang said. "Nobody has ever
said they could beat our price." Both men said the commissioner
who pushed the jail privatization was Steve Gallegos, hoping to use the
money generated by the lease to fund a psychiatric unit at the $90 million
Metropolitan Detention Center on the West Side. "This is simply
a mechanism to get the psychiatric unit built at the new jail," Lang
said. That sentiment was echoed by Rutherford and Cummins, who said
the building was essentially useless sitting empty. Court and police
officials have suggested using part of the facility as a Downtown holding
and booking facility— an idea rejected by the county. Gallegos said
he is not a proponent of privatizing jails but believes the county had to
come up with some way to build a psychiatric unit at the new jail.
"I pushed it as a public facility, and I don't believe in privately
run jails," Gallegos said. "It was really out of frustration that
I said let's try the private sector." "I want that psych
unit built," Gallegos said. "I know that inmates with mental
health problems are abused in jail. I've had personal experience with
family members with mental health problems and I know how important this
unit is." "What it really came down to was Cornell put
numbers up and the others didn't," Gallegos said. "Why didn't the
others? Are they serious or not? "Later, the other guys come
back and say we're playing an unfair game. But I think Cornell played it
straight with us." Gallegos said, "The problem in this
state is that everyone's connected. Les Houston worked for Wackenhut. I
know Ed Mahr with CCA very well. He's a friend. I've known Tom Rutherford
for years and years. I don't know Joe Lang that well." How it all
started The county put out its request for information on renovating
and privatizing the Downtown jail in October 2001. At that time,
commissioners expected the jail to be empty by the following summer when
the new West Side jail was supposed to open. The idea was criticized by the
union representing officers at the jail and seemed to die. In January
2002, Gallegos began pushing the idea of the county running the Downtown
jail as a facility to hold federal inmates. Any profits would go to
building a psychiatric unit at the new jail. Negotiations with the
U.S. Marshals Service hit a stumbling block when federal officials said
they could not guarantee a fixed number of inmates because that would
violate federal policy. In April 2002, Cornell inked separate memorandums
of understanding with Lang and Trujillo to act as consultants on securing a
lease or purchase of the Downtown jail. Talks between the county and
the Marshals Service for federal funds to renovate the old jail broke down
when the county failed to meet a key deadline for filing paperwork for
federal renovation funds. In the fall of 2002, the commission
resurrected its discussion of a private jail operation. The county
had received general letters of interest from Wackenhut and Corrections
Corporation of America. Cornell was more specific. It gave the county
a quote of $5 a day per inmate, with a ceiling of $1 million a year.
In January 2003, County Attorney Tito Chavez told commissioners they could
negotiate a lease with Cornell because of its response. He advised that the
county was not required to put out a Request for Proposals— citing a
specific state law that allows local governments to negotiate jail
agreements based on a simple request for information. At the end of
November 2002, the commission authorized Vigil to negotiate with Cornell.
The decision was unanimous. Then-Commissioner Les Houston, whose term
expired in December, urged the county to put out a Request for Proposals
but recused himself from voting because he represented Wackenhut.
"We felt there was a time crunch which in hindsight, because of the
delay in opening the new jail, wasn't valid," said Cummins, who was
chairman at the time. "But at the time there was some feeling of
urgency." In January 2003, the commission approved a lease with
Cornell for the old jail. The lease was amended in June 2003, when Cornell
agreed to pay for the renovations. There have been some technical
changes in the lease after it was reviewed by the Board of Finance. Board
members have asked the county for figures from similar types of jail deals.
"Comparisons from jail to jail are difficult," Brasher said.
"That's the argument for going out to a Request for Proposals. That's
how you find out what the value of that jail Downtown really
is." Rutherford said, "The Board of Finance is doing their
duty to review this carefully." (ABQ Journal)
June 11, 2003
Bernalillo County commissioners on Tuesday approved plans for a private
company to renovate the Downtown jail and house federal inmates there. The
commission voted 4-1 in favor of revising its lease agreement with
Houston-based Cornell Companies Inc. The earlier agreement had called for
the federal government to pay for renovations. Under the new
proposal, Cornell would pay for the renovations, which are expected to cost
$5 million. The proposal still must go before the state Board of Finance. The
approval came despite objections by Corrections Corporation of America,
which said the county should allow other companies to compete for the jail.
"Why not open it up and get the best deal you can?" asked Frank
C. Salazar, an attorney for CCA. (ABQ Journal)
June 11, 2003
When Bernalillo County signed a contract with Cornell Cos. in January to
lease the City-County Jail building, it was riding on the hope the federal
government would come up with a big chunk of the nearly $4 million needed
to renovate the lockup. That hope was a dim one, said the head of the
U.S. Marshal's Service in Albuquerque. The county was counting on
getting a Marshal's Service grant to repair the Downtown jail and meet a
major condition of its contract with Cornell, a private corrections
company, county Public Safety Director John Dantis said Thursday.
However, the county missed its chance to receive a $3 million grant when
the money was made available last year, said Gordon Eden, U.S. marshal for
New Mexico. "There is no extra money now," he said.
"It could be several years until the Marshal's Service will be able to
provide them with money for renovations." Each year the
Marshal's Service allocates grants to government agencies to upgrade jails
to meet the agency's standards. Cornell would be contracting with
government agencies to house federal prisoners in the jail. The grant
appropriation has been steeply declining over the past three years, Eden
said. The amount available nationwide was $35 million in fiscal year 2001,
$20 million in 2002 and $5 million in 2003, he said. Now, the county
and Cornell are in negotiations to figure out who will pay for the jail
repairs. A Cornell spokesman said the Houston company is willing to
pay for the renovation but declined to comment on what it expects in
return. In June 2002, the county was made aware it would not receive
the $3 million Marshal's Service grant because it had missed a May deadline
to turn in paperwork, Eden said. Dantis said the county had asked for
an extension before the deadline in order for the County Commission to
approve grant changes made by the Marshal's Service, but it was
denied. "When the Marshal's Service deemed the county
unresponsive, they allocated that money to other government agencies who
needed the money," Eden said. The county contract with Cornell
in January states the county would "use its best efforts" to
secure a Marshal's Service grant. "How can you obligate federal
funds you don't have?" Eden said Thursday in reference to the
contract. County officials said at that time they were planning to
apply for the Marshal's Service grant again. In April, the county
asked the Marshal's Service for funding, but it is not depending on that
money, Dantis said. "We're looking at a number of options to
fund the renovations," he said. Under the contract, the county is
responsible for electrical, plumbing, security and roof repairs and several
other categories of renovations to the building. The county has not
looked into paying for the repairs using its own money, Dantis said, and
referred inquiries to county financial officials. County Manager Juan
Vigil was out of town Thursday, a spokeswoman for the county said, and
could not be reached for comment. Under the terms of the contract,
Cornell would pay $888,888 in rent during the first two years of the lease,
with rent increasing to $1.2 million in the third year. The county
planned to use the revenue from the Cornell lease to add a mental health
facility to the new Metropolitan Detention Center, a 2,100-bed facility on
the West Side that is now in the process of being filled with inmates from
the county's three jails. Repairs to the Downtown jail cannot begin
until the county moves all its inmates to the new lockup. The $86 million
building became ready for occupancy two weeks ago, a year behind
schedule. Cornell spokesman David Monroe said his company needs to
wait until the old jail is vacant and the renovations are complete before
it can house its inmates. The company doesn't have a scheduled move-in date
for inmates, he said. "The county has taken a bit longer than we
anticipated," Monroe said. "We want to do it as soon as possible
but with the appropriate parameters." Cornell already has signed
contracts with government agencies to house inmates in the Albuquerque
jail, Monroe said. He declined to give any details on those
contracts. Cornell's system includes about 70 detention facilities
nationwide. County Commissioner Michael Brasher said the county might
have to solicit companies that want to use the Downtown jail and could get
it up and running. "If Cornell can't come up with the
money," he said, "Maybe they (county officials) can find someone
who can pay for the renovations." (Albuquerque Journal)
January 15, 2003
Bernalillo County commissioners
approved a proposal to rent the Downtown jail to a private corrections
company Tuesday — despite a potential snag over funding for
renovations. Both the county and
Houston-based Cornell Companies Inc. can terminate the lease agreement if
funding for the jail renovations doesn't come through. As part of the proposal, federal inmates
could end up at the Downtown jail. Commissioners directed county officials
to try to work out agreements with the U.S. Marshals Service. Commission Chairman Tom Rutherford said
the lease is important because it will put the Downtown jail to
"beneficial use" after inmates there are moved to the new
Metropolitan Detention Center. The moving date is uncertain. But Gorden Eden, U.S. marshal for the
district of New Mexico, told the commission that federal money for the jail
renovations isn't available now. He said he would work with the county to
get funding but couldn't promise the money for renovations. (ABQ
Journal)
January 14, 2003
Two former city councilors set to join
the County Commission today will have a chance to make a historic decision
— whether to rent the Downtown jail to a private corrections company. The proposed lease agreement would make
the jail — for the first time — a privately run detention center. As part of the proposal, the county would
try to work out an agreement with the U.S. Marshals Service to house
federal inmates there. There are no
plans to house city and county inmates there. The Downtown jail would be
vacant after local inmates are moved to a new lockup on the West Mesa. Bernalillo County didn't seek formal bids
from companies interested in the project. Instead, officials began
negotiating with Cornell after issuing a request-for-information.
(ABQ Journal)
November 27, 2002
Bernalillo County commissioners on Tuesday authorized further negotiations
with a private company interested in running the Downtown jail as a holding
center for federal inmates. The commission's 4-0 vote allows County
Manager Juan Vigil to continue negotiating a lease agreement with Cornell
Companies Inc. The county also will try to work out an agreement with
the U.S. Marshals Service. Anthony Marquez, president of the jail
employees' union, spoke against bringing in a private company. The
country would have more oversight if it hired its own employees to run the
Downtown jail, he said. Private companies "are there to make a
buck," Marquez said. (ABQ journal)
October 9, 2001
Bernalillo County commissioners today are scheduled to consider taking the
first step toward transforming the Downtown jail into a holding center for
federal inmates. The proposal, sponsored by Commission Chairman Steve
Gallegos, would authorize the county to submit an application to the U.S.
Marshals Service to launch the program and remodel the jail to meet federal
standards. Commissioner Les Houston said he is "philosophically
opposed" to having Bernalillo County run a federal holding center. The
county soon will be busy enough operating the 2,100-bed Metropolitan
Detention Center under construction on the West Side, he said.
Houston suggests the county either lease the old jail or sell it.
"If we are going to operate a jail for profit ... then it should be
operated by professionals, such as one of the national private
operators," Houston said. But Gallegos, who opposes having a
private company run the holding center, said Houston should excuse himself
from discussion of the application. Houston is a registered lobbyist for
Wackenhut Corrections Corporation. (Albuquerque Journal)
Business Week
Cornell
November 24, 2005 New York Times
Federal prosecutors have charged a former securities broker, David Pajcin,
with insider trading related to information the authorities said he gleaned
by illegally obtaining advance copies of Business Week and buying stocks
that the magazine was covering favorably. Pajcin apparently persuaded an
unidentified worker at a printing plant near Milwaukee to steal a copy of
Business Week before it was released to the public. The complaint said that
Mr. Pajcin bought shares in at least 10 companies from November 2004 to
early March; Business Week wrote positively about all of them. Mr. Pajcin
bought shares or stock options in companies like TheStreet.com, Cornell Corrections,
the SIPEX Corporation, the IMAX Corporation and Arbitron early on the same
day that the companies appeared in the magazine's ''Inside Wall Street''
column.
California Legislature
January
15, 2006 Sacramento Bee
Driven by a rising inmate population, prison spending in California is
scheduled to exceed $8 billion this year. But the real intrigue in the
state's 2006-07 corrections budget is in what it's proposing for the near-
and long-term future. Spelled out in Gov. Arnold Schwarzenegger's summary
on the spending plan is a proposal "to pursue authority to secure
additional inmate capacity through contracts with other providers."
The wording is fleshed out in the actual budget bill, which calls for a
virtual doubling in the number of private prison beds in California, from
the current 8,500 to an estimated 17,000 over the next two years. "I
think this proposal means that the governor is taking a pretty courageous
stand for good public policy," said Mark Nobili, a lobbyist for
Cornell Companies, a private prison firm that currently operates two
correctional facilities on contract with the state and is likely take up
the administration's invitation to bid this year on some of the upcoming
contracts. CCPOA President Mike Jimenez said it is "a pipe dream"
for the state to think it can get by building only two new prisons over the
next ten years. He said Schwarzenegger's jail-and-private prisons proposals
are "payback to us" for taking him on during the special election
last year. "Clearly this is a shot back at us for opposing him as well
as his reforms that never materialized," Jimenez said.
Children's Advocacy Center, Erie, Pennsylvania
June
12, 2009 Erie Times-News
A Cornell Abraxas mental-health aide was charged with sexually
assaulting a 14-year-old resident at the center. Police said the girl, now
15, told a counselor at the Children's Advocacy Center that Kito Dixon, 29,
made inappropriate comments to her and touched her breast April 11 as she
was getting ready for bed at the residential rehabilitation center for
troubled juveniles, at 429 W. Sixth St. Police said a security video from
the hallway outside the girl's room showed Dixon standing at her doorway
for several minutes. It also showed him entering the room but does not show
what happened inside, according to a criminal complaint. The video was at
the same time as when the girl said the incident occurred. Dixon was
charged Tuesday with institutional sexual assault, indecent assault and
corruption of minors. He has been released from the Erie County Prison on
$7,500 bond. Messages left at Cornell Abraxas were not returned Thursday.
Cordova Center, Anchorage, Alaska
November 21, 2008 AP
A 21-year-old Anchorage man has been indicted by a federal grand jury on charges
that he escaped from Cornell Corrections of Alaska. Federal prosecutors say
Jedediah Smith remains at-large since his Nov. 1 escape. Smith was first
indicted last month on charges of a felon being in possession of a firearm.
He was assigned to Cornell Corrections Oct. 14 by a federal magistrate
judge. Prosecutors say Smith faces up to five years in prison and a fine of
$250,000, or both, if convicted.
November 10, 2004 KTUU
A shooting in an Airport Heights apartment building Tuesday night left one man
dead, and his brother in custody. It was about 9:30 p.m. when police
received a 911 call from a woman. Officers responded to an Airport Heights
apartment complex on Columbine Court near DeBarr Road and found a man
mortally wounded. The individuals turned out to be brothers. Police say
30-year-old Ralph Landry was shot at least once in the upper torso. He was
rushed to Alaska Regional Hospital, where he died a short time later during
surgery. Police say it was Landry's younger brother who pulled the trigger.
“Through the investigation, we identified Calvin Landry, who's about 23
years old, as a suspect in the homicide,” said Lt. Kris Miller. Police
actually had been looking for Calvin Landry long before Tuesday’s shooting.
“He has an outstanding warrant for escape, basically walking away from a
halfway house,” Miller said. Last July, Landry walked away from the Cordova
Center, where he was serving out a sentence for drunken driving and theft.
Now it appears he is in more serious trouble.
The man who managed an Anchorage halfway
house is accused of sexually assaulting an inmate. Charles Rubin, 41,
was arrested last night at his home on Elmendorf Air Force Base. Rubin was
the security manager at Cordova Center until last May, when, according to
police, he lured a 23-year-old woman into an office and coerced her into
having sex. Police say the woman believed she would be sent back to
Hiland Mountain Correctional Center if she resisted Rubin's advances.
The Cornell Company, a private firm that manages the Cordova Center, says
it put Rubin on administrative leave the day after the assault was
reported. It says Rubin was fired a month later. (KTUU.com, August 4,
2004)
Cornell-Abraxas
Erie,
Erie County, Pennsylvania
April
21, 2010 Erie Times-News
A former Cornell-Abraxas mental-health aide was sentenced this morning in
Erie County Court to serve six to 20 months in the Erie County Prison for
having indecent contact with a 14-year-old resident at the center. Kito
Dixon, 30, must also serve also serve six years probation and pay court
costs, Judge Ernest J. DiSantis Jr. said. The sentence in Erie County Court
came after Dixon pleaded no contest in March to charges that he had
indecent contact with a female resident at the center in April 2009, and,
in a separate case, pleaded no contest to charges that he drove his car
into a yard toward three people on June 12.
March 6, 2010 Erie Times-News
A former Cornell Abraxas mental-health aide pleaded no contest Friday in
Erie County Court to charges that he had indecent contact with a
14-year-old resident at the center. Kito Dixon, 30, did not contest counts
of indecent assault and corruption of minors. In exchange for his plea, the
prosecution dropped a third-degree felony charge of institutional sexual
assault. Cornell Abraxas is a licensed residential facility for children
and youth located at 429 W. Sixth St. As a part of the plea, Dixon agreed
to undergo an assessment by the Erie County Adult Probation sexual offender
group. In a separate case, he also pleaded no contest to three counts of
simple assault. He admitted he drove his car into a yard toward three
people on June 12. The charges together carry a maximum possible penalty of
up to 15 years in prison and a $35,000 fine. Erie County Judge John Garhart
set sentencing for April 21. Police said a girl, now 15, told a counselor
at the Children's Advocacy Center that Dixon made inappropriate comments to
her and touched her breast April 11 as she was getting ready for bed at the
residential rehabilitation center for troubled juveniles. Police said a
security video from the hallway outside the girl's room showed Dixon
standing at her doorway for several minutes. It also showed him entering
the room but does not show what happened inside, according to a criminal
complaint. The video was at the same time as when the girl said the
incident occurred.
Cornell-Abraxas,
Howe Township, Pennsylvania
July
7, 2008 Erie Times-News
Four 18-year-olds were jailed over the weekend, charged with causing a
riot at a juvenile detention facility in Forest County. State police at
Tionesta, along with units from Ridgway, Kane and Clarion, were called to
the Cornell Abraxas facility in Howe Township on Saturday at about 10:30
p.m. Police said one juvenile and three staff members were assaulted, although
none was seriously hurt. Three buildings were damaged and windows, desks,
chairs and other furniture were vandalized, with damage totaling about
$5,000, according to police. Derek Barnes, Richard Gale, Rasheed M. Seward,
all of Philadelphia, and Vernon L. High, of Chester, were each charged with
riot, institutional vandalism, criminal mischief, disorderly conduct and
corruption of minors, according to police. Police said the four
18-year-olds incited additional juveniles to participate in the riot. The
four were arraigned and placed in Warren County Jail with bail set at
$25,000 each.
June 11, 2006 The Derrick
A boy escaped from the Cornell Abraxas facility Sunday morning but was
captured several hours later, said state police in Tionesta. The 17-year-old
youth fled into nearby woods after leaving the juvenile drug and alcohol
treatment facility in Howe Township, Forest County, police said. He was
found Sunday morning by staff members not far from the facility at 59 Blue
Jay Road, police said.
Cornell-Abraxas, Quincy Township, Pennsylvania
November 1, 2004 Public Opinion
A 17-year-old boy allegedly assaulted three Cornell Abraxas staff
members at 9 p.m. Thursday at the treatment center in Quincy Township. The
boy allegedly punched, kicked and head-butted Leslie Fitch, 27,
Chambersburg, David Black, 46, Chambersburg, and Robert Reed, 31,
Gettysburg, after they attempted to restrain him, according to police. All
three staff members suffered minor injuries, police said.
Cornell Community Corrections Center, Salt Lake City,
Utah
June
16, 2008 Deseret News
A federal judge has ordered the dismissal of a sexual misconduct charge
against a former employee of a contracted federal halfway house, who was
accused of having an affair with an inmate, becoming pregnant. In a ruling
issued last Friday, U.S. District Judge Dale Kimball said federal
prosecutors had insufficient evidence to show that Ashley Ford committed
sexual misconduct when she had sexual relations with an inmate, because the
sexual relations took place outside of the halfway house and while Ford was
off duty. According to court documents, Ford was hired at the Cornell
Community Corrections Center in Salt Lake City as a staff monitor in
November 2006. The facility houses inmates who can leave the facility
during the day to work and then return in the evening to sleep. About a
month before she was hired, Ford met inmate Nathan Coccimiglio at a party
and was later put in a supervisory position over Coccimiglio at CCC.
Records also state that while working at CCC, Ford and Coccimiglio became
sexually involved, but that the couple met at Ford's apartment while
Coccimiglio was on work release and she was off duty. The record also
states Ford became pregnant at the time. Ford argued that she did not have
custodial, supervisory or disciplinary authority over Coccimiglio when they
were engaged in intimate relations. "There is no evidence that Ms.
Ford's conduct occurred 'in' the Cornell facility," Kimball wrote.
While the court recognized that there were a variety of reasons to forbid a
corrections officer from engaging in sexual conduct with someone in
custody, the federal law simply does not prohibit the conduct which took
place in Ford's apartment, Kimball added. Ford is one of three CCC
employees who have been charged in the past year with alleged misconduct.
Two male employees, William Lynn Appawora and Larry Lee Jensen, were both
charged with misconduct and sentenced to terms in federal prison. Both men
admitted to altering urine drug tests for inmates at the 99-bed facility.
Jensen admitted to using his own urine for an inmate's test in exchange for
$40. He would also provide advance notice of drug tests and outside visits
in exchange for sexual favors from inmates. Appawora was sentenced to 21
months in prison. Jensen was sentenced to 27 months but appealed his
sentence. The 10th Circuit Court of Appeals rejected Jensen's claims and
had upheld his sentence as appropriate.
September 20, 2007 Salt Lake City Tribune
The inmates at a halfway house in Salt Lake County knew that a sexual
favor or a few dollars slipped to monitor Larry Lee Jensen could allow them
to break the rules or keep them out of trouble if they had been drinking or
using drugs. For $50, four inmates of Cornell Community Corrections Center
were allowed to leave the facility one night to have sex, the 10th U.S.
Circuit Court of Appeals stated. The Denver-based court also said another
inmate got notice from Jensen of urinalysis test dates in exchange for
naked pictures of her boyfriend. And those actions, along with numerous
other incidents, supported an enhanced prison term of 27 months, the 10th
Circuit said Tuesday in upholding Jensen's sentence for altering a record
in a federal investigation. The punishment was imposed in April by U.S.
District Judge J. Thomas Greene, who determined that Jensen had enabled
numerous residents at the halfway house to violate the institution's rules.
Greene wrote that Jensen's willingness to give advance notice of urinalysis
dates or provide them with his own urine samples "became known to
every inmate in the place." Jensen, 38, had argued that his offense of
falsifying a record and his other conduct did not call for the enhancement
under federal sentencing guidelines. However, the 10th Circuit said Greene's
"uncontroverted" finding of "extreme and repetitive
conduct" showed that Jensen's crime was far from an isolated
occurrence and upheld the enhancement. Cornell Community Corrections is a
private company that contracts with the government to house inmates after
their release from federal prisons. In 2006, the FBI began investigating
allegations of illegal activities by employees in Salt Lake County.
According to the 10th Circuit, Jensen admitted taking $40 on April 19,
2006, to urinate into a specimen cup and falsely writing in official
paperwork that the inmate had provided the sample in his presence. The
appeals court decision said Jensen also admitted in an interview with FBI
agents to: * Allowing a male resident, in exchange for a sexual favor, to
visit a female resident in violation of center rules. * Providing two
residents with advance notice of pending urine submission dates in exchange
for the pair agreeing to be photographed in the nude. * Failing to record
positive breath tests for certain residents. * Allowing two male residents
and two female residents, for $50, to leave the facility during the night
so they could have sex. Under a plea deal, Jensen pleaded guilty to one
count of falsification of a record in a federal investigation. Another
monitor, William Lynn Appawora, admitted to damaging the seal on a
urinalysis sample in exchange for $40 so it would not be tested. He was
sentenced to 21 months behind bars and did not appeal.
April 6, 2007 Salt Lake City Tribune
A former worker at Cornell Community Corrections Center, a halfway
house in Utah for federal inmates, has been sentenced to 27 months in
prison for tampering with a urine-test record. Larry Lee Jensen, 38,
admitted that he urinated into a specimen cup for a center resident and
filled out paperwork saying he had witnessed the inmate providing the
sample. The sentence was imposed March 28 by U.S. District Judge J. Thomas
Greene.
September 11, 2006 Deseret News
Two employees of a contract federal halfway house have been indicted in the
destruction and falsification of urine records of federal inmates.
According to federal prosecutors, Lynn Appawora, 37, and Larry Lee Jensen,
38, face up to 20 years in federal prison for destruction, alteration or
falsification of a record in a federal investigation. Specifically, federal
prosecutors say while the two worked as monitors for the Cornell Community
Corrections Center in Salt Lake City they altered drug urine records for
federal inmates. The center contracts with the U.S. Bureau of Prisons.
September 6, 2006 Salt Lake Tribune
An investigation into possible corruption at a Salt Lake City
corrections center for federal inmates has resulted in an indictment
against two employees there. William Lynn Appawora, 37, and Larry Lee
Jensen, both of Salt Lake City, were indicted Friday on one count each of
destruction, alteration or falsification of a record in a federal
investigation. The two, who are accused of tampering with records of urine
tests, face up to 20 years in prison and a $250,000 fine, if convicted. The
probe targeted Cornell Community Corrections Center, a private corporation
that contracts to house inmates after they are released from federal
prisons outside of Utah. The center also provides services for prisoners
who are on federal probation or who have been released from custody pending
trial on federal charges. The investigation, which began several months
ago, is ongoing, according to the U.S. Attorney's Office.
Cornell
Companies, (bought byGEO Group) Houston, Texas
How
The Recession Hurts Private Prisons Nancy Cook, Newsweek June 30, 2010
Feb 9, 2017
clarionledger.com
Mississippi AG files lawsuits in Epps bribery case
Attorney General Jim Hood announced Wednesday his office has filed 11
civil RICO lawsuits against all corporate and individual conspirators
connected to the prison bribery scandal involving former Mississippi
Department of Corrections Commissioner Chris Epps. Hood is seeking damages
and punitive damages against the following individuals and corporations: Epps; Cecil McCrory; Robert Simmons; Irb
Benjamin; Sam Waggoner; Mark Longoria; Teresa Malone; Carl Reddix; Michael
Reddix; Andrew Jenkins; Management & Training Corporation; The GEO
Group, Inc.; Cornell Companies, Inc.; Wexford Health Sources, Inc.; The
Bantry Group Corporation; AdminPros, L.L.C.; CGL Facility Management, LLC;
Mississippi Correctional Management, Inc.; Branan Medical Corporation; Drug
Testing Corporation; Global Tel*Link Corporation; Health Assurance, LLC;
Keefe Commissary Network, LLC; Sentinel Offender Services, L.L.C. and AJA
Management & Technical Services, Inc. “The state of Mississippi has
been defrauded through a pattern of bribery, kickbacks, misrepresentations,
fraud, concealment, money laundering and other wrongful conduct,” Hood
said. “These individuals and corporations that benefited by stealing from
taxpayers must not only pay the state's losses, but state law requires that
they must also forfeit and return the entire amount of the contracts paid
by the state. We are also seeking punitive damages to punish these
conspirators and to deter those who might consider giving or receiving
kickbacks in the future." However, some of those named in Hood's case
haven't been charged in the Epps' case. Jenkins and Michael Reddix haven't
been charged in the case. In addition to Epps and McCrory, others charged
are former state Sen. Irb Benjamin of Madison; Teresa Malone, the wife of
former lawmaker and former House Corrections Chairman Bennett Malone; Texas
businessman Mark Longoria; Dr. Carl Reddix; business and government
consultant Robert Simmons; former MDOC insurance broker Guy E.
"Butch" Evans; and prison consultant Sam Waggoner. McCrory and
Waggoner are the only two who have been sentenced. McCrory received an 8.5
year sentence. Waggoner was sentenced to five years. According to Hood's
lawsuits, multiple corporations, including some of the most prominent
private prison contractors, paid millions of dollars in so-called
“consulting fees” to individuals who then used those fees to pay bribes and
kickbacks to Epps. Based on those bribes and kickbacks, Epps awarded,
directed or extended approximately $800 million in public contracts to
those private prison contractors. Hood alleges that the defendants violated
Mississippi’s public ethics, racketeering and antitrust laws, along with
several other claims. The Attorney General is seeking compensatory and
punitive damages, as well as forfeiture of all funds received by the
individuals and corporations that were involved in these conspiracies. Hood
said only three of the companies are from Mississippi. “Out-of-state
corporations were eager to take advantage of Mississippi taxpayers and
secure MDOC contracts through bribery and fraud. It is critical for the
state to use the remedies at its disposal to recover damages and get back
the money exchanged in these schemes,”
Hood said. “I have a duty to protect the integrity of the public
contracting process, as well as to vindicate the rights of the state when
it is a victim of public corruption and other wrongful conduct.” In the
federal case, Epps is accused of running one of the largest and longest
criminal conspiracies in state government history, taking at least $1.4
million in bribes and kickbacks over eight years to steer more than $800
million worth of state prison contracts. Epps pleaded guilty in February
2015 to bribery and filing a false income tax return. He faces a maximum 23
years in prison. He had initially faced numerous other charges. Epps is
scheduled to be sentenced in May. Hood said through private attorneys his
office will seek to recoup as much money as possible from what he called
tainted contracts. "There needs to be punishment for companies that do
this," Hood said. "I hope the court will grant our costs."
Hood said he expects it to be a long process to try to recoup money from
the individuals and companies.
October 25, 2011 AP
The management company that formerly ran a Rhode Island prison is suing the
facility's governing body, saying it is owed more than $671,000, according
to a complaint filed in federal court. In a lawsuit filed Monday in U.S.
District Court in Providence, Cornell Corrections of Rhode Island, Inc.
says the corporation running the Donald W. Wyatt Detention Facility in
Central Falls still owes money it agreed to pay the firm in 2008. The
prison is run by the Central Falls Detention Facility Corporation, a
quasi-public agency. Cornell Corrections operated Wyatt from its opening in
1993 to July 31, 2007, when the corporation took over, according to a 2009
report on the facility. Cornell Corrections says it reached a deal in 2008
with the corporation over the amount of money it was owed under an earlier
agreement. The lawsuit says Wyatt's governing board still hasn't paid. The
suit seeks $671,808, plus interest, costs and attorneys' fees. The
corporation stopped making full payments to Cornell Corrections in 2006,
according to a report released last month by former R.I. Auditor General
Ernest A. Almonte. As of August 2007, the corporation owed Cornell
Corrections more than $3.9 million, Almonte's report found. The 776-bed
facility houses medium- and maximum-security federal detainees awaiting
trial or transfer to federal Bureau of Prisons facilities. It lost a
contract to house federal immigration detainees after one died in its
custody in 2008. The jail has been beset by financial problems in recent
years, having lost $6.2 million and taken on $3.5 million in additional
debt from 2007 to 2009, Almonte's report said. The city of Central Falls
once banked on revenue from the prison, but hasn't been paid in three
years. The city filed for bankruptcy earlier this year. Attorneys for
Cornell Corrections and the corporation did not immediately return messages
on Tuesday.
September 1, 2010 Smart Money
Owners of municipal bonds issued to pay for jails might not get to pass
Go--and could have trouble collecting interest payments as well. These tax
free bonds don't have a monopoly on defaults, but they're well represented
among failures and troubled issues among the more speculative classes of
municipal bonds. Data from Municipal Market Advisors reveals a slew of
tax-free bonds issued to fund construction of privately run prisons and
detention facilities in states from Texas to Rhode Island to Montana. The
most recent example is Littlefield, a West Texas town of about 6,500
people. Located between the New Mexico border and Buddy Holly's hometown of
Lubbock, Littlefield had to dip into reserves to cover payments for about
$1.2 in bonds and other debt used to finance the Bill Clayton Detention
Center. The bonds were issued in 2000, but the expected revenue stream
evaporated when, after a prisoner suicide in 2008, the 310-bed private
prison lost its contract to house out-of-state inmates. In 2009, the Geo
Group (GEO), formerly known as Wackenhut Security, ended its operating
agreement with the detention center, leaving it unoccupied. In April, Fitch
Ratings, which in 2009 lowered the bonds to BB from BBB, affirmed a
negative rating outlook. Littlefield city manager Danny Davis says the city
is scrambling to avoid default on the $780,000 worth of annual payments and
plans to cut police and fire service while dramatically raising property
taxes when the new fiscal year begins Oct. 1. The property could be sold or
could be taken over by the state, though neither option is certain.
"It's going to be difficult," he says. "In the meantime,
we're just trying to keep our heads above water until we get to a
solution." Bob Libal is the Texas campaign coordinator for Grassroots
Leadership, a lobbying group which opposes for-profit prisons, and the
editor of the blog Texas Prison Bid'ness. He says many small towns agree to
build "speculative prisons" to be run by private contractors
using municipal bond financing but that many of these projects in a
post-Sept. 11 boom have had trouble. Libal criticizes the development
groups that get paid up front for building detention centers thus saddling
the bond-issuers (usually special public facilities corporations created
solely for those projects) with risky debt. "They go after a lot of
towns without a lot of sophistication and resources to do the due
diligence," Libal says. "If they let the bonds go under, it's
very difficult for them to issue any more debt." Matt Fabian, director
of research at Municipal Market Advisors, cites similar bond woes in
Central Falls, R.I.; Hardin, Mont.; and Baker County, Fla., where about
$105 million in total debt has run into trouble because the prison projects
haven't worked out as expected. "The incarceration rates drives
speculation," he says. "There's an idea that you can profit from
this prison trend." Investors in these increasingly-insecure jail
bonds have certainly had to assume more risk, even though they get higher
yields. The $99 million Central Falls Detention Facility bond issue of 2005
entered technical default in 2009 when it drew on its reserves to make
payments. The bonds, issued at par with a yield of 7.25%, last traded at
the end of 2009 at 85.3 cents to the dollar, with a yield of 8.69%.
Municipal revenue bonds issued in 2002 that funded the West Alabama Youth
Services detention facility defaulted in 2005. The bonds last traded in
February at 9 cents to the dollar with a yield of 73.6%. Fabian says some
of the biggest private prison busts are unlikely to have simple
resolutions. A shopping center is easy to repurpose; a detention center is
not. "It's hard to restructure," he says. "Even the land
underneath a prison isn't worth as much as it was." Even with a
resurgent effort by the private prison industry to use their facilities to
detain illegal immigrants and an attempt by the U.S. Immigration and
Customs Enforcement agency to overhaul detention procedures, problems
persist. The Baker Correctional Development Corporation, created to finance
a correctional facility and immigration detention center west of
Jacksonville, Fla., dipped into reserves for its August payment to holders
of bonds issued in 2008. With those bonds trading last at 71.25 cents to
the dollar with a yield of 20.73%, investors looking to lock up their money
should probably seek less risky types of municipal bonds.
August 17, 2010 Market Watch
The GEO Group, Inc. (GEO 22.20, -0.17, -0.76%) ("GEO") announced
today the final results of the elections made by former stockholders of
Cornell Companies, Inc. (NYSE: CRN) ("Cornell") as to the form of
merger consideration they wish to receive in connection with the
acquisition of Cornell by GEO. GEO closed the acquisition on August 12,
2010, after Cornell stockholders approved the transaction at a special
meeting and GEO shareholders approved the issuance of shares of GEO common
stock issuable as merger consideration at a special meeting.
August 12, 2010 AP
Private prison operator Geo Group Inc. on Thursday disclosed preliminary
results of a vote by shareholders of Cornell Companies Inc. on that
company's proposed sale to Geo Group. In all, holders of some 15.2 million
shares of Cornell common stock voted on Wednesday on how they would like to
receive their payout once the company is sold. Holders of about 54.5
percent of the shares elected to receive Geo common stock; 21.5 percent
want cash. Another 24 percent didn't make a valid election, Geo Group said.
Under the terms of the deal, Cornell shareholders had two options: Receive
1.3 shares of Geo common stock for each Cornell share held, or cash equal
to the market value of one Geo share plus $6 or the fair market value of
1.3 shares of Geo common stock, whichever is greater.
July 27, 2010 Charlton County Herald
For years Charlton County Schools got well over $1 million annually in
state funds to make up for the county's low tax base. Those dollars have
fallen dramatically this year, however to just $27,000. Superintendent
Steve McQueen believes local system funding has changed because of errors
in the county tax digest. Because of the drop, the Charlton County Board of
Education voted unanimously last week to appeal the digest to the state
auditor’s office. “Ultimately, what we’re trying to do is get the
equalization board to exercise their discretion and adjust our funding,”
explained BOE Attorney Kelly
Brooks. “When the state auditor’s office receives our appeal, they will
notify the state department of education to hold off on the final
determination of our funding for 2011.” The lawyer says this will buy the
school system 45 more days, time enough the school board hopes, for the
Charlton County Tax Assessor’s office to come up with an accurate tax
digest. “There have been substantial post-levy reductions in the digest
through timber tax appeals and Cornell’s appeal [on the D. Ray James Prison
valuation],” said Brooks. “Call me skeptical but for six years in a row the
county’s certified digest has meant nothing.” Last year for example,
Charlton County’s certified digest was $332 million but the county, school
board and cities never collected taxes on that amount. After the state
approved the digest, but before payments started coming in, the digest
dropped by $16.5 million because of the prison appeal. That one reduction
amounted to a loss in property tax revenues to the school system last year
of $252,000.
June 22, 2010 DOJ Press Release
ROBERT B. SURLES, 64, of Chicago, Illinois, was sentenced today by United
States District Judge Clarence Cooper to federal prison on charges of
conspiracy and wire fraud for his part in a scheme to defraud the operator
of a California corrections facility of almost $13 million. United States
Attorney Sally Quillian Yates said, “This defendant was part of an
elaborate fraud scheme that ironically involved the construction of a
prison. He will now experience how business is conducted inside a real
prison.” SURLES was sentenced to 10 years in prison to be followed by three
years of supervised release, and ordered to pay restitution in the amount
of $5,417,500. SURLES was found guilty of one count of conspiracy and 15
counts of wire fraud by a federal jury at the conclusion of a two-week
trial on February 19, 2010. SURLES’ co-defendants, EDGAR G. BEAUDREAULT,
JR. and HOWARD A. SPERLING, were sentenced to federal prison terms on April
29, 2010, following their pleas of guilty. Both cooperated with the
government and testified in SURLES’ trial. BEAUDREAULT is currently serving
a prison sentence of three years, one month. SPERLING is currently serving
a prison sentence of five years, 10 months. According to United States
Attorney Yates, the charges and other information presented in court: From
August 2003 through January 2004, BEAUDREAULT, SPERLING and SURLES conspired
to defraud Cornell Corrections of California, Inc., a private company that
operates corrections facilities for various governmental units. In June
2003, Cornell Corrections contracted to have a corrections facility built
in Canon City, Colorado for $13 million. The $13 million purchase price was
to be held in an escrow account until the facility was completed. In August
2003, the defendants induced Cornell Corrections to transfer its $13
million to an account in Atlanta, which they controlled, by falsely
representing to Cornell that the account was an escrow account that was
administered by a reputable bank. Upon receipt of Cornell Corrections’ $13
million, the defendants wire transferred the majority of Cornell’s $13
million to other accounts, to be used for their own purposes. Under the
terms of their contract, the defendants were also to obtain a construction
loan on behalf of “Western Comfort, Inc.” the general contractor who began
construction of the facility. No loan was secured, making Western Comfort
another victim of this scheme. This case was investigated by special agents
of the Federal Bureau of Investigation. Assistant United States Attorneys
Bernita B. Malloy and David E. McClernan prosecuted the case.
June 2, 2010 Yahoo Business Wire
The GEO Group (NYSE: GEO - News) and Cornell Companies (NYSE: CRN - News)
announced today that the waiting-period under the Hart-Scott-Rodino
Antitrust Improvements Act of 1976 with respect to the previously announced
proposed merger of GEO and Cornell Companies (NYSE:CRN - News) has expired
as of 11:59 pm on Tuesday, June 1, 2010, effectively clearing the
transaction by the United States Federal Trade Commission and the United
States Department of Justice Antitrust Division. The closing of the
transaction remains subject to GEO and Cornell stockholder approval, and
other customary conditions to closing. GEO and Cornell continue to expect
that the transaction will close in the third quarter of 2010.
April 29, 2010 Atlanta Journal-Constitution
An Alpharetta man was sentenced Thursday to three years and five months in
prison for bilking a Colorado corrections facility project out of nearly
$13 million. Edgar J. Beaudreault Jr. pleaded guilty in December to charges
of conspiracy to commit wire fraud. In 2003, Beaudreault, 61, and San Diego
co-defendant Howard Sperling tricked Cornell Corrections of California Inc.
into transferring $13 million into an Atlanta account that was supposed to
be an escrow account for the purchase price of a Canon City, Colo.,
facility under construction, court authorities said. Rather than having the
escrow administered by a reputable bank, Beaudreault and Sperling wired the
money to other accounts for their own personal use. Under the same
contract, the two men and another defendant also were supposed to obtain a
construction loan on behalf of the general contractor on the project, but
didn’t. “These defendants were part of an elaborate fraud scheme that
ironically involved the construction of a prison,” U.S. attorney Sally
Quillian Yates said. “They will now experience how business is conducted
inside a real prison.” In addition to the federal prison sentence,
Beaudreault is required to serve three years on supervised release and pay
$5.4 million in restitution.
April 29, 2010 PR Log
An investor in CRN shares filed a lawsuit in Texas State Court on
behalf of current investors in Cornell Companies, Inc. (NYSE:CRN) alleging
breaches of fiduciary duty by the Cornell board of directors for selling
Cornell Companies too cheaply to The GEO Group. If you currently hold
shares of Cornell Companies, Inc. (NYSE:CRN), you have certain options and
you should contact the Shareholders Foundation, Inc by email at
mail@shareholdersfoundation.com or call +1 (858) 779 – 1554. Cornell
Companies, Inc., located in Houston, Texas, is a provider of correctional,
detention, educational, rehabilitation and treatment services outsourced by
federal, state, county and local government agencies for adults and
juveniles. On April 19, 2010, Cornell Companies (NYSE:CRN) and the GEO
Group (NYSE:GEO) announced a merger agreement pursuant to which The GEO
Group will acquire Cornell Companies for stock and/or cash at an estimated
enterprise value of $685 million based on the closing prices of both
companies' stocks on April 16, 2010, including the assumption of
approximately $300 million in Cornell debt, excluding cash. Under the terms
of the definitive agreement, stockholders of Cornell will a value of
approximately $24.96 per Cornell (CRN) share. According to Cornell Companies
the Boards of Directors have approved the merger agreement and the offer
represents a 35 percent premium over the closing price of Cornell's stock
(CRN) on April 16, 2010. Shares of Cornell Companies, Inc. (CRN) traded
after the takeover announcement at $24.74 per share, and at $18.62 per
share the trading day before the news. CRN shares were down from its
52weekHigh of $25.13 per share, and from $27.71 per share in 2008. At least
one analyst set a price target for Cornell stock at $29.00 per share. On April
27, 2010, an investor filed a lawsuit against members of the board of
directors, Cornell Companies Inc and The Geo Group over breaches of
fiduciary duty arising out of the attempt to sell Cornell Companies, Inc.
(NYSE:CRN) to the GEO Group. According to the complaint the plaintiff
alleges, among other things, that the proposed acquisition is intended to
take advantage of Cornell’s temporarily low current valuation and that the
agreement contains certain provisions, like the $12million termination fee
and “no shop” provision that unduly benefit GEO Group by making an
alternative transaction either prohibitively expensive or otherwise
impossible.
April 24, 2010 Grits For Breakfast
Texas Prison Bidness brings word that the Geo Group gobbled up yet another competitor,
adding to its already enormous debt load and making it the second largest
private prison company on the planet, behind Corrections Corporation of
America. Reported the Financial Times: The Geo Group offered about $385m
for Cornell Companies in a mixture of cash and stock, valuing the company
at about $24.96 a share. The company will also take on about $300m of
Cornell debt. The Geo Group's most recent 10K statement is really quite an
amazing read, for anyone interested, particularly the lengthy section on
risk factors, where the possibility is raised that a quarter-billion
dollars in unsecured bonds issued privately last fall might be considered a
"fraudulent conveyance" if the company defaults and a bankruptcy
judge ever takes a close look at the deal. Facing a mountain of debt,
mostly from acquiring competitors, this appears to be a pretty critical
year for the Geo Group, with contracts up for renewal on almost one in five
beds they operate. According to the 10-K: "As of January 3, 2010, eleven
of our facility management contracts representing 10,407 beds are scheduled
to expire on or before December 31, 2010, unless renewed by the customer at
its sole option. These contracts represented 19.3% of our consolidated
revenues for the fiscal year ended January 3, 2010." Other risks
identified in Geo's 10-K include: •Our significant level of indebtedness
could adversely affect our financial condition and prevent us from
fulfilling our debt service obligations. •A decrease in occupancy levels
could cause a decrease in revenues and profitability. •State budgetary
constraints may have a material adverse impact on us. •Public resistance to
privatization of correctional and detention facilities could result in our
inability to obtain new contracts or the loss of existing contracts, which
could have a material adverse effect on our business, financial condition
and results of operations. •Adverse publicity may negatively impact our
ability to retain existing contracts and obtain new contracts. •We may face
community opposition to facility location, which may adversely affect our
ability to obtain new contracts. •We may not be able to obtain or maintain
the insurance levels required by our government contracts.
April 19, 2010 Palm Beach Post
Private prison operator The GEO Group Inc. (NYSE: GEO, $18.91) has agreed
to buy rival Cornell Cos. in a deal worth about $685 million, including the
assumption of about $300 million of Cornell's debt. The merger is a move to
expand to meet increasing demand for private correctional facilities and
services, the companies said in a release.
February 26, 2010 AP
Cornell Cos. Inc.'s sales and profit will decline if the state of
Arizona removes inmates from the company's Oklahoma prison, an analyst said
as he downgraded the prison operator's shares. First Analysis Securities
analyst Todd Van Fleet downgraded the Houston company to "equal
weight" from "overweight." The January budget proposals from
Arizona's governor and legislature would phase out the use of private
out-of-state beds. Arizona is struggling to close budget shortfalls. Van
Fleet said there was less than a 25 percent chance that Cornell would be
able to persuade legislators to keep Arizona inmates in the company's
Oklahoma prison. The loss of the Arizona prisoners which could cut into
Cornell's annual earnings by 35 cents to 45 cents per share. Van Fleet cut
his estimate for 2010 profit to $1.09 per share from $1.69 per share, and
his 2010 sales estimate to $398 million from $440.6 million. On Wednesday,
when it released fourth-quarter earnings, Cornell predicted it would make
$1.31 to $1.41 per share in 2010. The guidance assumed that Cornell would
continue to keep all its Arizona inmates for the rest of the year. The
contract for the Arizona prisoners ends in mid-September, Van Fleet said.
Cornell shares slipped 13 cents to $18.61 in midday trading. They have
dropped about 25 percent since Arizona proposed its budget in mid-January.
February 23, 2010 Pueblo Chieftain
A Chicago man who pocketed $605,000 in construction funds during the
building of a youth treatment facility here was convicted Friday of
conspiracy and wire fraud. A federal jury in Atlanta found Robert B.
Surles, 64, guilty of conspiracy and 15 counts of wire fraud in connection
with a scheme to steal nearly $13 million from Cornell Co., which built the
Southern Peaks Regional Treatment Center in 2003. From Aug. 2003 to Jan.
2004, Surles, along with Edgar Beaudreault, 60, of Georgia, and Howard
Sperling, 45, of San Diego, conspired to defraud Cornell of construction
funds. Surles was to obtain a $12 million construction loan, but he and his
co-defendants never obtained financing for the project and instead led the
contractor to believe they had. The trio falsely represented that the funds
were in an escrow account, but instead the money was transferred to other
accounts. Although some money was used to get the construction started, the
majority of funds was taken by the trio for personal purposes. The evidence
at trial showed Surles took $605,000 of the funds, according to Patrick
Crosby, public affairs officer for the United States Attorney's office in
Atlanta. "This defendant fraudulently induced a company to transfer
approximately $13 million into an ‘escrow account’ that turned out to be
nothing but a piggy bank for the defendant and his co-conspirators,"
said Sally Quillian Yates, acting U.S. Attorney in Atlanta. "A federal
jury was not fooled by the story he told when he testified and convicted
him on conspiracy and multiple counts of fraud." Both Beaudreault and
Sperling pleaded guilty to conspiracy to commit wire fraud and testified
against Surles. All three are awaiting sentencing for the crime and Surles
is slated to be sentenced April 27.
January 22, 2010 Times-Union
The Charlton County Commission, the county school system and Folkston are
all hastily adjusting their budgets after a single successful appeal of a
property assessment. Commissioners are expected to approve an "error
and relief" agreement in February to reduce the assessed value of
privately owned D. Ray James Prison from $97 million to $55 million. The
successful appeal by Cornell Companies, owners and operators of the prison,
will cost the city, county and school system at least $730,000 in
anticipated tax revenue. County Manager Steve Nance said Cornell appealed
the assessed value of the prison after it nearly doubled in 2009. Two new
structures - an addition that will house 700 inmates this year and another
facility for 300 prisoners from both Charlton County and the U.S. Marshals
Service - were on the tax rolls for the first time this year, likely
leading to the increase in value, Nance said. During the appeal, Cornell
officials didn't dispute the accuracy of the appraisal of the facility.
Instead, they argued it would be impossible to sell the sprawling prison
complex for what the company invested because the structures are for very
specialized purposes - to securely house inmates. They also claimed the
original part of the prison, more than a decade old, had depreciated in
value, Nance said. "They contended the value did not equal the
cost," he said. The property appraiser who determined the appraised
value never visited the prison until after Cornell filed an appeal, Nance
said. Instead, the appraiser determined the value from manuals, he said.
"She did not actually tour the facility until the appeal was
made," he said. "After the tour, she agreed the value was too
high. It was a lot more austere than she thought." Despite the
hardship losing an estimated $334,000 in anticipated tax revenue, Nance
said county officials have no plans to contest the ruling by the Board of
Assessors. "It would be difficult for us to appeal our own
valuation," he said. Also, there is no appeal process unless the
complaint is taken to the Board of Equalization by the property owner,
Nance said. "Is there any recourse [for Folkston and the school
district]?" Nance asked. "I don't think they have the right to
challenge this." Now, the already cash-strapped county will maintain a
"continuous evaluation process" to cut spending to make up for
the shortfall, Nance said. Folkston City Manager Pender Lloyd said the
appeal will cost his city at least $108,000 in anticipated tax revenue -
nearly a 5 percent cut to the city's $2.4 million budget. "We knew
Cornell was probably going to appeal," Lloyd said. "We certainly
had no idea it [the prison's value] would drop by $42 million." Lloyd
criticized the timing, saying one appeal should not have so much impact to
local governments. An appeal of the magnitude of Cornell's should have been
resolved before the county digest was completed to give local governments
an accurate estimate of how much revenue would be generated in taxes. The
city will delay some projects planned this year, including construction of
a new park, he said. Travel to conferences and training is also canceled,
unless it is required by law, Lloyd said. "We have some revenues built
up, so we can handle it," he said. "We're all affected and we've
got to work through this thing. We've got to deal with it."
May 20, 2009 Yahoo.com
Cornell Companies, Inc. (NYSE:CRN) today announced that it has been
informed by the Georgia Department of Corrections that the Department will
not start using the Company's recently completed expansion at its D. Ray
James Prison in Georgia. The Company's previous guidance, included in the
first quarter earnings release, provided a base case that assumed that the
700-bed expansion at D. Ray James Prison would begin to ramp at the
beginning of the third quarter of 2009, and an alternate case that, if the
expansion was to remain empty for all of 2009, earnings for the full year
would be reduced by up to approximately $0.08 per share. Today's updated
guidance assumes that the expansion will remain empty for the remainder of
the year. As a result, the Company now expects earnings per share for the
full year of $1.62 to $1.70. The Company also reaffirmed the earnings
guidance range for the second quarter of $0.42 to $0.46 per share.
December 17, 2008 AP
A Georgia businessman has admitted taking part in a scheme to defraud a
California construction company of nearly $13 million. Edgar J. Beaudreault
of Alpharetta pleaded guilty Wednesday in Atlanta to conspiracy to commit
wire fraud. Federal prosecutors say Beaudreault, 60, and two others
conspired to defraud Cornell Corrections of California Inc., which operates
private corrections facilities. In 2003, Cornell was hired to build a
prison in Canon City, Colo., and the $13 million purchase price was to be
placed in escrow until completion. Cornell was induced to transfer the
money to an Atlanta account, and most of it was then diverted to other
accounts. Beaudreault could receive up to 20 years in prison and be fined
$250,000 at sentencing March 18.
August 26, 2008 Atlanta Business Chronicle
An Alpharetta, Ga., man is among a group indicted Tuesday on charges of
fraud related to a prison-building contract in Colorado. Edgar J.
Beaudreault Jr., 60, of Alpharetta, Howard A. Sperling, 43, of San Diego,
and Robert B. Surles, 62, of Canon City, Colo., were indicted by a federal
grand jury on multiple charges. The indictment alleges from August 2003
through January 2004, the men concocted a scheme to defraud Cornell
Corrections of California Inc., a private company based in Ventura that
operates corrections facilities for governmental units. In June 2003,
Cornell Corrections contracted to have a corrections facility built in
Canon City, Colo., for $13 million. The money was to be held in an escrow
account until the facility was completed. But in August 2003, the men
allegedly got Cornell Corrections to transfer the $13 million to an account
in Atlanta controlled by Beaudreault, and allegedly told Cornell the
account was an escrow account administered by a reputable bank. After the
transfer was made into the Atlanta account, the indictment claims the men
then transferred the $13 million to other accounts to be used for their own
purposes. The indictment charges 20 counts of wire fraud and one count of
conspiracy. The charges carry a maximum sentence of 20 years in prison and
a fine of up to $250,000 for each count.
August 12, 2008 Anchorage Daily News
Bill Weimar, who made his fortune off private halfway houses in Alaska,
pleaded guilty Monday to two federal felonies in U.S. District Court in
Anchorage. He admitted his role in a conspiracy to secretly funnel money to
a political consultant for an unnamed state Senate candidate, knowing the
candidate would back a private prison if he won. Weimar had a long-standing
relationship with the candidate running in the 2004 primary, a charging
document filed Monday said. Weimar held a "contingent interest"
in a private prison project worth $5.5 million, but only if the project was
completed, the charges say. He faces prison time in the plea deal and may
have to forfeit "certain property." Prosecutors estimate a
sentence of 10 to 16 months. U.S. District Judge John Sedwick isn't bound
to that. He set sentencing for Oct. 29. Weimar, who owned Allvest Inc.,
becomes the 11th person charged in the broad, ongoing investigation by the FBI
and U.S. Department of Justice into political corruption in Alaska. Weimar,
68, now lives in Big Arm, Mont. At the brief hearing on Monday, Weimar
answered the judge's routine questions. Assistant U.S. Attorney Joe Bottini
outlined the two charges: conspiracy to commit honest services mail and
wire fraud, and illegally manipulating currency transactions to avoid
reporting them to the Treasury Department. Weimar has admitted paying the
consultant a total of $20,000 during the primary in August 2004 to cover
expenses for the candidate, without reporting the payments and without
routing them through the campaign. How do you plead? Sedwick asked.
"Guilty," Weimar answered, to each charge. LAWMAKER NOT NAMED --
For years, Weimar pushed plans for a private prison in Alaska, but the
project was always controversial and no prison was ever built. A Democratic
activist in the 1970s, Weimar later became close to the Republicans who
controlled the Alaska Legislature. Neither the Senate candidate nor the
consultant -- both accused of conspiring with Weimar -- is named in the
charging document. Prosecutors declined to expand on it Monday. But the
candidate described in the documents, and in court Monday, appears to be
former state Sen. Jerry Ward. He didn't return phone calls or e-mail
messages on Monday. Ward, a Republican elected from Anchorage in 1996 and
the Kenai Peninsula in 2000, fervently pushed private prison projects as a
legislator. The charging document says the candidate running in 2004 had a
long relationship with Weimar, and held elected office part of that time.
Ward and Weimar were "buddies," according to a statement that
former lobbyist Bill Bobrick, who worked for Weimar, gave to the FBI in
September 2006. Bobrick also has pleaded guilty in the corruption
investigation. He declined to comment on Monday. In 1997, a plan for a
private prison in South Anchorage with Allvest and Veco Corp. as partners
crumbled under strong public opposition. As that project evaporated, Ward
emerged as the lead architect of a new plan to build private prisons in the
Mat-Su and Seward. "By God, this really solves the problem,"
Weimar was quoted as saying at the time. In 2001, Ward signed on as the
only Senate sponsor of a House bill pushing a private prison on the Kenai.
The charging document against Weimar doesn't say whether the candidate won
in 2004 and does not call the person a legislator. Ward lost his seat in
2002 to Tom Wagoner. He was trying to regain it in 2004, but lost in the
Republican primary to Wagoner. SEATTLE CONSULTANT -- In court Monday,
Bottini told the judge the consultant was from Seattle. Some of Ward's
biggest campaign expenses in 2004 were more than $43,000 in fees charged by
Madison Communications, an advertising and public relations firm based in
suburban Kirkland, Wash. Numerous calls left for Madison principal Brett
Bader on Monday were not returned. The charges against Weimar and other
court documents quote details of a number of telephone conversations he had
with the consultant and the candidate from Aug. 17 to Aug. 23, 2004. In a
telephone conversation on Aug. 17, 2004, the consultant told Weimar that
the campaign was having money trouble, court documents say. "I'm
worried we're reaching the limit now. I don't know where we find 10 grand
unless (Candidate A) can get more in," the consultant said
"There's no legal way to do that. At least not on that scale,"
Weimar responded. Later that day, Weimar arranged to cover the next
advertising mailer for the candidate, and told the candidate so, the
document says. On Aug. 20, 2004, Weimar told the candidate of an unpaid
invoice of $20,000 with the consultant. The candidate's campaign funds were
depleted, the charges say. The candidate said he had only $300 to $400 left
in his account. On Aug. 23, 2004, Weimar made arrangements with the
consultant to pay off the debt, the charges say. He then called the
candidate and told him "he would not be receiving any further bills
from Consultant A," the charging document says. Weimar sent the
consulting company a $3,000 check on Aug. 23, 2004, then sent $8,500 in
cash that same day by express mail, and another $8,500 cash the day after,
the charges say. "WE'VE MOVED ON" -- The charges also do not name
the private prison company, but Cornell Corrections Inc. tried to build a
prison in various Alaska communities, including Delta Junction, Kenai and
Whittier. The charging document describes the unnamed company's Alaska
interests as halfway houses, a planned juvenile treatment center, and a
private prison project, and that matches Cornell's interests. In 1998, in
the midst of planning for a private prison in Delta Junction, Weimar sold
five Alaska halfway houses to Cornell for $21 million. He also formed a
partnership with Cornell to pursue the Delta prison and subsequent deals
for a private facility. One goal of the conspiracy was to get the private
prison company to give campaign contributions to the candidate to help win
election, according to the charges. A spokesman for Cornell said the
company was unaware of the charges but supports the prosecution. The
executives now in charge of Cornell weren't there at the time of the events
that involved Weimar, spokesman Charles Seigel said Monday. Company records
don't show any evidence of wrongdoing, he added. "We've moved on and
we are very different and have it behind us," Seigel said. Cornell
also has not pursued a private prison in Alaska for years and is no longer
interested in that, he said. "We're glad this investigation is going
on but whatever was going on or may have been going on in the past, that is
not the Cornell that exists now, both in the policy on the private prison
as we've talked about and in general about the way we do business." By
2004, Veco was no longer involved in the prison project, Frank Prewitt, a
former state corrections commissioner, Cornell consultant and FBI
informant, has said. ANDERSON INVOLVED -- The failed private prison effort
was also central in the government's case against former state Rep. Tom
Anderson, R-Anchorage, now in prison. At Anderson's corruption trial last
summer, Prewitt was a key witness who testified at length about his
undercover work to collect evidence against Anderson, and also about
questionable acts in his own past. From the witness stand, Prewitt said
that in 1994 -- when he was corrections commissioner and Weimar owned
Allvest -- he accepted $30,000 from Weimar. Prewitt testified that he
considered the money a loan, which he repaid the next year, after he left
his state post, by working four months for Allvest for free. Weimar helped
start Allvest in 1985, then bought out his partners and turned it into a
multimillion dollar corporation with operations in Alaska and Washington
state. Its government contracts were worth an estimated $10 million a year.
Allvest also operated a lab that did contract urinalysis work, and used to
run the city's Animal Control Center and the Community Service Patrol. In
2002, Allvest was forced into bankruptcy because of unpaid judgments in
civil suits against the company. The bankruptcy case eventually was
settled.
July 15, 2008 The Daily Cougar
As Sen. Barack Obama wages his presidential campaign across the United
States with political gusto, he's attracted names such as Vice President Al
Gore and Sen. John Edwards. University of Houston Associate Professor of
Law Tony Chase has also temporarily shifted his duties as a professor to
become a member of the National Finance Committee of Obama's campaign.
"I've known (Obama) for quite some time, and I was one of the people
he asked whether if he should run," Chase said. "Because of that,
this is very personal, and I genuinely believe he is best for this
country." Aside from teaching, Chase is chairman and CEO of ChaseCom
L.P. and Chase Radio Partners. He is also chairman and co-founder, together
with SBC Communications Inc., of The Telecom Opportunity Institute, an
organization that provides technical literacy training at no cost to
at-risk communities. He serves as a director of Leap Wireless International
Inc. and Cornell Companies Inc., and is chairman of the Houston Zoo
Development Board. He is a member of the Council on Foreign Relations and
serves as a director of the United Way of the Texas Gulf Coast and Houston
Parks. Chase began teaching communications law and contracts at the UH Law
Center in 1990 and received the Edith Baker Faculty Award in 1994. On July
8, he stepped down as the director of the Dallas Federal Reserve Bank to
dedicate more time to the campaign. "I can't pick out a certain
experience, but teaching graduate law and undergraduate classes has been
particularly helpful in preparing me, because students are the future and
full of ideas that in turn help me think about today's issues," Chase
said. "My experience at the University helps me by being part of the
excitement and interest among young and potential voters." As for his
motives, he believes that the nation, in its current state, needs Obama as
president. "I've known Barack and Michelle for a long time, and based
on that, I believe he is a transcendent political figure," Chase said.
"I know him well and his integrity and how he responds to pressure,
but also how he will be an excellent leader." As the member of the
National Finance Committee for the campaign, he helps make decisions on how
the campaign will utilize its funds and how the fundraising will be run. He
also performs special projects such as arranging meetings with constituents
and senior advisors. "The experience I gain from the campaign will
only help the way I try to bring practical experience to the classroom, and
this is actually quite relevant to what I teach at the University,"
Chase said. Chase will return to teach in the fall and resume his usual
duties for his organizations. "I will still do what I can to
accommodate my teaching responsibilities and campaign duties and continue
to voice my support for Barack Obama," Chase said.
January 23, 2007 Market Watch
Cornell Companies, Inc. announced that, at a special meeting of its
shareholders held earlier today, a proposal to merge with the Veritas
Capital Fund III, L.P., was rejected. As a result of this vote by
shareholders, Cornell will continue to operate as a stand-alone
publicly-traded entity. Although the company has not yet announced the
timing of its fourth quarter earnings conference call, management intends to
use such forum to provide further commentary on the transaction, as well as
to discuss any changes to the previously-released 2007 guidance that was
made public as a result of the transaction process.
January 19, 2007 AP
Alpine Associates, a Cornell Cos. (CRN) shareholder, plans to vote
against Cornell's plan to be acquired by Veritas Capital Fund for $18.25 a
share. Alpine and related entities own 631,700 shares, representing a 4.49%
stake. Thursday, shares of private-prison operator Cornell closed at $18.90,
up 16 cents. Alpine said "the current transaction does not fairly
value Cornell's shares." Other shareholders have expressed opposition
to the deal.
October 9, 2006 Market Watch
Cornell Companies, Inc. (CRN : news, chart, profile ) announced today
the execution of a definitive merger agreement with Veritas Capital, under
which Veritas will acquire Cornell in a transaction valued at approximately
$518.6 million, including the assumption or repayment of approximately
$273.6 million in debt. Under the terms of the agreement, Cornell
stockholders will receive $18.25 in cash for each share of common stock
they hold. The Company's Board of Directors has unanimously approved the
agreement and will recommend that Cornell's stockholders approve the
merger. James E. Hyman, Cornell's chairman and chief executive officer,
said, "The Board of Directors has completed a comprehensive review of
the strategic alternatives available to the Company, the result of which we
are pleased to announce today. The Board endorses this transaction and
believes it to be in the best interest of Cornell's shareholders. Veritas
Capital is a private equity investment firm headquartered in New York.
Founded in 1992 by Robert B. McKeon, Veritas invests primarily in companies
specializing in outsourcing services to the government, primarily in the
areas of defense and aerospace, security and infrastructure. Veritas'
portfolio of companies includes, or has included, DynCorp International,
Integrated Defense Technologies, Vertex Aerospace, McNeil Technologies, The
Wornick Company, and TRAK Communications, among others. Veritas is
dedicated to providing the highest level of critical services and equipment
to the defense and federal sectors around the world. For more information,
please visit www.veritascapital.com.
September 29, 2006 New York Times
Pirate Capital, a $1.7 billion fund based in Norwalk, Conn., lost half
its investment team this week, according to a letter from the founder and
portfolio manager, Thomas Hudson. In addition, Pirate, an “activist” fund
that pressures management to increase shareholder value, is being
investigated by the Securities and Exchange Commission on suspicion of
failing to alert the commission when it was selling stock, according to one
person briefed on the inquiry. Mr. Hudson’s letter, dated Sept. 28 and on
stationery with a pirate ship logo, said that Pirate would close to new
investors Sunday, to focus on delivering returns rather than collecting
more money. “I’ve decided to return the firm to its roots,” Mr. Hudson
wrote. “The goal is to focus on returns and not the size of the assets we
manage.” Pirate Capital has had a difficult year: its flagship Jolly Roger
Fund is up only 3.3 percent, while its activist fund is up 2.86 percent,
according to materials sent to investors. Those returns are well below the
average activist fund. Hedge Fund Research in Chicago tracks the returns of
44 funds that operate solely activist strategies; through August those
funds have returned 10.39 percent. An S.E.C. spokesman, John Nester,
declined to comment. Isa Bolotin, head of investor relations at Pirate
Capital, did not return calls seeking comment. Pirate is known for its
unusually brash tactics and unabashed style. A New York magazine cover
article reported that Zachary George, 27, an analyst with the firm and
former competitive snowboarder, told the chief executive of the Cornell
Companies, a prison operator, that “You work for us,” and that Mr. George
and Pirate wanted Cornell sold and the chief executive sacked. “Next year
we’re going to be here, and you won’t,” Mr. George told the chief
executive, according to the article. Mr. Hudson said two investment
professionals, including Mr. George, resigned on Monday. On Wednesday, Carl
Klein, a portfolio manager, resigned, and Mr. Hudson asked two more
analysts to leave. Five people, including Mr. Hudson, remain. The S.E.C. is
investigating whether Pirate was late in reporting to the commission
material changes in its holdings. Investors with at least a 5 percent stake
must report any changes to those holdings.
August 28, 2006 Yahoo.com
Cornell Companies, Inc. (NYSE:CRN - News) announced today that Mark S.
Croft, the General Counsel and Secretary of the Company, resigned on
Saturday, August 26, 2006, to attend to personal matters unrelated to his
role as an officer of the Company. Patrick N. Perrin, Senior Vice President
and Chief Administrative Officer, has been appointed to the office of
Secretary of the Company to succeed Mr. Croft.
June 5, 2006 Houston Business Journal
Cornell Companies Inc. on Monday afternoon said it has retained a
financial advisor to assist the Houston operator of prisons in analyzing
ways "to maximize shareholder value." The announcement, which
came in a brief news release distributed Monday after the regular session
of the stock market closed, essentially puts Cornell (NYSE: CRN - News) on
the block as a candidate to be acquired. Beyond making the brief statement
about hiring a financial advisor, Cornell in the Monday release said the
prison operator does not intend to make further announcements on the matter
until the NYSE-listed company "has made definitive decisions on its
future strategic direction." No assurance can be given that any
transaction will be pursued," according to the Cornell press release.
February 10, 2006 Yahoo
Cornell Companies, Inc. announced today the settlement of a securities
class action lawsuit. In re Cornell Companies, Inc. Securities Litigation
was originally filed by certain Cornell stockholders in March 2002 on
behalf of all purchasers of Cornell's common stock from March 6, 2001 to
March 5, 2002. The Company has agreed to settle this class action lawsuit
for $7.0 million to avoid further protracted and expensive litigation. The
settlement amount will be funded through the Company's directors' and
officers' liability insurance and will have no impact on the Company's
financial position, results of operations or cash flows. Under the terms of
the settlement, Cornell has not admitted to any wrongdoing.
September 29, 2005 Star-Telegram
In a move denounced as a political witchhunt, Rep. Tom DeLay was indicted
Wednesday with two associates on a felony charge of conspiring to
circumvent Texas' prohibition of corporate campaign donations to secure the
Republican takeover of the Texas House in 2002. Shortly after Travis County
District Attorney Ronnie Earle announced the indictment, the Republican
congressman from Sugar Land resigned his powerful majority leader post in
Washington, at least temporarily. DeLay, 58, is accused of conspiring with
two associates to convert $190,000 in donations from several corporations
into campaign contributions on behalf of seven Republican candidates who
were involved in what many had believed would be close contests for seats
in the Texas House.
September 28, 2005 Bloomberg
U.S. Representative Tom DeLay, the No. 2 Republican in the House, was
indicted by a Texas grand jury for criminal conspiracy in connection with
illegal corporate political donations, prompting him to give up his
leadership post. Two former campaign aides, John Colyandro and Jim Ellis,
were also charged with conspiracy by the state grand jury in Travis County,
according to the single-count indictment. The charge stems from an
investigation into alleged use of illegal corporate contributions by
DeLay's political action committee, Texans for a Republican Majority, in
the 2002 races for the state House of Representatives. The four-page
indictment charges that DeLay conspired with Ellis and Colyandro to use
donations from companies including Williams Companies Inc. and Sears,
Roebuck and Co., now Sears Holdings Corp., to help finance the election
campaigns of seven members of the Texas House in 2002. Under Texas law,
corporations aren't permitted to donate to candidates. Other companies
named, but like Williams and Sears, not charged in the indictment were
Diversified Collections Services Inc., Cornell Companies Inc., Bacardi
U.S.A. Inc. and Questerra Corp.
September 22, 2005 Texas Lawyer
A private corrections company seeks to hold Locke Liddell & Sapp liable
for more than $5 million that's allegedly missing from an account set up
for a land deal. Houston-based Cornell Companies Inc. sued Locke Liddell
and David Montgomery, a partner in the firm, alleging malpractice, among
other things. The company filed Cornell Companies Inc. v. Locke Liddell
& Sapp, et al. on Aug. 26 in Houston's 333rd District Court. In its
petition, Cornell alleges that the defendants "dropped the ball"
by failing to ensure that a proper escrow account was set up in 2003 to hold
the company's funds. Those funds were intended to be used to buy land in
Colorado on which to develop a regional correctional rehabilitation center.
As alleged in the petition, the defendants gave Cornell the "green
light" to wire almost $13 million into an account that was purported
to be an escrow account. "There was no escrow agent; there was no
escrow account," alleges Scott Hershman, one of the attorneys
representing Cornell. The suit against Locke Liddell is related to a suit
that a Cornell subsidiary filed last year in the Superior Court of Fulton
County in Atlanta. Cornell alleged in its second amended complaint in
Cornell Corrections of California Inc. v. Longboat Global Advisors, et al.
that attorney Edgar J. Beaudreault of Roswell, Ga., a defendant in the
suit, handled the construction loan transaction on behalf of Longboat,
which was providing financing for the corrections facility project. Cornell
Corrections alleged in the Georgia complaint that Beaudreault, who is also
Longboat's vice president and managing director, arranged for the escrow
account but it turned out to be a regular bank account. Cornell Corrections
further alleged in the complaint that, although the company wired the funds
to Bank of America in August 2003, it didn't learn until November of that
year that the bank was not holding money in escrow and that a withdrawal
never authorized by Cornell Corrections had been made. Hershman, a partner
in Lackey Hershman in Dallas, says he doesn't expect Cornell Corrections
will be able to collect the damages awarded in the Georgia case, because he
thinks the money is gone. Michael Shaunessy, an Austin, Texas, attorney who
represents plaintiffs in legal malpractice cases but is not involved in
Cornell's suit against Locke Liddell, says the fact that a company hires
lawyers to handle this type of transaction doesn't eliminate the company's
responsibility to exercise due diligence in the matter. Shaunessy, a partner in Shaunessy &
Burnett, says he expects Locke Liddell and Montgomery to raise a causation
defense, arguing that those who took the money out of the account caused
Cornell's loss. Cornell can argue that, if the defendants had set up the
account so that the money couldn't be moved without the company's
authorization, Cornell would not have suffered the loss, he says.
August 9, 2005 Houston Chronicle
A state district judge refused Tuesday to dismiss charges of money
laundering and accepting illegal political contributions against two
associates of U.S. House Majority Leader Tom DeLay, R-Sugar Land. Judge Bob
Perkins denied arguments from John Colyandro and Jim Ellis that the charges
were based on an unconstitutionally vague law and that the indictments were
improperly worded. Lawyers for Colyandro, who worked for DeLay's
fundraising committee Texans for a Republican Majority, and Jim Ellis, who
worked for Americans for a Republican Majority, have said they will appeal,
likely delaying any trial for at least several months. The charges stem
from the 2002 Texas legislative elections. The money-laundering charges are
based on $190,000 in corporate money that was sent to the Republican
National State Elections Committee.
June 3, 2005 Houston Business Journal
Insurgent shareholder Pirate Capital LLC has captured the board of
Cornell Cos. Inc. Pirate gained control of the Houston-based prison
operator last month after setting sail on a proxy fight that originated a
year earlier. Toting a treasure trove of Cornell common shares -- a 14.8
percent stake as of mid-May -- the Connecticut-based investment firm
emerged with the right to put seven directors on Cornell's nine-member
board. Cornell controls the remaining two seats on the board, which
increased from seven to nine members as part of a new agreement with
Pirate. "It appeared that (Cornell) had been heading for a distracting
and costly proxy battle," notes Scott Schneeberger, a stock analyst at
Lehman Brothers. Cornell also got Pirate to concede that the investment
firm will not pursue a transaction to take the publicly traded Houston company
private for at least the next two years. At the same time, Cornell Chairman
James Hyman will no longer steer the board of directors after the end of
this month. Despite 20 years of experience in operations, finance, process
management, mergers and acquisitions, Hyman's name is conspicuously missing
from the slate of nominees for the new board.
March 11, 2005 The Deal
True to its swashbuckling name, hedge fund Pirate Capital LLC is preparing
to make a run at struggling Cornell Cos., a prison and juvenile-facilities
operator. Since last year, Houston-based Cornell has been under pressure
from Thomas R. Hudson Jr., portfolio manager at the 2-year-old Norwalk
Conn.-based hedge fund, to seek a buyer. After a series of missteps by
Cornell, Pirate's Jolly Roger Fund LP launched a proxy contest on Feb. 24
to take over all seven seats on Cornell's board at an annual meeting
expected in June. "You can just see the shots being fired across the
bow of Cornell," says Sheryl Skolnick, an analyst at Fulcrum Global
Partners LLC in New York. Skolnick says a strategic acquirer would pay
roughly $20.50 a share for the assets — $270 million in equity plus $112
million in debt. Cornell traded early last week at around $14.40 a share.
Anton Hie, an analyst with Jefferies & Co. in Nashville, says a
strategic acquirer would value Cornell at $16 to $18 a share, and would cut
costs by eliminating overhead and other administrative expenses. A
financial buyer could break up the company and sell various facilities
"in pieces," Hie says. Skolnick, whose firm does not do work for
Cornell, cites Nashville-based Correction Corp. of America and Geo Group
Inc. of Boca Raton, Fla., the two largest private providers of adult-prison
management services in the U.S., as likely buyers. Hie, whose firm does not
own Cornell stock, says CCA and Geo might be more interested in Cornell's
adult facilities, but he would not estimate a valuation on these assets.
Privately held Management and Training Corp. of Centerville, Utah, could
also be interested, Skolnick says. She and other analysts say the other
major player in the industry, Sarasota, Fla.-based Corrections Services
Corp., is smaller than Cornell and unlikely to make a bid. "These
publicly traded companies are interested in growing, and acquiring Cornell
would help them improve their bottom line," says a corrections
consultant. Officials for CCA and Geo did not return calls seeking comment.
Cornell posted a loss of $897,000 for the third quarter of fiscal 2004, the
latest results available, compared with a profit of $1.4 million a year
earlier, even as sales rose to $74.7 million from $68.6 million. The
company has made some internal changes. In January it hired James Hyman to
replace outgoing CEO Harry Phillips. Skolnick says Hyman has some real
estate experience but "may not know what he's gotten himself
into." Pirate Capital, which has a 14.8% Cornell stake, has yet to
offer an opinion of Hyman. As part of a broad strategy to learn shareholder
concerns, Hyman has met with numerous investors, including activist hedge
fund managers, since he took over in January. He has also huddled with
Pirate officials several times in the past month, and says he plans to do
so again. "It's part of an ongoing process," Hyman says. "I
asked [investors] to be very frank and tell me as straight as they can how
they view Cornell." He says Cornell would consider any offer, but that
the company is not seeking a buyer. Cornell also recently replaced director
Marcus Watts with Isabella Cunningham, a communications professor at the
University of Texas. That move, says a shareholder, suggests "creeping
compliance" with Pirate's wishes. Shareholders had repeatedly asked
the board to replace Watts, a partner at law firm Locke Liddell & Sapp
LLP, who they argued lacked sufficient independence. Locke Liddell &
Sapp has a business relationship with Cornell. Cunningham, considered
independent, developed a criminal-justice program at St. Edward's
University in Austin, Texas. Skolnick says Hyman will have his work cut out
for him. He acknowledges that Cornell has made some major mistakes lately.
For example, it leased an abandoned jail in Bernalillo County, N.M., and
announced in spring 2003 that the facility would house roughly 1,000
inmates by the end of that year and generate $25 million in annual revenue.
But after lease problems and poor planning, Skolnick says, the facility
held only 300 inmates by the end of 2004 and brought in significantly less
revenue than promised. Cornell's acquisition of an abandoned training
school in Plankinton, S.D., was another botched purchase. The company
turned the school into a juvenile-detention center with an investment of
$200,000. For the program to be profitable, Cornell needed the state to pay
$175 a day per inmate. But the state agreed to pay only $125. After three
months, Cornell closed the operation. "What this points out is how
Cornell generally does not complete the necessary due diligence before
going out and opening facilities," Skolnick says. "They do a
terrible job of completing projects and ramping up occupancy in their
facilities." On Feb. 1 Cornell announced plans to buy San Diego-based
Correctional Systems Inc. for $10 million, an acquisition Hyman says is
complementary. Other shareholders have risen to Pirate Capital's support. "We
believe that the board's attempt to simultaneously replace the company's
CEO and CFO without reaching out to Pirate Capital, its largest
shareholder, represents another example of poor judgment," says Nelson
Obus, president of New York hedge fund Wynnefield Capital LLC in a January
Securities and Exchange Commission filing. People familiar with Pirate say
its nominees have vastly more experience in corrections-facility
management, restructuring and turnarounds than Cornell's current board.
Pirate nominee Richard Crane, a corrections-project consultant, is a former
general counsel to CCA, one of the companies that might consider acquiring
Cornell. Then there's Sally Walker, president of Encourage Youth Corp., a
consulting firm specializing in programs for juvenile offenders. Pirate is
also nominating two people from within its own ranks: portfolio manager
Hudson and investment analyst Zachary George. Says Skolnick:
"Shareholders would be well-served to have a professional management
team that is focused on returns instead of revenue growth."
March 10, 2005 Dow Jones
Cornell Cos.' (CRN) fourth-quarter loss ballooned as the company took a
number of charges and announced that it will eliminate two layers of
management and close underperforming programs. In a press release Thursday,
the prison operator said that among the jobs eliminated was that of
President and Chief Operating Officer Thomas R. Jenkins. Chief Executive
James Hyman will assume the chief operating officer responsibilities. In a
bid to improve its operations, Cornell said it was trimming its management,
cutting Jenkins' job as well as a number of vice president and
director-level positions that "interfered" between business unit
managers and their programs. The shakeup is just the latest in a slew of
management changes at Cornell. Hyman himself was named chief executive in
January. John Nieser, the chief financial officer, was named in February.
Meanwhile, a group of shareholders including Pirate Capital LLC, which hold
about 15% of the company, have called for the entire board to step down.
Apart from changes to its management, Cornell said Thursday it will close a
number of its programs that consumed cash and managerial talent that could
better be spent elsewhere. The
programs, set to be shuttered in the first and second quarters, include the
Joz-Arz program in the District of Columbia, the Residential School in
Illinois, which is owned by the company, and behavioral health programs in
Pennsylvania.
November 9, 2004 PRNews
Cornell Companies, a
leading provider of privatized adult and juvenile correctional, treatment
and educational services, announced today that the Company has commenced a
search for a new chief executive officer.
Harry J. Phillips, Jr. will continue to serve as chief executive
officer until a successor is named and, thereafter, will continue as
chairman of the board of directors.
October 22, 2004 AP
Two associates of U.S. House Majority Leader Tom DeLay who have been
indicted for alleged campaign finance violations will be allowed to put off
answering a civil lawsuit until their criminal charges have been
resolved. State District Judge Joe
Hart on Thursday postponed a civil lawsuit against John Colyandro and Jim
Ellis, who were charged last month with laundering corporate donations
during the 2002 elections.
September 22, 2004 AP
The money laundering allegation in a congressional ethics complaint filed
against House Majority Leader Tom DeLay involves the same $190,000 in
political contributions that led to indictments of the Texas congressman's
aides on similar charges. DeLay is accused in an ethics complaint of
misusing the Texans for a Republican Majority Political Action Committee to
launder $190,000 in illegal corporate contributions through the Republican
National Committee for use in Texas legislative races. On Tuesday, a grand
jury in Texas indicted Jim Ellis, a paid consultant to Texans for a
Republican Majority, and John Colyandro, former executive director of the
Texas committee, on money laundering charges involving the same $190,000 check.
A third aide was indicted on separate charges. The indictments allege that
on Sept. 13, 2002, Ellis delivered a check for $190,000 to the Republican
National Committee. The check was signed by Colyandro and made out to the
Republican National State Elections Committee. Accompanying it was a list
of several GOP Texas legislative candidates and the amount of money that
each should get from the RNC, according to the indictment. The indictments
said the $190,000 came from corporate contributions to Texans for A
Republican Majority. Givers included Diversified Collection Services Inc.,
$50,000; Sears, Roebuck and Co., $25,000; Williams Companies Inc., $25,000;
Cornell Companies, $10,000, Bacardi USA, $20,000 and Questerra Corp.,
$25,000, the indictments said. They did not account for the remaining
contributions. The Republican National State Elections Committee
subsequently wrote checks totaling $190,000 to seven Texas candidates, the
indictment alleges. Texas law prohibits
the use of corporate money for direct political purposes.
August 15, 2004 Houston Chronicle
Rarely does the siren of shareholder revolt sound as loudly as it has at
Cornell Cos., a Houston-based operator of adult and juvenile corrections
centers and treatment facilities. During a conference call last week,
investors irate over the company's performance blasted Chairman Harry
Phillips. "Our capital is being wasted here, and our company is being
undermanaged," said Zachary George with Pirate Capital, a Connecticut
hedge fund that owns 7.5 percent of Cornell's shares, making it one of the
company's biggest investors. "We are not going to let you guys destroy
this company. Your time at Cornell is limited." Pirate, which began
buying Cornell shares in May, targets companies it believes are undervalued.
It isn't alone in its displeasure: Thirty-five percent of the company's
investors withheld their votes for directors at the last annual meeting,
and that was without any organized effort. Investors have ample reason to
be ticked off. Net income was almost $8 million in 2000, but the company
hasn't seen a profit like that since. Last year, earnings were less than $4
million. Profit margins have been halved during the same period. Cornell's
market value has tumbled to $166 million from $228 million in 2001. For
Cornell's management, the hour of reckoning is nigh. Promises of a
prosperous future will no longer quell the discontent. The sirens are
sounding, and the message for management is clear: The future is now.
Cornell
Interventions, Wauconda, Illinois
December 29, 2006 Lake County News-Sun
Two teenage girls who escaped from Cornell Interventions in
unincorporated Wauconda shortly before 2 a.m. Thursday were both charged
with possession of a stolen vehicle after attempting to elude police in a
chase. Lake County Sheriff's Office deputies were dispatched to the at-risk
youth facility to search the grounds for the two runaways, but found no
leads at the time. The two females found an unattended 2001 maroon GMC
Jimmy at Sweeney's gas station on Miller Road and Route 12 with the keys in
the vehicle. "At approximately 1:50 a.m., the two juveniles were
called in as runaways from the juvenile detention for at-risk youth,"
said sheriff's Sgt. Christopher Thompson. The owner of the GMC Jimmy was
believed to be in the gas station making a purchase at the time of the
vehicle theft and may have left the vehicle running. Lake Zurich police
received a call shortly after 5 a.m. Thursday with a report from the driver
that the vehicle was stolen. "A vehicle was reported stolen and our
department was made aware of it and located the vehicle," said Lake
Zurich Police Cmdr. Kevin Finlon. Police discovered the vehicle containing
the 14- and 15-year-old females at the intersection of Route 12 and Wooded
Ridge.
Cornell Oakland Center,
Oakland, California
November
19, 2010 AP
A former correctional officer has pleaded guilty to sexual abuse of a
federal inmate at a privately run halfway house. Thirty-nine-year-old
Basean George of San Leandro entered the plea Thursday to one count of
sexual abuse of an inmate as part of a deal with prosecutors. George
admitted to a month-long sexual relationship in 2008 with a female inmate
under his watch at the Cornell Oakland Center. The center is a halfway
house under contract with the government that houses federal inmates
nearing the end of their sentences. George faces a maximum sentence of 15
years in prison and a fine of $250,000 when he's sentenced Feb. 2.
Danville Center for Adolescent Females, Danville, Texas
August 8, 2005 Danville News
Texas-based Cornell Abraxas will not renew its contract with the state to
provide youth treatment services at the Danville Center for Adolescent
Females. The company has run the facility since 1998, but has chosen not to
continue its management, citing a lack of infrastructure support.
Delta Junction, Alaska
April 17, 2009 News Miner
•Seven years ago, the Legislature approved a plan by Rep. John Harris to
give an interest-free $1 million loan to the city of Delta Junction to pay
legal costs related to a settlement over the establishment of a private
prison. The appropriation was contingent upon the city agreeing to give up
$50,000 a year in municipal assistance for 20 years. "They are getting
a better deal than they would at a bank. However, it is a loan that they
have to repay,” Harris was quoted as saying at the time. The loan would be
forgiven entirely, however, and be turned into a grant if Delta became part
of a borough. But Gov. Tony Knowles vetoed the measure, saying it would set
a bad precedent for the state to bail out a city over a lawsuit. Knowles
relied on advice from the attorney general’s office, which said, “Use of
state money to pay a litigation-based settlement, in which the state was
not a party, raises significant legal questions as to whether the
expenditure would be for a public purpose. The retirement of a preexisting
debt confers no benefit on the public.” The idea that the loan would be
forgiven with the formation of a borough was also of dubious legal merit,
the AG said. In 2003, Gov. Frank Murkowski vetoed a $500,000 loan with the
same forgiveness clauses because of similar legal doubts, but he changed
his mind the next year when the Legislature approved a $1 million loan. He
said he thought the area should form a borough and the forgiveness
provision encouraged that step. The plan to create a borough was rejected
by voters in 2007, but Delta Junction has never stopped trying to get the
loan forgiven. Harris has made multiple attempts to redefine the loan as a
grant. In early 2008, the city council met with Harris and Sen. Gene
Therriault. The minutes of the meeting make reference to a comment by City
Administrator Mike Tvenge: “He said the no-interest loan from the state was
appreciated because it saved the City from technical bankruptcy but the
city felt the state was part of the problem and they should eliminate the
debt.” The debt was the result of an out-of-court settlement between the
city and Allvest Inc., a private contractor that wanted to build a prison a
decade ago and had signed a deal with the city. During a 2007 council
meeting, according to the minutes, member Louis Heinbockel “said he felt
the prison debt was a scam with the Knowles administration, the debt was
assumed by the city because of default from the state of Alaska. The state
was the prime mover on the prison and the city should not be spending
$50,000 a year to cover that debt.” Pete Hallgren, former city
administrator, said he agreed with Heinbockel. During the 2007 session,
legislators approved language to forgive the debt. But Gov. Sarah Palin
became the third governor to issue a veto on the topic after the attorney
general’s office again raised constitutional concerns. “Removing the
contingency language of borough formation and converting the loan to a
municipal grant before a borough is formed may raise issues of public funds
being used to pay a preexisting debt and thus run afoul of art. IX, sec. 6
of the Alaska” Constitution, said Attorney General Talis Colberg. Harris
told the Delta City Council last fall that he planned to speak with Colberg
about the prison loan. On Thursday, the latest attempt by Harris to get the
loan forgiven surfaced in language inserted into a budget bill, Senate Bill
75, before the House Finance Committee. When asked for an explanation, John
Bitney, an aide to Harris, told the committee: “This is structured such
that the loan can basically be forgiven, if you will. The original language
that appropriated had the contingency that the forgiveness would come only
if the community incorporated as a borough. And as you can see that
contingency is being removed with this language.” There was no discussion
about the merits of changing the loan to a grant. In an e-mail today,
Bitney said the language was offered by Harris at the request of the city.
August 12, 2008 Anchorage Daily News
Bill Weimar, who made his fortune off private halfway houses in Alaska,
pleaded guilty Monday to two federal felonies in U.S. District Court in
Anchorage. He admitted his role in a conspiracy to secretly funnel money to
a political consultant for an unnamed state Senate candidate, knowing the
candidate would back a private prison if he won. Weimar had a long-standing
relationship with the candidate running in the 2004 primary, a charging
document filed Monday said. Weimar held a "contingent interest"
in a private prison project worth $5.5 million, but only if the project was
completed, the charges say. He faces prison time in the plea deal and may
have to forfeit "certain property." Prosecutors estimate a
sentence of 10 to 16 months. U.S. District Judge John Sedwick isn't bound
to that. He set sentencing for Oct. 29. Weimar, who owned Allvest Inc.,
becomes the 11th person charged in the broad, ongoing investigation by the
FBI and U.S. Department of Justice into political corruption in Alaska.
Weimar, 68, now lives in Big Arm, Mont. At the brief hearing on Monday,
Weimar answered the judge's routine questions. Assistant U.S. Attorney Joe
Bottini outlined the two charges: conspiracy to commit honest services mail
and wire fraud, and illegally manipulating currency transactions to avoid
reporting them to the Treasury Department. Weimar has admitted paying the
consultant a total of $20,000 during the primary in August 2004 to cover
expenses for the candidate, without reporting the payments and without
routing them through the campaign. How do you plead? Sedwick asked.
"Guilty," Weimar answered, to each charge. LAWMAKER NOT NAMED --
For years, Weimar pushed plans for a private prison in Alaska, but the
project was always controversial and no prison was ever built. A Democratic
activist in the 1970s, Weimar later became close to the Republicans who
controlled the Alaska Legislature. Neither the Senate candidate nor the
consultant -- both accused of conspiring with Weimar -- is named in the
charging document. Prosecutors declined to expand on it Monday. But the
candidate described in the documents, and in court Monday, appears to be
former state Sen. Jerry Ward. He didn't return phone calls or e-mail messages
on Monday. Ward, a Republican elected from Anchorage in 1996 and the Kenai
Peninsula in 2000, fervently pushed private prison projects as a
legislator. The charging document says the candidate running in 2004 had a
long relationship with Weimar, and held elected office part of that time.
Ward and Weimar were "buddies," according to a statement that
former lobbyist Bill Bobrick, who worked for Weimar, gave to the FBI in
September 2006. Bobrick also has pleaded guilty in the corruption investigation.
He declined to comment on Monday. In 1997, a plan for a private prison in
South Anchorage with Allvest and Veco Corp. as partners crumbled under
strong public opposition. As that project evaporated, Ward emerged as the
lead architect of a new plan to build private prisons in the Mat-Su and
Seward. "By God, this really solves the problem," Weimar was
quoted as saying at the time. In 2001, Ward signed on as the only Senate
sponsor of a House bill pushing a private prison on the Kenai. The charging
document against Weimar doesn't say whether the candidate won in 2004 and
does not call the person a legislator. Ward lost his seat in 2002 to Tom
Wagoner. He was trying to regain it in 2004, but lost in the Republican
primary to Wagoner. SEATTLE CONSULTANT -- In court Monday, Bottini told the
judge the consultant was from Seattle. Some of Ward's biggest campaign
expenses in 2004 were more than $43,000 in fees charged by Madison
Communications, an advertising and public relations firm based in suburban
Kirkland, Wash. Numerous calls left for Madison principal Brett Bader on
Monday were not returned. The charges against Weimar and other court
documents quote details of a number of telephone conversations he had with
the consultant and the candidate from Aug. 17 to Aug. 23, 2004. In a
telephone conversation on Aug. 17, 2004, the consultant told Weimar that
the campaign was having money trouble, court documents say. "I'm
worried we're reaching the limit now. I don't know where we find 10 grand
unless (Candidate A) can get more in," the consultant said
"There's no legal way to do that. At least not on that scale,"
Weimar responded. Later that day, Weimar arranged to cover the next
advertising mailer for the candidate, and told the candidate so, the
document says. On Aug. 20, 2004, Weimar told the candidate of an unpaid
invoice of $20,000 with the consultant. The candidate's campaign funds were
depleted, the charges say. The candidate said he had only $300 to $400 left
in his account. On Aug. 23, 2004, Weimar made arrangements with the
consultant to pay off the debt, the charges say. He then called the
candidate and told him "he would not be receiving any further bills
from Consultant A," the charging document says. Weimar sent the
consulting company a $3,000 check on Aug. 23, 2004, then sent $8,500 in
cash that same day by express mail, and another $8,500 cash the day after,
the charges say. "WE'VE MOVED ON" -- The charges also do not name
the private prison company, but Cornell Corrections Inc. tried to build a
prison in various Alaska communities, including Delta Junction, Kenai and
Whittier. The charging document describes the unnamed company's Alaska
interests as halfway houses, a planned juvenile treatment center, and a
private prison project, and that matches Cornell's interests. In 1998, in
the midst of planning for a private prison in Delta Junction, Weimar sold
five Alaska halfway houses to Cornell for $21 million. He also formed a
partnership with Cornell to pursue the Delta prison and subsequent deals
for a private facility. One goal of the conspiracy was to get the private
prison company to give campaign contributions to the candidate to help win
election, according to the charges. A spokesman for Cornell said the
company was unaware of the charges but supports the prosecution. The
executives now in charge of Cornell weren't there at the time of the events
that involved Weimar, spokesman Charles Seigel said Monday. Company records
don't show any evidence of wrongdoing, he added. "We've moved on and
we are very different and have it behind us," Seigel said. Cornell
also has not pursued a private prison in Alaska for years and is no longer
interested in that, he said. "We're glad this investigation is going
on but whatever was going on or may have been going on in the past, that is
not the Cornell that exists now, both in the policy on the private prison
as we've talked about and in general about the way we do business." By
2004, Veco was no longer involved in the prison project, Frank Prewitt, a
former state corrections commissioner, Cornell consultant and FBI
informant, has said. ANDERSON INVOLVED -- The failed private prison effort
was also central in the government's case against former state Rep. Tom
Anderson, R-Anchorage, now in prison. At Anderson's corruption trial last
summer, Prewitt was a key witness who testified at length about his
undercover work to collect evidence against Anderson, and also about
questionable acts in his own past. From the witness stand, Prewitt said
that in 1994 -- when he was corrections commissioner and Weimar owned
Allvest -- he accepted $30,000 from Weimar. Prewitt testified that he
considered the money a loan, which he repaid the next year, after he left
his state post, by working four months for Allvest for free. Weimar helped
start Allvest in 1985, then bought out his partners and turned it into a
multimillion dollar corporation with operations in Alaska and Washington
state. Its government contracts were worth an estimated $10 million a year.
Allvest also operated a lab that did contract urinalysis work, and used to
run the city's Animal Control Center and the Community Service Patrol. In
2002, Allvest was forced into bankruptcy because of unpaid judgments in
civil suits against the company. The bankruptcy case eventually was
settled.
June 30, 2007 Daily News-Miner
When the red ink dried on Gov. Sarah Palin’s line-item budget vetoes,
the city of Delta Junction proved one of the big losers. “We came out with
zero,” said City Administrator Pete Hallgren. Palin cut $15,000 slated for
a motocross course, $45,000 for a youth activities facility, and $500,000
for street paving and lighting. She also blocked a legislative decision to
relieve a $1 million debt stemming from a city settlement years ago with a
company brought on to convert unused military buildings at Fort Greely to a
private prison. The governor explained her vetoes by saying the first three
projects were not state responsibilities and the fourth raised legal
concerns.
June 1, 2007 Daily News-Miner
State lawmakers have approved funding in the state’s capital budget to
pay off a debt of nearly $1 million owed by the city of Delta Junction. The
debt comes from the city’s settlement years ago with a company brought on
to convert unused military buildings at Fort Greely to a private prison.
When the plan fell through, the company sued for breach of contract, City
Administrator Pete Hallgren said. The city settled before the case went to
trial. Delta paid off $100,000 of the $1.1 million settlement, then asked
the state for a loan to pay the rest, he said. The state provided the loan,
and the city has been paying it back at a rate of $50,000 a year. “This
year we asked if the state could forgive the rest of the loan,” he said.
Hallgren said he appreciated the loan forgiveness, which he said would make
it easier for the city to provide public services.
The Interior city of Delta Junction will
receive a $1.2 million no-interest loan from the state to pay off a lawsuit
settlement, under a bill signed into law by Gov. Frank Murkowski. The
governor's action last week comes a year after he vetoed a similar proposal
and two years after then-Gov. Tony Knowles did the same thing. The
loan will allow the city to finish paying its breach-of-contract settlement
with Allvest Inc. and Delta Corrections Corp. stemming from a failed effort
to build a private prison at Fort Greely. In 1998, the city and
Allvest reached a contract to build a private prison on Fort Greely, but
the noncompetitively bid deal led to a public outcry. The city then rescinded
the contract in 1999, leading Allvest to file a breach-of-contract lawsuit
that was ended by settlement. Delta Junction has paid $100,000 of the
settlement and owes about $1.16 million. But city officials have
refused to keep making payments, arguing that the settlement deal was
contingent on them getting money from the state. That led to a second
lawsuit, which was recently decided in Allvest's favor. (AP, July 26,
2004)
D.
Ray James Prison, Folkston, Georgia
July 27, 2010 Charlton County Herald
For years Charlton County Schools got well over $1 million annually in
state funds to make up for the county's low tax base. Those dollars have
fallen dramatically this year, however to just $27,000. Superintendent
Steve McQueen believes local system funding has changed because of errors
in the county tax digest. Because of the drop, the Charlton County Board of
Education voted unanimously last week to appeal the digest to the state
auditor’s office. “Ultimately, what we’re trying to do is get the
equalization board to exercise their discretion and adjust our funding,”
explained BOE Attorney Kelly
Brooks. “When the state auditor’s office receives our appeal, they will
notify the state department of education to hold off on the final
determination of our funding for 2011.” The lawyer says this will buy the
school system 45 more days, time enough the school board hopes, for the
Charlton County Tax Assessor’s office to come up with an accurate tax
digest. “There have been substantial post-levy reductions in the digest through
timber tax appeals and Cornell’s appeal [on the D. Ray James Prison
valuation],” said Brooks. “Call me skeptical but for six years in a row the
county’s certified digest has meant nothing.” Last year for example,
Charlton County’s certified digest was $332 million but the county, school
board and cities never collected taxes on that amount. After the state
approved the digest, but before payments started coming in, the digest
dropped by $16.5 million because of the prison appeal. That one reduction amounted
to a loss in property tax revenues to the school system last year of
$252,000.
January 22, 2010 Times-Union
The Charlton County Commission, the county school system and Folkston are
all hastily adjusting their budgets after a single successful appeal of a
property assessment. Commissioners are expected to approve an "error
and relief" agreement in February to reduce the assessed value of
privately owned D. Ray James Prison from $97 million to $55 million. The
successful appeal by Cornell Companies, owners and operators of the prison,
will cost the city, county and school system at least $730,000 in
anticipated tax revenue. County Manager Steve Nance said Cornell appealed
the assessed value of the prison after it nearly doubled in 2009. Two new
structures - an addition that will house 700 inmates this year and another
facility for 300 prisoners from both Charlton County and the U.S. Marshals
Service - were on the tax rolls for the first time this year, likely
leading to the increase in value, Nance said. During the appeal, Cornell
officials didn't dispute the accuracy of the appraisal of the facility.
Instead, they argued it would be impossible to sell the sprawling prison
complex for what the company invested because the structures are for very
specialized purposes - to securely house inmates. They also claimed the
original part of the prison, more than a decade old, had depreciated in
value, Nance said. "They contended the value did not equal the
cost," he said. The property appraiser who determined the appraised
value never visited the prison until after Cornell filed an appeal, Nance
said. Instead, the appraiser determined the value from manuals, he said.
"She did not actually tour the facility until the appeal was
made," he said. "After the tour, she agreed the value was too
high. It was a lot more austere than she thought." Despite the
hardship losing an estimated $334,000 in anticipated tax revenue, Nance
said county officials have no plans to contest the ruling by the Board of
Assessors. "It would be difficult for us to appeal our own
valuation," he said. Also, there is no appeal process unless the
complaint is taken to the Board of Equalization by the property owner,
Nance said. "Is there any recourse [for Folkston and the school
district]?" Nance asked. "I don't think they have the right to
challenge this." Now, the already cash-strapped county will maintain a
"continuous evaluation process" to cut spending to make up for
the shortfall, Nance said. Folkston City Manager Pender Lloyd said the
appeal will cost his city at least $108,000 in anticipated tax revenue -
nearly a 5 percent cut to the city's $2.4 million budget. "We knew
Cornell was probably going to appeal," Lloyd said. "We certainly
had no idea it [the prison's value] would drop by $42 million." Lloyd
criticized the timing, saying one appeal should not have so much impact to
local governments. An appeal of the magnitude of Cornell's should have been
resolved before the county digest was completed to give local governments
an accurate estimate of how much revenue would be generated in taxes. The
city will delay some projects planned this year, including construction of
a new park, he said. Travel to conferences and training is also canceled,
unless it is required by law, Lloyd said. "We have some revenues built
up, so we can handle it," he said. "We're all affected and we've
got to work through this thing. We've got to deal with it."
May 20, 2009 Yahoo.com
Cornell Companies, Inc. (NYSE:CRN) today announced that it has been
informed by the Georgia Department of Corrections that the Department will
not start using the Company's recently completed expansion at its D. Ray
James Prison in Georgia. The Company's previous guidance, included in the
first quarter earnings release, provided a base case that assumed that the
700-bed expansion at D. Ray James Prison would begin to ramp at the
beginning of the third quarter of 2009, and an alternate case that, if the
expansion was to remain empty for all of 2009, earnings for the full year
would be reduced by up to approximately $0.08 per share. Today's updated
guidance assumes that the expansion will remain empty for the remainder of
the year. As a result, the Company now expects earnings per share for the
full year of $1.62 to $1.70. The Company also reaffirmed the earnings
guidance range for the second quarter of $0.42 to $0.46 per share.
September 6, 2008 Savanna Now
A Savannah man serving a life sentence for a 1984 slaying recently
helped save a prison counselor being assaulted by another inmate. Arthur Lee
"Leechain" Scott, an inmate at D Ray James Correctional Facility
in Folkston, rushed to the aid of a female mental health counselor on Aug.
24, officials said. Another inmate who had been working with the woman in a
one-on-one session had her in a choke hold, said Charles Seigel, spokesman
for Cornell Companies Inc., a private corporation in Houston that operates
the medium-security prison for the state. Seigel said Scott got there first
and "really helped." "He and others reacted well, and he was
very gallant and deserves praise for what he did," Seigel said. The
unidentified counselor was taken to a hospital but suffered no serious
physical injuries, Seigel said. The attacking inmate has been transferred
to another facility, he said. The incident remains under investigation.
March 24, 2008 News 4 Jax
Federal prisoners at the D. Ray James Prison near Folkston, Ga., were
locked down on Monday after prisoners resisted orders to return to their
cells, Channel 4 learned. Prison officials said there were no injuries. The
Charlton County Sheriff's Office said the prison did not request
assistance. A spokesman for Cornell Companies, the private firm that runs
the prison, said the lockdown is only in a newly opened pod that houses
federal prisoners and does not affect the entire prison. Only 50 to 60
inmates of the prison's capacity of 1,640 were involved. Since the prison
opened in 1998, it has expanded to become the largest privately run prison
in Georgia.
Eagle Mountain Community Correctional
Facility, Eagle
Mountain, California
March
21, 2007 The Press-Enterprise
Assemblywoman Bonnie Garcia, R-Cathedral City, reiterated her
opposition Wednesday to reopening a private prison at Eagle Mountain, a
remote community in Riverside County. The 500-bed facility closed in 2003
shortly after a riot that killed two inmates and injured dozens. This week,
Senate Republicans proposed reopening the prison as part of their plan this
week to reduce prison crowding. Garcia, whose district includes Eagle
Mountain, said she will only support using the prison as a minimum-security
facility staffed by state correctional officers. "I want to be clear
and direct -- I am adamantly opposed and will fight any effort to reopen a
private prison at Eagle Mountain under any conditions," Garcia wrote
in a letter sent Wednesday to Corrections and Rehabilitation Secretary
James Tilton.
September 14, 2006 The Press-Enterprise
A Houston-based corrections company hopes to reopen a 500-bed lockup in
Eagle Mountain, three years after lawmakers closed the privately operated
prison. Riverside County officials confirmed Thursday that they've received
a proposal from Cornell Cos. for a 150,000-square-foot correctional
facility in the remote community near Joshua Tree National Park. Cornell
Cos. officials did not return telephone calls seeking comment this week.
The company's Web site says it operates 79 correctional facilities in 17
states, including California. Terry Thornton, spokeswoman for the
California Department of Corrections and Rehabilitation, said the state has
asked contractors to submit their plans for operating 8,500 prison beds for
men and women. Information about the bidders and their proposals is
confidential until the state awards the contracts Nov. 17, Thornton said.
Plans submitted to Riverside County call for $27 million in new
construction at the Eagle Mountain site and say the project would create
150 jobs. County Supervisor Roy Wilson, whose district includes Eagle
Mountain, said officials have promised to fast-track Cornell's proposal to
help it meet strict state deadlines, if the company receives the contract.
But Wilson said he expects the project to be vetted before the county
Planning Commission before coming to the Board of Supervisors for
consideration. "They need some kind of economic development out
there," Wilson said. "It's a ghost town. It's in dire
straits." Five people live in Eagle Mountain. Mary Zeiler, resident of
Eagle Mountain for 36 years, said she was sorry to see the minimum-security
prison closed in 2003 when state lawmakers cut funding for the prison run
by Utah-based Management & Training Corp. Two months before its
closure, the prison, a converted supermarket, fell under scrutiny when two
inmates were killed and seven inmates were injured in a riot. Kay Hazen,
spokeswoman for Kaiser Ventures, said she had not seen Cornell's proposal
but that Kaiser welcomes any opportunity to use the prison as a solution to
the state's shortage of prison beds. Assemblywoman Bonnie Garcia,
R-Cathedral City, said she would like to see the state house inmates there
but not under a private contractor. "I am not supportive of any
private prisons," Garcia said.
Grantsville, Utah
Legislators have endorsed a $1.5 million settlement
to avoid being sued by a private corrections company over the state's
abandonment of plans for a private prison in Tooele County. "We warned
lawmakers, " said Steve Erickson, co-founder of Utah Citizens
Education Project. "Heading down the private prison path was buying a
pig in a poke. Turns out it was all pig and no pokey." The $1.5
million figure is roughly $2 million less than Cornell and its
subcontractors, VCBO Architects and Hogan Construction, said they were
owed. (AP, June 21, 2001)
Great
Plains Correctional Facility, Hinton, Oklahoma
August 11, 2010 Tulsa World
Arizona is pulling more than 1,700 of its inmates from the Great Plains
Correctional Facility in Hinton. Arizona has recently added 4,000 beds to
its existing prisons to increase capacity, Arizona Department of
Corrections spokesman Barrett Marson said Tuesday. In addition, the state's
contract for space at Great Plains is nearing an end, he said. The Great
Plains private prison is owned by the Hinton Economic Development Authority
and operated by Houston-based Cornell Cos. Cornell Cos. was previously in
the process of merging with GEO, based in Boca Raton, Fla. GEO operates the
Lawton Correctional Facility. The Arizona inmates are expected to be
removed in the coming months, said Charles Seigel, Cornell Cos. spokesman.
The company has known for several months that Arizona was considering the
move, he said. The Great Plains Correctional Facility has 272 employees
with an annual payroll of $9.1 million. "We are going to be without
inmates for the moment," Seigel said. "We are working to try to
find another customer to use it." Until then, employees will be laid
off, he said. Hinton has a population of just under 3,000, said Dave
Flezickey, a Hinton Economic Development Authority spokesman. The prison is
one of the town's largest employers. Cornell and Corrections Corporation of
America have told the Federal Bureau of Prisons that they are interested in
housing criminal illegal aliens at Great Plains and three other private
prisons in the state. The inmates would be low-security males who are
predominantly Mexican citizens with one year or less left to serve. The
Oklahoma Department of Corrections does not have the funds to contract to
house state inmates at the two Oklahoma private prisons from which Arizona
has removed inmates, said DOC Director Justin Jones. Arizona also removed
inmates from Diamondback Correctional Facility in Watonga this spring.
"Obviously, I would not rule it out, but that decision will have to be
made through the legislative process," Jones said. He said the private
prison industry is a speculative market. "It is not immune to
recession and trends in sentencing and crime," Jones said. "A lot
of states have gone back and applied research to their sentencing practices,
which results in sentences that are more evidence-based, and that obviously
affects a market that relies upon incarceration."
August 6, 2010 Market Watch
Cornell Companies, Inc. announced today that it has received notification
from the Arizona Department of Corrections of its election not to renew its
contract at Cornell's 2,048 bed Great Plains Correctional Facility in
Hinton, Oklahoma, which is scheduled to expire on September 12, 2010. The
Company will be working with Arizona in the coming days to determine the
schedule for the transfer of inmates, which the Company expects to complete
in 2010. As a result of this notification, Cornell intends to continue
marketing the facility to other customers. Cornell's previous 2010 guidance
assumed that the Arizona DOC would maintain its use of the Great Plains
facility at its present level through the end of the year. In May 2010,
Cornell reported that the ultimate resolution of Arizona's usage of the
facility would likely depend on the timing of Arizona's budget process and
may not occur until the third quarter of 2010. In light of the contract
termination, Cornell is withdrawing its prior annual financial guidance.
February 26, 2010 AP
Cornell Cos. Inc.'s sales and profit will decline if the state of
Arizona removes inmates from the company's Oklahoma prison, an analyst said
as he downgraded the prison operator's shares. First Analysis Securities
analyst Todd Van Fleet downgraded the Houston company to "equal
weight" from "overweight." The January budget proposals from
Arizona's governor and legislature would phase out the use of private
out-of-state beds. Arizona is struggling to close budget shortfalls. Van
Fleet said there was less than a 25 percent chance that Cornell would be
able to persuade legislators to keep Arizona inmates in the company's
Oklahoma prison. The loss of the Arizona prisoners which could cut into
Cornell's annual earnings by 35 cents to 45 cents per share. Van Fleet cut
his estimate for 2010 profit to $1.09 per share from $1.69 per share, and
his 2010 sales estimate to $398 million from $440.6 million. On Wednesday,
when it released fourth-quarter earnings, Cornell predicted it would make
$1.31 to $1.41 per share in 2010. The guidance assumed that Cornell would
continue to keep all its Arizona inmates for the rest of the year. The
contract for the Arizona prisoners ends in mid-September, Van Fleet said.
Cornell shares slipped 13 cents to $18.61 in midday trading. They have
dropped about 25 percent since Arizona proposed its budget in mid-January.
October 9, 2007 The Oklahoman
A convicted murderer who kidnapped and assaulted two woman after his
January escape from a private prison told investigators he has been
rattling the prison fences for five years to see whether any guards would
respond. None ever did, convicted murderer Charles McDaniels told
investigators, according to a report by the state Department of
Corrections' Office of Internal Affairs. McDaniels and another inmate, Tony
Ellison, cut through a Great Plains Correctional Facility fence with wire
cutters on Jan. 22, kidnapped a Hinton woman and then an Oklahoma City
woman, tying both up in the second woman's Oklahoma City home. The escapees
also are accused of committing a rash of home invasions in the Tulsa area
before they were captured 36 hours after their escape. McDaniels later told
investigators the prison tower was usually unmanned and that razor wire
surrounding the perimeter fence was insufficient, according to the Internal
Affairs report. On Nov. 15, two months before the escape, prison officials
received a security audit from state officials that criticized such areas
as "inmate count procedures, perimeter fencing, camera placement, and
perimeter security,” according to an April 6 letter to prison officials
from Ed Evans, associate director of field operations for the corrections
department. The letter also noted that on Jan. 18, the state agency
determined "additional corrective action was needed due to the
prison's inadequate responses regarding the perimeter fencing.” McDaniels
and Ellison escaped four days later. Ellison was found hanged in a Tulsa
County jail cell after his capture. State officials assessed the prison
damages of $60,625 for non-performance between Nov. 15, and Feb. 19, when
the prison's second plan of action was accepted by the agency. "I'm
not sure we really had enough time to fix all the deficiencies before the
escapes,” said Charles Siegel, a spokesman for Cornell Cos. Inc., which
operates the medium-security prison for the Hinton Economic Development Authority.
"But I know we fixed most of them.” Cornell paid the state agency the
damage assessment, Siegel said. Eldon McCumber, the Hinton authority's
chairman, called the fines "extreme.” "To me, it looked like one
employee didn't do their job,” McCumber said. "It was a human error.”
McDaniels told investigators he and Ellison began cutting the fence at
12:30 p.m. during a recreation break. When the period was over, they
entered the prison and came out with another group on recreation break.
McDaniels said he was surprised that the perimeter officer was not more
observant, according to the Office of Internal Affairs report. "If
they had just been driving around, they would have seen us,” he told
investigators. McDaniels said he and Ellison went back and forth through
the cut fence about three times before taking off and stopping at the first
available house just east of the prison. The report also said a 4 p.m.
inmate count revealed two missing prisoners, but two more counts were taken
before the prison's emergency response team was deployed at 5:30 p.m. At
the time of the escape, McDaniels was serving a life sentence for the 1988
murder of a Tulsa taxi driver. Ellison was serving time for burglary, motor
vehicle theft and escape convictions. Authorities eventually cornered and
arrested the two inmates in Tulsa, but not until after 36-hour crime spree
that included the kidnapping of Hinton resident June Heldermon, 71, and
Oklahoma City resident Teresa Mannix, 74. The women were left alive and
bound in Mannix's home. They struggled to free themselves and then called
police. McDaniels is serving a second life sentence at Oklahoma State
Penitentiary in McAlester because of the kidnappings. He still faces
charges for the Tulsa burglaries. Back in business -- The Hinton prison
closed in April after a contract dispute with the Department of
Corrections. It recently reopened. The prison houses 225 inmates and is
receiving about 80 more each week from Arizona, Siegel said. The prison is
expected to return to its 900-inmate capacity by late November, he said.
Siegel said Cornell has spent more than $600,000 on "state-of-the-art”
security, including additional perimeter fencing and sensor devices. Siegel
declined to be more specific for security reasons. Vonda Weathers, Heldermon's
daughter, isn't buying Cornell's new security pitch. "I'm still
scared,” said Weathers, who can see the prison's lights from her home seven
miles away. "I work at a restaurant in downtown Hinton, and I won't
feel any safer. They said they had good security back then.”
April 7, 2007 The Oklahoman
The last of the Great Plains Correctional Facility's nearly 200
employees clocked out of work Friday, leaving the 9-year-old prison empty
and a Caddo County town of 1,400 people wondering what will happen next.
"This is devastating,” said Eldon McCumber, chairman of the Hinton
Economic Development Authority (HEDA) board. "This is going to have a
big impact on the community, especially HEDA. ..... "But we're working
daily to get an inmate contract. Employees, meanwhile, shared their
frustrations with each other Thursday at a farewell barbeque. No one in
attendance would speak publicly about being laid off. "I think they're
afraid they won't be hired back when the prison reopens,” said Linda Maize,
whose husband, Michael, is the prison's hospital administrator. Maize and
her husband expressed concern over employees who are already experiencing
hardships, especially couples where both spouses were employed at the
prison. "You always hear about how most of us are just one paycheck
away from being homeless,” Linda Maize said. "Well, we just got our
last paycheck.” Skeleton crew remains: By Friday, only a skeleton crew of
10 employees remained to man the prison and its surrounding grounds.
"It's a pretty sad deal,” said Michael Maize, who has worked at the
prison for four years. "There was a group of people who clung on,
hoping something would happen. There was a family-type atmosphere there
because we all watched each other's backs ..... "The hardest part was
watching your friends lose their jobs one-by-one, and wondering when your
number was going to come up. That was tough because we all knew it was
coming.” The Hinton authority, which financed the $37.2 million prison a
decade ago, leases the facility to Houston-based Cornell Companies for
$100,000 annually and receives an additional $25,000 per month from inmate
per diems. Cornell purchased the prison in 1998, and then deeded the
property back to the Hinton authority under the present lease agreement.
Since then McCumber said the authority has used revenue from the prison to
build the Sugar Creek Canyon Golf Course, spruce up local school
properties, and leverage other business projects. But those days suddenly
seem like a distant memory. "Dollar-wise, we're pretty much down to
nothing,” McCumber said. "We're cash-strapped, although we still have
a lot of money invested in properties.”
April 4, 2007 AP
A convicted killer who allegedly escaped from a private prison and abducted
a Caddo County woman will stand trial. Special District Judge David
Stephens made his decision yesterday at the end of Charles McDaniels'
preliminary hearing. The 35-year-old McDaniels is accused of fleeing the
Great Plains Correctional Facility in Hinton on January 22nd with another
inmate. The pair allegedly broke into 71-year-old June Heldermon's home and
drove her and her vehicle into Oklahoma City. It's there where authorities
allege McDaniels and fellow escapee Tony Ellison broke into the home of
74-year-old Teresa Mannix, tied up her and Heldermon and left in Mannix's
vehicle. The men were captured in Tulsa after a 36-hour manhunt. Ellison
later hanged himself in his Tulsa jail cell.
March 20, 2007 Oklahoman
The Great Plains Correctional Facility will close indefinitely
"the first week of April,” leaving some 190 employees at the private
prison without work, a company spokeswoman confirmed Tuesday. "The
decision to close came down to contract negotiations with DOC (state
Department of Corrections),” said Christine Parker, a spokeswoman for the
Houston-based Cornell Companies Inc. Only 290 state inmates remain at the
private prison from a population that was once 800 as recent as October.
State corrections spokesman Jerry Massie said the remaining inmates are
scheduled to be moved no later than April 6. State guards began relocating
inmates after prison officials announced they would not renew their state
contract in October. Parker said the decision came after months of
negotiations. The bulk of Hinton's inmates were sent to the Lawton Correctional
Facility, a private prison that recently underwent a $23 million, 600-bed
expansion. "Basically, they (prison official) were telling us they
were losing money,” Massie said. "We were paying other private prisons
in the state anywhere from $40 to $45 a day per bed. They were getting
around $47 a day per bed. "So they were getting more than anyone
else.” In January, the private prison came under scrutiny when a convicted
murderer and another fugitive escaped and kidnapped two elderly women. Authorities
arrested both fugitives in Tulsa County, but only after a 36-hour manhunt
that stretched 150 miles. Both women lived to tell their frightful story.
At the time, a contract extension with the state was being discussed.
Massie later said the extension wasn't necessary. "The closure has
nothing to do with the escapes,” Parker said. "We had already decided
not to renew our contract with DOC by then.”
February 11, 2007 AP
More than two-thirds of convicted killers in Oklahoma are not
incarcerated at the state's most secure prisons, but instead are housed in
state-run and private medium-security facilities, according to a published
report. Fewer than 400 first-degree murderers, including the men on death
row, are at the Oklahoma State Penitentiary in McAlester, according to
records for Jan. 23. Another 117 are at the Mabel Bassett Correctional
Center, a women's prison, The Sunday Oklahoman reported. ``Inmates can earn
their way down,'' Corrections Department Director Justin Jones said. ``I
think it's OK. ... For us, medium security is considered high security.''
The issue arose after convicted killer Charles McDaniels and fellow inmate
Tony Ellison escaped from the Great Plains Correctional Facility after
cutting holes in fences. The pair abducted a woman, drove her and her
vehicle to Oklahoma City and assaulted and robbed another woman before
taking off in her vehicle. They eventually were apprehended in Tulsa, where
Ellison hanged himself at the jail, authorities said. McDaniels and 65
others with first-degree murder convictions were held at the
medium-security private prison in Hinton. ``I had been told that they
didn't have murderers there ... that it was just for burglary and assault
and so forth,'' said June Heldermon, 71, who lived near the prison and was
kidnapped Jan. 22, allegedly by the escapees. Heldermon is seeing a
counselor over her ordeal and is staying with her daughter. ``I've got to
get rid of that house,'' she said. ``I don't know what I'm going to do. I'm
just not about to go back up there and live. ... No way! One time's enough
for me.''
January 29, 2007 The Oklahoman
A private prison that recently ended its contract with the state has
notified nearly 200 employees that the prison may close. The Great Plains
Correctional Facility sent notices to its employees last week telling them
their jobs could be terminated within 60 days. Warden Sam Calbone said the
prison is required by law to notify employees of a possible termination in
advance but hopes the prison won't have to close. "We're hopefully optimistic
right now that it won't come to that,” Calbone said. Prison officials and
the state Corrections Department in July were in disagreement over how much
the state should pay to keep inmates there. In October, the prison told
state officials they had 180 days to relocate about 800 inmates being held
at the prison. At the time of the announcement, company officials said they
were pursuing a contract with other, undisclosed agencies for the use of
the prison space. State corrections officials learned in October the prison
was negotiating with other states, possibly California, which recently
agreed to pay private prisons in Watonga and Sayre $63 per day to house
about 500 California inmates. Oklahoma pays the Hinton prison about $47 per
day per inmate.
January 25, 2007 KTUL
About 150 employees at the Great Plains Correctional Facility in Hinton
have been told the prison will be closing in March. A spokeswoman for
Cornell Corrections says workers were given a 60-day notice of the closure
last Friday. Spokeswoman Christine Parker says the contract between the
state of Oklahoma and Cornell expired in July, and the two parties couldn't
reach a new contract. She says the 530 inmates housed there are being
transferred to other facilities. The facility has operated in Hinton since
1998. The closing is not connected to the escape of two inmates on Monday.
The two men are accused of embarking on a crime spree before they were
captured Wednesday in Tulsa. One of the two escapees killed himself this
morning in a Tulsa jail.
January 25, 2007 AP
One of two men who escaped from a prison and was suspected of going on
a crime spree before being recaptured hanged himself in jail Thursday and
apparently had a suicide pact with the other escaped inmate, sheriff's
officials said. Tony Ellison, 23, was found hanging from a bed sheet tied
to a light fixture at 8:35 a.m., 20 minutes after a routine check of his
cell, the Tulsa County sheriff's office said. Ellison and the other escaped
inmate, Charles McDaniels, discussed their plans to kill themselves in
letters found in their cells, Undersheriff Brian Edwards said. McDaniels,
35, was immediately placed on a suicide watch. "We were very surprised
when we uncovered this plot between the two of them," Edwards said,
adding that Ellison had not seemed despondent and had not been on a suicide
watch. "If a person is very determined, it is very difficult to keep
them from hurting themselves," Edwards said.
January 24, 2007 Texarkana Gazette
Authorities captured two escaped inmates, including a convicted killer,
Wednesday morning after a nearly 40-hour search. Capt. Chris West of the
Oklahoma Highway Patrol said Charles McDaniels, 35, and Tony Ellison, 23,
were captured in a central Tulsa neighborhood at about 3 a.m. The men led
authorities on a short car chase after investigators closed in on the home
where they were hiding, West said. The men crashed the car and then fled on
foot before they were arrested. There were no injuries. "We feel very
satisfied that it ended like it did tonight," West said. McDaniels and
Ellison escaped from the medium-security Great Plains Correctional Center
in Hinton, 50 miles west of Oklahoma City, on Monday by cutting through a
fence in a recreation yard, said Jerry Massie, a spokesman for the Oklahoma
Department of Corrections. Massie said he wasn't sure how they could have
done this without guards seeing them. He said there are no towers at the
prison, but guards would monitor the perimeter of the facility. No cutting
implement had been found Tuesday, Massie said. Houston-based Cornell Cos.,
the private operator of the prison, offered a $25,000 reward Tuesday for
information leading to the capture of the inmates, who are believed to have
escaped at 3:24 p.m. Monday when an electronic perimeter system sounded a series
of alarms at the prison's control room. Officials confirmed the prisoners
were missing during a 4 p.m. head count and placed the facility on
lockdown. Authorities believe the pair broke into a Hinton residence,
abducted a woman and drove her and her vehicle into Oklahoma City, where
they broke into a northwest-side home. Oklahoma City police Capt. Steve
McCool said the men then tied up the women. He said the women were somehow
able to call police for help, but he didn't have exact details. One of the women
was punched and may have a broken nose, McCool said. The escapees were able
to get in the house by asking to use a telephone. They pushed their way in
when the woman tried to hand a phone to them. The two women were identified
by police Tuesday as Wanza "June" Heldermon of Hinton, and Teresa
Mannix of Oklahoma City. McCool said Heldermon may have been abducted to
buy the men some time. "They probably did it in an effort to give
themselves a head start from law enforcement," he said. "Then
they tie them up, all in an effort to give them a head start."
McDaniels had been at Great Plains since 2001, and Ellison had been there
since October, Massie said. The facility holds 531 men, and the Department
of Corrections had been lowering the population because the contract with
Cornell was not renewed and is set to expire in April, Massie said. In a
statement, Cornell said all prison personnel were at their assigned posts
and all security systems were functioning properly. The company said it
does not know what type of tool was used to cut through two security fences
topped with razor wire, but all prison tools and equipment were accounted
for. The prison also has two rows of razor wire between the fences, which
are monitored by an electronic system.
January 23, 2007 Tulsa World
Two men, including one who was a teenager when he killed a Tulsa cab
driver, escaped from a southwestern Oklahoma private prison Monday and
allegedly abducted one woman and broke into the home of another,
authorities said. Officials at the Great Plains Correctional Center in
Hinton noticed that Charles Marcel McDaniels, 35, and Tony L. Ellison, 23,
were missing after a 4 p.m. head count, according to a statement from the
prison's parent company, Cornell Cos. Authorities think the pair broke into
a Hinton residence, abducted a woman and drove her in her vehicle to
Oklahoma City, where they broke into another home, Oklahoma City Police
Sgt. Keith Vance said. "They took the first victim into the house,
left her there along with the second victim, but stole her (the latter
victim's) car," he said. Vance did not release the victims' names. He
said the condition of the Oklahoma City woman, who was seen in television
footage being carried from the house on a stretcher, wasn't immediately
known. The other woman has returned to Hinton, he said. The prison was
locked down while the escape is investigated, Great Plains officials said.
October 24, 2006 Enid News
The old saying, “crime doesn’t pay,” might apply to criminals, but not to
operators of private prisons. Officials at Hinton’s Great Plains
Correctional Facility recently announced they would evict 800 state inmates
housed there under contract with Oklahoma’s Department of Corrections.
Cornell Cos. Inc., the Houston company that has owned the medium-security
prison since 1998, is evicting the DOC prisoners, according to a
spokeswoman, to consider “other business opportunities.” In other words,
there are entities that will pay Cornell Cos. Inc. more per head for
housing prisoners than the Oklahoma DOC can presently afford. State
Corrections Director Justin Jones said the Hinton prison had been
negotiating a better deal with U.S. Immigration and Customs Enforcement
officials, who are offering a better rate. California, which has declared
an emergency due to prison overcrowding, reportedly is prepared to pay
between $71 and $80 per day per prisoner to house the Golden State’s bad
guys in private prisons. The state of Oklahoma, which will pay just more
than $45 per day per inmate, can’t compete. You can’t blame Cornell Cos.
Inc. They are a private business and, as such, are entitled to charge
whatever they chooses for their services. The problem is, the state doesn’t
have much room to house the 800 inmates Cornell is booting from its cells.
The state has just 180 days to find someplace to put the evicted prisoners,
but the state’s prisons are 98 percent full, meaning there’s little or no
room for inmates at the inn. Even many county jails, which currently house
more than 1,350 DOC prisoners, are at or near capacity. Such is the case
with Garfield County Detention Center. So what is Oklahoma to do? Spend
more money. The state either needs more prison beds, or must boost its
per-diem rate for housing prisoners, or both. The DOC already has asked for
a $193 million bond issue to help pay for a new 1,400-bed medium-security
prison, 750 maximum security beds and other renovations. Sen. Cal Hobson,
D-Lexington, thinks the state should pay for new prison space with money
from the state “rainy day” fund, which he said currently contains nearly
$500 million. Whether from a bond issue or from rainy day funds, the state
must spend money to tackle this problem. Our police and courts are doing a
good job of catching and convicting criminals, our prison system must make
provisions to house them. This incident clearly illustrates the point DOC
can’t count on private prisons to help solve the prison overcrowding
problem.
October 12, 2006 The Oklahoman
About 800 Oklahoma inmates will be kicked out of the private prison
that houses them, state Corrections Department officials learned Wednesday.
The state received notice Wednesday from Cornell Corrections, the private
company that runs the Great Plains Correctional Facility in Hinton,
corrections spokesman Jerry Massie said. The state will have 180 days to
find new housing for about 800 inmates who currently are incarcerated in
Hinton. The state has relied on the private prison for more than six years
to handle part of its growing problem with prison overcrowding. State-owned
prisons are essentially full, running about 98 percent of capacity. Before
Wednesday's development, all public and private prisons in the state were
projected to be out of space by next year. "This is just going to make
a bad situation worse," Massie said. Cornell's contract with the state
expired in July, and both parties weren't able to agree on terms for a new
contract, leaving the company open to seek a new tenant, said Christine
Parker, spokeswoman for Cornell. "We are in the process of considering
other business opportunities," Parker said. State Corrections Director
Justin Jones said last week the Hinton prison had been negotiating a better
deal with U.S. Immigration and Customs Enforcement officials, who offered a
better rate. "You're dealing with a private business here, and they
are in it to make money and answer to shareholders," Jones said.
"Our mission is public safety, and the ideologies don't always line
up."
October 6, 2006 The Oklahoman
The state Corrections Department might lose its contract with a private
prison that houses 800 inmates, the agency's director said. Federal
immigration officials have been negotiating a contract with the Great
Plains Correctional Facility in Hinton that would offer more favorable
terms than those offered by the state, which pays $44 per day for each
inmate housed there, state Corrections Director Justin Jones said.
Officials for Cornell Corrections, the company that runs the prison, did
not respond to inquiries Thursday from The Oklahoman. Carl Rusnok, regional
spokesman for U.S. Immigration and Customs Enforcement, said only that
"we contract with a number of facilities around the country."
U.S. Rep. John Sullivan, R-Tulsa, who has called for an increased presence
by the federal agency in Oklahoma, said the agency is looking to better
serve Oklahoma's immigration enforcement needs. "Any increased
Immigration and Customs Enforcement presence in Oklahoma is a positive step
for our state," Sullivan said in a statement. Jones said his agency
already has executed its option to renew the contract. Leasing that space
to anyone else should not be allowed under the contract, he said. Jones
said corrections officials will challenge any contract with the prison that
undercuts the department's holdings there.
July 24, 2006 Oklahoman
All five inmates who were hospitalized after an altercation Friday in a
Caddo County prison have been treated and returned to jail, according to a
statement from Cornell Companies Inc., the prison's private owner. Shortly
before 7 p.m. Friday, between 25 and 30 inmates started a disturbance at
the Great Plaines Correctional Facility that resulted in the injuries, the
statement says. Five inmates were injured and taken to area hospitals in
the incident, according to the statement. Earlier reports indicated seven
inmates were injured and four hospitalized. All injuries were minor, the
statement notes. The prison remained on lockdown Saturday. The medium
security prison for men can house 766 inmates, according to the Web site of
the prison's Houston-based owner. In 2005, the prison was the site of a
prisoner fight that ended in the death of an inmate. And in 2000, the
prison's owner was fined $304,000 for alleged security breaches that led to
an inmate's escape.
July 21, 2006 KOCO 5
A disturbance was reported Friday among inmates at a private prison in
Caddo County. A fight broke out among a group of inmates about 6:30 p.m. at
the Great Plains Correctional Facility at Hinton, Caddo County Sheriff Gene
Cain said. Cain said six or seven inmates were transported by ambulance to
a hospital in El Reno. The severity of the injuries was not immediately
known but they did not appear to be life threatening, Cain said. The
sheriff said authorities do not know what started the fight. Capt. Stuart Meyer
of the Oklahoma Highway Patrol said troopers were notified of a disturbance
at the private prison but that details - including how many inmates were
involved and whether anyone was hurt - were not immediately known.
"We've been told there was a disturbance there. But they have not
requested any assistance from the highway patrol," Meyer said. Jerry
Massie, spokesman for the state Department of Corrections, said a fight was
reported in one housing unit at the prison, which houses about 250 minimum
and medium security inmates. But Massie did not know the severity of the
incident. A spokesman for the Hinton Police Department who asked not to be
identified said the prison was in lockdown at 10 p.m. and that all inmates
were back in their cells. Prison authorities refused to release any
information. An unidentified operator who answered the telephone at the
prison told an Associated Press reporter to call back during normal
business hours and talk to someone else. The disturbance is not the first
at the facility. Inmate Pedro Posadas, 32, was killed on March 4, 2005, in
a fight with another inmate at the private prison. The prison, owned by
Cornell Corrections Inc. of Houston, was fined by the Department of
Corrections in May 2000 for alleged security breaches that allowed an
inmate to escape the month before. The $304,000 penalty was at the time the
largest ever assessed against an Oklahoma private prison.
November 15, 2005 AP
Members of a public trust at Hinton were duped by a Georgia man into
spending more than $7.5 million on a cocoa butter plant that was doomed
from the start, state Auditor and Inspector Jeff McMahan said Tuesday.
According to a special audit by McMahan's office, members of the Hinton
Economic Development Authority were not informed about patent problems tied
to a method of extracting cocoa butter utilizing liquefied gas. McMahan
said a conflict of interest appears to exist because several members of the
trust authority that approved the project also became minority owners of
the cocoa butter extracting plant. Ken Doughty, vice chairman, lost $1.8
million in the deal, auditors said. They said the other board members got a
share of ownership through promissory notes. Trust members were led to
believe that Hinton streets would "be paved with gold" from
profits on the plant, McMahan said. "Basically, the authority's board
members were duped into believing in an individual, who in my opinion,
deliberately made - and received payments on - promises he knew would not
be kept," the state official said, identifying the developer as Donald
R. Hall of Savannah, Ga. McMahan said Hall apparently contacted Hinton
officials after they advertised on the Internet, seeking economic
development opportunities for the town in western Oklahoma. He said the
trust backed the project with part of an $18 million windfall from the sale
of a private prison.
An appeals court Tuesday agreed with two
Oklahoma private prison inmates, who served as their own attorneys, that
prison officials erred in disciplining them. The 10th U.S. Circuit
Court of Appeals ruled 3-0 that prison officials, who revoked 365 days of
earned credits from Timothy Gamble and 180 days of earned credits from
Kenneth Popejoy, must restore the credits. Gamble and Popejoy were
inmates at Great Plains Correctional Facility. Officials there, who ruled
the inmates violated the law that governs inmates' use of their own funds
to pay for photocopying, misinterpreted the law, the judges
concluded. (News Ok, July 14, 2004)
Hector Garza Juvenile Detention Center, San Antonio,
Texas
June
15, 2008 San Antonio Express-News
Sergio Fernández would rather not sound conspiratorial, but he has a hard
time explaining why, despite an existing agreement, the federal government
no longer sends detained immigrants to his San Antonio youth center. Though
it's open for business, the four-story, 12-acre Hector Garza Residential
Treatment Center near U.S. 281 and Loop 1604 on the North Side sits empty.
Its last two residents left nearly two weeks ago. He hasn't been given an
official explanation, but Fernández, the center's director, surmised it may
have something to do with a lawsuit filed against him, his staff and his
corporate parent by eight minors formerly housed at the center who claimed
they suffered physical abuse and neglect. The center is privately owned and
operated by Abraxas Youth and Family Services, the juvenile division of
Houston-based corrections giant Cornell. The 121-bed center, a former
psychiatric hospital, houses youths under state and federal contracts. The agreement
with the U.S. Department of Health and Human Services is to temporarily
oversee as many as 30 unauthorized immigrant minors pending their release
or deportation. A spokesman for the federal agency did not return messages
for comment on why immigrant youths — whose average stay is two to three
months — are no longer sent to the center. The agency has also failed to
respond to repeated requests in the past three months for tours and access
to staff and residents of Hector Garza and other centers in the San Antonio
area. Unlike other HHS-contracted “shelters” or dormitory-style campuses,
the Hector Garza center is designated “staff secure” because it's a more
restrictive setting meant to handle problematic youngsters. The lawsuit,
filed in federal court in San Antonio in April, came as a result of a brawl
between center residents and staff in February. Staffers called police to
help quell the mayhem, which concluded with four minors under arrest.
According to the suit, filed by Texas RioGrande Legal Aid, excessive
violence used by staff and police symbolized incessant abuse that minors
reported to supervisors to no avail. State and federal officials are
accused of covering up abuse reports. Fernández said the allegations are
ludicrous and malicious — legal and political maneuvering meant to buy
minors more time for their immigration cases while making a for-profit
juvenile detention business look bad. “They don't have one shred of
evidence,” Fernández said Thursday while giving a reporter a tour of the center.
“We're looking forward to seeing this through to be fully vindicated.”
Though he couldn't discuss details of the February fracas for legal
reasons, he already claimed victory after a state investigation cleared the
center of abuse or neglect. The report from the Texas Department of Family
and Protective Services faulted staffers for failing to remove one minor
checking out the fight — a citation Fernández is appealing — but found no
other violations. Pointing to cameras and microphones in the ceiling in the
hallway where the clash took place, Fernández remained confident he'll win
the suit because the fight was recorded. The three residential floors are
split into two wings to separate resident populations — immigrant
youngsters cannot have contact with youths housed under other contracts.
Rooms have two single beds and a bathroom, and doors must remain open
except during the day, when staff lock them while minors attend classes
taught by the John H. Wood Jr. Charter School. Residential wings have classrooms,
lounges with seascapes painted by the youngsters and laundry rooms —
residents are encouraged, though not obliged, to wash their own clothes,
Fernández said. The first floor has an intake area and cafeteria, while
outside are picnic tables, a pool, a small soccer field and a 12-foot steel
“no-climb” fence that replaced another barrier over which five minors had
jumped to flee — three were caught. Fernández said overzealous lawyers
preyed on minors' survival instincts, prompting them to sue the center.
Staff and residents had cordial and even amiable relations before lawyers
began showing up, he lamented. “Sometimes we feel like a pawn in a bigger
issue,” he said. “But we're not about whether government policies are right
or wrong. We're about providing a safe environment for the kids — that's
it.”
May 16, 2008 CBS News
A new lawsuit filed against a private contractor who runs an immigrant
child detention center claims nine teenagers were beaten and abused by
employees who work for Cornell Companies. The company has been cited by
immigration officials for safety problems in the past. The Hector Garza
facility in San Antonio handles young immigrant “males with serious
behavioral and psychological impairments”. “I think the general American
has no idea these kids even exist,” said Susan Watson, Texas Rio Grande
Legal Aid attorney for the nine plaintiffs, “When our own government treats
them this way, they deserve their day in court,” she said. The plaintiffs
claim they notified authorities of multiple beatings but no action was
taken. One of the plaintiffs is described in court documents as a
16-year-old Honduran male identified as C.C. Arriving at the border alone,
C.C. was put into custody for a week by Border Patrol agents. He was later
transferred to the Hector Garza Center, where court filings claim a teacher
“severely battered C.C. punching and kicking him, then beating him with a
chair as he lay on the floor.” Lawsuit filings claim C.C. conveyed this to
the authorities but nothing was done. A week later, court documents
indicate C.C. came to the defense of another child who was being beaten.
C.C. was hit again, this time losing consciousness and ended up in the
hospital, according to the civil complaint. A spokesperson for Cornell
Companies, Charles Seigel, says the company strongly denies any abuse,
“Every complaint has been investigated by the company as well as by the
state…and none of these have ever found any evidence of anything that can
back up the charges.” Seigel said there was a time when one of the
teenagers went to the hospital but said it was due to injuries from a fight
between the detainees, not from an abusive teacher. This is not the first
time Cornell Companies has been accused of safety problems. In September,
the U.S. Immigration and Customs Enforcement (ICE) agency pulled all 600
detainees from an Albuquerque jail run by Cornell. ICE spokeswoman Kelly
Nantel said the agency, “had great concern over the health, safety and
security of our detainees in the facility” but would not provide any more
detail. News reports at the time described a dirty, crowded facility with
excessive heat and poor medical conditions. Nantel said the agency
terminated its memorandum of understanding with the company this winter.
The Hector Garza San Antonio facility that contracted with the federal
Office of Refugee and Resettlement (ORR) opened one month after ICE pulled
their detainees from Cornell Companies’ care. The Office of Refugee
Resettlement declined all comment citing the pending litigation. Cornell Companies
is just one of the companies that manages 36 ORR facilities nationwide.
Documentation of care for immigrant detainee children in these detention
centers across the country is poor according to a March, 2008 report from
the Inspector General for Health and Human Services. The report found,
based on a sampling of case files, that more than half lacked one or more
required assessments for the children. Half did not contain education
records and more than half did not include notes from counseling sessions.
Auditors say this left it unclear whether children were receiving services
at all.
High Plains
Correctional Facility, Brush, Colorado
June
29, 2010 Brush News-Tribune
High Plains Correctional Facility will close down after the state takes the
remaining inmates away from the Brush prison today. Most of the employees
at High Plains Correctional Facility will lose their jobs after the state
removes the last remaining inmates from the Brush women’s prison today. “We
have already notified our staffs that most of them unfortunately have to be
laid off for now,” said Charles Seigel, spokesman for Houston, Texas-based
Cornell Companies, Inc., which owns the Brush prison. The local facility
normally employs 83 people, Seigel said, but management has left about half
of the positions vacant in anticipation of the closure. “In the last few
months we haven’t filled positions, knowing this was going to happen,” he
said. Three of the roughly 40 current employees will remain on staff to
maintain the facility and prepare for any potential new business, but the
rest of the workers will lose their jobs, Seigel said. Cornell has offered
to transfer some of the employees to company facilities in other areas, he
said. At least 10 of the employees have accepted jobs at a Cornell prison
in Hudson, but workers are reluctant to take jobs any farther away. “We’re
still working on trying to find positions as much as possible for people,”
he said. The closure of the facility will also result in a loss of revenue
for the city of Brush, said city Finance Officer Joanne Gosselink. The city
will lose roughly $22,000 in annual income it received for processing the
prison’s payments from the state, she said. In addition, the city will no
longer receive revenue from sales tax on purchases made by the inmates, she
said.
April 8, 2010 Brush
News-Tribune
Due to a decline in the number of female prisoners throughout Colorado,
the state might remove inmates from High Plains Correctional Facility in
Brush this summer. “The state has talked about the fact that they may not
need the facility now, that they may not need the capacity that High Plains
provides,” said Charles Seigel, spokesman for Houston, Texas-based Cornell
Companies Inc., which owns the Brush prison. The medium-security prison can
house up to 272 female inmates, who are placed at the facility through a
contract with the Colorado Department of Corrections. The prison had a
total inmate population of 252 in February 2009 and 218 in February 2010,
according to the CDOC. In an attempt to keep the Brush prison operational,
Cornell is now working with corrections officials in Colorado and several
other states to identify alternate ways to use the facility. Seigel said
the local prison might have the opportunity to replace any departing inmates
with prisoners from other states, which is allowed in Colorado. He said he
did not know whether the local facility could be converted into a prison
for men. “We’re not sure yet what the future holds,” he said. “There are
different options and different ways this may work out.”
Hudson
Correctional Facility, Hudson, Colorado
Cornell Companies
April 30, 2010 The News Tribune
The security breach this month at a private Colorado prison holding
hundreds of Alaskans was caused by human error, according to Cornell
Companies, the prison owner and operator. A correctional officer in a
central area electronically unlocked the doors to the cells of 41 inmates
around 1:20 a.m. on April 14, allowing the prisoners into the pod
corridors, Charles Seigel, Cornell spokesman, said Thursday. The officer at
Hudson Correctional Facility has resigned, Seigel said. The company
wouldn't release the officer's name. Cornell hired experts who determined
the problem was not mechanical, Seigel said. Seigel said the officer was
properly trained in security procedures and it's not clear why he unlocked
the cell doors. The pod holds inmates who were in segregation, typically
for behavioral problems or their own protection. The lapse led to an
uprising involving eight to 12 inmates, Seigel said. When the cell doors
unlocked, most of the inmates stepped out, looked around and returned to
their cells, according to Cornell. At least one tried to assist authorities
by describing on the intercom what was happening. Two correctional officers
in the pod barricaded themselves in a staff office during the disturbance,
which lasted about six hours. Some of the inmates used a filing cabinet
like a battering ram to try to break into the office, Seigel said. The door
was dented but they weren't able to open it. In February, one inmate in the
segregation unit punched the assistant warden and broke his nose, Seigel
said. That inmate now faces new criminal charges, Seigel said. He said
Cornell doesn't release names of inmates and Colorado authorities weren't able
to provide details on Friday. Seigel said he didn't know how long the
officer who made the mistake had worked for Cornell. The prison only opened
in November, and most of the officers were new. Starting pay is $12 an hour
and would be higher for experienced officers, according to Cornell. The
state of Alaska contracts with Cornell to house Alaska inmates at Hudson.
The prison houses only Alaskans. At the time of the disturbance, 877
inmates were at the facility. Seigel said he thought at least a couple of
the instigators in the disturbance had been moved to a Colorado
institution. Corrections officials from Colorado and Alaska also have been
investigating what happened. The Colorado department's private prison
monitoring unit and inspector general's office are involved, said Monica
Crocker, spokeswoman for the Colorado Department of Corrections. As a
result of the breach and inmate uprising, Cornell also is looking into
making improvements in the security system, Seigel said.
April 14, 2010 Denver
Post
A disturbance at the privately owned Hudson Correctional Facility 25 miles
northeast of Denver International Airport was sparked when cell doors in a
unit housing 41 inmates from Alaska inexplicably opened early this morning.
Charles Seigel, spokesman for the Cornell Companies, which operates the
prison, said his company is investigating whether the doors opened at about
1:20 a.m. in the prison's segregation unit because of an electronic
malfunction or human error. The segregation unit houses inmates who have
disciplinary issues and have caused problems, as well as inmates in
protective custody, Seigel said. When inmates realized the cell doors were
open, many left their cells but most returned a short time later. However,
as many as a dozen began destroying sprinkler heads and computers. They
also tried to break out of the building by breaking windows. Seigel said
the inmates who vandalized the unit were housed there because of
disciplinary problems. The disturbance caused widespread water damage. The
unit was littered with water, paper and smashed computers. Seigel said that
two guards who were in the unit fled to a captain's office where they
locked and barricaded the door. He said some of the inmates outside the
office tried to protect the two guards in the captain's office. During the
disturbance, which lasted until about 7:30 a.m., the two guards were in
constant communications with prison officials and were able to watch what
was going through windows, Seigel said. Seigel said prison officials
decided to let things cool down before acting. At 7:30 a.m., the prison
sent in its emergency response team. The team used tear gas to subdue the
inmates. No corrections officers were injured. But Seigel said some of the
inmates had bruises and abrasions. He said the instigator of the
disturbance suffered the worst injury, a cut hand. Seigel said rioters will
be charged under Colorado law. Seigel said the entire prison, which houses
877 inmates from Alaska, is on lockdown, with all inmates remaining in
their cells. He said the lockdown will remain through at least Thursday.
Richard Schmitz, spokesman for the Alaska Department of Corrections, said
the Hudson Correctional Facility opened in November 2009. Only Alaska
inmates are housed there.
April 14, 2010 AP
A small group of Alaska inmates took over a section of the privately owned
Hudson Correctional Facility during a prison disturbance overnight. No
injuries were reported in the disturbance that happened late Tuesday or
early Wednesday at the prison owned by Cornell Companies Inc. Company
spokesman Charles Seigel says the disturbance involving about eight inmates
has been brought under control. The group damaged sprinklers, setting off a
fire alarm. Additional details were not immediately available. Cornell
opened the 1,250-bed medium security prison in November and houses about
1,000 inmates from Alaska. The Colorado Department of Corrections, which
oversees private prisons in the state, has sent six investigators to the
prison Wednesday. A telephone call seeking comment from Alaska Corrections
Commissioner Joe Schmidt Wednesday was not immediately returned.
September 27, 2009 Alaska
Dispatch
After 15 years of managing Alaska prisoners housed out-of-state,
Corrections Corporation of America (CCA) has lost its contract to Cornell
Corrections. Cornell's will charge the state about $19,446,000 a year to
house 900 prisoners, while CCA's plan would have cost $18,724,000 --
$722,000 less a year. Either way the state will realize savings over the
$20,669,000 it now pays through a contract with CCA. The 770 inmates
serving time at CCA's Red Rock Correctional Center in Arizona will be moved
late this year to Cornell's Hudson Correctional Facility in Colorado, a
1,250-bed center now under construction. The move -- via special U.S. Marshals
Service planes -- is expected to cost Alaska more than $200,000, Alaska
Department of Corrections spokesman Richard Schmitz said. The Department of
Corrections denied a protest of the award filed by CCA attorneys, who said
they won't launch further appeal. In the protest, CCA attorneys Charles
Cole -- a former Alaska Attorney General -- and Stephen Williams argued
that Cornell Corrections of Alaska lacks the basic experience the state
requires, and that a preference system for Alaska-based bidders was
misused. Cornell's bid was more costly than CCA's for the three-year term,
but a proposal evaluation panel awarded Cornell's plan more points because
of the company's status as an Alaska entity. Points matter as a committee
rates the proposals in several categories. According to CCA's protest, the
company gained more points than Cornell in five other evaluation
categories. In denying the protest, the state said Cornell Alaska qualifies
for two perks as an in-state company -- a bidder's preference and an
offeror's preference -- and that Cornell meets experience standards. CCA's
attorneys argue that Cornell's Alaska enterprise manages halfway house
centers and lacks experience housing federal prisoners. In its bid, Cornell
turned to its parent company, based in Houston, as the qualified service
provider. CCA's attorneys took issue with the state awarding Alaska
preferences to a business that would turn the contract over to its Texas
parent company to manage. Alaska has contracted with CCA since 1994 to house
sentenced prisoners out of state. Currently, 770 Alaska inmates are serving
time away. Most have at least year-long sentences. Meantime, the $240
million, 1,536-bed Goose Creek Correctional Center is scheduled to open in
2012 at Point MacKenzie. The medium-security men's facility, which is
expected to alleviate Alaska's prison space shortage, is being funded
through bonds issued by the Matanuska-Susitna Borough. The state will pay
off the bonds by leasing the facility from the borough, and will take ownership
once the bill is settled. Cornell has tried for years to solidify support
for a private prison in Alaska, and became wrapped up in a far-reaching
probe into political corruption. The company's lobbyist, Bill Bobrick,
pleaded guilty on charges he tried to bribe Rep. Tom Anderson--who is now
serving time in federal prison himself-- to advocate for a private prison.
Cornell was not implicated.
August 8, 2009 Stock House
Cornell Companies, Inc. (NYSE:CRN) announced today that it has received
from the State of Alaska, Department of Corrections ("Alaska
DOC"), a Notice of Intent to Award a contract to house 1,000 state
prisoners at its Hudson Correctional Facility (the "Facility")
located in Hudson, Colorado. The Facility, which will have a service
capacity of 1,250 beds, is presently under construction and is expected to
be completed in the fourth quarter of 2009, at which point the Company
anticipates initiating inmate ramp. Under the existing terms of the Notice
of Intent, the Alaska DOC will house 1,000 adult male inmates at the
Facility, with an agreed-upon 800-bed guarantee. Upon completion of the
inmate ramp and once full occupancy has been achieved, the contract is
expected to generate nearly $22 million in annualized operating revenues.
The Notice of Intent to Award is subject to the expiration of the
applicable protest period and final execution of a written contract, which
is expected to occur in a few weeks. At that time, the Company anticipates
that it will be able to confirm expected activation dates and to discuss
the impact of startup expenses at the Facility in the third and fourth
quarters of 2009.
March 8, 2007 Greeley Tribune
Hudson town board members decided Wednesday night to postpone a decision
to move forward with plans on annexing a portion of unincorporated Weld
County for future use as a private women's prison. Close to 50 residents
from Weld County were at the meeting to voice concerns they had regarding
the economic impact the proposed prison would create. Hudson Mayor Neal
Pontius said the town plans to begin annexing what would be close to 320
acres northwest of Hudson. Once the area becomes part of the town, he said
he would like to leave it up to the residents to vote on whether the area
should be zoned for the use of the prison. Pontius said the vote is
tentatively set for May. "I want to get all the information and I want
to make a smart choice for the town," Pontius said. The annexation was
postponed to get more residents' comments. Last June, the Colorado
Department of Corrections awarded Houston-based Cornell Companies the bid
to build an 832-bed women's prison in Hudson, a potentially $16 million
annual contract. Cornell Companies runs prisons in 18 states throughout the
country, including one juvenile treatment facility in Cañon City. The
proposal for the prison was put forward to the city's town board last
April. Some residents already have begun working to convince the community
that a prison would be a bad choice for the town, said Laura Moreland, who
lives outside the city limits in Fort Lupton. "We are opposed to
private prisons in general," Moreland said. In the research she's done
on private prisons she said shows higher escape rates. She said she also is
concerned because the town does not have a police department. She said she
wonders how the town will respond to the security issues a prison could
create. "I think it is a huge concern," Moreland said. "The
thought of having a prison that close is very frightening and I'm worried
about the safety of my children." Other residents, however, felt the
growth would be good for the town. "If some of the money is going to
be used to build streets, then I'm for it," said resident Randy
Childs. "I've been waiting 34 years for my dirt street to get
paved." Pontius said it still remains unclear how much having a prison
would actually increase the town's revenue.
Jos-Arz Therapeutic Public Charter
School, Washington,
DC
November 6, 2005 Washington Post
The reddish-brick building sits vacant on a tree-lined lot in Northeast
Washington, a three-story monument to a failed experiment to bring down the
exorbitant costs of special education in the District. Five years ago, the
former seminary on Taylor Street became a public charter school for
children with severe emotional disturbances. Officials from the school
system and the city's youth services agencies enthusiastically endorsed the
plan, seeing an opportunity to reduce the $40 million annual cost of
sending such children to private facilities as far away as California and
Utah. The D.C. Council also liked the idea -- and provided an unusual
emergency allocation of $9.2 million so the charter school could increase
its staff and convert the building to a 24-hour treatment facility. But instead
of saving D.C. taxpayers money, the Jos-Arz Therapeutic Public Charter
School turned into a costly failure. Jos-Arz, embroiled in a political
battle between the council and the school board, enrolled fewer than half
the number of students projected and never received enough money to
complete the planned renovations. In June, the school moved out of its home
on Taylor Street because it could not keep up with the rent, and the school
board is considering revoking its charter. In all, Jos-Arz received about
$15 million in city funds, of which $2.3 million was used for renovation
expenses, former officials from the school say. Although there is sharp
debate over who is to blame, everyone involved agrees that the city's
investment essentially was wasted. "We spent a whole lot of money, and
what do we have to show for it? Nothing," said former council member
Kevin P. Chavous, one of the school's early supporters. In the early days,
the plans of Jos-Arz founders Rollie and Gwendolyn Kimbrough resonated
strongly with both city and school officials. But Jos-Arz opened only as a
day school in fall 2000 because the building was not yet configured to
serve residential students. Charter schools normally receive an allocation
from the city based on their current enrollment. That formula was not going
to work in the case of Jos-Arz, its advocates said, arguing that it needed
a large infusion of funds so it could build a residential wing and hire
medical specialists. The school was soon hemorrhaging money because of its
low enrollment, Jos-Arz officials said. They said the situation was
exacerbated by a city funding formula that did not take into account the
high cost of the residential program. In June 2003, Gwendolyn Kimbrough
quit as Jos-Arz's executive director, saying she had depleted her personal
savings on the school. Houston-based Cornell Cos., which runs some of the
private out-of-state facilities that enroll D.C. special education
students, took over. Paul Doucette, a Cornell spokesman, said city
officials assured the company that Jos-Arz would get more referrals from
the D.C. Department of Mental Health and other agencies involved in the
placement of special education students. But the department instead began
putting more emphasis on community-based day programs. The school continued
to receive "only a trickle of students," Doucette said, and
Cornell pulled out in June.
October 12, 2005 Washington Post
The District school board is considering shutting down a public charter
school for severely emotionally disturbed students that received $9 million
from the city to buy a facility but did not come close to reaching the
enrollment level it had promised and has since moved out of the building.
The D.C. Council issued the $9 million revenue bond for the Jos-Arz Therapeutic
Public Charter School in 2002 so it could buy a former seminary at 220
Taylor St. NE and renovate the property. Supporters of the unusual
financing arrangement said it was an investment in the school system's
effort to place a larger percentage of disabled students in public
facilities. Placement of special education students in private facilities
has cost the city tens of millions of dollars a year in tuition. But
Jos-Arz, chartered in 2000 as a residential school for 70 students, has
never enrolled more than 20 students and is no longer operating as a
residential program, said Paul Doucette, a spokesman for the management
company that ran the school from 2003 until early this year. The school
moved out of the Taylor Street building before the summer and is now at
1401 Brentwood Pkwy. NE. The D.C. school board, which gave the school
permission to open and is responsible for monitoring its progress, put
Jos-Arz on probation in July, saying the school had violated the conditions
and standards set forth in its charter. The board is scheduled today to
discuss a recommendation to revoke the charter because the school has not
submitted a satisfactory plan for improvements. The school "is not
performing as agreed to under its charter. It wasn't serving the number of
students in the program it said it would," said school board member
Tommy Wells (District 3), who supports closing Jos-Arz. "Frankly, the
investment the city made into this group -- the purpose is no longer being
met." Doucette blamed the school's enrollment problems largely on the
District government's bureaucracy.
Lamar, Colorado
November
3, 2005 Pueblo Chieftain
Citizens voted Tuesday to change the city charter, which will now
require a vote before a privately owned prison can be built or operated in
town. The measure also bars the city from selling water or sewer services
to a privately owned prison or from using city funds or staff time to
recruit a prison without a vote. The ballot measure passed 1,007 to 816.
Plans to build a privately owned prison in town surfaced in 2003 and the
issue has sparked a long fight. Concerned Citizens of Lamar, the group
battling the prison proposal, have fought with city officials for the past
three years and on Wednesday members said they were elated to hear the election
results. "It's been a long and hard struggle - from lawsuits to
protests - we are extremely happy that the citizens get to decide if there
will be a prison located here," said Verdell Howard, CCL president.
City Administrator Jeff Anderson said Wednesday that the people have spoken
and he supports the outcome of the election. "I think we need to be
very cautious before we ever approach this issue again." The fight to
keep a privately owned prison from being constructed gained momentum last
March when District Judge Douglass Tallman ruled against city officials who
filed a lawsuit questioning the legality of a petition seeking a vote on
the issue. City officials filed suit in Prowers County District Court in
August 2004 questioning if CCL's petition had more than one subject.
Tallman ruled against the city, clearing the way for CCL to proceed with
the initiative process that was stalled when the lawsuit was filed. After
months of fighting city hall, the petition was approved by the city clerk
in April.
October 27, 2005 Pueblo Chieftain
Citizens opposed to a proposed private prison charge that the local
economic development agency is misrepresenting a ballot question on the
prison. An amendment to the city charter, which will allow citizens the
right to vote before a privately owned prison can be built or operated in
town, will be on the ballot next week. In August, CCL turned in more than
300 signatures to the city clerk. Only 167 signatures were needed to put
the issue on the ballot. On Nov. 1, voters will decide whether to amend the
city charter to require a vote before a privately owned prison can be built
or operated within the city. The measure also would bar the city from
selling water or sewer services to a privately owned prison or from using city
funds or staff time to recruit a prison without a vote. Verdell Howard,
president of CCL, said Wednesday she is requesting that District Attorney
Mike Davidson investigate whether Prowers County Development Inc. has
violated a campaign law. Howard alleges that members of PCDI are lying to
the public about the measure in fliers and cards they are circulating.
Colorado law permits any person to file an affidavit with the district
attorney alleging that fair campaign statutes have been violated. Davidson
said that by law, he is required to investigate and prosecute if necessary.
Howard said that PCDI has violated the statutes by printing misleading
information about the ballot measure. Members of PCDI say the proposed
amendment is not just about the right to vote on a private prison. PCDI has
been handing out fliers and cards that say, "Under the proposed
change, any business large or small, looking to open in Lamar might have to
go through a citizen vote." Lisa DeLancey, economic development director
for Prowers County, said Wednesday that the measure could have a negative
impact on attracting new jobs to Lamar and Prowers County. "We are
trying to make people realize that a prison is a business and if you are
having to put a vote to the citizens for this business then what other
businesses are we going to make jump through the same hoop - there is
nothing false about our claim," DeLancey said.
October 14, 2005 Pueblo Chieftain
An amendment to the city charter, which will allow citizens the right to
vote before a privately owned prison can be built or operated in town, will
be on the ballot next month. Plans to build a 500- to 750-bed private
prison in town have been hotly debated since the project was announced in
2003. The estimated construction cost for the proposed prison is $40
million. It would employ 225 workers. Concerned Citizens of Lamar, a group
formed to fight the prison proposal, filed a petition seeking a vote on the
issue last year, but their effort was held up when city officials filed
suit questioning if CCL's petition had more than one subject. The lawsuit
also asked if CCL has to first notify the city of intent to circulate a
petition before it is submitted to the city. District Judge Douglass
Tallman ruled against the city on both issues, clearing the way for CCL to
proceed with the initiative process that was stalled when the lawsuit was
filed. After months of fighting city leaders, CCL's petition was approved
by the city clerk in April. In August, CCL turned in more than 300
signatures to the city clerk. Only 167 signatures were needed to put the
issue on the ballot. On Nov. 1, voters will decide whether or not to amend
the city charter to require a vote before a privately owned prison can be
built or operated within the city. The measure also would bar the city from
selling water or sewer services to a privately owned prison, or from using
city funds or staff time to recruit a prison without a vote. Members of a
committee trying to recruit a privately owned prison to Lamar have said
that although they remain firm in their resolve, they have decided to tone
down their efforts. Lamar City Administrator Jeff Anderson said Thursday
that the issue is currently at a standstill. He said the project has been
compromised because of a series of events including last year's riot at the
privately owned Crowley County Correctional Facility in Olney Springs.
September 27, 2005 Lamar Daily News
An amendment to the Lamar Home Rule Charter is on the November ballot. The
amendment is designed to change the city charter to allow citizens the
right to vote on whether a privately-operated prison facility can be
constructed or operated within the city. The ballot measure, which will be
mailed to active voters between Oct. 7 and Oct. 17, reads as follows:
Referred Measure 2A: Amendments to the Home Rule Charter of the City of
Lamar, Colorado concerning privately operated correctional facilities; and
in connection therewith, requiring voter approval before any privately
operated correctional facility can be constructed or operated within the
CIty of Lamar, be recruited or promoted by City employees for the City of
Lamar, receive funds from the CIty of Lamar, or receive water and
wastewater services from City-owned water or wastewater utilities. A
citizens' group, Concerned Citizens of Lamar, proposed the amendment after
an ad hoc committee consisting of City Administrator Jeff Anderson, local
business leaders and private citizens made public the pros and cons of a
privately-owned prison facility operating in Lamar.
April 15, 2005 Pueblo Chieftain
A group of citizens opposed to a proposed private prison have finally won
the right to circulate petitions calling for a vote on the matter. After
months of fighting city leaders, members of the Concerned Citizens of Lamar
said Wednesday that the town clerk has approved their form of their
petition calling for a citywide vote before any prison can be built or
operated in the city. "We are happy to finally get this petition
going," said Verdell Howard, spokeswomen for CCL. If the CCL collects
the necessary signatures, the issue will be on the November ballot. The
petition asks that the issue be decided as part of the November election
rather than at a special election. "It will save the city a lot of
money," Howard said. In August, city officials filed suit in Prowers
County District Court challenging the legality of certain aspects of CCL's
petition. The lawsuit also asked if CCL has to first notify the city of
intent to circulate a petition before it is submitted to the city. A judge ruled
in March against the city on both issues, clearing the way for CCL to
proceed with the initiative process that was stalled when the lawsuit was
filed. Howard said that since the judge ruled in CCL's favor, the city has
been cooperative in every way. Howard said that once CCL files a statement
of intent to circulate a petition, the organization will then have 90 days
to collect approximately five percent of the registered voters in Lamar or
168 signatures. The petition, which was submitted to the city again last
month, would amend the city charter to require a vote before a privately
owned prison can be built or operated within the city. The measure also
would bar the city from selling water or sewer services to a privately
owned prison or from using city funds or staff time to recruit a prison
without a vote. Howard said that the group will file a letter of intent and
begin the signature-gathering process on Monday. "We will start
gathering signatures right after we submit our letter of intent. We anticipate
getting more than the required amount of signatures just in case,"
Howard said.
March 18, 2005 Pueblo Chieftain
The fight to keep a privately owned prison from being constructed here has
gained momentum. District Judge Douglass Tallman ruled Monday against city
officials who filed a lawsuit questioning the legality of a petition
seeking a vote on the issue. The petition was filed by Concerned Citizens
of Lamar, a group formed to fight the prison proposal. The defendants
listed on the complaint were CCL members Verdell Howard, Wayne Stokke and
Nancy Turner. City officials filed suit in Prowers County District Court
last August questioning if CCL's petition had more than one subject. The
lawsuit also asked if CCL has to first notify the city of intent to
circulate a petition before it is submitted to the city. Tallman ruled
Monday against the city on both issues, clearing the way for CCL to proceed
with the initiative process that was stalled when the lawsuit was filed.
The petition, submitted to the city Aug. 16, would amend the city charter
to require a vote before a privately owned prison can be built or operated
within the city. The measure also would bar the city from selling water or
sewer services to a privately owned prison or from using city funds or
staff time to recruit a prison without a vote. Howard said that an issue of
this magnitude should be put to a vote of citizens and CCL is excited about
moving forward. "We are so elated with the judge’s decision - we are
as excited as can be," Howard said. Howard, who was notified about the
ruling Tuesday, said CCL members are just trying to exercise their rights
under the state's system of direct democracy. "The city disagreed with us, so they
tried to stop us through intimidation but it didn't work," Howard
said. Last month, members of a committee trying to recruit a
privately owned prison to Lamar said that although they remain firm in
their resolve, they have decided to tone down their efforts. Lamar Mayor
Elwood Gillis said that the project has been compromised because of a
series of events including last year's riot at the privately owned Crowley
County Correctional Facility in Olney Springs. Plans to build a 500- to
750-bed private prison in town have been debated since the project was
announced in 2003.
March 17, 2005 Lamar Daily News
District Judge Douglas Tallman issued a ruling late yesterday finding that
a petition submitted by the Concerned Citizens of Lamar (CCL) is valid. The
petition seeks to amend the Lamar City Charter to require a vote before a
privately owned prison could be built or operated in Lamar, or before the
city could sell water or sewer services to a private prison or use city
staff or resources in the recruitment of a prison. The CCL filed the
petition last summer, seeking the election to amend the charter, but the
Lamar City Council then filed an action in Prowers County District Court
seeking a court opinion on whether the petition language violated the
state's single subject rule in ballot initiatives. During oral arguments in
the case in December, the two sides were at odds over whether the single
subject rule applied to home rule cities, as well as to whether the
language in the petition constituted multiple subjects. The filing of the
lawsuit spurred complaints by the CCL that they were being sued for
exercising their rights in the petition process, partially because of a
clause in the original motion for declaratory judgment which could have
allowed the court to award costs and fees, including any expert witness
fees, to the city. The city claimed, however, that it was filing the court
action to clarify the issue because the city would be faced with the burden
of legally defending it if it were later challenged. In his ruling, Tallman
noted that the single subject rule was intended to apply only to statewide
issues, not to local or municipal issues, thus local issues are not
required to conform to the single subject rule. "Had the legislature
intended this requirement to encompass all initiatives, both local and statewide,
it could have simply included such language in the enabling
legislation," Tallman wrote. In a news release issued by the CCL this
morning, Howard said she was happy with the decisions. "All we are
trying to do is exercise our rights under Colorado's system of direct
democracy," she said in the release. "The city disagreed with us,
so they tried to stop us through intimidation."
February 24, 2005 Pueblo Chieftain
Members of a committee trying to recruit a privately owned prison to Lamar
said Wednesday that although they remain firm in their resolve, they have
decided to tone down their efforts. Lamar City Administrator Jeff Anderson
said that the issue is currently at a standstill. Lamar Mayor Elwood Gillis
said the project has been compromised because of a series of events
including last year's riot at the privately owned Crowley County
Correctional Facility in Olney Springs. "That riot sparked an audit
and a legislative review panel," Gillis said. Gillis said the
committee has been receiving strong signals to step back and monitor the
emerging changes in bed requirements, the potential changes in sentencing
laws and the Department of Corrections funding for the coming fiscal year.
Anderson said the decision to slow down efforts also gives the district
court more time to look into a current lawsuit filed by the city asking for
a ruling on the legality of a petition filed by prison opponents. Concerned
Citizens of Lamar, a group formed to fight the prison proposal, is seeking
a vote on the issue and several related topics. City officials filed suit
in Prowers County District Court in August questioning if the petition has
more than one subject. The case was brought before District Judge Douglas
Tallman last December. He has not ruled on the matter.
December 17, 2004 Lamar Daily News
District Judge Douglas Tallman yesterday heard testimony in a Prowers
County District Court action in which the City of Lamar is seeking a court
opinion on whether a petition filed by the Concerned Citizens of Lamar
(CCL) violates the state's single subject rule on ballot initiatives. The
CCL filed the petition August 16 seeking an amendment to the Lamar City
Charter that would call for a citizen vote before a privately owned prison
could be built or operated in the community. But the petition seeks
additional measures, including a citizen vote before the city could sell
sewer and water services to a private prison located outside the city
limits or before the city could use staff time or public funds in the
recruitment or promotion of a prison. The city declined to approve the
petition for circulation, however, after City Attorney Darla
Scranton-Specht cited concerns that it may violate the state's single
subject rule. The council later voted to authorize Specht to seek a declaratory
judgment in district court - essentially an opinion from the judge on the
issues.
December 17, 2004 Pueblo Chieftain
Opponents of a proposed private prison packed a Prowers County
courtroom Wednesday to protest the project. Concerned Citizens of Lamar, a
group formed to fight the prison proposal, is seeking a vote on the
proposal and several related topics. However, city officials filed suit in
Prowers County District Court in August asking for a ruling on the legality
of the petition. The case was brought before Judge Douglas Tallman. He said
that he will not rule on the matter until next year. Plans to build a 500-
to 750-bed private prison in town have been hotly debated since the project
was announced last year.
August 31, 2004 Lamar Daily News
The Concerned Citizens of Lamar has a submitted a response in Prowers
County District Court to a legal action filed by the city of Lamar seeking
a court opinion on the CCL's proposed petition calling for an amendment to
the Lamar city charter. The CCL's proposed petition, submitted to the city
August 16, seeks to amend the charter to require a citizen vote before a
privately owned prison can be built or operated within the city. The
petition also contains language prohibiting the city from selling water or
sewer services to a privately owned prison or from using city funds or
staff time in recruitment of a prison without a vote. The Lamar City
Council, however, voted to file the action in Prowers County District Court
seeking a declaratory judgment as to whether Lamar is subject to the
state's single subject rule for amendments, and whether the CCL's petition
contains multiple subjects. The city also sought a stay in the ordinary
five day time frame the city has to rule on the validity of the petition, and
sought an opinion on whether the CCL must first file a notice of intent to
circulate a petition before it can be submitted to the city. The city also
requested the issue be heard before a jury. In responding to the
court action, the CCL's attorney, Stephen D. Harris of Colorado Springs,
requested a speedy hearing as well as seeking summary dismissal of the
city's action. A speedy hearing request would allow the Court to advance
the issue on its calendar, and Harris requested the Court's earliest
consideration of the issue. Harris also seeks the Court to order the
city clerk to issue a ruling in the August 16 petition immediately, saying
the clerk has a right and responsibility to accept or reject on form
only.
August 27, 2004 Pueblo Chieftain
The fight over a proposed private prison has moved to the courtroom.
City officials filed suit in Prowers County District Court seeking a ruling
on the provisions of a second petition calling for a vote on the prison,
filed by the Concerned Citizens of Lamar. CCL, a recently formed
nonprofit group, says that an issue of this importance should be decided by
the voters. CCL filed a second petition last week after its first
petition was rejected in July, and after efforts failed to reach a
compromise with the city that would have sent the measure to the
ballot. The defendants listed on the complaint are CCL members
Verdell Howard, Wayne Stokke and Nancy Turner. Scranton-Specht said an
answer to the complaint is due by Sept. 9. "We are just a group
of innocent people thinking that we have the right to petition our
government, but we are finding out, I guess, that we don't have that right
in Lamar," Howard said. "We will move forward from
here." (Pueblo Chieftain, August 27, 2004)
Leidel Comprehensive Sanctions Center, Houston, Texas
December
15, 2009 AP
A former contract guard at a Houston halfway house has been sentenced
to five months in federal prison for sexual abuse of a person in detention.
U.S. Attorney Tim Johnson said 30-year-old Nathan Jones of Houston was
sentenced to prison on Tuesday. He will serve five months in home
confinement after completing the prison sentence. Jones was convicted over
the summer of the federal felony offense. He admitted that in 2007, while
employed at Leidel Comprehensive Sanction Center, he engaged in a sexual
act with a female federal prisoner in his office.
February 15, 2006 Dallas Morning News
A man who police say escaped a Houston halfway house and killed three men
in Fort Worth claims to have killed a man in Albuquerque in 1995, New
Mexico authorities said. Christopher Chubasco Wilkins, who aligns himself
with white supremacists, was arrested in November and charged with fatally
shooting three men in Fort Worth. Mr. Wilkins, 37, of Houston told
authorities he killed as many as 12 people in two states who owed drug
debts, officials said. According to federal court records, Mr. Wilkins
escaped from Harris County on Oct. 2 after he was issued a religious pass
to attend church. Mr. Wilkins was serving a five-year sentence for felony
gun possession at the Houston-based Cornell Corrections Facility, a
privately operated halfway house contracted by the U.S. Bureau of Prisons.
November 23, 2005 Houston Chronicle
Reacting to the capture of a Houston halfway house escapee now suspected in
three slayings in North Texas, Mayor Bill White's crime victims advocate on
Wednesday denounced as outrageous that anyone could walk out of a community
corrections center without the public being notified. Andy Kahan said the
incident opens a "Pandora's box" of issues related to how escapes
are handled. "This is a public safety crisis," said Kahan.
"How many other fugitives have escaped from a halfway house that the
public is not made aware of?" Federal officials responded that
employees at the low-security halfway house followed policy the day
Christopher Wilkins' walked away, and that nothing in the inmate's behavior
indicated he was a particular threat or that he had any plans to slip out.
He is now charged in connection with the Fort Worth slayings. Wilkins'
capture on Nov. 5 ended a monthlong taste of freedom for the federal
inmate. He is being held on $1 million bail in the Tarrant County Jail in
connection with the Oct. 26 shooting death of Gilbert Vallejo, 47, and the
slayings two days later of Mike Silva, 33, and Willie Freeman, 40. He also
is charged in a series of crimes committed within just 11 days of Vallejo's
slaying, including aggravated assault and two auto thefts, Fort Worth
police said. "If there had been a warning and a media alert and the
public was informed to be on the lookout for Wilkins, you can certainly
speculate that his crime spree may have been prevented," Kahan said.
Wilkins, 37, received a pass to attend church on Oct. 2 but did not return
to Leidel Comprehensive Sanctions Center in downtown Houston. The halfway
house is operated by Cornell Companies Inc., which has a contract with the
Bureau of Prisons. Officials at the center would not comment on the escape.
According to a federal arrest warrant, the staff contacted local police and
hospitals the day of Wilkins' escape but could not find him. He was
officially listed as an escapee at 5 p.m. His whereabouts were unknown
until his capture in Fort Worth.
November 23, 2005 Dallas Morning News
A criminal who police said may have ties to white supremacy has been
charged in the slayings of three men during his escape last month.
Christopher Chubasco Wilkins, 37, of Houston, already jailed on unrelated
charges, was arrested on suspicion of murder and capital murder. He is
jailed in lieu of bail exceeding $1 million. Mr. Wilkins is accused of
gunning down Gilbert Vallejo, 47, on Oct. 26 as he left the Lady Luck
Lounge on South Jennings Avenue near downtown. Mr. Vallejo was shot
numerous times, police said. Mr. Wilkins also is accused of fatally
shooting Mike Silva, 33, of Hood County and Willie Freeman, 40, of Fort
Worth. They were found Oct. 28 lying in a ditch off the roadway in the 9600
block of Old Weatherford Road in west Fort Worth. Both were shot in the
head, said Fort Worth police spokesman Lt. Ralph Swearingin. Police do not
have a motive but are looking into Mr. Wilkins' background. He was serving
a 60-month sentence at the Cornell Corrections Facility, a privately
operated halfway house contracted by the U.S. Bureau of Prisons. U.S.
marshals filed a criminal complaint this month charging Mr. Wilkins with
escape.
November 22, 2005 Houston Chronicle
A federal felon now charged in the slayings of three men in Fort Worth
escaped from a halfway house in Houston last month after telling officials
he was going to church. Christopher Wilkins, 37, is being held on $1
million bail at Tarrant County Jail in the Oct. 26 shooting death of
Gilbert Vallejo, 47, and the slayings two days later of Mike Silva, 33, and
Willie Freeman, 40, Fort Worth police said. On Oct. 2, Wilkins slipped out
of Leidel Comprehensive Sanctions Center, 1819 Commerce, after receiving a
pass to attend religious services, according to the federal arrest warrant.
Local police were notified after he failed to return by 1:15 p.m. Wilkins
was officially listed as an escapee at 5 p.m., the federal affidavit said.
The facility in Houston is operated by the Cornell Companies Inc. Officials
with the halfway house could not be reached for comment late Tuesday. After
his escape, Wilkins made his way to Fort Worth where he has been charged in
an 11-day violent crime spree - including aggravated assaults and home
burglaries, in addition to the slayings.
Leo Chesney, Live
Oak, California
May
23, 2008 Appeal-Democrat
A Linda man convicted of having sex with a female inmate when he was a
corrections officer in Live Oak was sentenced Friday to 120 days in jail.
The lawyer for Mark Stephen Susoeff called the crime "stupid."
Sutter County Judge Chris Chandler said it was "beyond stupid. It's
disgusting." Susoeff, 45, who worked at the Leo Chesney Community
Correctional Facility, received oral sex in January 2007 from an inmate
near her locker in the early morning at the facility, according to Susoeff's
probation report. Chandler said Susoeff's actions undermine "every bit
of legitimacy that the system has." "You're going to have make
amends for the institution that you have let down," said Chandler.
Texas-based Cornell Companies contracts with the California Department of
Corrections to house about female offenders in the minimum-security
facility. "We feel strongly that any improper conduct should be
punished," said Cornell spokesman Charles Seigel. Cornell hires people
who have work experience but are new to corrections, Seigel said. The
$10-an-hour pay Susoeff is said to have received is in the range of
entry-level compensation, Seigel said. Susoeff worked from 1993-2006 as a
custodian for the Yuba County Superintendent of Schools and was paid $16 an
hour, the probation report said. Defense attorney Donald Wahlberg said
Susoeff, who also was placed on three years probation, needs help with an
alcohol problem. Susoeff's probation requirements include his completing
alcohol counseling. For the past 15 years, the Linda resident has consumed
a case of beer on weekends and four to five beers after work, according to
the probation report. "Maybe if I quit drinking beer, I'll quit
smoking, too," Susoeff said in the report. Susoeff provided cigarettes
and a Bic lighter to a female inmate who had witnessed his receiving oral
sex, the probation report said. He supplied the contraband in exchange for
her silence, according to the report. The probation report also detailed
Susoeff's actions in March 2007 with another inmate with whom he is said to
have had oral sex and intercourse. Susoeff initially denied allegations
that he had sex with inmates and said he was angered by rumors from inmates
at the facility. In an April 29 interview at the county Probation
Department, Susoeff admitted to the first sexual encounter with the female
inmate but denied sex with the second inmate in March 2007. He said family
problems and a stressful job left him "out of it." "I didn't
have a brain left," Susoeff stated. He said he plans to move to the
state of Washington but that his house here isn't selling. "It's been
one hit after another," Susoeff said in the probation interview.
"You can only take so many hits and now my wall of defense is
gone."
November 17, 2007 Appeal-Democrat
A male correctional officer of the Leo Chesney Community Correctional
Facility for women in Live Oak was arrested on suspicion of having sex with
an inmate, a Sutter County prosecutor said Friday. Mark Steven Susoeff, 45,
of the 1700 block of Deborah Lane, East Linda, was arrested at 1 p.m.
Thursday at his residence and booked into Yuba County Jail, where bail was
set at $15,000. He was no longer being held Friday. Susoeff was arrested
after an investigation by the Internal Affairs Division of the California
Department of Corrections, said Sutter County Assistant District Attorney
Fred Schroeder. The minimum security facility is owned and operated by a
private firm, Cornell Companies Inc. of Houston, Tex., but overseen by the
state. Susoeff allegedly had sex with the inmate, who was not named, on two
occasions, once in January and once in March. Leo Chesney Director Paula
Ford said she could not comment and referred questions to Cornell spokesman
Charles Seigel. Seigel said the company and state officials began investigating
after the inmate reported the incidents. Susoeff was then placed on
administrative leave, he said. Like other employees, Susoeff underwent a
background check before being hired, said Seigel. “We believe they’re good
but you can’t prevent everything like this,” he said. Seigel declined to
say how long Susoeff worked at the facility.
June 19, 2002
Live Oak's Leo Chesney Center probably
will survive the budget ax, says a state official who Thursday blasted the
facility's operator for its "sleazy" public relations campaign.
"It's looking much more like it's going to stay open," said
Stephen Green, assistant secretary in the Youth and Adult Correctional
Agency. "This isn't over until the budget is final. Certainly, the
indications are it's going to stay open." The tentative budget deal to
keep Chesney open was hammered out Wednesday. "Clearly, we're a little
better off today than we were two days ago with the decision made
(Wednesday)," said Marvin Wiebe, senior vice president of Cornell Companies
Inc., which runs the Chesney Center under a contract with the state.
"The legislators had some concerns about the lack of options for women
to do their time in Northern California and wanted to see as many options
as possible remain and indicated they were willing to fund that,"
Green said. "The legislators had some concerns about the lack of
options for women to do their time in Northern California and wanted to see
as many options as possible remain and indicated they were willing to fund
that," Green said. "When they are willing to fund it, that makes
it a lot easier for us." "This was just one of just
hundreds of government programs that were being looked at to be scaled back
or eliminated," Green said. "This one got more attention because
Cornell made some of the most outrageous lies imaginable and went around
the state accusing us of murder. They behaved in a most unprofessional
manner." Cornell "used the Enron playbook," Green said,
referring to the bankrupt energy trading company. "They're a
Houston-based company, a for-profit concern. They're very interested in
protecting their profits. They don't care who they have to malign to do
it." Green called Cornell's public relations campaign "sleazy. I
don't think it was slick. It bore no relationship to the truth ... "He
said there's a chance the state may put the contract out to bid or have the
Department of Corrections take over management. "We have an option on
the property and therefore control the property," Wiebe said.
"The expectation of the community is that Cornell would operate it as
we have for the last 13 years." If the state took over, it would cost
an additional $1 million for salaries and benefits, he said. (Privateer
News)
June 12, 2002
Gov. Gray Davis, facing pressure from
several lawmakers, reversed himself partially and agreed to permit one of
five private prisons to continue operating, administration officials said
Tuesday. At least two dozen women legislators signed a letter last month
urging that Davis keep open the Leo Chesney Correctional Facility at Live
Oak, north of Sacramento. Also in doubt is whether the contractor, Cornell
Co. of Houston, would continue operating the facility, or whether the
contract would be put up for competitive bidding. The administration,
trying to close a $24-billion budget deficit, had contended that closing
the five private prisons would save the state $2.8 million.
June 8, 2002
Gov. Gray Davis' plans to close five private prisons, including two in Kern
County, by next week have been halted as the Legislature's budget
negotiators debate whether some or all of the facilities should remain
open. Negotiators are split on the prisons' future, with the Assembly
voting to close them and the Senate voting to restore $2.8 million to Gov.
Gray Davis' budget to keep them operating. More than half the private
prisons' 1,400 inmates have been paroled, sent to firefighting camps or
transferred to prisons operated by the state Department of Corrections, he
said. The plan had been to move the remaining inmates, staff and equipment by
June 15. Contracts of all five of the facilities expire June 30 and the
Department of Corrections does not want to renew them. All of the 340
inmates once housed at the Mesa Verde Community Correctional Facility in
Bakersfield have been moved or paroled, said Durwood Sigrest, head of the
firm that operates the facility. Sigrest said the staff of 80 has been
trimmed down to about 20 and staffers are waiting to hear about the next
move in the stalled closure plan. A few inmates remain at the facility
operated by Wackenhut Corrections Corp. in McFarland, said a spokesman for
the corrections department. The delay creates staffing problems for Cornell
Cos. Inc., which operates the Leo Chesney Community Correctional Facility
for Women in Live Oak, north of Sacramento, and the Baker Community
Correctional Facility east of Los Angeles, said company spokesman Don
Fields. The Chesney center has laid off employees anticipating the closure,
while the Baker facility plans to shut down its inmate-staffed fire and
rescue team as of midnight Sunday. (Bakersfield.com)
Lincoln County Detention Center, Carrizozo, New Mexico
December
23, 2008 Ruidoso Sun
A Lincoln County man has been convicted for his part in a jail riot
that occurred at the Lincoln County Detention Center on Jan. 13, 2008. Jose
Prieto, 25 was convicted Friday of assault on a jail, conspiracy and
criminal damage to property exceeding $1,000. Eighteen prisoners in the
Carrizozo facility's "Delta Pod" were charged with offenses after
the riot. The pod had housed 28 prisoners ranging from accused murderers to
petty misdemeanor probation violations. Since the riots, Emerald
Correctional Management Company has assumed jail management from Cornell
Corrections Company, and this type of prisoner housing has been under study.
June 19, 2008 Ruidoso News
Before Lincoln County commissioners filed over to the county detention
center in Carrizozo for a semi-annual tour and lunch, an official with
Emerald Correctional Management Inc. briefed them on changes since the
company took over May 4. Al Patino, vice president for governmental affairs
for Emerald, said security was "first and foremost" among plenty
of changes. Emerald took over from Cornell Companies, the firm that
absorbed Correctional System Inc., which managed the jail since it opened
in April 2001. But complaints about staffing shortages, the filing of
several lawsuits and an in-mate disturbance in January created
dissatisfaction. Cornell officials in February announced they intended to
execute a 90-day notice to terminate the contract with the county that was
to run until August 2009. Emerald was the only company to respond to a
request for proposals. Patino said they found equipment in disrepair and
other items needing maintenance. They also painted. But major changes were
tied to security, he said. "We found a lot of procedural issues, such
as classification of inmates," Patino said. "We determined why
each inmate was there and his previous history to decide on the proper
housing." A warden from one of their Texas prisons helped identify
problems, he said. For the one juvenile in the jail, they worked with the
district attorney, then requested and received in writing a court order
from the judge for him to stay until sentenced. Commission Chairman Tom
Battin asked if the company expected to detain juveniles on a regular basis
and Patino said no, this 16-year-old is being sentenced as an adult and is
a special case. Patino thanked County Manager Tom Stewart, who was
instrumental in allowing the company to address issues immediately, he
said.
April 17, 2008 Ruidoso News
A one year contract with four renewal options was approved Tuesday by
Lincoln County commissioners with a new firm to manage the county detention
center in Carrizozo. Emerald Correctional Management LLC, founded in 1996
with headquarters in Louisiana, was represented by Al Patiño, director of
special projects, and Clay Lee, chief executive officer. They were in the
county seat of Carrizozo Monday beginning the transition of detention
center employees from Cornell Industries to Emerald. In February, Cornell
officials notified the county they intended to terminate the company's
contract with the county "for convenience," with an effective
date of May 4. The contract was to run through August 2009. The county took
aggressive action for the procurement of a new operator and consideration
of careful planning for an orderly transition, said County Manager Tom
Stewart. Emerald was the only responsive submission to a request for
proposals advertised by the county with a March 28 deadline for submission.
After a closed executive session during a special commission meeting Friday
to consider the proposal from Emerald officials, commissioners awarded the
RFP to the company, subject to negotiation of a successful contract. Following
the recommendation of Stewart, and with a few minor changes proposed by
County Attorney Alan Morel from the initial submission, the contract was
approved Tuesday in a unanimous vote by commissioners. "The firm has
begun steps to transition current employees to the new company to meet the
May 4 deadline for assuming operations," Stewart told commissioners.
Hitting the deadline without a management company could have resulted in
the jail being closed temporarily while Stewart attempted to organize a county-run
operation. The changes specified in the approval included: County prisoners
are given first priority to be housed in the center. A flat fee is charged
to the county by Emerald, whether the prisoner is county or federal. The
fee is $51.75 per day per prisoner. More definition of who will provide
transport personnel and under what circumstances. The county provides the
vehicles in all cases. Pre-adjudication, Emerald will furnish the
driver/guard. After adjudication, the County Sheriff's Department will
handle the job. Sheriff Rick Virden detailed some other situations where
his department would be responsible, which included someone who commits an
offense inside the county and is arrested outside New Mexico. No
psychological evaluation is required for employees. Patiño said in Texas,
no correctional officers are required to be evaluated. Insurance coverage
was increased from $1 million to $3 million for occurrences and limits of
liability. A provision for a performance bond was eliminated. In subsequent
option years, the rates will not be increased by Emerald more than a 2.5
cap on the Consumer Price Index. Stewart said he was extremely encouraged
by the contract and the attitude of company executives. "The company
is forward-looking and they are discussing options for the future," he
said. The center holds 144 prisoners. He based his operating calculations
on 130 inmates, Stewart said, adding, the more beds that can be leased to
federal law enforcement agencies, the better the financial break for the
county. He anticipates a $388,000 increase and an annual operating budget
of $2,760,538, "but that covers more officers and a facility up-to-par
with standards by the American Corrections Association," Stewart said.
Revenues generated by bed rentals and other sources will offset about
$1,360,000, leaving the cost to the county at $1.4 million. Stewart said
the company's reputation is good and Lee just returned from an operation
they run in Israel. Morel said a quality assurance plan will be brought
back to the commission later that will cover employee training
requirements.
January 25, 2008 Ruidoso News
An investigation by a Lincoln County Grand Jury of the county detention
center launched before a riot incident Jan. 13 already is bearing positive
results, said 12th Judicial District Attorney Scot Key. He explained that
during the normal course of reviewing several cases that involved the jail,
including an aggravated assault and escape, grand jury members requested an
investigation of the situation at the jail in the county seat of Carrizozo.
"They wanted a better idea of what was happening," Key said
Thursday. "They completed the review and sent a report to District
Judge Karen Parsons." When a riot subsequently erupted at the jail this
month, "That kind of situation kind of highlighted what the grand jury
was concerned about. "As a result of two or three things and my
on-going concern about the jail, about staffing and (personnel) training
and other issues, we asked the county commission to start looking into it
prior to the uprising, which highlighted the need for commissioners to
review their contract with Cornell Companies. I felt our office had to
intervene." But Key said he's seen positive results. "We've
gotten involved. Cornell and the county have had many discussions and I
think the lines of communication have opened," Key said. "We've
studied the issues and problems, and have a positive plan of action for the
future. "Last week, our office began training all jail staff and
Cornell agreed to strategic planning to provide more training to hire more
and more qualified people from a larger geographic area. Very positive
things are going to happen with Cornell, the county and the jail, and we
look forward to really good service being provided to the citizens of the
county." Key met with commissioners Tuesday in a closed executive
session. One of the incidents sparking the investigation into the jail's
operation by Cornell under contract with the county was an escape last
October by an inmate, who held a guard captive at knifepoint. County
Manager Tom Stewart said he could not discuss specifics, but commented
that, "The county is in beneficial discussions with the district
attorney regarding a variety of jail issues in general."
January 14, 2008 Ruidoso News
Twenty-eight prisoners in the Delta pod at the Lincoln County Detention
Center in Carrizozo were at the center of a riot reported at approximately
7 p.m. Sunday. As per policy, Cornell Companies, which manages the
detention center, immediately contacted local law enforcement to provide
rapid perimeter containment on the outside of the main fence. Responding to
the scene were the Lincoln County Sheriff's Department, New Mexico State
Police and the Carrizozo Police Department. Lincoln County EMS and the Carrizozo
Volunteer Fire Department were also at the scene while a situation
assessment was made. Within an hour, the situation was reported as
"contained" with no serious injuries to inmates, officers or
prison personnel. Reportedly, tear gas was used to bring the riot under
control, and emergency technicians were called to administer aid as a
result of the gas. Severe damage to the Delta pod was reported, including
the destruction of surveillance cameras, broken glass and bathroom fixtures
torn from the wall. Investigators later reported that approximately six of
the 28 prisoners were actually involved in the riot and further interviews
would be conducted to determine the cause of the violence. A number of the
prisoners involved have been transferred to other facilities. Last October,
a prisoner escaped the Lincoln County Detention Center when he held a guard
at knifepoint. The escapee was captured later that day after he was sighted
and reported by a county resident. In March 2002, a "mini" riot at
the detention center ensued when inmates protested the snack policy in the
commissary, causing $3,000 in damage to windows, mattresses and plumbing.
The riot was blamed mostly on federal prisoners transferred to the
facility.
January 14, 2008 AP
Tear gas was used to quell an hour-long melee instigated by about
one-half dozen prisoners in a pod at the Lincoln County Detention Center.
The disturbance began about 6:30 p.m. Sunday and was subdued by guards and
Lincoln County sheriff's officers, said Charles Seigel of San Diego, a
spokesman for Cornell Companies, which runs the jail. Investigators were
trying to determine what triggered the uprising, he said. A few prisoners
were treated for minor injuries, Seigel said. None of the guards or
sheriff's officers were injured, he said. A small group of prisoners tried
to take over the dorm-style pod that holds 28 inmates, and four to six
prisoners were continuously involved in the uprising, Seigel said.
"There was some damage to plumbing and toilets, things like that,"
he said. A surveillance camera also was damaged, Seigel said. The jail has
five pods that hold a maximum of 32 prisoners each.
October 11, 2007 Ruidoso News
A prisoner who made an armed escape from the Lincoln County Detention
Center a few minutes after midnight Thursday morning was arrested in White
Oaks Thursday afternoon. Fred Berry, 36, was taken into custody by the
Lincoln County Sheriff's Office and a knife measuring between eight and
nine inches was confiscated. In his escape, Berry held prison guard Raymond
LaFave with a knife at his neck and demanded to be released from the
prisoner pod and the detention center. According to the probable cause
statement filed in Ruidoso Magistrate Court, Berry also threatened
Lieutenant Randy Lucero with the knife. Reportedly, Berry told the guards,
"If you don't let me out, we're dying here tonight." Charles
Seigel, a public information officer for Cornell Companies, the detention
center's manager, confirmed that it is against company policy for the
prisoner to be released from the jail. "I can't speak to the
particular situation," he said by phone, "but it is definitely
not our policy for the doors to have been opened." Cornell's local
commander Roger Jeffers was unavailable for comment at press time. In the
BOLO (Be On the Look Out) that was issued immediately after the escape,
Berry was described as a white male with blue eyes, 6 feet tall and 230
pounds with long brown hair (in a ponytail when last seen) Berry added
several charges to his list of crimes when he cut the tires on two vehicles
as he departed the detention center. Then he forced LaFave to drive him to
the nearby Allsup's at the intersection of Highways 380 and 54, where, at
knife-point, he robbed the store of cigarettes and a lighter before
disappearing on foot into the night.
March
12, 2002 A weekend without candy bars sparked a mini-riot at the Lincoln
County Detention Center that lasted less than a half-hour. Prisoners in one
of the jail's dormitory units tried to light their mattresses on fire,
plugged up their toilets and threw things at guards who tried to settle
them down, according to Lincoln County Manager Tom Stewart. The reason for
the uprising: A woman who sells the prisoners chips, candy and other snacks
did not show up over the weekend. "They didn't get their candy
bars," Stewart said. "They didn't get their snacks." The
jail in Carrizozo, which is less than two years old and is managed by
Correctional Systems Inc., was in the process of switching from a local
vendor for inmate snacks to a larger out-of-state company, Stewart said. He
said the local vendor, who comes to the jail and takes orders for snacks
and then returns to deliver them, stopped coming. That left inmates with no
alternatives to jail food, and that made them mad, he said. (ABQ Journal)
Moshannon Valley Correctional
Center, Clearfield, Pennsylvania
September
17, 2009 The Tribune-Democrat
Two former guards at a federal prison in Philipsburg pleaded guilty
Wednesday to providing inmates with contraband, including cell phones,
cigarettes, MP3 players and muscle enhancers. Bryan Williams II and Ryan J.
Spicher were sentenced by U.S. District Judge Kim Gibson in Johnstown to
one year of probation and a $1,000 fine each. They had pleaded guilty to
one count each of providing contraband inside the Moshannon Valley
Correctional Center in Centre County. The prison is a low-security lockup
for male prisoners in the federal system. Assistant U.S. Attorney Stephanie
L. Haines said Williams was involved in the criminal activity from June
2007 to Dec. 11, 2007. Spicher furnished the contraband to inmates from
January 2007 to Aug. 31 of that same year, Haines said. The men could have
faced prison terms of up to six months and fines of up to $5,000. Moshannon
Valley prison is run by Cornell Cos.
February 11, 2009 The Progress
News
At yesterday's Clearfield County commissioners' meeting, Decatur Township
Supervisor Andy Rebar asked the commissioners to correct inequities in
property taxes by performing a countywide property reassessment. According
to Mr. Rebar, county residents are unfairly shouldering too much of the
property tax burden while commercial property owners are getting a break.
Mr. Rebar said the impetus for this occurred when the Cornell private
prison opened several years ago in Decatur Township. He said it was
projected to provide local municipalities and the school district with $1
million a year in tax revenue, but after the county assessed the property
it only ended up paying roughly half that. Mr. Rebar said he then looked at
what other commercial property owners were paying in real estate taxes and
said he discovered that they were disproportionately low when compared to
residential properties.
May 5, 2008 The Progress News
Some 126 local, county and state officials and guests gathered Friday at
Brady Township Community Center for the Clearfield County Association of
Township Officials Spring Convention. There are 30 second class townships
in the county as well as 19 boroughs and one city… Andy Rebar, Decatur
Township supervisor, spoke to the group about the Cornell facility that he
said is a federally funded, federally contracted private prison built in
Decatur Township. He said he was "wholeheartedly" in favor of it
and the annual funding for the township was to be $57,000 to $62,000 but
instead only $15,290 was received. He said the township has hired a legal
team and will fight this. He asked for help from other officials by writing
a letter of support. He said property assessments need to be fair and
balanced. Clearfield County commissioner Mark McCracken said the county is
aware of the situation and is taking action.
September 22, 2007 Altoona
Mirror
A federal judge has rejected a request by an inmate at the Moshannon Valley
Correctional Center to stop sending “Latino” inmates to the facility.
Rudolph P. Keszthelyi contended in a lawsuit filed in federal court in
Johnstown that prison authorities are segregating primarily illegal
immigrants at Moshannon Valley, a private prison operated by Cornell Co.
Inc. of Houston, Texas. The prison, located in the Phillipsburg area, has
been open for about a year. In his suit, Keszthelyi claims that the
atmosphere at the prison is volatile because of a large number of Latino
inmates, and a minority of black inmates from Washington, D.C., are being housed
there. The prison holds few whites. Keszthelyi asked for an injunction to
bring about an immediate change so that the inmate population will be more
racially balanced. Federal magistrate Lisa Pupo Lenihan recommended in
August that no injunction be issued because she said Keszthelyi could not
show “irreparable harm” if the request was denied. The inmate filed
objections to Lenihan’s report, arguing that segregation of inmates was
illegal and noting that “the atmosphere at Moshannon Valley is oppressive,
as at any time the majority of Latino prisoners can decide to take matters
into their own hands and cause harm to a minority group or one individual.”
He said the situation is causing him “severe emotional distress.” U.S.
District Judge Kim Gibson this week adopted the magistrate’s
recommendations and dismissed the request for an injunction. The magistrate
said any request for an injunction “must always be viewed with great
caution because judicial restraint is especially called for in dealing with
the complex and intractable problems of prison administration.” She said
“The federal courts are not overseers of the day-to-day management of
prisons.” Keszthelyi claims a race riot broke out Feb. 6 at the prison,
resulting in a month-and-a-half lockdown of the facility.
May 1, 2007 Centre Daily Times
A school district and township, set to take in more than $200,000 in annual
property tax revenue from Pennsylvania's first private prison, are now
appealing a county assessment of the $74 million facility in an effort to
get additional funds. The appeals process could take months and discussion
at the first hearing Monday indicated the matter is likely headed to the
Clearfield County Court of Common Pleas. "This is an unusual facility
that is going to take some unusual valuation, conclusions, theories,
projections and assumptions, and I see this case in court," said
Anthony R. Thompson, an Allentown attorney representing Cornell Cos. Inc.
-- a Texas firm that built the Moshannon Valley Correctional Facility. The
1,300-bed prison, owned by W.B.P. Leasing Inc., is located in Decatur
Township, which filed an appeal in March. Shortly thereafter, the
Philipsburg-Osceola Area school board authorized its solicitor, Winifred
Jones-Wenger, to join with the township in the appeal. She has not yet
filed the paperwork to intervene but plans to do so, she said Monday. But
the local solicitors won't be handling the case themselves. The township
and school district have retained a Pittsburgh firm, Hollinshead,
Mendelson, Bresnahan and Nixon. Clearfield County assessed the prison at
about $2.5 million, and its market value is listed about $10 million. From
the time Decatur Township and Philipsburg-Osceola Area School District received
their first tax payments from the facilities, officials from both entities
voiced displeasure, saying the revenue wasn't what they expected. The
facility cost $74 million to construct. In correspondence dating back to
the late 1990s, the prison had promised almost $1 million annually in
combined tax revenues and payments. The township and school district
haven't seen a third of that since the prison opened a year ago, and they
won't, based on the current full assessment. But Cornell, which was embroiled
in a legal battle over whether state law allows private prisons, has said
the scope of the project changed significantly, resulting in a much smaller
facility with less business than was first proposed seven years ago. At the
onset of the hearing Monday, the county assessment appeals board asked to
see an appraisal of the prison. Attorney William P. Bresnahan, of the
Pittsburgh firm, was unable to provide one because an appraiser had only
been retained 10 days ago. He asked the board for more time. "We thought
it would be much more helpful if we went through this proceeding with the
real estate appraiser to give you his insight," he told the board. In
an interview afterward, Bresnahan explained that finding someone certified
in Pennsylvania who could appraise the prison was a difficult task. But
Paul Griffith, of Integra Realty Resources, was retained, he said. Thompson
asked the board not to allow the hearing to continue. The matter will go to
court, he said, and he would like to see it "resolved sooner rather
than later." He also questioned whether the board had the authority to
issue a continuance for the hearing. The board decided to talk with its
solicitor and make a decision sometime this week.
February 8, 2007 Altoona Mirror
An inmate at the recently opened private prison in Clearfield County
wants more diversity in its population. Rudolph P. Keszthelyi, serving a
10-year federal sentence, said the prison, Moshannon Valley Corrections
Center, and the U.S. Bureau of Prisons have limited the population to
illegal immigrants who have committed crimes and to inmates from
Washington, D.C., who are almost all black. Keszthelyi says it’s a
violation of the 14th Amendment to segregate inmates. Keszthelyi said in
its first five months, the facility experienced two food strikes and
“numerous violent assaults between prisoners of different ethnic origins.”
He was one of two Moshannon Valley inmates whose lawsuits were filed in the
U.S. District Court clerk’s office in Johnstown this week. The second
inmate, Ervin Leka, serving 18 months for conspiracy to possess marijuana,
complained that the prison is stamping mail that inmates send to their
families outside the U.S. with large red letters, stating “Inmate Mail.”
“My family is in a small village and now is ostracized because somebody saw
the envelope with ‘Inmate Mail’ stamped on it,” Leka stated in a complaint
to prison authorities.
February 7, 2007 WJAC TV
Security has been heightened and the Moshannon Valley Corrections
Center remains on lockdown, after a Tuesday lunch-hour inmate fight.
According to officials, at least one person was hurt and additional
personnel had to be called in to help clear the scene. Prison
administrators said things got out of hand when two groups of inmates began
arguing about a basketball game. One inmate suffered a head injury and a
medical helicopter was called to the scene. Ambulance and other emergency
crews were called in, but were held at the prison perimeter until the scene
was secured. There is no word yet on other possible injuries.
January 15, 2007 Centre Daily
Times
The Moshannon Valley Correctional Facility, a $74 million private
prison expected to provide an economic boom to Clearfield County, will not
generate the amount of tax revenues it promised local officials years ago.
Cornell Companies Inc., a Texas-based firm that owns the facility and may
soon merge with Veritas Capital in New York, says the 1,300-bed facility is
markedly smaller than what was initially proposed. And that's why the
prison's tax bill is several hundred thousand dollars less than local
officials expected. "The scale of the project was cut fairly
significantly," said Christine Parker, a Cornell spokeswoman. In
correspondence dating back as early as 1999, Morris and Decatur townships
and the Philipsburg-Osceola Area School District were told that they would
see almost $1 million annually in combined tax revenues and payments. The
townships and district haven't seen a third of that since the prisoners
arrived in spring 2006. And they won't ever see what they expected, now
that the facility has been fully assessed. "I truly hope that this is
a mistake and not some sort of favoritism," said Andrew Rebar,
supervisors chairman of Decatur Township, where the facility is located.
"I won't be able to live with that." In a letter to the state
attorney general in 2001, then- Superintendent Sam Peterson explained the
grave situation facing the Philipsburg-Osceola school district and how he
thought the private prison would help. At the time, concerns were raised
about whether state law would allow a private prison to be built, and the
project was in jeopardy. "I have seen our district student population
drop by 1,000 since the late 1970s," Peterson wrote. "This is
primarily due to the decline of the coal industry and the loss of a couple
of significant employers." Based on company-driven estimates, the
facility would bring $600,000 annually in property taxes to the school
district, he said. "I have lived in this area for 26 years and can
assure you that nothing of such magnitude has ever presented itself as a
viable economic option to the area's residents," he wrote. The
attorney general allowed the project to move ahead. But it wasn't the same
project that was originally proposed. In the seven years that had passed in
resolving legal issues, the federal Bureau of Prisons changed the scope of
the project. The prison was supposed to comprise three buildings. Now it
has only one. And Cornell, Parker said, "lost all of the business that
would have come along from it." Private prisons sprung up elsewhere,
and "the needs of the federal Bureau of Prisons changed," she
said. So did the expected tax revenue. Last week, Philipsburg-Osceola Area
school officials said they did not receive any tax payments from the prison.
After digging further through their records, they realized that they did
receive about $51,000, which was based on a partial assessment of the
facility. Now the facility has been fully assessed at $2.5 million. And, at
most, the district will receive $232,730 annually from it in tax payments.
"I would love to have it much higher, but I am very restricted by what
I can do," said Mary Ann Wesdock, director of the Clearfield County
Assessment Office. "I have to work within the structure that we have
with regard to our base year and the values that we are permitted to
use." Clearfield County's last reassessment was in 1989. Rebar said he
was sick to his stomach when he realized that the township would receive
only about $15,000 annually in tax revenues. "It is a drop in the
bucket," said Rebar, who expected about $60,000. "That is our
philosophy here." Morris Township, where the prison's water tower
sits, is also not satisfied. Cornell's chief operating officer, in a 1999
letter to the township, said its general contractor would make a
"one-time only investment in Morris Township of $250,000 upon the
township's endorsement of this facility." The letter also indicated
that the township would get an annual $191,734 payment in lieu of property
taxes. Troy Hill Road, near the prison, also was supposed to be paved by
Cornell, the letter indicated. Township Solicitor F. Cortez Bell III said
the township hasn't received anything. Although a prison building was not
constructed in Morris Township as planned, "there is a water tower."
"The supervisors have authorized me to take whatever action is
necessary," said Bell, who also is a Clearfield County assistant
district attorney. "We have even talked about eminent domain
proceedings." Morris Township would have received payments, Parker
said, if the prison was constructed as originally planned.
January 10, 2007 Centre Daily
Times
Uncertain of what its financial situation is, the Philipsburg-Osceola
Area school board is trying to decide which way to throw the dice as it
develops next year's budget. And the one revenue source the board hoped to
get tax dollars from this year -- the newly constructed private prison --
appears to have slipped between the cracks. The district has not received a
single tax payment from the prison so far, school officials said Tuesday.
The crux of the dilemma facing Philipsburg-Osceola is that the board must
have a preliminary budget drafted by Jan. 25. But school officials, who
just stepped into their positions a few months ago, say they have no clue
what all of their expenses are and don't want to rely on the figures
contained in the previous deficit-laden budget. The board could wait until
the end of the year to draft a complete budget, but then it must vow not to
raise taxes above the state-mandated limit of 4.9 percent. If the district
needed additional revenue, it would have to cut staff and programs in order
to pay for its expenses. "I don't want to do that," said Cathy
Hayes, a board member. On the other hand, if the board decided to increase
taxes more than 4.9 percent, its budget would need voter approval by
referendum. Several school officials doubted that they could win the
taxpayers' support. Nor are they sure the community could handle any more
tax increases. Last year, the board increased taxes 27 percent in
Clearfield County and 5 percent in Centre County. "I could not, in my
best judgment, ask to go over 4.9 percent. It would just be
devastating," said Mike Conte, the school district's director of
finance. "Whatever we have to do, we have to keep within that
range." The budget constraints, including the tax-increase limit and
early budget schedule, are all the result of the state's latest property
tax law, Act 1. The legislation mandated a series of new budget changes for
almost all school districts across the state. The board was at odds over
what to do by the end of its meeting Tuesday night. It is expected to
decide at its next meeting on Tuesday. Board member Thad Ritter appeared to
be supportive of drafting a preliminary budget by next week. He said if the
district had to raise taxes above 4.9 percent, it would have to sell its
case to the taxpayers and explain what programs would be cut without the
additional revenue. "I think we need to submit the preliminary budget
just in case we need the referendum," he said. The board was hoping to
receive some tax revenues from the Moshannon Valley Correctional Facility.
Earlier reports show that the district expected at least a couple hundred
thousand annually. The prison is up and running, and Conte said the
district has not received any payments to date.
March 25, 2003
Ending a four-year standoff, a Texas corrections firm has won the go-ahead
to build Pennsylvania's first privately owned prison, officials said
Tuesday. The 1,000-bed prison for federal inmates, which will be
built by next year on reclaimed strip mines in Clearfield County, Pa., will
be maintained and operated by Houston-based Cornell Companies, Inc. Cornell
owns eight other prisons nationwide. The company was stalled in
Pennsylvania since 1999 because state law does not allow private firms to
house federal prisoners. But a rare agreement, finalized this week, will
let Cornell guards use deadly force to control prisoners - with authority
delegated by the federal Bureau of Prisons. No other prison in the
state will be allowed to be owned by a private company. (AP)
March 23, 2002
For more than two years, Pennsylvania's Attorney General Mike Fisher has
stood by his objections to Cornell Corrections' plans to build a private
prison in Clearfield County, saying that state law did not allow a
corporation to be a jailer. In an exclusive interview with the
Progress, Mr. Fisher said his office has formulated a plan that might
"satisfy everyone concerned." "What we're trying to do
is federalize the prison," Rep. Lynn Herman said yesterday, "it
will then be legal." Cornell, which would be the contracted
operator of the facility, would also own the property and the structure,
allowing the local tax-base to benefit. Not everyone sees the
proposal as good news, however. "It was Mr. Fisher who said that
private companies cannot own and operate prisons without the General
Assembly's authorization," said state Rep. Camile "Bud"
George, D-74 of Houtzdale, in a statement this week. "I can
assure you that authorization has not been given." He called the
proposal a "deal kept secret from the media, the citizens of
Clearfield County and legislators of all stripes," and said the issues
has become "a political animal rather than a question of what is right
for the people..." (Clearfield Progress)
The federal government yesterday lifted a moratorium
that helped put a two-year freeze on what would be Pennsylvania's only
privately owned prison. That left developers suggesting that the
Clearfield County project could go to construction by spring. But
they still face stiff opposition from Gov. Tom Ridge and state Attorney
General Mike Fisher. "Our position has remained unchanged, that
state law as currently written doesn't allow incarceration of inmates by
private entities," Fisher spokesman Sean Connolly said
yesterday. The federal government froze work in June 1999, when a
locally based group, the Citizens Advisory Committee on Private Prisons,
filed a complaint charging that bureau hadn't done environmental homework
on the project. Wednesday, federal Judge D. Brooks Smith in Johnstown
ruled that all was well -- a decision that opponents are deciding whether
to appeal. (Post Gazette)
March 23, 2002
For more than two years, Pennsylvania's Attorney General Mike Fisher has
stood by his objections to Cornell Corrections' plans to build a private
prison in Clearfield County, saying that state law did not allow a
corporation to be a jailer. In an exclusive interview with the
Progress, Mr. Fisher said his office has formulated a plan that might
"satisfy everyone concerned." "What we're trying to do
is federalize the prison," Rep. Lynn Herman said yesterday, "it
will then be legal." Cornell, which would be the contracted
operator of the facility, would also own the property and the structure,
allowing the local tax-base to benefit. Not everyone sees the
proposal as good news, however. "It was Mr. Fisher who said that
private companies cannot own and operate prisons without the General
Assembly's authorization," said state Rep. Camile "Bud"
George, D-74 of Houtzdale, in a statement this week. "I can
assure you that authorization has not been given." He called the
proposal a "deal kept secret from the media, the citizens of Clearfield
County and legislators of all stripes," and said the issues has become
"a political animal rather than a question of what is right for the
people..." (Clearfield Progress)
The federal government yesterday lifted a moratorium
that helped put a two-year freeze on what would be Pennsylvania's only
privately owned prison. That left developers suggesting that the
Clearfield County project could go to construction by spring. But
they still face stiff opposition from Gov. Tom Ridge and state Attorney
General Mike Fisher. "Our position has remained unchanged, that
state law as currently written doesn't allow incarceration of inmates by
private entities," Fisher spokesman Sean Connolly said
yesterday. The federal government froze work in June 1999, when a
locally based group, the Citizens Advisory Committee on Private Prisons,
filed a complaint charging that bureau hadn't done environmental homework
on the project. Wednesday, federal Judge D. Brooks Smith in Johnstown
ruled that all was well -- a decision that opponents are deciding whether
to appeal. (Post Gazette)
New
Morgan Academy, Morgantown, Pennsylvania
June 15, 2010 Reading Eagle
The weekend melee at Abraxas Academy in which five residents attacked eight
counselors was the first major incident at the treatment center for juvenile
offenders in New Morgan since it reopened in October 2006, police said
Monday. Caernarvon Township Police Chief Paul R. Stolz Jr. said the melee
Sunday also was the first in which officers had to remove juveniles from
the facility since his department took over coverage of the borough from
state police on April 1. Information on calls before April 1 was not
immediately available from state police. But Stolz said state police had
told him they had not had a lot of calls to the facility, which originally
opened in 2000. In Sunday's melee, five juveniles from Philadelphia were
charged with assaulting counselors. An 18-year-old was taken to county
prison. The other four are in the county youth center. Some counselors had
broken bones and other injuries, but none of the injuries was
life-threatening, police said. Stolz said his department also handled two
assaults at Abraxas in April. In one, a resident was charged with
assaulting a staff member. In the other, a juvenile was charged with
assaulting another juvenile. Both of those accused remained at the academy
while their cases were handled in juvenile court, he said. The only other
call was last week when police helped an ambulance crew remove a juvenile
who was having mental health problems, Stolz said.
July 14, 2009 Reading Eagle
The state Department of Public Welfare has suspended admissions to
Abraxas Academy in New Morgan while it investigates why the boys detention
center failed to report suspected abuse in a timely manner. This marks the
third time in 2009 that the state has temporarily closed admissions to
Abraxas, welfare department spokeswoman Stacey L. Witalec said Monday.
Witalec refused to give specifics about the most recent abuse allegation,
citing confidentiality requirements. "We continue to have concerns
about the facility to maintain health and safety for the kids,"
Witalec said. "If they continue to correct deficiencies, then it's
planned for admissions to reopen in two weeks." The juvenile detention
center off Interstate 176 is licensed to take as many as 82 boys ages 12 to
18 years old. The boys have committed offenses that require a secure
lockup, such as aggravated assault or armed robbery. They usually are not
first-time offenders. Admissions to the academy were closed Feb. 4 to Feb.
25 because the state was concerned about a lack of supervision at the
facility, Witalec said. They were suspended again April 27 to June 15 over
the untimely reporting of suspected abuse. Jon Swatsburg, senior vice
president at Abraxas Youth and Family Services, said the April suspension
and the most recent one, July 7, stemmed from the same incident. He said a
teenage boy had broken off a wooden bed slat and was prepared to use it as
a weapon against a staff member. While the boy was being restrained, he received
a minor injury to his eye, Swatsburg said. The boy was immediately treated
by a nurse, and while the incident went into the boy's medical file, it
wasn't included in a report to the state, Swatsburg said. Swatsburg called
it a communications gap and said he understands why the welfare department
was concerned. Abraxas, a division of Cornell Cos. of Houston, initially
opened in New Morgan in 2000 but relinquished its license two years later
after six escapes and several reports of sexual assaults, most involving
employees abusing clients, according to the state. The facility reopened in
2006 with new management and staff. "We did a poor job in the initial
operations of the facility," Swatsburg said Monday. "All eyes are
going to be on us, and it's going to take a long time for that to go
away." Witalec said the state has substantiated five cases of abuse at
the facility since it reopened. The state has stepped up regular and
unannounced visits to the center, she added.
November 17, 2006 Reading Eagle
Lawyers for New Morgan borough on Friday asked a federal judge in Reading
to dismiss a suit filed by the owner of New Morgan Academy juvenile
treatment center, claiming the academy is trying to sidestep local zoning
ordinances and state courts. Cornell Cos. Inc., Houston, has sued the
borough and its council members, claiming they violated Cornell's
constitutional rights by interfering with its plans to reopen the academy.
The original facility had closed in October 2002, two years after opening,
after a series of escapes and sexual assaults. In July, the borough adopted
a zoning amendment forbidding the operation of a detention facility. The
borough then sent letters to the state departments of welfare and education
alerting them that Cornell intended to operate what the borough called a
detention center. At the time, Cornell was seeking a state license to
reopen. It subsequently got the license and reopened with 16 beds in
October. It is treating two, low-level sex offenders from Philadelphia. But
borough attorney Mark Himsworth told U.S. District Judge Lawrence F.
Stengel, who was presiding in The Madison, that Cornell had never sought an
occupancy permit or zoning approval from the borough, and needs to do that
first. If occupancy was denied, he said, the legitimate process would be to
challenge the denial to borough council and possibly in state court before
considering a federal suit. And Thomas P. Hogan, attorney for the council
members, said Cornell had not met federal law by not specifying what the individuals
had done, and that they were given immunity from lawsuits by three separate
state laws. Council members named in the suit are Dena L. Geunes, Tressie
Marroon, Richard Venezia and Robert G. Williams. Borough Manager Carolyn
Williams is also named. Cornell attorney Antoinette R. Stone told Stengel
that Cornell knew it would be denied zoning and occupancy because of what
she called the borough's long history of unlawful conduct against Cornell.
She said the law doesn't require an effort in futility. Stengel indicated
he would rule in early December, but briefly sparred with Stone over what
the academy really is. “It's a juvenile prison, isn't it?” Stengel asked,
noting that for years as a Lancaster County judge he had sent juvenile
offenders to such facilities. Stone said it wasn't, but it was a secure
boarding school operating exactly the same as the previous facility.
Stengel asked whether it has locks. Stone said it does, but said that under
state definitions it's not a detention center. She said Cornell has never
had or sought a license for a detention facility in New Morgan and has
never operated one.
November 17, 2006 Reading Eagle
The Texas-based owner of a New Morgan treatment facility for juvenile
offenders has filed a federal lawsuit accusing the borough of interfering
with the facility's plans to reopen. Cornell Cos. Inc., Houston, initially
opened the 214-bed Cornell Abraxas Academy in October 2000, just north of
the Conestoga landfill in New Morgan. The facility closed Oct. 27, 2002,
following a half-dozen escapes and 14 sexual assaults. But it reopened last
month, with 16 beds available to low-level sex offenders. So far, two sex
offenders from Philadelphia are being housed for treatment, officials said.
Antoinette R. Stone, a Philadelphia lawyer representing Cornell Cos., said
the reopening would not affect the lawsuit. The suit requests a court order
to allow the facility to remain open and the borough to pay unspecified
damages. Lawyers representing the borough and its council members have
asked that the case, before U.S. District Judge Lawrence F. Stengel, be
dismissed. Stone charged in the suit that the borough interfered with
Cornell's efforts to obtain a state license to reopen. “Instead of
contacting Cornell to discuss concerns, the defendants continue their
interference with Cornell's efforts to reopen,” Stone wrote. “The
defendants' unlawful and unjustified actions constitute a gross and
shocking abuse of government authority undertaken for the purpose of
preventing Cornell from resuming operations at New Morgan as a lawful
secure care facility for juvenile offenders.” In July, the borough amended
its ordinance to forbid a secure detention facility from operating in New
Morgan, according to Stone. Stone said in the suit that the academy is not
a detention facility, but a school for juvenile offenders. Hogan said
Cornell has not even applied to the borough for a use and occupancy permit
as required by law. “Cornell has not even taken the first step, which is to
address the zoning issues,” Hogan said.
November 9, 2006 Reading Eagle
The Cornell Abraxas Academy, a former juvenile-detention center in New
Morgan that closed in October 2002, has reopened with two teenage sex
offenders from Philadelphia County. “We're a secure boarding school for
low-level offenders,” Gregory Swatsburg, assistant facility director, said
Wednesday. Plans call for accepting one youth each week until all 16 beds
for which the state currently licenses it are filled, he said. “These kids
have crossed the line but they're not violent or hard-core sex offenders,”
he said. The 14- to 18-year-olds are being enrolled in a treatment program
that can last nine to 12 months, he said. The 214-bed facility just north
of the Conestoga Landfill opened in October 2000 with an emphasis on
treating and educating the state's worst juvenile offenders. The center
shut down after a half-dozen escapes and 14 sexual assaults on inmates,
most committed by staff members.
January 29, 2006 AP
A private-prison firm hopes to regain its license to run a detention center
for serious juvenile offenders in Berks County. The state closed the New
Morgan Academy in 2002, after just two years of operation, because of a
series of escapes, sexual assaults on residents and other problems. The
Cornell Companies, which calls itself the nation's third-largest private
correctional firm, had said as late as December it wanted to reopen the
campus as a boarding school for emotionally troubled youths. But the
Houston-based company has since decided to apply to run a detention center
for the most serious juvenile offenders from around the country. Some local
officials are disturbed by the company's revised plan, which they said was
announced without their input. "All they had been talking about for
all these years seems to have taken a rather dramatic turn," said
state Rep. Samuel E. Rohrer, a Robeson Township Republican.
November 10, 2005 Reading Eagle
A former juvenile-detention center in New Morgan that was closed in 2002
after escapes and abuse of inmates by staff is expected to reopen late next
year as a school for emotionally troubled young people, officials said
Wednesday. Cornell Cos. Inc., Houston, parent company of Cornell-Abraxis,
which owns New Morgan Academy, plans to turn the facility into a day school
and boarding school for emotionally troubled people up to age 21, Cornell
officials said. Cornell would retain ownership of the 214-bed facility on
55 acres just north of the Conestoga Landfill, according to Chuck McLister,
divisional director for Cornell. McLister said the firm is in negotiations
with the state and hopes to have an operating permit in time to open in
September. New Morgan Academy opened in October 2000 with an emphasis on
treating and educating the state's worst juvenile offenders. Between July
2001 and April 2002, there were 14 substantiated sexual assaults on
inmates, all but one or two committed by staff members, according to the
state Department of Public Welfare. Two escapes also occurred at the
facility, which was closed in October 2002 and put up for sale with a $25
million price tag. "At the end of the day we couldn't put a package
together that met everyone's needs," said Paul B. Doucette, a Cornell
spokesman. "It is a very expensive asset and it's just sitting there empty,
and that is not a good thing for a business asset to do." Kathy Brill,
whose Chestnut Hill Road home in Caernarvon Township is about a half-mile
from the site, plans to reserve judgment until details are finalized.
"If these are kids who are allowed to walk freely and go home when
they want, then that is one story," Brill said. "If it is more of
the same, then obviously we are going to be upset. "They have
demonstrated they can't keep them in."
Berks and several other counties have
interest in turning the vacant New Morgan Academy into a regional facility
for prison inmates with special needs. Those prisoners could include women
or perhaps inmates with mental problems. The center shut down in October
following a series of sexual and physical assaults of juveniles. The site
is owned by Cornell Abraxas, a subsidiary of Cornell Companies Inc.,
Houston. (Reading Eagle, March 7, 2003)
Cornell Companies Inc. (NYSE:CRN - News), which builds and operates
prisons, said on Friday it was exploring all options for a youth center,
which was closed last year. The closure of the facility, New Morgan
Academy, will result in a 25-cent-per-share charge against the company's
2002 earnings, it said in a statement. (Yahoo Finance, January 24, 2003)
Two years ago, the privately owned New Morgan
Academy, combining high security and intense therapy, opened its doors as
Pennsylvania's newest alternative for handling delinquent teens with mental
illness. But last week, the Berks County center shut down following the
Conviction of two staff members on criminal charges and what one juvenile
justice official called "an unheard of" number of physical and
sexual assault allegations over the past two years. Sixteen cases involved
sexual abuse, including the assault of a 15-year-old McKeesport girl in June
by a staff member. In some cases, the assaults included sexual intercourse
between an adult staff member and a teenage resident. New Morgan was run by
Cornell Companies of Houston, which operates private prisons and other
facilities around the nation. While declining to discuss specifics of
individual cases, state officials said none of the 15 acts of physical
abuse resulted in broken bones or a resident's hospitalization. (Pittsburgh
Post-Gazette, November 3, 2002)
September 29, 2002
Two Western Pennsylvania girls, one from Murrysville and one from
McKeesport, were sexually molested by staff members while living in group
homes. And both say that earlier in their placements, they were physically
hurt in altercations with staff. Such injuries in group homes are rare,
according to the State Department of Public Welfare statistics Ronald
Davidson, a clinical psychologist who has investigated 175 homes in a dozen
states in the past eight years for Illinois, says the figure "doesn't
pass the sniff test. That stinks. Right away my BS meter goes into the red
zone. I would recommend that an outside organization take a very close look
at the agency saying that." He concedes that children may exaggerate,
but, just as often, he said, they don't report what has happened to them.
The McKeesport girl who was sexually assaulted at New Morgan Academy said
that was her experience. She said she saw staff members improperly touch
several girls who didn't report it, and she knows of another girl who was
molested and refused to tell. New Morgan officials said they investigated
every allegation they received. The McKeesport girl said she doesn't know
why some girls don't tell, but what happened to her when she told may be
revealing. She says when she reported the physical assault to her probation
officer, he didn't believe her story. She said the staff member told the
probation officer a different story. "It was their word against ours,
and other staff would back them up," she said. And when she reported
the sexual assault, no one believed her initially either, and she was
subjected to taunts from staff members and girls. New Morgan officials
denied that staff mistreated the girl. In addition, the McKeesport girl's
clinician at New Morgan ordered her to keep quiet about the sexual assault
during a review of her case by an Allegheny County judge. The girl tried to
tell the judge anyway, but the clinician cut her off. The girl said it
wasn't as tough at other places where she'd stayed, such as Mars Home for
Youth and Bethesda Children's Home in Meadville, but she said of New
Morgan, "That program was dirty." (Pittsburgh Post-Gazette)
Five escaped youths from New Morgan Academy were captured Monday, and
officials at the youth detention facility plan to keep the teens confined
to their rooms until an investigation is completed. State police continued
an investigation into the Sunday night escape of the five youths, who
crawled through a large hole that had been cut in a chain-link fence. (AP,
September 25, 2001)
A private company that operates prisons say it cannot find enough workers
for its newest lockup in Morgantown, Berks County, a company official said.
About 100 jobs remain unfilled at Cornell Corrections Inc.'s New Morgan
Academy, a juvenile jail that opened Oct. 2. It has room for 214 youths.
(February 15, 2001)
Parkview Community Center, Anchorage, Alaska
May
22, 2006 Anchorage Daily News
One of Anchorage's four halfway houses is scheduled to shut down by
July 1, a loss of about 25 percent of the beds available here for housing low-risk
inmates. The Legislature directed the Department of Corrections to close
Parkview Community Center when it eliminated roughly $2.5 million from the
department's halfway house funding. Parkview is managed by Cornell
Companies of Alaska Inc. Its contract with the department for that facility
expires July 1, said Portia Parker, corrections deputy commissioner. On the
surface, the shutdown is puzzling: Aren't our jails and prisons
overcrowded? And aren't some 800 Alaskans currently imprisoned Outside because
there isn't room for them here? All that is true, Parker said. The
Legislature increased the corrections budget by 11 percent overall to deal
with prison crowding, and cuts somewhere else had to be made. Halfway
houses are "the one area where ... we did have some room," Parker
said. They aren't all always full, she said.
Pennsylvania Legislature
July 24, 2006 Philadelphia Inquirer
A deal brewing on Wall Street involving a $220 million-plus takeover of a
company that runs private prisons could put House Speaker John M. Perzel in
an ethical bind, experts say. Perzel (R., Phila.) is on the board of
directors of Florida-based Geo Group Inc., the nation's second-largest
private-prison company, which recently submitted a takeover bid for
competitor Cornell Cos. Inc. Geo doesn't conduct any business with state
government, though it does run the Delaware County prison. But
Houston-based Cornell has at least $50 million worth of contracts with the
state to run 17 juvenile detention centers across Pennsylvania. Experts on
ethics and corporate governance said that although Perzel might not now
have an ethical dilemma, that could change if the Cornell purchase is
successful. As the ranking House member, Perzel holds major sway over
public policy, and is a chief crafter of the state's $26 billion budget. As
such, he has influence over state spending while also serving on a board in
an industry whose bottom line depends on privatizing a governmental
service: prisons. "It puts him on two sides of the transaction,"
said Charles Elson, director of the University of Delaware's Weinberg
Center for Corporate Governance. "If the acquisition goes through, he
may want to rethink his board service. It would be problematic." Al
Bowman, Perzel's spokesman, said the speaker did not know that Geo had bid
for Cornell or that the Texas company had state business. Bowman said that
it was premature to discuss the issue but that Perzel, in the event the bid
is successful, would consult with lawyers to determine his options on the
board. "Whatever the conflicts of interest may or may not be, they
will be handled appropriately," Bowman said. In an interview in March,
Perzel stressed that Geo didn't have any state business in Pennsylvania and
that there was no current legislation before the House dealing with prison
privatization. Even if there were, he said, he would not abstain from
voting, unless the bill pertains specifically to Geo. "As a member of
the board, I oversee the company. I don't write the contracts," he
said. "... Why would it be wrong for me to vote to allow private
prisons?" In June, Cornell announced that it was putting itself on the
auction block, and within the last two weeks, Geo made a bid, a source
familiar with the sale confirmed. Andy Merrill, a spokesman for Cornell, declined
to comment about the Geo bid or Perzel's potential conflict, beyond what
the company announced in June. Perzel, who was named to the board in
January 2005, was paid about $99,000 that year in stipends, meeting fees
and stock options. After learning of Perzel's role with Geo, Rep. Michael
McGeehan (D., Phila.) introduced a bill to bar legislators from serving on
corporate boards for pay - a prohibition similar to one for members of
Congress. Pennsylvania's rules governing conflicts of interests are vague,
leaving Perzel in the position to decide for himself what he should do,
said Peggy Kerns, the director of the Denver-based National Conference of
State Legislatures' Ethics Center. "He should look at Pennsylvania's
law and decide what his own ethical standards are and then be prepared to
justify his decision to the public," she said.
Regional Correctional Center, Albuquerque, New Mexico
July
3, 2008 New York Times
The federal immigration agency should report all deaths in detention
promptly, not only to the inspector general for the Department of Homeland
Security, but also to state authorities where required by law, the
inspector general has recommended after a “special review” of the deaths of
two immigrant detainees. The detainees — a 60-year-old South Korean woman
in Albuquerque and a 30-year-old Ecuadorean woman in St. Paul — were among
dozens whose deaths in the custody of the agency, Immigration and Customs
Enforcement, have drawn scrutiny in the past year. Congress, advocates for
immigrants and the news media have highlighted the lack of systematic
accountability in such cases, and documented problems with the medical care
provided in the detention system, a patchwork of county jails, privately
run prisons and federal facilities. Both detainees died because of serious
medical conditions that existed before they were detained. But the review
found that the cases pointed to larger problems with oversight and medical
care, including the failure to recognize or act on serious health care
deficiencies in both detention centers that had been documented by routine
inspections. The 55-page report, released Tuesday, did not name the two
detainees, but one was Young Sook Kim, a cook who died of metastasized
pancreatic cancer on Sept. 11, 2006, a day after she was taken to a
hospital from the Regional Correctional Center in Albuquerque, a county
prison operated by the Cornell Companies. A complaint to the inspector
general’s hot line, testimony by a former employee, and an affidavit from a
fellow detainee all contended that Ms. Kim had pleaded in vain for medical
attention. The review found that it was already too late to save her life,
and that Cornell clinical records showed the staff had responded to her
written medical requests — albeit only by giving her antacid tablets when
she complained of stomach pain. But the review confirmed complaints that
Cornell was slow to deal with sick calls because of a nursing shortage: a
government inspection in September 2006 found ailing detainees had to wait
for as long as 30 days to see the medical staff. That inspection, by the
Office of the Federal Detention Trustee, also found that only 11 of 20
detainees with chronic conditions were regularly scheduled for chronic care
clinics, and that its policies did not fulfill requirements to notify the
Homeland Security Department — the system’s parent agency — or the Justice
Department of deaths. Ms. Kim’s death was not reported, as required, to
state medical investigators. The immigration agency initially maintained
that the county should have reported the death, but on Wednesday, a
spokeswoman, Kelly Nantel, said that “as a result of the report,” the
agency has directed that all deaths be reported to the appropriate state
and federal authorities. The report also urged the immigration agency to
pool information with the detention trustee. In September 2006, it noted,
trustee inspectors gave the Albuquerque prison the lowest overall rating,
“at risk” — two levels below acceptable. But because the two agencies do
not routinely share information, the report said, Immigration and Customs
Enforcement placed some 3,500 more detainees at the facility. Last August,
the immigration agency removed all detainees after its inspectors found a
host of other problems, including an inadequate suicide watch. The
Minnesota case involved Maria Inamagua Merchan, a department store worker
who was detained in the Ramsey County jail and died in April 2006. For more
than a month, her persistent headaches had been treated only with Tylenol;
when she fell from a bunk bed, several hours passed before she was taken to
the hospital, where physicians diagnosed neurocysticercosis, an infection
of the brain by larvae of the pork tapeworm. “We cannot determine with
certainty whether this death could have been avoided had the detainee
received immediate medical attention for head trauma,” the report said,
after praising the authorities for promptly reporting the incident and for
notifying the Consulate of Ecuador and the detainee’s spouse. But it
recommended better medical screening and education about the parasite,
which is endemic in parts of Latin America.
April 1, 2008 The New Mexican
More than eight months after Immigration and Customs Enforcement
officials removed 600 detainees from an Albuquerque jail, they say they
won't house immigrants there again. The federal immigration agency, part of
the Department of Homeland Security, says it has enough space elsewhere for
detainees arrested in the Santa Fe and Albuquerque areas. A majority of the
immigrants who would have gone to the Regional Correctional Center in
Albuquerque will be housed in El Paso, said Leticia Zamarripa, an ICE
spokeswoman. The agency also can house detainees at other regional
facilities if it needs to, including a to- be-opened immigrant processing
center in Otero County. The move means family members of immigrants who are
detained will have to travel farther to visit their relatives.
"Certainly having them far away is going to be incredibly difficult
for families," said Marcela Díaz, director of the Santa Fe immigrant-
advocate group Somos Un Pueblo Unido. ICE was housing hundreds of detainees
awaiting deportation at the RCC. That facility faced allegations by
immigrant lawyers — and criticism by a federal judge — of subpar
conditions. Complaints included sweltering heat inside, frozen food and
poor medical attention. After the agency yanked all of its inmates last
summer, an ICE official said he had "serious doubts" about the
ability of Cornell Cos. Inc., which runs the jail, to provide a safe environment
for detainees.
March 7, 2008 Market Watch
Cornell Companies, Inc. announced today that the Company has been informed
that the federal agency which currently holds the contract in effect for
use of the Regional Correctional Center (RCC) in Albuquerque, New Mexico
intends to unilaterally reduce use of the facility. The modification is
intended to continue use of RCC by the U.S. Marshals Service but eliminate
any future use by the Immigration and Customs Enforcement (ICE) division.
Cornell, which leases RCC from Bernalillo County, believes that the
attempted unilateral reduction of guaranteed bed-days does not comply with
the terms of the contract and will be exploring the legal and financial
implications with that in mind in the coming days. Bernalillo County owns
RCC and holds the contract directly with the Office of Federal Detention
Trustee (OFDT). The unilateral notice indicated an intention to reduce the
total guaranteed bed-days annually from 182,500 to 66,300 effective
February 26, 2008. James E. Hyman, Cornell's Chairman, President and CEO
said, "We are disappointed that ICE has decided not to use the RCC, as
we have made an enormous effort over the past year to address all concerns
that they, other customers, and other constituencies, brought to our
attention. Should ICE decide in the future that their needs have changed,
we would welcome them back. We remain committed to serving the needs of the
U.S. Marshals Service and to providing space to other potential customers
as they arise. We also are reviewing Cornell's and the county's legal
rights under the contract." OFDT has stated that the Marshals Service
will continue to use the facility at generally the current level, which
since the third quarter of 2007 has fluctuated between 170 and 200 detainees.
Cornell also continues to actively market the facility to other customers.
December 27, 2007 Albuquerque Tribune
Calvin Morton started making changes in his new job as warden at the
Regional Correctional Center right at the front door - literally. Since
taking over as the head of the Downtown jail in early October, Morton has
boosted security, starting with the lockup's entrance. All staff members
and visitors now face increased scrutiny as they go through metal
detectors, he said. "We've directed them to put all their items in a
clear container if possible. If not in a clear container, we would be
looking into their briefcases or whatever they are bringing in, lunchboxes
or whatever the case might be to examine those and make sure there is no
contraband in it," Morton said. The change is one of several that
Morton, who has worked in corrections for more than three decades, is
bringing to the jail at a key point in the facility's history. The jail at
Fourth Street and Roma Avenue Northwest is looking to regain about 700
detainees of the Immigration and Customs Enforcement agency - clients it
lost this summer. "We have a lot of empty beds here," Morton
said. "We're looking at contracts we might be able to get into our
facility to fill those beds." This summer, ICE pulled all of its
detainees from the lockup. The agency has mostly been mum about why, but an
internal review turned up problems including deficiencies in medical care,
contraband in the jail and a lack of complete emergency plans. About 180 detainees
of the U.S. Marshals Office remain at the jail, which can hold nearly 1,000
people. Between January and August of this year, inmates filed 218
complaints about conditions in the jail. As Cornell struggled to improve
the facility, 19 employees were fired. And because it lost so many
detainees, the Houston-based company laid off another 96 employees.
Eighty-six staff-members remain.
November 1, 2007 Albuquerque Tribune
Cornell Cos. Inc. is betting federal immigration detainees will return to
the Regional Correctional Center, Bernalillo County's Downtown jail. So
far, the bet is costing the company money. Because it has kept more
employees than it needs for the 200 or so detainees left at the jail,
Cornell's employee costs are higher than expected, and have forced the
company to lower its projected fourth-quarter earnings. The company laid
off about 100 employees in September after the Immigration and Customs
Enforcement agency pulled 600 inmates from the lockup this summer. Cornell
CEO and Chairman James Hyman in a written statement said fourth-quarter
earnings are likely to slide 6 cents per share, to about 30 to 33 cents.
Despite the projected decrease - also due in part to Cornell's slower than
expected intake of new inmates at an Oklahoma prison it runs - the company
chose to keep the extra staff in case ICE decides to move detainees back to
the jail at Fourth Street and Roma Avenue Northwest. "There is more
staff there than would be needed for 180 or so (U.S.) Marshals (Service)
detainees who are there, so that if ICE chose to bring people back on short
notice, we are prepared," Cornell spokesman Charles Seigel said.
Seigel declined to talk about staffing levels, including how many people
work there now. He also declined to say how many inmates the jail could
take in before more employees would need to be hired. "Those are
internal (numbers), and we prefer not to talk about that," he said.
ICE officials have said the agency has no immediate plans to return to the
facility, and the federal government is reviewing operations at the jail,
which has come under scrutiny by inmates' attorneys for its physical
conditions and health care. Meanwhile, Cornell has said it is looking for
other customers for the 970-bed jail. An ICE spokeswoman didn't return a call
seeking comment Wednesday. Apart from layoffs, the company has also fired
employees. Documents obtained by The Tribune show 19 people were fired in
the seven months before and after ICE's removal of detainees. During the
same time period, inmates filed 218 grievances. The company had been
predicting fourth-quarter earnings between 36 and 39 cents a diluted share.
Hyman, in a news release Tuesday, said the company expects earnings to drop
about 6 cents a share. The stock was trading at $24.80 a share Wednesday.
The stock's two-week high was $27.76. However, the company is expecting
revenues for the first quarter of 2008 to increase because of an agreement
governing the Regional Correctional Center under which the federal
government guarantees payment for 500 beds. Kevin Campbell, a senior
analyst at Avondale Partners LLC in Nashville, Tenn., said the new earnings
predictions are based on short-term situations, adding the earnings dip is
likely only temporary. "Given the lack of supply of beds in the industry
and strong demands from various federal agencies, it's likely Cornell will
fill those beds with a customer," he said.
October 2, 2007 AP
Albuquerque authorities say a 40-year-old man in the custody of the U.S. Marshals
Service was found dead in his cell at the Regional Correctional Center. The
inmate was found hanging by a noose made of bed sheets, less than 15
minutes after a routine check on him. That word from Charles Seigel, who is
a spokesman for Cornell Companies Incorporated. Cornell runs the lockup in
downtown Albuquerque. Seigel says the company is investigating. The
inmate’s name was not immediately released. Cornell has been criticized
about conditions at the jail. U.S. Immigration and Customs Enforcement
earlier this year pulled 600 detainees from the jail over safety and other
concerns.
September 25, 2007 Albuquerque Tribune
In the seven months surrounding the removal of almost 700 detainees from
the Regional Correctional Center this summer, 19 jail employees were fired,
inmates filed 218 grievances, and drugs and other contraband were routinely
discovered. Documents obtained by The Tribune also show jail officials had
reported five incidents they listed in a high-importance category -
including the discovery of three bundles of marijuana on an inmate and a
broom-handle assault by a detainee on a correctional officer. The documents
may indicate why the U.S. Immigration and Customs Enforcement agency
removed all its detainees from the Downtown jail and has since said it
won't be returning them in the foreseeable future. In several interviews
during the past few months, officials with the federal agency have been
nearly mum on what may be wrong at the jail, saying only that they pulled
people from the facility after several "serious incidents." They
also noted the jail was found to be deficient in two of its detention
standards. A immigration agency spokeswoman didn't return a call seeking
comment Monday. Representatives from Cornell Cos., which runs the lockup at
Fourth Street and Roma Avenue Northwest, have said they've fixed the
problems the agency had with the jail, but they still don't know why it
left. "The reasons ICE left may or not be found in documents or
specific numbers," Cornell spokesman Charles Seigel said. "It may
simply be a feeling, which they have expressed." As for the five
incidents marked in the high-importance category, Seigel said they weren't
serious enough to reach the company's highest-importance level, but Cornell
takes them seriously nonetheless. The jail, which has a capacity of close
to 1,000, now holds fewer than 200 inmates in the custody of the U.S.
Marshals Service. Bernalillo County, which owns the building, had also been
using the jail for inmates it couldn't fit at the Metropolitan Detention
Center on the city's West Side but stopped that in late July. The reported
incidents are common in most jails in the country, said Seigel. "Every
facility in the country, whatever the detention level . . . has issues of
unruly people who break the rules by trying to bring in contraband,"
he said.
September 13, 2007 Albuquerque Tribune
U.S. Immigration and Customs Enforcement officials pulled all their
detainees from a privately run jail in Downtown Albuquerque because of
critical concerns about management, a federal official says. A number of
"serious events" in recent months raised concerns about the
Regional Correctional Center run by Cornell Cos. Inc., said Gary Mead,
assistant director for detention and removal operations for ICE in Washington.
Mead declined to give specifics about the events, saying they are still
under investigation. "We have serious doubts about their (Cornell's)
ability to provide the safe and humane environment we want for our
detainees. That's the reason we are not there," Mead said in an
interview Wednesday. Until now, ICE had said little about its reasons for
removing about 600 detainees from the jail in July. ICE previously had
cited two detention standards it said the facility wasn't meeting, things
Cornell said it had fixed. "While there were issues with the standards
in terms of food service and clothing and temperature and things like that,
our reasons for taking people out are really much more fundamental than
that," Mead said. "We just have serious doubts about Cornell at
the facility." Mead said he's met several times with Cornell officials
since June 25, including a meeting at the jail at Fourth Street and Roma
Avenue Northwest. Mead said the immigration agency had concerns about the
jail before Chief U.S. District Judge Martha Vazquez of Albuquerque sent a
letter to Cornell's chief executive officer. Mead said Vazquez's letter in
late June only intensified his agency's attention to complaints about
conditions at the lockup. "The Cornell officials basically told us
that many of the judge's concerns were unfounded, or were corrected or were
in the process of being corrected," Mead said. "They told us not
to worry; they were in full control of the facility." But, he said,
"There have been a number of incidents at the facility that caused us
to seriously question Cornell's ability to safely and humanely detain our
(undocumented immigrants) there." In her letter, Vazquez said she was
worried about medical care, physical conditions and nutrition at the lockup.
She recounted stories inmates told her during visits this summer to the
jail about missing property, and allegations of sexual misconduct and of
inmates who were punished for speaking out. Federal authorities are also
investigating the death of a Korean woman who died at an Albuquerque
hospital while in the jail's custody last year. The woman's repeated
requests for medical attention were ignored, according to lawyers familiar
with the case. Cornell spokesman Charles Seigel said the company has worked
to address the agency's concerns and would like to know what it can still
do to appease the immigration agency. "We hear from them all the time
about the past history they don't like," he said. "All we would
like to hear is a specific list of things to do to make them happy, because
all we hear about is past history. What we don't hear from that is what we
need to do to resolve their concerns and make it a facility they can bring
people back to." As for the serious incidents Mead mentioned, Seigel
also refused to give details. "There are things that have happened in
the past that we have addressed with ICE. We've been told everything is
fine, and we've dealt with ICE," he said. Seigel said Cornell is more
than willing to do what it takes to have ICE as a client again. At the same
time, the company is looking for other inmates to fill the jail.
"First of all, we know they are the customer, and what their
perception is is what matters. There's no point in going back and forth
about whether we agree with their concerns. If that's their perception,
that's their perception and we'll address it." Before it removed all
of its detainees, the immigration agency pulled about half in the hope that
Cornell could do a better job with fewer people, Mead said. But that wasn't
the case, he said, and the agency later removed everyone it had at the
facility, a move Mead described as rare. "On rare occasions, we have
left facilities in the past, but it's very rare for us to do it," he
said. "This was serious enough in our mind that it warranted
that." ICE, which has about 30,000 detainees at 300 to 350 facilities
around the country, only rarely has pulled inmates, Mead said. Albuquerque
is the only place ICE is contracting with Cornell, Seigel said. Although it
doesn't have anyone at the Downtown jail, ICE still has a contract with
Cornell and could, at a later date, decide to return detainees. "We
haven't terminated our relations with them," Mead said. "We're
still evaluating that situation; we just don't have a date for that at this
point," Cornell has run the former Bernalillo County Detention Center
since 2003. The facility is still owned by the county, which receives about
$1.5 million a year in rent from Cornell. Without ICE as a tenant, Cornell
earlier this week cut 82 of 185 employee positions at the jail. Fewer than
200 inmates remain at the jail, in the custody of the U.S. Marshals
Service.
September 10, 2007 Albuquerque Tribune
After more than a month without its main client sending detainees to
its jail in Downtown Albuquerque, Cornell Companies Inc. this morning cut
82 of 185 jobs at the jail. The federal Immigration and Customs Enforcement
agency, which had housed about 600 people at the Regional Correctional
Center, in late July yanked its inmates, saying the facility didn't meet
two detention standards. Since then, the company has worked to address the
concerns but has heard little on ICE's plans, said Cornell spokesman
Charles Seigel. "They have not indicated whether or when or if they
plan to be back," Seigel said this morning. The company is looking for
other clients. An ICE spokeswoman this morning had no update on the
agency's plans. The layoffs affected 82 of the 185 positions at the
facility, and mostly included correctional officers. It was unclear how
many people were laid off, as some positions were vacant, Seigel said.
Bernalillo County Public Safety Director John Dantis said the county would
work to recruit officers for its Metropolitan Detention Center. At the same
time, the county is interested in possibly housing inmates again in the
jail, which it owns and leases to Cornell. The Houston-based private prison
company pays the county more than $1 million in rent each year.
August 30, 2007 Albuquerque Tribune
For months, allegations of filthy conditions, subpar medical attention and
bad food have hung over the Regional Correctional Center in Downtown
Albuquerque. On the outside, little seemed to be changing as inmates and
lawyers with the American Civil Liberties Union of New Mexico repeatedly
lodged complaints and the Immigration and Customs Enforcement agency pulled
more than 600 detainees from the jail, run by Cornell Companies Inc.
Bernalillo County also pulled its inmates from the facility. But key events
- visits by Chief U.S. District Judge Martha Vazquez and a letter from a
Bernalillo County official warning Cornell that if the allegations were
true and the company didn't try to correct them, the county could move to
terminate its contract - appear to have sparked big changes. The two groups
seem to have settled the differences, with the county in a subsequent
letter saying it was satisfied with Cornell's actions and a company
spokesman saying things have been worked out. Vazquez, in a letter to
Cornell Chairman and Chief Executive Officer James Hyman, said that from
one visit this summer to the next, she saw some big improvements. She
outlined her concerns and her findings in documents obtained by The Tribune
this week. "The detainees reported that they are now receiving
toiletries as well as clean linens and towels and that they are
consistently receiving an hour of recreation time each day," Vazquez
wrote in a June 22 letter to Hyman. "The black mold was cleaned from
the shower in the area where the (U.S. Marshals' Office) women are housed,
and the air conditioning appeared to be working in the cell where it was so
hot during my last visit." Still, Vazquez had other worries, including
detainees who seemed afraid to speak with her a second time. "During
my first visit, detainees eagerly approached me to discuss their concerns.
I spent hours at the facility, took pages and pages of notes, and left with
detainees still lined up to talk to me. The detainees' response to my
follow-up visit was dramatically different. The detainees were subdued,
some even visibly frightened to be seen speaking to me." Two detainees
in the custody of the immigration agency later called Vazquez to say they
had been punished for speaking with her, she wrote in the letter. In a
written response to the judge, the jail's warden, Brick Tripp, said
officials had investigated Vazquez's allegation but couldn't back it up.
"Detainees have not been discouraged from or retaliated against for
speaking the Chief Judge (sic)," he wrote. Although Vazquez was still
troubled by the jail's medical care, its physical condition and behavior by
correctional officers, some of her concerns seem to have been addressed
after County Manager Thaddeus Lucero on July 30 wrote his warning letter to
Cornell. In a letter back to Lucero on Aug. 23, Cornell's senior vice president
for the Adult Secure Division, Michael Caltabiano, outlined changes the
company has made and said there was no reason to terminate the agreement
between the county and Cornell. Under the agreement, Cornell pays the
county more than $1 million a year to rent the facility at Fourth Street
and Roma Avenue Northwest. Under another agreement, federal detainees
including from the U.S. Marshals' Office and the immigration agency are
housed at the lockup. Currently, fewer than 200 Marshals' detainees remain.
"While we acknowledge that there have been some difficulties to
overcome relative to RCC operations, and while we appreciate that
operational improvements can always be made at any facility, we
respectfully maintain that no "event of default" exists under the
Operating and Management Agreement," Caltabiano wrote. As part of its
response, the Houston company cited changes including a correctional
officer who was fired for "using his cell phone to take a profile
photo of a female detainee fully clothed." Another officer was
temporarily reassigned after he allegedly called an inmate a "black
monkey." An investigation by the jail didn't substantiate the
allegation, even though a witness independently backed up the assertion.
After complaints of clothes not being adequately cleaned, the company also
said it had adjusted its laundry services at the jail to wash smaller
numbers of clothes at a time and provide inmates with an increased number
of undergarments.
August 25, 2007 Albuquerque Tribune
The operator of Albuquerque's Downtown jail says it could lay off up to 100
of its 185 employees if the Immigration and Customs Enforcement agency
doesn't return its detainees to the lockup. The federal agency earlier this
month removed more than 600 detainees, saying the facility didn't meet two
of its standards. With fewer than 200 inmates in the 970-inmate capacity
jail, Cornell says it can't keep everyone employed at the jail at Fourth
Street and Roma Avenue Northwest. "If we don't hear from them by Sept.
9, we're going to have to lay off a significant portion of our staff,"
Cornell Cos. Inc. spokesman Charles Seigel said. ICE spokeswoman Leticia
Zamarripa said the agency doesn't have a timeline for when it might send
inmates back to the jail. Since the agency yanked its inmates, Cornell has
worked to improve the jail, Seigel said. Its staff has recently undergone
cultural training, needed because the company deals with immigrant
detainees from around the world. The immigration agency wouldn't say what
standards the jail didn't meet. But The Tribune has learned they dealt with
concerns over tool control and adequate recreation for inmates. Seigel said
the company has worked to address those issues.
August 11, 2007 Albuquerque Tribune
The head of Cornell Companies Inc. says Bernalillo County's Downtown jail
wasn't one of the company's "best" as it struggled with
management turnover, failed to meet the needs of a federal immigration
agency and earlier this month lost the agency as its main customer. Yet the
jail was a moneymaker for the company - accounting for $1.7 million of the
$2 million second-quarter revenue increase in the company's adult prisons
division, another Cornell official said in a teleconference this week with
analysts. Concerns about the facility were a top priority during the call.
But before Cornell Chairman and CEO James Hyman talked about the revenues,
he addressed issues at the lockup, saying they were "on everyone's
minds," according to documents obtained by The Tribune. The Regional
Correctional Center is mostly empty after Bernalillo County and the
Immigration and Customs Enforcement agency removed more than 700 inmates in
recent weeks. Fewer than 200 U.S. Marshals Service detainees remain. During
the conference call, Hyman, who visited the center in June, talked about
the facility owned by Bernalillo County and run by Cornell. Operating
challenges at the jail have stemmed from its "population
volatility," Hyman said, adding that the quality and stability of
operations at the RCC have improved since 2006. "However," Hyman
said, "if we had operated RCC as we do our best facilities, no one
would have had any basis for criticism. But we didn't." Over the past
nine months, Cornell has revamped the center's leadership, improved staff
training and pay rates, and improved operating procedures, he said. In an
interview Friday, Hyman said the RCC "clearly has not had the
stability of operations that what I would say our better facilities do. In
part, your best facilities tend to have very constant, long-term leadership
teams, and they can drive the application process and training with the
staff." At least four wardens have run the jail since Cornell took
control of the lockup at Fourth Street and Roma Avenue Northwest in 2004.
During the conference call, analysts repeatedly asked questions about the
RCC - one of 79 jails Cornell operates in 16 states. In New Mexico, Cornell
also manages the Lincoln County Detention Center. In particular, analysts
wanted to know what the company is predicting will happen with so few inmates
in the Downtown jail, which is designed for 970 inmates. Hyman said the
company is "not forecasting when any increase (in jail population)
will occur." But Cornell is "actively marketing the vacated beds
to other customers in the event that ICE decides not to use the beds we
provide," he said. The recent decline in jail population has forced
the company to lower its earnings projections for the second half of 2007,
he said. Revenues for the adult secure institutional services division -
one of three divisions in the company - were $47.8 million in the second
quarter. ICE officials have said they won't know when or if they will
return prisoners to the RCC until they complete a review of the facility.
Spokeswoman Leticia Zamarripa said Friday it's unclear when the review will
be done. During the last review of the jail done by ICE, the immigration
agency found that the building didn't meet two of its 38 standards,
although agency officials wouldn't say which standards were unmet. In the
teleconference, Hyman said the two were in "recreation" and
"tool control," but said ICE didn't provide him much detail on
those or other reasons the agency pulled out its detainees. "There is
no one that has said `This is the reason why' " ICE transferred its
prisoners to other facilities, he said. "The problem I've got is
(that) I've dissatisfied the customer to the point where they have taken a
pretty extreme action. The task we have is to try and address their
concerns," Hyman told the analysts. The jail is under scrutiny from
federal officials after a Korean immigrant last year died in an Albuquerque
hospital while in RCC custody. The lockup also is in the cross hairs of New
Mexico inmates' attorneys who are seeking more access to the jail as part
of a 12-year-old lawsuit about crowding and health care conditions for
Bernalillo County inmates. The attorneys' request for greater access is
pending before a federal judge. Both the county and ICE have denied that
they transferred inmates out of the RCC because they feared becoming snared
in the lawsuit. In a filing in that lawsuit this week, a county attorney
wrote that having the lawsuit apply to the Regional Correctional Center
would mean that other jails where the county houses inmates when the
Metropolitan Detention Center is full would be reluctant to take in their
overflow inmates. A county attorney also said "no one should be
surprised" if the U.S. Marshals Service pulled out of the RCC, leaving
an empty building and no money to pay the rent. The Marshals Service,
however, hasn't indicated it will leave the jail, located close to
courthouses in the city's center. Cornell pays the county $1.2 million a
year to lease the building. The county uses the money to pay the bonds on
the Health Services Unit at its Metropolitan Detention Center. The contract
between Cornell and ICE is still in place; canceling it would require 180
days of notice, Hyman said in the teleconference. During an interview with
The Tribune, Hyman also said Cornell laid off 10 jail employees after ICE
removed its inmates. The company "clearly will face another decision
at some point" about other staff cutbacks, he said.
August 2, 2007 Albuquerque Tribune
Immigration and Customs Enforcement plans to pull all of its inmates out of
the Regional Correctional Center, a spokesman for the company that runs the
Downtown jail said on Aug. 2. "They have told us they are going to
take out everybody for some time, at least," said Charles Seigel, a
consultant for Cornell Cos. An ICE spokeswoman didn't return calls seeking comment
on Aug. 2. Seigel referred questions on how many inmates were being moved
and where to ICE. Seigel said ICE still has a contract with Cornell at the
jail, owned by Bernalillo County. The jail in the past has housed about 700
ICE detainees, plus about 200 people in the custody of the U.S. Marshals
Service and a handful of Bernalillo County inmates. The county removed its
inmates from the jail in June, and ICE on JUly 27 pulled half its inmates,
including all the women and non-criminal immigrants in custody. At the
time, ICE spokeswoman Leticia Zamarripa said the agency wanted to better
use its jail space and was only leaving male criminal immigrants.
July 28, 2007 Albuquerque Tribune
The Immigration and Customs Enforcement agency has yanked hundreds of its
inmates from the Regional Correctional Center in Downtown Albuquerque,
reducing the jail's population by about a third. The move, which removed
all the female inmates and inmates held on non-criminal immigration
violations from the jail, is a first since Cornell Corrections Inc. took
over the jail about three years ago. The move comes as attorneys in a
12-year-old lawsuit — known as the McClendon case — about jail crowding
seek access to the building to monitor living conditions at the facility.
ICE spokeswoman Leticia Zamarripa said the lawsuit didn't play a role in
the decision to move "at least half" of the ICE inmates. "In
an effort to manage ICE's use of bed space, ICE has determined that the
agency is only going to use the RCC for male criminal aliens,"
Zamarripa said. She did not have the exact number of inmates transferred
from the jail and moved to other facilities in New Mexico and Texas. The
agency in the past has housed about 700 people in the jail and the
population frequently fluctuates as immigrants are brought to the RCC and
then deported. The move by ICE comes about a month after Bernalillo County
removed its inmates from the Regional Correctional Center. The county
removed their inmates about one week after a filing in the McClendon lawsuit
by inmate attorneys wanting access to the RCC facility. The county contends
the lawsuit had nothing to do with the move. "Bernalillo County
removed its inmates from the RCC because intermittently we will place
overflow inmates there as needed," said county public safety director
John Dantis. "At the time, we could manage this group within our
facility." It's unclear how many people remain at the jail. A
consultant for the company, Charles Seigel, declined to release the current
population, but said it's not over capacity. The building is rated to hold
970 people. "On a regular basis, it's more appropriate for the
agencies to say how many are in there," he said. The county, ICE and
the U.S. Marshals Service house detainees in the facility. The U.S. Marshals
Service has just fewer than 200 people in the facility, said Deputy Chief
Marshal Carl Caulk. Marc Lowry, an attorney for inmates in the McClendon
case, said he was at the jail to visit a client this week and saw 22 people
in a receiving and discharge unit marked with an 11-person population sign.
"They all had to eat lunch standing up and holding trays," he
said. "I don't know why they have to stuff people in there like
sardines." The lawsuit filed in 1995 focused on crowding and living
conditions including medical care at the jail, which was then the county's
main detention facility. Things haven't improved at the Downtown jail since
the county built a new jail on the far West Mesa, Lowry said.
July 14, 2007 Albuquerque Tribune
A week after lawyers in a jail-crowding lawsuit asked to visit Bernalillo
County inmates housed at a privately run Downtown jail, the inmates were
ordered out. Lawyers for plaintiffs in the so-called McClendon lawsuit,
originally filed against the county in the mid-1990s, asked a federal judge
on June 28 to extend McClendon's oversight to the Downtown jail, now known
as the Regional Correctional Center. The McClendon lawsuit led to harsh
scrutiny and a federally imposed cap on the inmate population at the
Downtown jail when it was run by the county prior to 2002. The county,
which now houses most of its inmates at the Metropolitan Detention Center
on the West Side, leases the Downtown facility to Cornell Companies Inc.
RCC primarily holds deportees and other federal inmates, though a small
number of overflow county inmates have also been held there. As of last
month, the county had 43 inmates at RCC. Lawyers had sought to use those
inmates to gain greater access to RCC, arguing that the renovated jail
remains overcrowded and plagued by problems. But a week after the June 28
motion was filed, no county inmates remained to be visited. "Brick
Tripp, the RCC warden, telephoned MDC Director Ronald Torres and told him
to remove MDC inmates from RCC," according to documents filed by the
county in U.S. District Court in Albuquerque on Tuesday. All county inmates
had been removed from the jail by July 6, the documents say. Cornell
representatives did not respond to a request for comment Friday afternoon.
John Dantis, deputy county manager for public safety, said he didn't see
the order to remove the county's inmates as an effort to insulate RCC from
McClendon. "They've asked us to remove our inmates before," he
said. "They have contracts to hold federal inmates that pay more than
we do." RCC has come under increasing scrutiny in recent months.
Federal authorities are investigating the death of a Korean woman held at
the facility last year.
July 10, 2007 Albuquerque Tribune
A former detainee at the Regional Correctional Center is suing the private
company that runs the Downtown Albuquerque lockup, saying he didn't get
adequate medical care after he fractured his jaw playing handball.
According to his lawsuit, Robert Delayo hurt himself Jan. 1, 2006, and was
taken to the Albuquerque Regional Medical Center, where he received X-rays
that showed a fracture. A physician told him he should follow up with an
oral surgeon within two or three days. It wasn't until Jan. 27 that Delayo
saw an oral surgeon, according to the lawsuit. The lawsuit in U.S. District
Court in Albuquerque alleges Cornell Companies Inc., a former warden, and
the head of the jail's Health Services Center knew about Delayo's condition
but "made no effort to obtain adequate and timely medical treatment
for Mr. Delayo." The lawsuit also names Bernalillo County, which owns
the jail and leases it to Cornell. Public Safety Director John Dantis said
it's up to Cornell to handle the claim. "The county's response is that
it's a Cornell issue. They are the operators," he said. Charles
Seigel, a consultant for Cornell, said the company can't comment on the
case, but defended the jail's health care. "We do provide an excellent
health program, available to detainees in the facility," he said. One
of Delayo's lawyers, Frances Crockett, said she has also heard other
concerns about medical treatment at the lockup. "It seems to be an
epidemic that's going on around the country, and in part with the RCC, of
prisoners not receiving adequate medical care," she said. Delayo's
lawsuit says he suffered and continues to suffer extreme physical and
mental pain from the injury. It also asks for monetary damages in an amount
to be determined at trial, as well as lawyer's fees. Crockett did not
provide details of what led to Delayo's incarceration. Federal court records
show Robert Delayo, 43, was indicted in connection with a Jan. 25, 2005,
bank robbery of the Wells Fargo Bank at 1800 Eubank Blvd. N.E. He later
pleaded guilty to federal charges of use of a firearm during a crime and
aiding and abetting. Other attorneys, including some from the American
Civil Liberties Union, have collected complaints from detainees about
crowding, poor medical care and unsanitary conditions inside the jail.
Bernalillo County, the U.S. Marshals Service and the Immigration and
Customs Enforcement all have contracts to house detainees inside the
facility at Fourth Street and Roma Avenue Northwest in Downtown. Cornell
officials gave a tour of the jail earlier this month to two reporters, and
defended the medical care, calling it "superb." The Department of
Homeland Security's Office of the Inspector General also has its eye on the
jail after a detainee of Immigration and Customs Enforcement in September
died at an Albuquerque hospital while in the custody of the RCC. The ACLU
has asked the federal government for more information about immigrant
detainees who have died in the custody of Immigration and Customs
Enforcement. The group says 62 have died since 2004 and has filed a Freedom
of Information Act request seeking details.
July 4, 2007 Albuquerque Tribune
The squat, bald detainee wanted to know who was in charge. Warden Brick
Tripp stepped forward to address the detainee's complaint on July 3 about
excessive heat in a section of the Regional Correctional Center in Downtown
Albuquerque. As staffers worked to keep the building cool in triple-digit
temperatures outside, the company that runs the lockup, Cornell Companies
Inc., wanted to turn down the heat on a rash of complaints about the jail.
Civil and labor-rights attorneys in recent weeks have reported complaints
from inmates about poor medical and mental health care, as well as crowded,
dirty and uncomfortable conditions. The charges stemmed from investigations
that began after an immigrant in custody of the RCC died in September. To
respond to the allegations, the jail's warden and other Cornell officials
on July 3 talked with reporters and gave a tour of the jail. "We get
concerned when we get complaints from anybody, but we believe we provide a
safe and secure place for ICE and U.S. Marshals detainees," said
George Killinger, managing director of operations for Cornell's adult
secure institutions. Overall, officials said they look into the complaints
and provide excellent medical care at the facility, which Cornell has
operated since 2004. The building formerly was the Bernalillo County
Detention Center. It was vacated in December 2002 after the Metropolitan
Detention Center was completed on the West Side. Cornell officials said
medical personnel make five trips a day to the inmates' living areas.
Detainees get medical exams after they arrive, and the facility has passed
inspections by the Public Health Services of the U.S. Department of Health
and Human Services. The center has mental health professionals and a
chaplain on duty, officials said. They also pointed out $7 million in
improvements to the jail paid for by the giant private prisons company in
Houston. "We feel we provide superb medical access," Tripp said.
The building is owned by Bernalillo County and leased to Cornell for $1.5 million
a year. It houses federal inmates for Immigration and Customs Enforcement
and the U.S. Marshals Service, as well as some county prisoners. Most of
the inmates are ICE detainees, waiting to be deported. Of the 864 people
held on July 3, 650 were immigrants. The building is rated to hold 970
prisoners, Killinger said. The tour came as the Department of Homeland
Security reviews ICE's detention policies. That job includes determining
"whether ICE has maintained adequate oversight of this (the RCC) and other
detention facilities, and whether the agency's policies are sufficient to
decrease the likelihood of detainee fatalities throughout the county,"
according to department spokeswoman Tamara Faulkner. The look isn't focused
on individual cases, she said, but a broad review of ICE oversight on
procedures for providing care and how deaths are reported. The review began
after it was revealed a Korean woman died at an Albuquerque hospital Sept.
11 while in the custody of the RCC. The woman repeatedly sought medical
attention, according to lawyers familiar with the case. ICE spokeswoman
Leticia Zamarripa said she couldn't comment on the death because it is an
ongoing case, but said the agency "immediately reported the death
through normal reporting procedures according to national detention
standards." Cornell officials declined to comment on the case or to
say how many people have died in the jail since they took charge of the
RCC. That death and others in the country have the American Civil Liberties
Union looking for more information. Last week, the group filed a public
records request for details on what it says are the deaths of 62 immigrant
detainees since 2004. "We are deeply concerned about this shockingly
high number of in-custody deaths in immigration detention," Elizabeth
Alexander, director of the group's Prison Project, said in a statement.
"It raises serious concerns about about the quality of care provided
to ICE detainees in their custody, and it is imperative that information
about those deaths be revealed to the public."
June 29, 2007 Albuquerque Tribune
For years, Bernalillo County's Downtown detention center was mired in a
lawsuit that at times required a population cap imposed by a federal judge,
visits by lawyers and lots of public scrutiny. Much of the focus on the
jail at Fourth Street and Roma Avenue Northwest subsided in 2002 as the
county packed up and moved into a $90 million slammer on the West Side. But
the thorn in the county's side — the lawsuit known as McClendon, which
continues to loom over the West Side facility — is making another
appearance. On June 28, attorneys representing inmates in the McClendon
lawsuit asked a federal judge to extend McClendon's oversight to the
Downtown facility. "The (Regional Correctional Center) is as crowded
or more crowded now than when it was the (Bernalillo County Detention
Center) under the court order," said inmates attorney Brian Pori.
"The judge ought to reinstate the cap at RCC because the same
conditions that existed are still there." Pori is one of the lawyers
who sued the county in 1995 over crowded conditions, among other alleged
problems at the jail. The lawsuit still governs some of what happens at the
county lockup, even though it's in a different building with a different
name, the Metropolitan Detention Center. Pori wants the lawsuit extended to
cover the Downtown jail now run by Cornell Companies Inc. Cornell leases
the building from the county for $1.5 million a year. The county, the U.S.
Marshals Office and the Immigration and Customs Enforcement house detainees
inside the building. About 700 of the residents are immigrants, waiting to
be returned to their countries of origin. Representatives for Cornell and
ICE didn't return calls seeking comment on June 28. Pori filed a motion in
U.S. District Court in Albuquerque on June 28 arguing that lawyers should
be able to inspect the RCC because the building is owned by the county and
because county inmates are housed there. On June 28, the county had 43
inmates at the Downtown jail because there wasn't room for them at the West
Side detention center. Jeff Baker, attorney for Bernalillo County in the
McClendon lawsuit, said the county hasn't yet decided what it will do with
the motion. "The county is discussing the issue with Cornell. Under
court rules, our formal response is due in 14 days, but we may be able to
respond to it earlier than that," he said. His team must consider a
multitude of legal ramifications involved in the issues, Baker said, but he
declined to go into specifics. The McClendon name became synonymous with
crowding in the late 1990s as the city and county struggled with where to
house inmates. The MDC opened in December 2002, behind schedule and over
budget, but from the start has been operating near or above capacity. Bernalillo
County Public Safety Director John Dantis said he doesn't think the
McClendon suit should apply to the RCC. And, he said, the county is still
working to wrestle free from McClendon's grasp. "McClendon never left
us. McClendon has been with us since we've taken over," he said.
"We are working hard every single day to ensure we are in compliance
with those agreements and we're getting closer and closer. And the
accreditation is another example of our efforts." The MDC on on June
28 received high marks on its first accreditation from the American
Correctional Association, but was dinged in five areas, three related to
crowding. Pori said the Metro Detention Center is still too crowded, adding
that he plans to file a motion to hold the county in contempt of court
within two weeks. "They've had two and a half years to bring down the
population in the jail and not make it so overcrowded and
understaffed," Pori said, but it consistently has had more inmates
than its official capacity of 2,236. Baker said he expects any request to
hold in the county in contempt to fall flat. "Under state law, the
jail does not control its front door or back door. To impose fines on the
jail for a situation beyond its control is unfair and unlikely to result in
what all of us want, which is a jail which is not overcrowded." The
news comes as other lawyers are taking aim at the conditions in the
Downtown jail. Attorneys involved in an American Civil Liberties Union
prison project say they've talked to inmates who say health care is inadequate
and the jail is dirty and cold. Federal authorities also are looking into
the death of a Korean immigrant who died at an Albuquerque medical facility
while in the jail's custody last year. The woman repeatedly sought medical
attention and her requests were ignored, according to the attorneys.
June 28, 2007 Albuquerque Tribune
Bernalillo County's Downtown jail is under intense scrutiny from a variety
of sources —including a federal judge — after the 2006 death of an inmate
and complaints about crowding and other problems. Attorneys say they've
received complaints about the conditions for inmates in the Regional
Correctional Center, which is owned by the county and leased to a private
company that oversees operations. The facility holds mostly federal inmates
and detainees. This morning, inmates' attorneys in a 12-year-old lawsuit
related to crowding at county jail facilities asked a federal judge to
guarantee them access to the Downtown jail. U.S. District Judge Martha
Vazquez of Santa Fe has visited the lockup at least three times in recent
months, officials said. The CEO of the company that runs the facility,
Cornell Cos. Inc., was also in town last week to look at the jail. The
visits come as immigrant rights and civil rights attorneys investigate complaints
about conditions in the center, where 70 percent of the detainees are
immigrants awaiting deportation. Others in the jail include suspects held
by the U.S. Marshals Office and up to 175 detainees who can't get a bunk at
the Metropolitan Detention Center because of crowding there. Santa Fe
lawyer Brandt Milstein said he was among a group of lawyers who conducted
about 30 inmate interviews at the center as part of the American Civil
Liberties Union's National Prison Project. Those who've done time at the
Regional Correctional Center had common stories of inadequate medical
treatment during their stay, Milstein said. Many detainees said the jail is
dirty, crowded and cold. Complaints include a woman who fell off her bunk
and suffered deep facial cuts and an injured back and neck but didn't get
the medical help she needed, and a woman who spent more than a month
seeking treatment for swollen and bleeding gums and numbness in her face.
Another inmate said he called four times seeking a psychiatrist for his
anxiety. Others said they didn't have access to their medical records. One
said she was given only Tylenol for her asthma. "Certainly the
information could and should lead to a lawsuit at some point," said
Milstein. "About everything that can go wrong did go wrong." The
center has been run by Cornell Companies Inc. since Bernalillo County in
2004 vacated the building and moved to a new jail on the West Side. The
company didn't return a call seeking comment on June 27 about the
conditions. Company CEO James Hyman visited the jail last week, according
to John Dantis, the county's director of public safety, though it was
unclear whether the visit was related to complaints about jail conditions.
Vazquez's trip to the Downtown jail was far from the first. Because of the
crowding lawsuit in the mid-1990s known as the McClendon case, she
repeatedly checked in on the center when it was run by the county. Vazquez
did not return a request for an interview, but the state's top federal
judge has visited the facility several times recently, Dantis said.
"The judge wants to ensure Cornell is providing all the services
required under the standards the (Immigration and Customs Enforcement) has
promulgated, things like medical, hygiene, recreation - all of those things,"
he said. Vazquez isn't alone. Lawyers in the McClendon case filed a motion
this morning in U.S. District Court in Albuquerque asking that they be
guaranteed access to the Downtown jail to check on conditions for inmates.
The inmates' attorneys are allowed to regularly inspect conditions in the
county's new West Side jail under a settlement of the case. In their
motion, they argue that they should also be allowed to inspect the Downtown
jail because it is owned by the county and because county inmates are regularly
housed there. Inmates' attorney Brian Pori said crowding is a particular
concern. For years, the county was forced to cap population at the Downtown
jail at 586. Today — after renovations — the jail regularly holds more than
900, according to the motion filed on June 28. Dantis said the jail, rated
to hold 993 people, isn't crowded, though its population fluctuates.
"Have there been a couple of times they have exceeded the rated cap?
There may have been, but I'm not aware of it being a problem and it was
looked at carefully," he said. Dantis said no jail is perfect. "I
don't know of any institution in the U.S. where there isn't going to be
someone, either folks who are in there or lawyers, who aren't going to
complain. What's important to me is when you raise those concerns, that
they are investigated, that they are appropriately dealt with and we
continue to move forward." Bernalillo County Commission Chairman Alan
Armijo said he has not received specific complaints about the center, but
wants more information about conditions there and about the death of a jail
inmate last year. "I am concerned anytime anyone dies in a lockup or
if they aren't getting medical attention," he said. Armijo said he's
asked his staff to get more information on the situation. The New York
Times reported on June 27 that Korean immigrant Young Sook Kim died of
pancreatic cancer Sept. 11, 2006, in the Downtown lockup after pleading for
medical help for weeks but not getting it. An investigation by the
Department of Homeland Security's Office of the Inspector General is under
way, the Times said. Kim's death prompted Milstein to start his interviews
about conditions at the jail. Some of the issues were brought to the
county's attention this week when commissioners voted to approve what
Dantis called technical changes to the operating agreement with Cornell.
The commission approved the agreement 3-2 on June 27 after several rounds
of review by the state Attorney General's Office. "We kept sending it
back for two years, telling the county it wasn't OK" for legal
reasons, Phil Sisneros, Attorney General's Office spokesman, said.
Commissioners Michael Brasher and Deanna Archuleta voted against the
agreement. Archuleta said she was troubled by "the fact that someone
was held and not given access to proper health care."
"Individuals, no matter what situation they are being held under,
deserve to not have their humans rights ignored," Archuleta said.
Milstein said he hopes the federal investigation into Kim's death looks at
current conditions at the center, as well. In a letter to the Homeland
Security Department, Milstein said Kim arrived at the RCC in late August
2006. Milstein alleges that repeated requests for medical attention for Kim
were ignored or given scant attention. During her detention, Kim was
"tossed a roll of Tums by a nurse at one point and may have been
administered a finger-prick blood test for diabetes." Kim was taken to
an outside medical facility only when her "eyes yellowed and she could
no longer eat," according to Milstein. She died at the medical
facility. "In addition to our deep concern for the unnecessary
suffering Ms. Kim endured in the absence of minimally adequate medical
care, we are also obviously and gravely concerned that ICE detainees at the
RCC facility are not currently being provided with reasonable medical
attention," he wrote. ICE spokeswoman Leticia Zamarripa said the
center meets agency standards. The agency has room for 700 immigrants at
the lockup. "ICE audits the RCC as it does other contract facilities
every year. It has met the same national detention standards that the
ICE-owned facilities meet," she said.
April 18, 2007 Santa Fe Reporter
As hundreds of immigrants spend what may be their final days in the
United States behind bars, the living conditions in New Mexico’s main
immigrant detention facility are coming under fire. “Right now, people are
being denied health care, the place is filthy and the food is so bad there
have been hunger strikes to protest it,” Santa Fe lawyer Brandt Milstein tells
SFR. Milstein, a cooperating attorney with the American Civil Liberties
Union of New Mexico, has been coordinating a team of local lawyers
investigating the conditions at downtown Albuquerque’s Regional
Correctional Center (RCC). Local attorneys and activists are keeping an eye
on the conditions at Albuquerque’s RCC, where illegal immigrants are
detained. In response to questions from SFR, Christine Parker, a
spokeswoman for Cornell Companies, the for-profit operator of RCC, issued a
statement that highlighted the company’s efforts, but did not respond
directly to Milstein’s allegations: “Cornell strives to operate excellent
facilities,” the statement begins. “We appreciate all concerns expressed by
our inmates and their families, and we work to address them as efficiently
as possible.” Milstein says he has visited the 970-bed facility, home to
more than 700 Immigration and Customs Enforcement (ICE) detainees in
addition to other local and federal inmates. He met detainees with staph
infections as well as ringworm. “That’s indicative of how bad conditions
are in there,” Milstein says. While similar complaints have led to lawsuits
elsewhere—most recently at an immigration detention facility in San Diego,
Calif., earlier this year—Milstein says, “We are not prepared to announced
any lawsuit as of now.” Marcela Díaz, the director of Santa Fe-based
immigration rights group Somos Un Pueblo Unido, says she’s also heard
concerns. “We’ve heard from family members that there’s an overall lack of
information about immigration hearings or if family members are still
detained or if they’ve already been deported,” Díaz says. Díaz says Somos
also has heard “complaints from people that they don’t know how to send
money to family members there to buy food or toiletries.”
July 21, 2006 AP
The American Civil Liberties Union dropped a lawsuit Thursday against
the state Corrections Department after Secretary Joe Williams agreed to
convene a special commission to address overcrowding at the women's prison
near Grants. The action ended a dispute that began when the civil-rights
organization sued in April. The ACLU claimed the agency wasn't complying
with a 2002 law that provides for early release of nonviolent prisoners
when a prison is over capacity for two months. Officials subsequently moved
68 women from the New Mexico Women's Correctional Facility to a privately
operated Albuquerque jail. Corrections officials argued that the shift
meant the Grants prison no longer was over capacity.
Salt Lake Valley Detention Center, Salt Lake, Nevada
September 17, 2008 Deseret News
A California-based company that previously ran a Salt Lake juvenile
detention facility for 11 years is suing the state of Utah after a new
five-year contract was awarded to another firm. Cornell Corrections of
California, which does business as Abraxas Youth and Family Services,
recently filed a lawsuit in 3rd District Court requesting that the decision
regarding the multimillion-dollar contract be overturned and that Abraxas
get the new contract instead. Abraxas alleges that the decision-making
process used by the Utah Department of Human Services and other state
agencies in awarding the contract was "arbitrary and capricious"
and was "clearly erroneous." In fiscal year 2008, the budget for
the Salt Lake Valley Detention Center was about $3.8 million, according to
Liz Sollis, DHS public information officer. Abraxas in the latest round of
bidding submitted a proposal containing a budget of approximately $5.2
million for fiscal year 2009, Sollis said. Meanwhile, Cornerstone Programs
Corp. submitted a proposal that had a budget of about $4.4 million for
fiscal year 2009. Cornerstone, based in Centennial, Colo., has operated the
60-bed Farmington Bay Juvenile Detention Facility in Davis County since
1995. Sollis did not comment on the litigation. However, she said contract
proposals are initially reviewed by DHS and then referred to the state's
Department of Administrative Services Division of Purchasing and General
Services for final decisions. The Salt Lake Valley Detention Center is a
160-bed locked facility for juveniles ages 10-18 who are being held
temporarily until their cases are resolved in court or DHS can find another
place for them. While in the center, the young people receive a variety of
services, including such things as schooling, medical and dental care,
psychological help and other assistance. The center at 3450 S. 900 West is
owned by the state, but services are provided through contracts with other
organizations. The lawsuit said there were 4,190 admissions to the center
during fiscal year 2007. Abraxas said in its suit that it had operated the
center successfully and DHS recently gave it a 100 percent rating.
"Cornerstone received 164 points for its proposal, while Abraxas
received 161.22 points for its proposal. Because the scoring was so close,
even a minor error in the scoring process would have resulted in Abraxas
being awarded the contract," the lawsuit said. When notified that
Cornerstone was getting the contract instead, Abraxas filed a protest with
the state making several allegations: that Cornerstone's proposal did not
comply with state requirements as far as employee education and other
standards; that Cornerstone's proposal contained "blatant
misstatements" regarding the services it would or could provide; and
that Abraxas' score in one section was rounded down while Cornerstone's was
rounded up. Attorneys representing Abraxas and representatives for
Cornerstone were not available for comment at press time. (Cornerstone is
not a party to this lawsuit; Abraxas is suing the state of Utah.) The Utah
Attorney General's Office declined comment.
Santa Fe County Adult Detention Center, Santa Fe, New
Mexico
December 19, 2003
After a 20-year hiatus, Santa Fe County will take over its juvenile
detention center at an annual cost of $4.2 million. On Tuesday, the
Santa Fe County Commission by a unanimous vote approved a measure to allow
Sheriff Greg Solano to oversee the jail. The move puts an end to the
county's practice of hiring a private firm to operate the facility.
As part of the cost to take over the jail Jan. 29, the county plans to
partner with Bernalillo County, which will consult and give direction on
how to operate the facility at a cost of $100,000. Bernalillo County also
assists Valencia County with its facility, said County Manager Gerald
Gonzalez. "This is to help the youth of Santa Fe County and the
regional area," Commissioner Mike D. Anaya said. "It's our
responsibility as the county to operate this facility." The
county chose to take over the jail because the county's current contractor,
Cornell Companies Inc., will stop running the facility on Jan. 28.
The company is ending a three-year relationship with the county because of
money. Cornell officials claim the company has lost money because the
facility has not been full. Cornell also did not want to renew its contract
because the county was seeking to increase the rent. (ABQ Journal)
November 19, 2003
Guards at the Santa Fe County jail say they found an inmate with black-tar
heroin inside the jail Monday afternoon. Albert Ponce, 28, who is
from southern New Mexico, has been charged with possession of a controlled
substance, according to undersheriff Robert Garcia. Police reports
indicate a guard at the jail saw Ponce and another inmate walk out of a
janitor's closet at the jail Monday afternoon. Another guard reportedly
patted both inmates down and found a small sheet of folded paper with the
heroin inside it taped to Ponce's body under his jail-issue clothing.
It was too early to know how the heroin found its way into the jail, Garcia
said, but drugs inside the facility are not uncommon. (Santa Fe New
Mexican)
November 15, 2003
Nine months after the U.S. Department of Justice
found health-care deficiencies at Santa Fe County's jail, problems
remain. The department still won't allow the jail to house federal
prisoners, whose removal earlier this year cut off a source of revenue for
the 682-bed adult-detention center south of the city. Officials say
solving the jail's medical-care problems will likely call for a greater
investment from the county government, which already has felt a drag on its
budget, and more cooperation from community health-care providers. The
company that provides health services is not performing routine exams for
prisoners locked up in the county-owned, privately-operated jail, and in
many cases, inmates are being cared for by emergency medical technicians,
who have less training than nurses, officials say. Inmates have
complained about medical care more than any other issue since the Justice
Department found problems in the jail's medical-screening and treatment
procedures. "The question I have to ask myself is 'Are the
inmates getting adequate care?' " said Stephen Spencer, a member of a
county committee charged with inspecting jail operations. Physicians
Network Associates, hired to provide medical services at the jail, says
there are major hurdles to the kind of care the county wants at the
facility. Some of the difficulties reflect the area's health problems
in general: Among the most burdensome is stabilizing substance abusers held
at the jail for lack of a more appropriate treatment area. Physicians
Network, which subcontracts with jail operator Management and Training
Corp., has medical wards within prisons and jails in Texas, Arizona,
Florida and New Mexico. But company vice president Jean Brock says the
Santa Fe jail is its worst and most complex site. Physicians Network
admits staff turnover has been a problem in the unit, but president Vernon
Farthing said he can't keep help at the jail despite offering an hourly
wage that is $7 to $10 more than he pays equally qualified nurses in a
Lubbock jail. Santa Fe County officials have been talking about
improving the jail since 2001, when the federal Justice Department first
announced it was launching an investigation of civil-right violations
there. Even though the agency likely got involved because of problems
with the former operator, Cornell Companies, by the time it audited the
jail a year later, MTC was in charge. Another year passed before the
Justice Department issued its March report calling for millions of dollars
in security, medical and staff investments. Soon, the department is
expected to file a lawsuit alleging civil-rights violations and a settlement
agreement that will dismiss accusations and spell out how the county will
ensure proper inmate care. (Santa Fe New Mexican)
Two years ago, two former guards at the
Santa Fe County jail placed a handcuffed Tony Sanchez in now-convicted killer
Ivan Lara-Sanchez's cell. The guards placed the two in a cell together
despite their knowledge that they were enemies, according to a lawsuit
filed by Sanchez on Wednesday. "Lara-Sanchez immediately attacked and
brutally beat Tony Sanchez, inflicting serious, permanent injuries,"
reads the suit. The two former guards who placed Sanchez in Lara-Sanchez's
cell knew that Sanchez's jail classification form listed Lara-Sanchez as
Sanchez's "sworn enemy," according to the suit. (ABQ Journal,
September 6, 2003)
The adoptive parents of a former Santa Fe
County jail inmate who died there at age 19 of a drug overdose in July,
2001, have sued the jail's former private manager, the county and others
associated with the facility. Santiago Martinez of Chimayó was admitted to
the jail around September 2000, on charges of heroin trafficking, drug
paraphernalia possession and other charges, according to the suit. Martinez
"had a very serious substance abuse problem or substance abuse
addiction" at the time he was placed in the jail's custody, the suit
says. The lawsuit alleges that Cornell Corrections, Santa Fe County and
former County Sheriff Ray Sisneros, among other defendants, did not conduct
appropriate medical screening for Martinez to identify and treat Martinez's
drug problem. (ABQ Journal, July 2, 2003)
A recent report by U.S. Department of
Justice investigators is harshly critical of the medical care provided to
prisoners at the Santa Fe County jail, concluding that "certain
conditions at the Detention Center violate the constitutional rights of
inmates." The report contends inadequate care cost a diabetic inmate
his sight and that other prisoners failed to get adequate care for head
trauma, pregnancy and mental problems leading to suicide. (Albuquerque Tribune,
April 5, 2003)
A woman who became a hostage of bank
robber Byron Shane Chubbuck after he escaped from a prison transport van in
December 2000 is suing over the incident. Stephanie Angus alleges in the
complaint that Cornell Corrections of Texas Inc., then the operator of the
Santa Fe County Detention Center, and the Santa Fe County Commission
violated her civil rights by allowing Chubbuck to escape. (Albuquerque
Journal, December 29, 2002)
Paula Arrietta-Boyce said her ulcer bled
for two months during the time she was incarcerated at the Santa Fe County
jail. But corrections officers and medical staff repeatedly ignored her
requests for help. "I'd be in pain and I'd actually vomit blood,"
the 34-year-old mother said. Eventually, she said, the jail's medical unit
gave her medicine. "When you go to medical, you have to have a
stinking fit so they give you some help," the former inmate charged.
Difficulty obtaining medical care was one of the leading complaints of
inmates during the time Cornell operated the adult detention center on N.M.
14 south of Santa Fe. Under Cornell, inmates also complained about lack of
toilet paper, being kept in segregation for too long, sexual harassment and
lack of access to the facility's law library -- a room with plastic lawn chairs
and portable shelves holding a few books. (The Santa Fe New Mexican,
November 25, 2001)
Cornell Corrections Inc. withdrew its
application Tuesday to continue running the Santa Fe County's adult jail
for the next three years, saying it had experienced financial problems
operating the facility. Paul Doucette, a spokesman for the Houston-based
company, said Cornell had lost a significant amount of money running the
jail. (AP, August 15, 2001)
A former Santa Fe County jail guard
pleaded guilty Tuesday to helping three federal inmates escape the facility
four months ago for $3,000. Lawrence Candelaria, 44, of Las Vegas, N.M.,
admitted in federal court he gave the inmates a hammer, a chisel and
hacksaw blades they used to saw the metal bars and crack the window of one
of the cells of the jail. The jail is privately run by Houston-based
Cornell Companies Inc. Candelaria, who was fired shortly after his arrest
in April, also admitted letting one of the inmates use his cell phone to
call for a ride. The inmates still have not been apprehended. (The Santa Fe
New Mexican, August 1, 2001)
Police say Marcos Cordova engaged in
sexual intercourse several times with a female inmate at Santa Fe County
Jail. A former Santa Fe County jail guard was behind bars Tuesday charged
with having sex with a female inmate on numerous occasions while he worked
there. Police arrested Marcos Cordova, 39, of Santa Fe on a district-court
warrant Tuesday. (The Santa Fe New Mexican, July 18, 2001)
A 17-year-old prisoner escaped from the
Santa Fe County juvenile detention center around 6:40 p.m. Monday by
climbing over a 20-foot-high chain-link fence topped with barbed wire,
according to Santa Fe County Sheriff's Department. Montano said Haws
apparently climbed the fence in an outdoor area of the detention center
known as a "bullpen" when the guards weren't looking. "When
the staff turned its back he climbed over the top and took off,"
Montano said. (Albuquerque Journal, June 19, 2001)
A Santa Fe County jail guard has been
arrested on charges that he was to be paid $3,000 to help three federal
inmates who escaped from that lockup Saturday. Lawrence Candelaria, 43, of
Las Vegas, N.M., is charged with aiding and abetting an escape. Court
documents obtained by The Journal said the investigation revealed
Candelaria allegedly smuggled in three hacksaw blades and gave them to one
of the inmates, let one of the inmates use his cellular phone to arrange
Saturday's escape, and created diversions while the inmates cut and pounded
their way out. (ABQ Journal, April 13, 2001)
Allegations of a drug smuggling attempt
and an inmate beating have prompted the sheriff to launch a criminal
investigation into activities at the privately operated Santa Fe County Detention
Center. Sheriff Ray Sisneros has assigned a detective to the center on a
full-time basis. Sisneros is particularly suspicious of allegations that a
guard tried to sneak a small bag of marijuana into the jail and the arrest
of another guard who allegedly beat an inmate. (AP, April 1, 2001)
A Santa Fe County jail guard has been fired for allegedly agreeing to take
$70 to sneak a bag of marijuana into the Cornell run jail for an inmate.
(AP, March 22, 2001)
Former guard Christopher Grule found
himself on the wrong side of a cell door Friday after his arrest on charges
he beat an inmate who was later stitched up at the hospital, according to a
Santa Fe County sheriff's report. According to court documents, Gurule used
his body to push Chatman into a cider-block wall in the jail's booking
area, where Gurule was working as a booking officer. Gurule held Chatman
against the wall and the slammed his head into it, giving Chatman a 1
1/2-inch cut to his right eyebrow, the document state. (Albuquerque Journal,
March 6, 2001)
A convicted bank robber dubbed
"Robin the Hood" used a key to free himself from his restraints
before escaping from a prisoner transport van, a federal law enforcement
officer said. He freed himself from his restraints, kicked out a window in
the van and ran away. Authorities said at least one of the two guards in
the transport van fired at Chubbuck after the escape. (Albuquerque Journal,
December 23, 2000)
Santa Fe County Juvenile Detention Center, Santa Fe,
New Mexico
About 60 people who currently work at the Santa
Fe County Youth Detention Center will have a chance to become county
employees when the government takes over the youth jail from a private
contractor later this month. Cornell Companies announced this summer it
would not renew its contract to operate the 128-bed facility, which it has
operated for about five years. Last month, the County Commission voted not
to contract another private operator. (Santa Fe New Mexican, January 8,
2004)
November 15, 2003
Santa Fe County has a little more than two months to find a new company to
operate its juvenile detention center. Earlier this month, the county
opened up its process to find a company to replace Cornell Companies Inc.
The firm notified the county it will terminate its contract at the end of
January. Greg Parrish, county correctional service manager, said the
county is in the process of taking bids from companies interested in
operating the facility. Companies interested in running the jail need to
submit a plan to the county by 3 p.m. Dec. 9. "We are under a
time crunch," Parrish said. "We need to move forward very quickly
and get a new operator on board." Cornell's decision to
terminate its contract with the county happened two years after the Texas-based
company stopped operating county's adult jail. Cornell notified the
county in August that it would terminate its contract to run the juvenile
jail. The company has run the youth facility for three years. Cornell
is terminating its contract— to the surprise of county officials— because
the company is losing money, said Paul Doucette, Cornell vice
president. The bottom line is also why Cornell in August 2001 decided
to no longer operate the county's adult jail. Doucette said the 670-bed
facility never operated at capacity and Cornell exited a three-year
contract for the adult jail at an overall loss. In the past two
years, Doucette said Cornell has experienced similar results with operating
the 57-bed juvenile center. "The population at the facility has
not been full," Doucette said. "The rent was going to be so high
next year that it was going to be tough to sustain the programs we offer at
the jail." Before Cornell decided to end its contract, the
company attempted to negotiate a new contract with the county with the
hopes of getting a better deal on the rent, he said. Doucette said
the county was unwilling to negotiate a lower lease agreement and that led
to the decision to terminate the contract. Doucette would not reveal the
price the company was trying to negotiate. The county pays a daily
rate to Cornell for each youth, but the contract requires Cornell to pay
$25,000 in rent each month and waive the daily fee for 8.25 beds per
month. (ABQ Journal)
A former corrections officer at the Santa
Fe County Youth Development Program who pleaded guilty to raping a juvenile
inmate will be released on house arrest and must undergo additional
psychological evaluation before sentencing, state District Judge Michael
Vigil ruled Tuesday. John Robertson, 39, pleaded guilty last week to two
felony sex crimes for having intercourse with a 16-year-old girl at the
facility. (Santa Fe New Mexican, September 3, 2003)
Schaffner Youth Center, Steelton,
Pennsylvania
A 16-year-old Harrisburg
boy escaped from a Dauphin County juvenile detention center, using a sock
to disable a locked door and a walkie-talkie to create confusion. The
teenager, who then outran two guards, remains at large following the escape
at about 1 a.m. Tuesday from the Schaffner Youth Center in Steelton. No one
was injured, according to county spokeswoman Jennifer Kocher. Two guards have been suspended without pay pending
a review of the facility, which is managed by Cornell Abraxas and holds
about 65 youths, Kocher said. "We did have several unfortunate
breakdowns in security," she said. (AP, March 19, 2004)
Seal Beach City Jail, Seal Beach City,
California
June
28, 2007 Orange County Register
A city jail that once housed up to 30 inmates has been effectively shut
down, ending 13 years of operation under a management company whose former
employees have in recent years been accused of stealing from jail inmates
and conspiring with a former inmate to murder a Newport Beach couple. Seal
Beach city officials have stopped short of saying the contract with
Texas-based Correctional Systems Inc. was terminated because of problems
with the company's employees, including a former jailer who is awaiting
trial on conspiracy murder charges and three other jailers charged with
stealing an inmate's Sony PlayStation and forging documents to cover up the
crime. "We dismissed the vendor for a failure to produce a
profit," said Seal Beach police Chief Jeffrey Kirkpatrick, explaining
that the for-profit jail in the city's police station on Seal Beach
Boulevard was losing money. "We had to share a loss, and that was not
tenable." The Seal Beach jail, which Kirkpatrick said was costing the
police department "thousands of dollars" a year to keep open,
housed pay-to-stay prisoners for $70 a night as well as federal prisoners.
The 30-bed jail was effectively shut down June 15, although individuals
arrested by Seal Beach police still can be booked and held there for short
periods of time. Under management by Correctional Systems, the Seal Beach
jail in recent years also racked up numerous violations during inspections
by state regulators more than any other city jail in Orange County, state
records show. "It's embarrassing for the police department," said
Seal Beach Mayor John Larson. "Even though it was a contractor running
it for the city, we get blamed for everything." Perhaps the most
notorious Correctional Systems employee was Seal Beach jailer Alonso
Machain, who allegedly conspired with an inmate he met in jail to steal a
$440,000 yacht in November 2004 and kill the Newport Beach couple who owned
it. Machain, who was arrested a few months after the couple mysteriously
disappeared, was charged with two counts of murder. Machain and the former
inmate, Skylar Deleon, pleaded not guilty in court and remain in custody
awaiting trial. The complex murder case actually involves another, earlier
alleged slaying by Deleon while he was serving time in Seal Beach. In
December 2003, Deleon, who was allowed out of the jail during the day on a
work furlough program, allegedly killed a man named Jon Jarvi after conning
him out of about $50,000. Authorities say Deleon drove Jarvi to Mexico,
slashed his throat and dumped him on a highway. Deleon returned late to the
Seal Beach jail that night, and it was Machain who allegedly allowed him
inside. After Deleon's release in April 2004, he and Machain pretended to
be interested in buying Thomas and Jackie Hawks' $440,000 yacht docked in
Newport Beach, authorities say. The couple unknowingly took Deleon and
Machain on test drives, and in November 2004, the men allegedly overpowered
the couple at sea, forced them to sign over the yacht, killed them and
weighed down their bodies with an anchor before tossing them overboard.
About two years later, in an unrelated incident, three Seal Beach jailers
were implicated in the alleged theft of an inmate's Sony PlayStation. After
stealing the video game player last year, they created a false receipt
indicating the inmate's mother had received the PlayStation and destroyed
the original receipt, prosecutors said. Victor Calzada of Stanton, Fred
Madrigal of West Covina and Michael Navarro of Bellflower, all in their 20s
at the time, pleaded not guilty; their pretrial hearing is scheduled for
July 6. Despite the bad publicity for the jail, city officials maintain
that terminating the contract with Correctional Systems was a financial
one. After the company began losing money on the jail, Seal Beach police
proposed changing the contract to a tenant-landlord business model so the
police department would not have to share in the jail company's losses.
Correctional Systems declined the offer, police said. The company also was
given two consecutive six-month probationary periods to improve its
financial performance, according to police. The 12-month period would have
ended June 30. Correctional Systems declined to comment, except to say that
pulling out was a mutual decision. "Despite good-faith negotiations,
we weren't able to reach agreements on the terms," said spokeswoman
Christine Parker. Because Seal Beach police planned in advance for the
closure of the jail and had stopped accepting longer-term inmates, only
about three inmates had to be transferred to other jails, said Doug Shur,
police department liaison for the jail. Seal Beach jail violations: The
California Department of Corrections and Rehabilitation cited the Seal
Beach city jail for 15 violations in 2004 and six violations in 2006. The
2006 violations were: No written policy for maintaining records for
in-custody injuries *No written policy for reviewing in-custody deaths *No
written policy to ensure inmates who are kept in sobering cells for more
than six hours are evaluated by medical staff *No written policy for
an inmate to file or resolve a grievance *Some cells lacking the required
25-square-foot space for work-related use *Insufficient space and
furnishings to meet personal needs The 2004 violations were: *Documentation
unavailable to show jailers had required supervisory training
*Documentation unavailable to show jailers had required continuing
professional training *Female employees not always available to assist
female inmates in emergencies *Inconsistencies between written policy and
practice *No written policy to segregate inmates suspected of an infectious
disease *No written policy to identify, segregate and/or treat inmates with
a mental disorder *No written policy to segregate inmates prone to escape,
disruptive behavior or harm by other inmates *Improper policies to control
and oversee inmates' mail correspondence *Inconsistent policy for inmates
scheduled to be disciplined. The jail also was independently cited by
Orange County health officials for problems with minimum diet standards,
menu selection, kitchen sanitation and pharmaceutical management, bringing
the total number of violations for 2004 to 15.
Sentencing
Concept,
San Luis Obispo, California
April
19, 2008 Tribune News
A San Luis Obispo business that abruptly announced it was closing at
the end of the month temporarily left local criminal justice officials
scrambling to keep juveniles electronically monitored and community work
service and youth offender programs running. But on Friday, officials said
they secured a business to run two of the programs while still searching
for someone to electronically monitor youths released from Juvenile Hall.
The San Luis Obispo office of Sentencing Concepts plans to shut down
permanently April 30 after about 12 years of running criminal justice
programs in the county, according to Wendy Martinez, the company’s regional
director. “We had a last-minute notice that we were closing,” Martinez said
Tuesday about the notice from its parent company, Cornell Companies Inc. in
Texas. “We’ve made profit, just not enough profit to keep our people happy.
We had a deadline by which we needed to make X amount of dollars … and the
deadline came and went.” Sentencing Concepts was told to close its San Luis
Obispo office, which employs two people. Its Santa Maria location will
close June 30. The short notice left the county Probation Department and
the District Attorney’s Office in precarious positions, scouting out a
business to take over the services or leave offenders without programs.
Former San Luis Obispo County Probation Officer Bill Pucciarelli said
Friday he plans to pick up the Young Adults Deferred Judgment Program and
the community work service program. A new vendor is still needed for the
electronic monitoring program, which Sentencing Concepts will operate until
July 1 from its Santa Maria office. Assistant Chief Probation Officer Jim
Salio said Thursday he is confident a replacement will be found before
then.
Southern Peaks
Regional Treatment Center, Canon City, Colorado
April
29, 2010 Atlanta Journal-Constitution
An Alpharetta man was sentenced Thursday to three years and five months in
prison for bilking a Colorado corrections facility project out of nearly
$13 million. Edgar J. Beaudreault Jr. pleaded guilty in December to charges
of conspiracy to commit wire fraud. In 2003, Beaudreault, 61, and San Diego
co-defendant Howard Sperling tricked Cornell Corrections of California Inc.
into transferring $13 million into an Atlanta account that was supposed to
be an escrow account for the purchase price of a Canon City, Colo.,
facility under construction, court authorities said. Rather than having the
escrow administered by a reputable bank, Beaudreault and Sperling wired the
money to other accounts for their own personal use. Under the same
contract, the two men and another defendant also were supposed to obtain a
construction loan on behalf of the general contractor on the project, but
didn’t. “These defendants were part of an elaborate fraud scheme that
ironically involved the construction of a prison,” U.S. attorney Sally
Quillian Yates said. “They will now experience how business is conducted
inside a real prison.” In addition to the federal prison sentence,
Beaudreault is required to serve three years on supervised release and pay
$5.4 million in restitution.
February 23, 2010 Pueblo Chieftain
A Chicago man who pocketed $605,000 in construction funds during the
building of a youth treatment facility here was convicted Friday of
conspiracy and wire fraud. A federal jury in Atlanta found Robert B.
Surles, 64, guilty of conspiracy and 15 counts of wire fraud in connection
with a scheme to steal nearly $13 million from Cornell Co., which built the
Southern Peaks Regional Treatment Center in 2003. From Aug. 2003 to Jan.
2004, Surles, along with Edgar Beaudreault, 60, of Georgia, and Howard
Sperling, 45, of San Diego, conspired to defraud Cornell of construction
funds. Surles was to obtain a $12 million construction loan, but he and his
co-defendants never obtained financing for the project and instead led the
contractor to believe they had. The trio falsely represented that the funds
were in an escrow account, but instead the money was transferred to other
accounts. Although some money was used to get the construction started, the
majority of funds was taken by the trio for personal purposes. The evidence
at trial showed Surles took $605,000 of the funds, according to Patrick
Crosby, public affairs officer for the United States Attorney's office in
Atlanta. "This defendant fraudulently induced a company to transfer
approximately $13 million into an ‘escrow account’ that turned out to be
nothing but a piggy bank for the defendant and his co-conspirators,"
said Sally Quillian Yates, acting U.S. Attorney in Atlanta. "A federal
jury was not fooled by the story he told when he testified and convicted
him on conspiracy and multiple counts of fraud." Both Beaudreault and
Sperling pleaded guilty to conspiracy to commit wire fraud and testified
against Surles. All three are awaiting sentencing for the crime and Surles
is slated to be sentenced April 27.
August 15, 2005 Canon City Daily
Record
Cañon City police charged 18-year-old David Allen June with attempted first-degree
murder and attempted first-degree assault after an incident Thursday at the
Southern Peaks Regional Treatment Center, 700 Fourmile Parkway, in Cañon
City. According to police reports, June, a resident at the center who has
family in Penrose, lunged at staff member Laurie Nemcik wielding television
chords. June allegedly tried to stab Nemcik in the neck with the prongs of
the chords before being restrained by several staff members. Southern Peaks
opened in August of 2004 as a treatment facility for adolescents in the
region with behavioral or mental health issues. Six residents ran off from
the campus during its first month of operation, but they eventually were
caught. There have been a number of runaways and alleged assaults since,
including a spate of nine assault arrests during the first week of March.
In June, two teens were arrested for allegedly sexually assaulting another
resident with a magic marker. Charges were later dropped against one of the
defendants after the victim testified in the case.
October 29, 2004 Canon City Daily
Record
It seems that the Cornell juvenile facility has had considerable startup
problems. Does it really have that much economic impact on Cañon City?
Would we be better off without this facility? Cornell officials admit that the Fremont
County facility (Southern Peaks Regional Treatment Center) has had more
problems than its fair share. Management has reacted with some
terminations, transfers, demotions, additional staff training, slowing down
intakes, moving out clients and establishing a community advisory
committee.
October 8, 2004 Canyon Cafe
Recent escapes from the Southern Peaks Treatment Facility have local law
enforcement and city officials, along with a growing number of citizens,
concerned and looking for possible solutions. Since Sept. 29, seven
students have escaped from the facility, located in the new Four Mile
development off Highway 50. While law enforcement officials are worried about the safety
of the community and the strain on their budget, local citizens are
beginning to worry about the placement of a new elementary school near the
facility in the Four Mile Development. Rabe said that Sheriff Jim
Beicker and Police Chief Dan Shull were willing to work with Southern Peaks
to correct the problem. However, Beicker said he has not been contacted by
anyone at Southern Peaks to help address the situation. “(Southern Peaks) has already been a burden
on law enforcement and a safety concern to the community and it was not
represented that way originally,” Beicker said. “It’s almost an unfunded
mandate when the court orders me to transport these kids.” “I
asked how many times do you expect law enforcement will have to come out
there (to Southern Peaks), and he said ‘oh, once or twice a year.’ Well,
they filled that quota in the first couple hours,” Beicker said. Florence
Police Chief Mike Ingle picked up two of the escapees near a gas station
when he noticed two suspicious looking teenagers, not knowing that anyone
had escaped from Southern Peaks. “They’re filling up beds (in Spring Creek Youth Services
Center). We’re only contracted for so many beds. That’s one of the reasons
we can’t get kids in there sometimes, because they are filled with Cornell
kids. Lisa Tauser, communications director for Cornell, a privatized
corrections company that runs Southern Peaks, stressed that it is a
treatment center for juveniles, not another jail like Fremont County
residents are used to. “We don’t anticipate that kids are going
to walk away, but I guess to an extent that is part of the life of this
program,” Tauser said. “They’re
not escaping, they are simply walking away from the facility. Tauser said
that over time, as the staff is more properly trained, the incidents should
decrease and they will not have to rely on law enforcement.
October 7, 2004 Daily Record
Four more juveniles have escaped from the Southern Peaks Treatment Center
in east Cañon City after breaking a window Saturday night at the Cornell
detention center, according to Cornell officials. The latest incident comes
days after two escapees were caught Sept. 28 in Florence.
October 7, 2004 Daily Record
Two juvenile males, 16 and 17, who escaped from the Cornell Youth Detention
Center in Cañon City, were apprehended at 9:30 a.m. Tuesday by Florence
police officers. "I was very
concerned that we were not notified by Cornell that these people were even
missing," Florence Police Chief Mike Ingle said.
October 7, 2004 Daily Record
The escape of two juveniles from the Cornell Youth Detention Center has
caused the facility to rethink how it informs local law enforcement of such
incidents. "This incident
made us aware that our policy for contacting local law enforcement needed
to be changed," Cornell Director of Communication Lisa Tauser said.
Cornell personnel reported the escape to the Cañon City Police Department,
but the Florence Police and the Fremont County Sheriff's Office were not
notified. The two offenders escaped through a window from Cornell's
dormitory units Monday night. Cornell has confirmed there was another
escapee, and a warrant has been issued.
October 5, 2004 Daily Record
In other business, the council: — Discussed the effect of a spate of escapes from the newly
opened Cornell juvenile detention facility on placement of the combined
middle-elementary school at the Four Mile ranch. Havens said the city has
little jurisdiction because "the placement of a school is usually a
matter of right in all zones." Mortensen recommended the council draft
a resolution to the school board stating "it's a bad idea to place a
school near a correctional facility, such as Cornell." One of the
primary concerns has been the lag time between when Cornell has discovered
escapes and when law enforcement officials and the public have been
notified.
October 1, 2004 KOAA
Three juvenile convicts are sitting in a Colorado Springs detention center
after escaping from a new Canon City mental facility. The teenagers
apparently broke out of the Cornell Southern Peaks Treatment Center and
walked all the way to Florence, where police noticed their suspicious
behavior and picked them up. The Cornell facility has been open less than two months.
South Mountain Secure Treatment Unit,
South Mountain, Pennsylvania
May
4, 2006 The Record Herald
The Pennsylvania Department of Public Welfare's Office of Children,
Youth and Family will take over management the South Mountain Secure
Treatment Unit for juvenile offenders on South Mountain Road starting July
1. The move also affects residents from the South West Secure Treatment
Unit in Torrance, which is closing, according to Stacey Ward, spokesman for
DPW. They will be moved to South Mountain. “One of the things we look at
every year is fiscal responsibility. Occupancy was an issue,” Ward said.
The South Mountain facility was maintaining an 80 percent occupancy rate.
There are now 27 residents in the 52-bed facility that has been managed by
Cornell Companies Inc. since 1997. “Through combining the two, we'll be at
almost 98 percent,” she added. The secure treatment units house more
aggressive and difficult court-adjudicated juveniles who have experienced
difficulty adjusting to other placements and have extensive placement
histories. The state also is hoping to absorb as many of the 71 Cornell
employees at South Mountain as possible, she said. “We have heard from a
lot of them and they are interested in staying. They become so committed to
these kids, they want to stay,” added Ward.
State Training School, Plankinton, South Dakota
November 8, 2004 Argus Leader
Cornell Cos. finally has pulled the plug on its experiment with the former
State Training School in Plankinton. Cornell says it won't reopen a 40-bed
detention center. And it won't go ahead with plans for an 80-bed
residential treatment center. The company came into South Dakota with great
fanfare and support from the folks in Plankinton, as well as those in
Pierre. The company has experience running detention centers and treatment
facilities for youths, and it worked out a deal to reopen the former school.
That meant jobs in Plankinton. It meant facilities in South Dakota, so we
didn't have to ship young people out of state. It won't happen now, at
least not with Cornell, which says it can't make enough money. All that
means is that we start over.
Here is our critical review of the past
week’s triumphs, tragedies, oddities and blunders. HISSES on the
collapse of the reopening of the juvenile detention center in Plankinton.
What just days ago appeared to be a rosy future for the former State
Training School now has taken on a funeral pall. Sharp disagreements
between the state and Cornell Companies over rate of payment caused a major
rupture earlier last week, which turned out to be a roadblock that nobody
wanted. There’s little to do now except start over and seek other options
for this facility, which needs to be utilized. (The Daily Republic,
August 9, 2004)
Unfortunately, the picture that has
emerged regarding the Cornell Companies closing at Plankinton wasn’t a
major misunderstanding over reimbursement as much as an assumption by
Cornell that the state would give in and pay a higher rate. If that
turns out to be the case, it will go down as one of the biggest
miscalculations a company ever could make. What remains puzzling
about this whole unfortunate episode is why a company would gamble so much
on the state of South Dakota coming across with a higher pay rate for
juveniles at the residential treatment center. The difference between what
the state had offered - $125.27 - and what Cornell said it expected to
receive - $179 - is a significant amount. However, Gov. Mike Rounds and
Social Services Secretary Jim Ellenbecker both stated unequivocally that
the state never indicated, much less promised, that it would pay the higher
rate. Even if we give Cornell the benefit of the doubt and assume it
was all a big misunderstanding, the logical question then is, what kind of
business operation would move forward on a project without knowing exactly
what its compensation would be? (The Daily Republic, August 5, 2004)
Cornell Companies announced Thursday that
it would temporarily close its juvenile detention center at Plankinton
while working to secure a higher rate of payment for its residential
treatment center. The 40-bed detention center opened only three months
ago. It will close as soon as the four remaining children are placed in
other facilities. Cornell had expected to open the treatment center
later this month with daily payment of $179 per child from the state. But
last week, the state approved a rate of $125.27. “The structure
that’s in place was dependent upon the economies of scale of running both
programs side by side,” said Paul Doucette, Cornell’s vice president of
business development and public affairs. “It was not a good investment on the
part of our shareholders or us to retain the smaller operation pending the
opening of the larger operation. It’s a better arrangement to suspend both
operations.” Aurora County Commission Chairman Oscar Thompson said Thursday
that he was disappointed with Cornell, but he was still hopeful about the
company’s future in Plankinton. “I’d say there was a little problem in
prior planning as far as Cornell is concerned,” Thompson said. “I’m very
disappointed that they did not have everything positively in place. We as a
county would like to see a stronger commitment on behalf of Cornell - we
evidently were misled a little, too.” On Wednesday, as rumors of a
closure surfaced, Gov. Mike Rounds and other state officials said they
never led Cornell to believe that the $179 rate for the residential
treatment center would be granted. Rounds said he thought Cornell was
trying to “threaten to take jobs away at Plankinton to put pressure on the
state.” Social Services Secretary Jim Ellenbecker and Child
Protection Services Administrator Virgena Wieseler also denied Cornell’s
claim of being assured a special $179 rate. They said the state could not
make an exception to its rate structure, especially when the average rate
of payment to the other 13 residential treatment programs in the state is
only $113.68. Furthermore, state officials said Cornell had not shown
any evidence that its programs would be more advanced than the other
in-state programs. And without a higher level of care, the state could not
justify a higher payment. Doucette said Cornell was assured the $179
rate by a “very senior state official.” He declined to identify the
official. (The Daily Republic, August 7, 2004)
Republican State Sen. Ed Olson said
Thursday that an effort is under way to bring all the players in the
Cornell situation to a meeting, even though some legislators are angered
and bewildered by Cornell’s business practices. Cornell officials
said they were led to believe that the state would pay $179 daily for each
child housed at the company’s residential treatment center in Plankinton.
State officials emphatically deny that claim, saying that Cornell knew it
could only qualify for the rate of $125.27 that was granted last
week. If company officials had done any research at all before starting
operations at Plankinton, Olson said, they would have known that the
highest rate possible under the state’s current system is only $125.27. So
when company officials said they were assured a higher rate by somebody in
state government, Olson was skeptical. Olson said one of the Cornell
officials admitted privately that the company may have been too arrogant in
its dealings with the state. The official also regretted, Olson said, that
Cornell had not insisted on a written guarantee of a higher rate. “My
next question,” Olson said, “was whether any state official or anybody in a
position with the state ever said to you that you would get a rate of $179
- whether any state official ever said to you that there was any
possibility at the current time that you would get any other rate, at the
level of licensure that you’re looking for, other than $125.27. And he said
no.” Olson, therefore, blames Cornell executives for the current
state of affairs. But not every lawmaker feels that way. (Mitchell
Republic, August 7, 2004)
Three months after the State Training
School at Plankinton reopened as a privately run detention and treatment
center, the company operating the facility says it might close the
doors. Officials with Houston-based Cornell Cos. told the Aurora
County Commission this week that they're not sure they can afford to treat
juveniles at the daily residential-treatment rate offered by the
state. Cornell said it needs $179 a day for each child the South
Dakota Department of Social Services sends it. The state said its rate
structure allows it to pay only $125.27. Rep. Lou Sebert, R-Mitchell,
said he was puzzled that Cornell would spend money on refurbishing the old
training school and not have some idea of the rate that the state was
willing to pay. But Virgena Wieseler, administrator for Child
Protection Services in the Department of Social Services, said Cornell knew
how high the state was willing to go. She said Cornell officials met
with the departments of Social Services and Corrections last October and
were told how those rates were formulated, taking into account such factors
as administrative, operational and capital costs. They also were told the
highest rates the state paid to other facilities in South Dakota providing
similar services. "The highest rate then for a residential
treatment facility was around $121 a day per child," Wieseler said.
"No other facility in residential treatment in our state was getting
anything above that. And Cornell knew that." The company was
told the same thing in January, Wieseler said, and again in March.
"At no time did anyone in our department guarantee Cornell that they
would receive $179 a day or a rate higher than any of the other residential
providers," she said. "And I believe that was communicated to
them." (Argus Leader, August 5, 2004)
A decision could come by week's end on
whether the company that reopened the state training school at Plankinton
will need to close the center at least temporarily. Chas Fedorco,
regional director for Cornell Companies, said the center is still providing
treatment but is struggling financially. ''We're looking at our
options, and we hope to make a decision by the end of the week,'' Fedorco
said. However, Fedorco said Cornell officials had been asking for
$179 per child per day. Paul Doucette, vice president for business
development and public affairs for Cornell, said the rate proposed by the
state makes it tough to provide proper care. (AP, August 5, 2004)
Taft, California
August 4, 2006 Midway Driller
Too many questions about the city's future and a prospective prison
facility operator's past prompted the Taft City Council to unanimously turn
down a request to endorse a bid to open another community correctional
facility. The Cornell Companies asked the city to write a letter endorsing
their plan to open CCFs next to the existing deferral prison on Cadet Road
on city-owned land and sell the land if it is successful in its bid. The
major issue was ensuring adequate infrastructure to allow the city to
expand. The council wants to make sure that the wastewater treatment plant
that currently serves the federal Taft Correctional Institution and would
serve the new private facility if it is built would have adequate room to
expand to handle anticipated residential growth on the east side of Taft.
In addition, several of the councilmen had questions about The Cornell
Companies reputation. Cornell officials first met with individual
councilmen in late spring to discuss their proposal privately, they came to
the council on July 18 to ask the city to write a letter to the California
Department of Corrections and Rehabilitation. The council held a special
meeting a week ago to consider that request, then tabled action for a week
to get public input. “I'd hate to sell the city short be selling this
land,” Craig Noble said. “I think we need to pull back and think on this
before we go ahead.” Mayor Cliff Thompson said the people he talked to
overwhelmingly supported a new prison, but he too had concerns - both about
the wastewater issue and things he had found out about Cornell in the past
week. “”I have some issues with what kind of company they are.” Noble said
an internet search of Cornell alerted him to hisses with a facility Cornell
operated in New Mexico that led to lawsuits and the city of Santa Fe hiring
an attorney to work full time on problems with Cornell. He also wondered
why Cornell came in with the last -minute request to have the city write
the letter, and then also say they needed more land than they first asked for.
Noble said that brings Cornell's credibility into question and I'd hate to
give any letter of recommendation to a company like that. Thompson said
Cornell officially had lied to him about the wages they paid. He said he
was told Cornell would pay $10 to $14 per hour, but later found out they
would only pay $8 to $10 per hour. Cornell officials didn't attend
Tuesday's meeting.
Texas Adolescent Treatment Center, San Antonio, Texas
April
3, 2008 KRIS TV
Eight immigrant teenagers held at a facility for unaccompanied minors
filed a federal lawsuit Thursday claiming they were abused and denied
access to attorneys. The teens from Honduras, Guatemala, El Salvador and
Cuba were being held at the San Antonio facility run by Houston-based
Cornell Companies Inc. under a contract with the U.S. Office of Refugee
Resettlement. Undocumented minors caught by authorities in the United
States fall under the care of ORR while their immigration cases are
decided. But Susan Watson, an attorney for Texas Rio Grande Legal Aid, said
the teens were beaten and subjected to other excessive force in violation
of their constitutional rights. At least one teen was knocked unconscious,
but complaints to facility administrators were ignored, according to the
lawsuit. Officials at Cornell also denied the teens access to attorneys by
unnecessarily transferring them to other facilities before scheduled lawyer
meetings, the lawsuit alleges. The suit names Cornell and 15 employees
along with three employees of ORR. It does not name ORR itself because the
teens have not filed or exhausted their administrative claims against the
agency, a requirement that must be fulfilled before the federal government
can be sued. "We vociferously dispute the charges in the lawsuit, and
we'll make our case in court," said Cornell spokesman Charles Siegel.
The facility has 122 beds, but Cornell has a contract to house no more than
25 unaccompanied minors there, Seigel said. Calls to officials at ORR were
not immediately returned Thursday. The allegations raised by the immigrant
teens were not the first against Cornell. Arkansas fired Cornell from the
operation of a juvenile facility in November 2006 after finding employees
inappropriately injected youth with anti-psychotic medication to control
behavior. And in September, Immigration and Customs Enforcement officials
removed 600 detainees from an Albuquerque, N.M., facility run by Cornell,
citing failure to maintain safety, health and well-being standards there.
Tom DeLay, Sugar Land, Texas
September 29, 2005 Star-Telegram
In a move denounced as a political witchhunt, Rep. Tom DeLay was indicted
Wednesday with two associates on a felony charge of conspiring to
circumvent Texas' prohibition of corporate campaign donations to secure the
Republican takeover of the Texas House in 2002. Shortly after Travis County
District Attorney Ronnie Earle announced the indictment, the Republican
congressman from Sugar Land resigned his powerful majority leader post in
Washington, at least temporarily. DeLay, 58, is accused of conspiring with
two associates to convert $190,000 in donations from several corporations
into campaign contributions on behalf of seven Republican candidates who
were involved in what many had believed would be close contests for seats
in the Texas House.
September 28, 2005 Bloomberg
U.S. Representative Tom DeLay, the No. 2 Republican in the House, was
indicted by a Texas grand jury for criminal conspiracy in connection with
illegal corporate political donations, prompting him to give up his
leadership post. Two former campaign aides, John Colyandro and Jim Ellis,
were also charged with conspiracy by the state grand jury in Travis County,
according to the single-count indictment. The charge stems from an
investigation into alleged use of illegal corporate contributions by
DeLay's political action committee, Texans for a Republican Majority, in
the 2002 races for the state House of Representatives. The four-page
indictment charges that DeLay conspired with Ellis and Colyandro to use
donations from companies including Williams Companies Inc. and Sears,
Roebuck and Co., now Sears Holdings Corp., to help finance the election
campaigns of seven members of the Texas House in 2002. Under Texas law,
corporations aren't permitted to donate to candidates. Other companies
named, but like Williams and Sears, not charged in the indictment were
Diversified Collections Services Inc., Cornell Companies Inc., Bacardi
U.S.A. Inc. and Questerra Corp.
September 13, 2005 American-Statesman
A Travis County grand jury today added new felony charges against two
officials with Texans for a Republican Majority who first were indicted
last fall. The grand jury re-indicted political consultants John Colyandro
and Jim Ellis on first-degree felony charges that the two laundered a
$190,000 corporate check into campaign donations during the 2002 elections.
It added lesser felony charges of unlawfully making a contribution to a
political party and criminal conspiracy involving the $190,000 transaction.
Just weeks before the 2002 election, Colyandro, who was executive director
of the political committee created by U.S. House Majority Leader Tom DeLay,
R-Sugar Land, sent a blank check to his counterpart, Ellis, in Washington.
September 9, 2005 Houston Chronicle
A Travis County
grand jury indicted a business organization and a political
committee founded by U.S. House Majority Leader Tom DeLay on Thursday on
felony charges of violating election laws by using corporate money to
influence state elections. The indictments accuse the DeLay-founded Texans
for a Republican Majority Political Action Committee of two counts of
illegally soliciting corporate money for political campaigns. The
indictment of TRMPAC is significant because it reflects on DeLay's role in
overseeing the committee. DeLay served on its board of advisers and helped
raise some of the corporate money at the core of the controversy. Texas
election law prohibits the use of corporate or labor-union
money to influence races for elective office. TRMPAC could face a fine of
up to $40,000, but the committee filed articles of dissolution with the
Texas Ethics Commission in July. Earle said the dissolution does not matter
because TRMPAC's management or board of advisers can be held liable for its
criminal conduct.
August 9, 2005 Houston Chronicle
A state district judge refused Tuesday to dismiss charges of money
laundering and accepting illegal political contributions against two
associates of U.S. House Majority Leader Tom DeLay, R-Sugar Land. Judge Bob
Perkins denied arguments from John Colyandro and Jim Ellis that the charges
were based on an unconstitutionally vague law and that the indictments were
improperly worded. Lawyers for Colyandro, who worked for DeLay's
fundraising committee Texans for a Republican Majority, and Jim Ellis, who
worked for Americans for a Republican Majority, have said they will appeal,
likely delaying any trial for at least several months. The charges stem
from the 2002 Texas legislative elections. The money-laundering charges are
based on $190,000 in corporate money that was sent to the Republican
National State Elections Committee.
July
13, 2005
AUSTIN - A state district judge declined Tuesday to dismiss charges of
accepting illegal political contributions against an associate of U.S.
House Majority Leader Tom DeLay.
Lawyers for John Colyandro, who worked for DeLay's fund-raising
committee Texans for a Republican Majority, had claimed that the indictment
against him was based on an unconstitutionally vague law. Judge Bob
Perkins also declined to dismiss a charge of money laundering against
Colyandro, although that issue remains technically alive. The charges
stem from the 2002 Texas legislative elections. The money-laundering charges are related
to $190,000 in corporate money sent to the Republican National State Elections
Committee. The committee then gave
the same amount to seven Texas House candidates.
May 27, 2005 Star-Telegram
A fund-raising operation founded by House Majority Leader Tom DeLay broke
the law when its treasurer failed to report more than $500,000 in corporate
money funneled into Texas campaigns during the pivotal 2002 elections, a
judge ruled Thursday. Texas District Judge Joseph Hart ruled that the
treasurer, Bill Ceverha, must pay five Democratic candidates who lost their
elections a combined $196,660 in damages. It was the first time -- amid a
flood of lawsuits and criminal investigations surrounding the Republican
Party's rapid rise to power in Texas -- that part of the GOP's aggressive
fund-raising operation has been found illegal. Hart's decision, which came
in a lawsuit brought by the Democratic candidates, added quickly to the
pressure mounting against DeLay, the Sugar Land Republican who has been
under siege for ethics issues and questions about his relationships with
lobbyists.
April 21, 2005 New York Times
A children's charity established by Tom DeLay, the House majority
leader, has been underwritten by several of the nation's largest companies
and their executives, including companies that routinely lobby lawmakers on
issues before Congress, according to a review of charity records released
by the companies and other documents. The 19-year-old charity, the DeLay
Foundation for Kids, has consistently declined to identify its donors,
citing their desire for privacy. But a review of corporate and charitable
records shows that recent donors have included AT&T, the Corrections
Corporation of America, Exxon Mobil, Limited Brands and the Southern
Company, as well as Bill and Melinda Gates, the Microsoft founder and his
wife, and Michael Dell of Dell computers. The Gates and Dell family
foundations have donated at least $350,000 to Mr. DeLay's charity since
2001. Among the largest corporate gifts was a $100,000 check given to Mr.
DeLay last year by the Corrections Corporation of Nashville, which manages
federal prisons. AT&T and Exxon Mobil say they have each donated
$50,000.
April 15, 2005 Salon
"The time has come that the American people know exactly what their
representatives are doing here in Washington. Are they feeding at the
public trough, taking lobbyist-paid vacations, getting wined and dined by
special-interest groups? Or are they working hard to represent their
constituents? The people, the American people, have a right to know. I say
the best disinfectant is full disclosure." That populist polemic was
delivered on the House floor in November 1995 by well-known reformer Tom
DeLay, R-Texas. Now nationally notorious for his own lobbyist-paid luxury
trips to Scotland, Russia and South Korea, among other places, where he has
been wined and dined by a bewildering variety of special-interest groups,
the House majority leader is no longer quite so strict about full
disclosure, either. Even the trait often described as his most admirable --
his concern for abused children -- has been tainted by his penchant for
backroom influence peddling. Last year, DeLay was forced to cancel an
ambitious series of charitable events to be held at the Republican
Convention in New York, following a blast of public criticism over the
grossness of the solicitations sent out to lobbyists and corporate donors.
For donations ranging between $10,000 and $500,000, these potential
benefactors of abused children were to be feted at an exclusive Long Island
golf club, as well as provided with a yacht cruise, a VIP suite at the
convention, and a special suite for viewing the president's acceptance
speech. As the Houston Chronicle noted sourly at the time, the 13-page
promotional brochure "had exactly one sentence mentioning abused and
neglected children." While that venture was abruptly canceled, DeLay
hasn't stopped soliciting corporate interests to raise funds for his
charity -- and himself -- at venues around the country. These events aren't
publicized and in fact are rarely reported. Last August, for example, DeLay
appeared at a luncheon in Lexington, Ky., hosted by Rep. Hal Rodgers,
R-Ky., at which donors coughed up money for the DeLay legal defense fund,
but this event wasn't reported in the local press until four months later.
Among those attending the Lexington luncheon was an executive of the
Corrections Corporation of America, who handed the majority leader a
$100,000 check made out to the DeLay Foundation for Kids. As the largest
private prison contractor in America, CCA relies on the federal government to
fill its prisons and its coffers, and is seeking to privatize the prison
system in Texas, where DeLay has a bit of influence, too. A spokeswoman for
the company told the Lexington Herald-Leader that CCA gives to charities
and politicians alike without any expectation of favors in return. In fact,
those present at the DeLay luncheon were reportedly emotionally moved to
see that big check being handed over.
March 16, 2005 The Free Press
Some civilians believe the definition of an honest Texas pol is one who
stays bought. But among pols of the old school, the saying was, "If
you can't take their money, drink their whiskey, screw their women and vote
against 'em anyway, you don't belong in the Legislature." Many of our
pols have the ethical sensitivity of a walnut. All this has led many to
conclude erroneously that Tom DeLay, an alumnus of the Texas Legislature,
is somehow our fault. I grant you a certain resemblance to some of our more
notorious standards: "Everybody does it" and "They did it
first" are actually considered excuses here. But I categorically
reject cultural responsibility for Tom DeLay. Real Texas politicians are
neither hypocritical nor sanctimonious. A pol does what he must -- fish
gotta swim, birds gotta fly -- but no pol of the Old School, when DeLay
served in the Lege, would add self-righteousness to shady dealing. Doing
favors for big campaign donors may indeed be an "everybody does
it," but when those favors take the form of laws that directly hurt
your people, you're supposed to draw the line. Over the line is where Texas
pols would put using a children's charity as a cover for collecting soft
money from special interest groups and then spending it on dinners, a golf
tournament, a rock concert, Broadway tickets and so forth. Because the money
was supposedly for a charity, Celebrations for Children, Inc., special
interests who wanted favors from DeLay were able to give him money without
revealing themselves as campaign donors. Cute trick, Tom, but a really
cruddy thing to do. In another example of ethical rot, DeLay took a
$100,000 check from the Corrections Corporation of America, a company that
runs private prisons in Texas and has a 20-year history that includes
mismanagement and abuse. CCA wants the Texas Lege, over which DeLay
exercises considerable sway because he's a money conduit, to privatize the
prisons. And that check? Made out to DeLay's children's charity, the DeLay
Foundation for Kids. Barf.
December
13, 2004 Newsweek
Faced with mounting
lawyers' bills to fend off ethics complaints and a grand-jury probe in
Texas, House Majority Leader Tom DeLay is increasing efforts to raise money
for his legal-defense fund. But DeLay, who has raked in more than $400,000
for the fund since last July, could face new questions over how he's raised
the cash in the past. In addition, the Lexington (Ky.)
Herald-Leader last week reported that, while attending a fund-raiser for
DeLay's legal fund last August, the head of a private prison firm handed
DeLay a $100,000 check for a foundation he operates for abused children.
December
1, 2004 Democrats.org
House Republican
leader Tom Delay, after being shielded from losing his leadership position
upon indictment by a grand jury, is yet again pushing the ethical envelope.
Recently, Delay took a check for $100,000 for his charity from Corrections
Corporation of America, a private prison company that was looking to add to
its list of government prison contracts. So Delay's ethical problems cost him a sizable amount of
money in legal bills, then House Republicans changed their ethics rules so
that he could stay in the leadership even if indicted on criminal charges,
then those same House Republicans helped organize a fundraiser to help him
pay for his bills, then at the fundraiser he took a check for $100,000 from
a company looking for federal prison contracts and yet, the Republicans
still want this man as their leader?
December
1, 2004 Star Telegram
House Majority Leader Tom DeLay, whose aggressive campaign
fund raising is the subject of a Texas grand jury investigation, took a
$100,000 check from a private prison company at a Lexington fund-raiser in
August for a charity he operates. DeLay, R-Sugar Land, has refused to
identify donors to his nonprofit DeLay Foundation for Kids, despite calls
for disclosure from government-ethics groups that criticize anonymous,
unlimited gifts to the charities of powerful members of Congress. However,
Corrections Corporation of America confirmed last week that its chief
executive officer, John Ferguson, traveled to Lexington to present $100,000
to DeLay's charity. "We absolutely
get no favors in return, and we expect no favors in return," Louise
Chickering said. Ferguson announced the $100,000 gift before scores of
guests at a fund-raising luncheon for DeLay's legal defense fund, organized
by Rep. Hal Rogers, Kentucky's senior congressman. Through
its political-action committee, CCA contributed nearly $180,000 for federal
races during the 2004 elections. DeLay and Rogers took at least $4,500 and
$6,000, respectively, from CCA for their campaigns or their
"leadership PACs," used to help their colleagues'
campaigns. Calls to Rogers' congressional office were not returned
this week. "These political
foundations have become methods for well-heeled corporate executives,
lobbyists and others to purchase influence and face time with top
politicians, and without the limits or disclosure required of campaign
donations or lobbying," said Rick Cohen, executive director of the
National Committee for Responsive Philanthropy.
October 22, 2004 AP
Two associates of U.S. House Majority Leader Tom DeLay who have been
indicted for alleged campaign finance violations will be allowed to put off
answering a civil lawsuit until their criminal charges have been
resolved. State District Judge Joe
Hart on Thursday postponed a civil lawsuit against John Colyandro and Jim
Ellis, who were charged last month with laundering corporate donations
during the 2002 elections.
September 22, 2004 AP
The money laundering allegation in a congressional ethics complaint filed against
House Majority Leader Tom DeLay involves the same $190,000 in political
contributions that led to indictments of the Texas congressman's aides on
similar charges. DeLay is accused in an ethics complaint of misusing the
Texans for a Republican Majority Political Action Committee to launder
$190,000 in illegal corporate contributions through the Republican National
Committee for use in Texas legislative races. On Tuesday, a grand jury in
Texas indicted Jim Ellis, a paid consultant to Texans for a Republican
Majority, and John Colyandro, former executive director of the Texas
committee, on money laundering charges involving the same $190,000 check. A
third aide was indicted on separate charges. The indictments allege that on
Sept. 13, 2002, Ellis delivered a check for $190,000 to the Republican
National Committee. The check was signed by Colyandro and made out to the
Republican National State Elections Committee. Accompanying it was a list
of several GOP Texas legislative candidates and the amount of money that
each should get from the RNC, according to the indictment. The indictments
said the $190,000 came from corporate contributions to Texans for A
Republican Majority. Givers included Diversified Collection Services Inc.,
$50,000; Sears, Roebuck and Co., $25,000; Williams Companies Inc., $25,000;
Cornell Companies, $10,000, Bacardi USA, $20,000 and Questerra Corp.,
$25,000, the indictments said. They did not account for the remaining
contributions. The Republican National State Elections Committee subsequently
wrote checks totaling $190,000 to seven Texas candidates, the indictment
alleges. Texas law prohibits
the use of corporate money for direct political purposes.
Valencia County Detention Center,
Valencia County, New Mexico
March 18, 2009 News-Bulletin
A federal district judge has filed an order approving a preliminary
settlement agreement in a class action suit against the county regarding
unlawful strip searches at the jail. In April 2007, the law firms of
Rothstein, Donatelli, Hughes, Dahlstrom, Schoenburg and Bienvenu in Santa
Fe and Griego and Guggino and Associates in Los Lunas filed a class action
suit against the county and Cornell Companies, a private corrections
company that operated the jail for several years after the new facility was
built. The federal civil lawsuit was filed on behalf of two clients who
claim they were unlawfully strip-searched while at the county jail. The
suit claims that strip searches of all incoming pre-trial detainees were
unconstitutional and conducted on people booked into the jail on minor
charges or by mistake. According to the order, which was filed late last
month, once Judge Christina Jaramillo signs off on the final settlement
agreement, the defendants, which include the county as well as Cornell
Companies, will pay the plaintiffs $3.3 million. The county will pay $2.145
million, while Cornell agreed to pay its share of the final settlement of
$1.155 million. The two plaintiffs in the case will each receive $42,500.
The preliminary settlement also says that $1.1 million will be allocated
for attorneys' fees, gross receipt tax on plaintiffs' attorney's fees, and
plaintiffs' litigation expenses and costs. The actual costs of claims
administration, which includes notice to the class, processing and
administering the settlement will be paid from the settlement claim. The
balance of the settlement fund will be distributed among class members who
timely file qualifying forms. "We think there are probably about 630
people that are potentially members of the class," said Santa Fe
attorney John Bienvenu. "They are defined as people arrested on
charges not involving drugs, weapons or violence between April 3, 2004, and
April 3, 2007."
July 27, 2005 News Bulletin
The county administration's efforts to improve its financial status are
paying off. County Manager Mike Trujillo told the Valencia County
Commission, during a special meeting Friday that it will begin the 2005-06
budget with a million dollars more than his staff had expected while
designing the preliminary budget. "The additional cash balance
from 2004-05 is at an excess of what we expected," Trujillo said of
the $2,962,078, which is the largest cash balance since 2001 when the
county began experiencing financial problems. Trujillo attributes
three things — delinquent tax collection, managing the adult detention
center and a new one-sixth of 1 percent gross receipts tax — for improving
the county's projected cash balance. "Our treasurer's office
efforts to collect delinquent taxes has generated $870,000 for the county
out of the $3 million they have collected," he said. "We expect
the effort to continue with help from the state property tax
division." The administration is expecting a saving of at least
$600,000 from the cost of operating the adult detention center. The
county took over operation of the adult detention center Jan. 1, 2004, and
was able to finish out the fiscal year at less than the budgeted costs of
the private management contract. However, Trujillo expects to see a
greater saving this fiscal year. "We expect our cost to be
$2,656,366 this year compared to the contract with Cornell Corrections
Inc., which was $3.26 million," Trujillo said.
May 25, 2005 News-Bulletin
Road conditions, employee salary increases and avoiding Environmental
Protection Agency fines are the Valencia County Commission's concerns as it
is asked to approve the preliminary 2005-06 budget on Wednesday, May 25. "We have a commission that is moving
the county forward," said County Manager Mike Trujillo. Trujillo and the
county's business manager, Michael Steininger, will present a budget that
reflects the commission's attempt to fix several problems. "This
commission is pro-active," said Steininger. "Yet they only want
to fix it once, so they want to do it right." With that attitude, the
county took over the management of the adult detention center in January to
reduce the amount being spent on the facility. "We are expecting to
save at least $850,000 in this year's budget because of the change of
management," Trujillo said. "We have the same level of staffing,
and we haven't lost any quality of service." This time last year, the
commission budgeted $2.9 million for its contract to Cornell Corrections
Inc. to manage the county detention center. For fiscal year 2005-06, $1.95 million
is budgeted, which includes revenue the facility makes for housing other
governmental agency inmates. "By managing the detention center, we are
freeing up money that we can use elsewhere in the county operation,"
Trujillo said.
January 8, 2005 News-Bulletin
The Valencia County Commission approved the settlement of assets with
Cornell Companies as the final act of transferring management of the adult
detention center to the county. "When we began the process of transferring
management, Cornell had quoted assets worth a little over $300,000 that we
needed to reimburse," said Michael Steininger, county business
manager. "After many hours of our staff researching the list of
assets, the final amount was $96,611." "We have no proof that we paid for the phone system or
miscellaneous assets, so we are paying for them now," Steininger said.
Overall, Steininger said the amount paid to Cornell was $30,000 more than
he had budgeted, but he added that it wouldn't adversely affect the
center's budget.
December 29, 2004 Albuquerque Journal
When the Valencia County Commission decided to take over management of
the county's adult detention center on Jan. 1, many people felt it couldn't
be done in three months. But with two days remaining in Cornell
Correction's management contract, County Manager Mike Trujillo says it
looks as if the transition will be smooth. "The key things we wanted
to have in place before we took over were staffing, food service, medical
care and commissary service," Trujillo said. "These are in
place." Interim Administrator Michael Oliver says if these positions
are not filled by Jan. 1, it will not affect the quality of protection.
Oliver said the Cornell employees who opted to join the county's staff said
one reason was better benefits. "Currently, Cornell offers a health
insurance package, but the employees have to pay 100 percent of the
premium," Oliver said. With the county, they will only pay 20 percent.
"The employees are looking forward to being in the Public Employee
Retirement Association rather than a 401K," Oliver said.
December 21, 2004 KOBTV
A man accused earlier this year of impersonating a law enforcement
officer in Valencia County is now facing a federal lawsuit alleging he
raped a woman while working as a jail guard. In pleadings filed at US District Court in Albuquerque, the
woman claims she was raped on more than one occasion by a corrections
officer while she was an inmate at the Valencia County Detention Center in
2001. Named in the lawsuit are the former corrections officer, the warden
of the detention center, and Cornell Corrections Corporation, which runs
the jail.
July 27, 2005 News Bulletin
The county administration's efforts to improve its financial status are
paying off. County Manager Mike Trujillo told the Valencia County
Commission, during a special meeting Friday that it will begin the 2005-06
budget with a million dollars more than his staff had expected while
designing the preliminary budget. "The additional cash balance
from 2004-05 is at an excess of what we expected," Trujillo said of
the $2,962,078, which is the largest cash balance since 2001 when the
county began experiencing financial problems. Trujillo attributes
three things — delinquent tax collection, managing the adult detention
center and a new one-sixth of 1 percent gross receipts tax — for improving
the county's projected cash balance. "Our treasurer's office
efforts to collect delinquent taxes has generated $870,000 for the county
out of the $3 million they have collected," he said. "We expect
the effort to continue with help from the state property tax
division." The administration is expecting a saving of at least
$600,000 from the cost of operating the adult detention center. The county
took over operation of the adult detention center Jan. 1, 2004, and was
able to finish out the fiscal year at less than the budgeted costs of the
private management contract. However, Trujillo expects to see a
greater saving this fiscal year. "We expect our cost to be $2,656,366
this year compared to the contract with Cornell Corrections Inc., which was
$3.26 million," Trujillo said.
A jail guard at the Valencia County adult
jail was arrested Thursday night and booked on counts of trafficking in a
controlled substance after he allegedly was found selling drugs to inmates,
Valnecia County Sherriff's Deputy M. Torres said. Torres said the guard
works for Cornell Corrections. The suspect was being held in jail in
isolation under a $160,000 bond. (The Albuquerque Journal, June 8, 2002)
Former Valencia County finance officer
Carlos Montoya has questioned what he termed "inappropriate"
expenses paid to Cornell Corrections when it opened the county's new adult
jail two years ago. Montoya, in an interview this week, said the county paid
for such items as travel expenses for Cornell employees to fly from
Houston, for part of Cornell's salaries and closing costs for warden
Anthony Romero when he relocated to Valencia County. (Albuquerque Journal,
January 17, 2002)
Walnut
Grove Correctional Facility, Leake County, Mississippi
November
3, 2010 WXVT
The family of a deceased inmate is suing the town of Walnut Grove and a
private corrections company, claiming Dennis Earl Homes was denied adequate
medical care before dying of diabetes. The lawsuit, filed Friday in U.S.
District Court, said Homes went to Walnut Grove Youth Correctional Facility
on a robbery conviction in 2007. The lawsuit alleges Homes lost 30 pounds
over five months before dying Nov. 1, 2007. He was 20. The lawsuit said
Walnut Grove is named as a defendant because the town has a contract with
the state to house inmates ages 12-21. GEO Group Inc. and Cornell Companies
Inc., which runs the facility, are also named as defendants. The town
attorney didn't immediately respond to a message. GEO Group had no comment.
December 8, 2004 Commercial Appeal
The
convictions of two Leake County prison inmates on charges of plotting an
escape were upheld Tuesday by the state Court of Appeals. Steven Farris,
serving a life sentence for a 1998 murder, and Thomas Frederick, serving a
four-year sentence on car burglary, were accused of conspiring to escape
the Walnut Grove Correctional Facility in 2001. The Walnut Grove Youth
Correctional Facility, in Leake County, is privately run and houses juveniles
who have been sentenced as adults. Witnesses testified at their 2003 trial
that prison officials intercepted telephone calls and letters between the
inmates and their mothers, alerting them to the escape plans.
Westmoreland County Prison, Westmoreland, Pennsylvania
March
3, 2006 Tribune-Review
A federal judge has ruled against Westmoreland County and a company
previously hired to run the local jail in a lawsuit filed by the family of
a Sewickley Township man who committed suicide while behind bars in 2003.
The ruling means the lawsuit can go forward. Westmoreland County, Cornell
Companies Inc. and NaphCare Inc. had asked U.S. District Court Judge
William L. Standish to dismiss the lawsuit. The lawsuit was filed last year
by Renee L. Wright, who contends the county and prison officials acted
recklessly by not preventing the April 18, 2003, suicide of her brother,
Robert R. Steadman. Steadman, 33, hanged himself in his cell four days
after he was incarcerated for failing to make a payment as ordered by a family
court judge. Prison officials kept him in a regular cell even though he had
been put on suicide watch during a previous jail stint four months earlier.
In the lawsuit, his family contends that county and prison officials should
have placed Steadman on suicide watch in a special unit with enhanced
surveillance during his incarceration in April because he had been deemed a
suicide risk only months before. The Steadman suicide was one of several at
the county jail in recent years. The lawsuit cites three other inmate
suicides that occurred between 2000 and 2003. A fourth inmate took his own
life in 2004. In the aftermath of the Steadman case, the county cited
financial reasons for replacing Cornell, took over management of the
prison, and revised its policy regarding how it deals with potential
suicide risks.
July
15, 2005
A former inmate at the Westmoreland County Prison claims in a federal
lawsuit that he needs a liver transplant because of substandard medical
care he received while an inmate there. Harvey C. Roupe Jr., 45, who now
lives in Washington, Washington County, alleges in a civil rights complaint
filed in U.S. District Court in Pittsburgh that repeated pleas to prison
and county officials for permission to continue special treatments he
needed for a pre-existing liver disease and hepatitis C in 2002 and 2003
were ignored. Roupe claims his right to be free of cruel and unusual
punishment under the Eighth Amendment of the U.S. Constitution was
violated. Listed as defendants in the lawsuit, which seeks unspecified
damages, are Westmoreland County; the prison; Cornell Corrections Inc., the
private company that formerly operated the prison; the prison's former
warden, Michael Millward; and Cornell's former medical supervisor, William
Nicholson. Lisa Tauser, of Houston-based Cornell Corrections, said it is
the company's policy not to comment on pending litigation. After a two-year
contract with Cornell to operate the prison expired in May 2003, county
commissioners decided to return to an in-house warden system to save money.
Three
days after suddenly ending his sex assault trial with a guilty plea,
32-year-old Marc Filippino ended his life Monday morning at Westmoreland
County Prison. Filippino, formerly of Monroeville, faced a seven- to
20-year prison term for rape and assault. Deputy Coroner Joe Musgrove said
Filippino was seen alive at a 7 a.m. security check at the prison. Another
inmate spotted his body hanging in his one-man cell five minutes later.
"He knotted his shoelaces and affixed them to an air register above
the sink ... a good seven feet up. He put that around his neck and
asphyxiated himself," the coroner said. Filippino was declared dead at
8:08 a.m. County detectives and the coroner are investigating, Musgrove
said. The hanging was the fifth suicide at the Westmoreland County facility
since 2001. (Pittsburgh Post-Gazette, August 5, 2003)
A
33-year-old inmate used his shoelaces to hang himself at the Westmoreland
County Prison early Friday morning. Robert R. Steadman, of Hutchinson, had been
in the county lockup since April 14 on charges related to a domestic
dispute. It was the second hanging death this year at the prison in
Hempfield Township. (Tribune-Review, April 21, 2003)
Westmoreland County wants to hire a warden to run its prison again. The
county fired its own warden and hired Cornell Corrections of Houston,
Texas, to run the county prison two years ago after a scandal that involved
inmates selling drugs with the help of some guards. Yesterday, two of the
county commissioners said the county will not sign a new pact with Cornell,
whose current contract will expire May 31. Instead, the county will
advertise this weekend for a new warden. Commissioners Tom Balya and Tom
Ceraso said the decision was made for financial reasons. "If we can
save $200,000 in the management of the prison, I think we're going to take
that step," Balya said. Ceraso, chairman of the county prison board,
said it was not necessary to take any formal action because the Cornell
contract will expire automatically. (Pittsburgh Post-Gazette, April 18,
2003)
Two Westmoreland County commissioners
said Monday that the company hired last year to run the jail is not making
enough money and should be replaced. Tom Ceraso and P. Scott Conner said
the experiment of converting the prison to private management while keeping
it a publicly owned facility has failed. "We haven't made any
money," Ceraso said. Cornell Corrections Inc., a Houston-based,
publicly traded company, was hired in May 2001 to run the prison for
$360,000 a year and to provide a warden and deputy warden. As part of the
deal, Cornell was given permission to add one bed to each of the 40 cells
that would then be leased to other counties and the federal government.
Money generated from the leases would be paid to the county and cover the
cost of Cornell's contract. The county was expected to be paid about
$400,000 for the leased beds, while Cornell estimated it would earn about
$250,000. (Tribune-Review, October 8, 2002)
Whittier, Alaska
August
12, 2008 Anchorage Daily News
Bill Weimar, who made his fortune off private halfway houses in Alaska,
pleaded guilty Monday to two federal felonies in U.S. District Court in
Anchorage. He admitted his role in a conspiracy to secretly funnel money to
a political consultant for an unnamed state Senate candidate, knowing the
candidate would back a private prison if he won. Weimar had a long-standing
relationship with the candidate running in the 2004 primary, a charging
document filed Monday said. Weimar held a "contingent interest"
in a private prison project worth $5.5 million, but only if the project was
completed, the charges say. He faces prison time in the plea deal and may
have to forfeit "certain property." Prosecutors estimate a
sentence of 10 to 16 months. U.S. District Judge John Sedwick isn't bound
to that. He set sentencing for Oct. 29. Weimar, who owned Allvest Inc.,
becomes the 11th person charged in the broad, ongoing investigation by the
FBI and U.S. Department of Justice into political corruption in Alaska.
Weimar, 68, now lives in Big Arm, Mont. At the brief hearing on Monday,
Weimar answered the judge's routine questions. Assistant U.S. Attorney Joe
Bottini outlined the two charges: conspiracy to commit honest services mail
and wire fraud, and illegally manipulating currency transactions to avoid
reporting them to the Treasury Department. Weimar has admitted paying the
consultant a total of $20,000 during the primary in August 2004 to cover
expenses for the candidate, without reporting the payments and without
routing them through the campaign. How do you plead? Sedwick asked.
"Guilty," Weimar answered, to each charge. LAWMAKER NOT NAMED --
For years, Weimar pushed plans for a private prison in Alaska, but the
project was always controversial and no prison was ever built. A Democratic
activist in the 1970s, Weimar later became close to the Republicans who
controlled the Alaska Legislature. Neither the Senate candidate nor the
consultant -- both accused of conspiring with Weimar -- is named in the
charging document. Prosecutors declined to expand on it Monday. But the
candidate described in the documents, and in court Monday, appears to be
former state Sen. Jerry Ward. He didn't return phone calls or e-mail
messages on Monday. Ward, a Republican elected from Anchorage in 1996 and
the Kenai Peninsula in 2000, fervently pushed private prison projects as a
legislator. The charging document says the candidate running in 2004 had a
long relationship with Weimar, and held elected office part of that time.
Ward and Weimar were "buddies," according to a statement that
former lobbyist Bill Bobrick, who worked for Weimar, gave to the FBI in
September 2006. Bobrick also has pleaded guilty in the corruption
investigation. He declined to comment on Monday. In 1997, a plan for a
private prison in South Anchorage with Allvest and Veco Corp. as partners
crumbled under strong public opposition. As that project evaporated, Ward
emerged as the lead architect of a new plan to build private prisons in the
Mat-Su and Seward. "By God, this really solves the problem,"
Weimar was quoted as saying at the time. In 2001, Ward signed on as the
only Senate sponsor of a House bill pushing a private prison on the Kenai.
The charging document against Weimar doesn't say whether the candidate won
in 2004 and does not call the person a legislator. Ward lost his seat in
2002 to Tom Wagoner. He was trying to regain it in 2004, but lost in the
Republican primary to Wagoner. SEATTLE CONSULTANT -- In court Monday,
Bottini told the judge the consultant was from Seattle. Some of Ward's
biggest campaign expenses in 2004 were more than $43,000 in fees charged by
Madison Communications, an advertising and public relations firm based in
suburban Kirkland, Wash. Numerous calls left for Madison principal Brett Bader
on Monday were not returned. The charges against Weimar and other court
documents quote details of a number of telephone conversations he had with
the consultant and the candidate from Aug. 17 to Aug. 23, 2004. In a
telephone conversation on Aug. 17, 2004, the consultant told Weimar that
the campaign was having money trouble, court documents say. "I'm
worried we're reaching the limit now. I don't know where we find 10 grand
unless (Candidate A) can get more in," the consultant said "There's
no legal way to do that. At least not on that scale," Weimar
responded. Later that day, Weimar arranged to cover the next advertising
mailer for the candidate, and told the candidate so, the document says. On
Aug. 20, 2004, Weimar told the candidate of an unpaid invoice of $20,000
with the consultant. The candidate's campaign funds were depleted, the
charges say. The candidate said he had only $300 to $400 left in his
account. On Aug. 23, 2004, Weimar made arrangements with the consultant to
pay off the debt, the charges say. He then called the candidate and told
him "he would not be receiving any further bills from Consultant
A," the charging document says. Weimar sent the consulting company a
$3,000 check on Aug. 23, 2004, then sent $8,500 in cash that same day by express
mail, and another $8,500 cash the day after, the charges say. "WE'VE
MOVED ON" -- The charges also do not name the private prison company,
but Cornell Corrections Inc. tried to build a prison in various Alaska
communities, including Delta Junction, Kenai and Whittier. The charging
document describes the unnamed company's Alaska interests as halfway
houses, a planned juvenile treatment center, and a private prison project,
and that matches Cornell's interests. In 1998, in the midst of planning for
a private prison in Delta Junction, Weimar sold five Alaska halfway houses
to Cornell for $21 million. He also formed a partnership with Cornell to
pursue the Delta prison and subsequent deals for a private facility. One
goal of the conspiracy was to get the private prison company to give
campaign contributions to the candidate to help win election, according to
the charges. A spokesman for Cornell said the company was unaware of the
charges but supports the prosecution. The executives now in charge of Cornell
weren't there at the time of the events that involved Weimar, spokesman
Charles Seigel said Monday. Company records don't show any evidence of
wrongdoing, he added. "We've moved on and we are very different and
have it behind us," Seigel said. Cornell also has not pursued a
private prison in Alaska for years and is no longer interested in that, he
said. "We're glad this investigation is going on but whatever was
going on or may have been going on in the past, that is not the Cornell
that exists now, both in the policy on the private prison as we've talked
about and in general about the way we do business." By 2004, Veco was
no longer involved in the prison project, Frank Prewitt, a former state
corrections commissioner, Cornell consultant and FBI informant, has said.
ANDERSON INVOLVED -- The failed private prison effort was also central in
the government's case against former state Rep. Tom Anderson, R-Anchorage,
now in prison. At Anderson's corruption trial last summer, Prewitt was a
key witness who testified at length about his undercover work to collect
evidence against Anderson, and also about questionable acts in his own
past. From the witness stand, Prewitt said that in 1994 -- when he was
corrections commissioner and Weimar owned Allvest -- he accepted $30,000
from Weimar. Prewitt testified that he considered the money a loan, which
he repaid the next year, after he left his state post, by working four
months for Allvest for free. Weimar helped start Allvest in 1985, then
bought out his partners and turned it into a multimillion dollar
corporation with operations in Alaska and Washington state. Its government
contracts were worth an estimated $10 million a year. Allvest also operated
a lab that did contract urinalysis work, and used to run the city's Animal
Control Center and the Community Service Patrol. In 2002, Allvest was
forced into bankruptcy because of unpaid judgments in civil suits against
the company. The bankruptcy case eventually was settled.
October 9, 2006 Anchorage
Daily News
When FBI agents searched the Wasilla office of Rep. Vic Kohring on Aug.
31, they weren't just looking for documents related to Veco Corp., its
executives and ties to lawmakers. They also wanted information about
developer Marc Marlow as well as the state Department of Corrections. That
element of the ongoing FBI investigation emerged last week when Kohring's
attorney, Wayne Anthony Ross, provided a copy of the search warrant to the
Daily News, along with the list of items taken. Those documents, though
lacking detail or context, suggest that the probe is wide-ranging and not
focused on any one company, issue or individual. No one has been charged in
the investigation, and federal authorities have declined to discuss it
except to say that it continues. The lead prosecutors are from the
Department of Justice's Public Integrity Section in Washington, D.C., which
often handles government corruption cases. In all, offices of six lawmakers
have been searched, along with Veco offices and additional undisclosed
locations. Other lawmakers whose offices weren't searched have said they
were interviewed by the FBI. The warrant also sought all correspondence
between Kohring and the Alaska Department of Corrections. Ross said Kohring
was questioned by the FBI about efforts to build a private prison in
Whittier. "He indicated it was a facility that Cornell was hoping to
build in the past and that's apparently all they asked about that,"
Ross said. Cornell Cos. had teamed with Veco in the private prison
endeavor, which ultimately died last year after the city of Whittier
dropped its support. Along with those of Kohring and Stevens, FBI agents
searched offices of Sen. John Cowdery, R-Anchorage; Sen. Donny Olson,
D-Nome; Rep. Pete Kott, R-Eagle River; and Rep. Bruce Weyhrauch, R- Juneau.
Messages left for them were not returned. Kohring is the only one of the
six still facing an election battle in November. Kott lost in the primary,
Stevens and Weyhrauch aren't running again and the others aren't up this
year. What's known: • Dozens of FBI agents executed about two dozen search
warrants Aug. 31 and Sept. 1, though in some cases individuals agreed to
the search. • Six legislative offices were searched, and so was Veco Corp.
Searches were conducted in Anchorage, Juneau, Eagle River, Wasilla, Willow
and Girdwood. The office of Senate President Ben Stevens was then searched
a second time, on Sept. 18. • One search warrant, provided by Sen. Donny
Olson, said the FBI was looking for "any and all documents"
related to Veco, four of its executives and two political pollsters, as
well as information on Olson Air Service, among other matters. When agents
searched Stevens' office, they seized materials related to controversial
fisheries organizations. In the search of Rep. Vic Kohring's office, agents
also sought information on developer Marc Marlow and on the state
Department of Corrections. • The lead prosecutors on the case are from the
Justice Department's Public Integrity Section in Washington, D.C., which
handles public corruption cases. • No one has been charged. What's not
known: • Perhaps the biggest of the many unanswered questions is this: Who
or what is being targeted? • Authorities also won't say how many FBI agents
or prosecutors are working on the investigation, when it began, when it
might end or how they are proceeding.
September 7, 2006 Anchorage
Daily News
For two decades, oil man and political financier Bill Allen has been a
familiar presence in the halls of the Alaska Capitol. But toward the end of
this year's regular legislative session, the Veco chief executive may have
taken that familiarity a step too far. Allen was watching the state House
debate oil taxes on the next-to-last night of business in May when he began
passing notes to legislators across the railing of the small spectator gallery,
according to Rep. Harry Crawford, D-Anchorage. Rules say the public can
pass notes through the front door to be delivered by a page. Direct
engagement from the visitor gallery is forbidden once the speaker's gavel
sounds. Crawford said he saw Rep. Tom Anderson, R-Anchorage, carry several
notes from Allen to other legislators. Anderson has received Veco campaign
contributions and has also reported $30,000 in consulting contracts with
the company since 2003. Several other legislators say their staff observed
similar goings-on. "He was definitely directing traffic back
there," Crawford said of Allen. Veco's role in Alaska's political
process is under intense scrutiny now. Last week the FBI served search
warrants on legislative offices and others seeking a wide range of
information related to Allen and other Veco executives, including gifts to
public officials. But much of Veco's influence, dating from the early
1980s, comes from sources in plain sight. This includes close to $1 million
in state and federal campaign contributions over the past decade as well as
consulting contracts with individual legislators. Veco's presence in Juneau
is distinctive not just for its role in helping finance many campaigns but
for the personal role played by Allen and several other company executives.
Veco has hired top-drawer professional lobbyists in the past, as it did
while pushing for a private prison between 1996 and 2002. But Allen, 69, is
known for taking a personal hand in promoting his priorities, in a manner
often described as gentlemanly rather than bullying. In 1996, the
Legislature added a new twist -- anyone registering as a lobbyist was
barred from giving campaign contributions outside his or her home district.
The idea was to prevent favor-seeking lobbyists from working a building
full of people they'd given money to. Allen spent a lot of time in the
Capitol in 2002, pressing the Legislature to pay for a private prison in
Whittier (Veco was teamed with a national prison company, Cornell, to build
the project) and to authorize a property tax break for construction of a
North Slope natural gas pipeline. Allen was in the Capitol so much that
APOC ordered him to register as a lobbyist. Allen protested, saying
business owners looking out for their own interests should not be treated
like professional lobbyists who represent a variety of clients. Allen
eventually complied, registering for 2002 and 2003 and reporting his hourly
wage as $156.25. That meant he had to forgo writing campaign checks in
those years. (Not that candidates were starved for Veco money: Other
company officials gave more than $200,000 to state candidates in 2002
alone.)
March 30, 2005 Anchorage
Daily News
The city of Whittier is cutting its ties to Cornell Cos., a private
corrections operator, finally ending a political battle over new prisons
that has held Alaska in gridlock for a decade. The Whittier City Council
voted 5-1 last week to drop its three-year effort to win state money for a
huge, privately run prison in the isolated port town. A Cornell spokeswoman
said that's the end of the line for the Houston-based corrections company.
At this point we're not going to be pursuing anything," Cornell
communications director Lisa Tauser said. "We're disappointed but we
respect their decision." Private prison advocates have been wielding
influence in Juneau since 1995, as proposals for private correctional
facilities in Anchorage, Delta Junction, Kenai and Whittier found favor
among legislators. Two prison deals were approved, and two others made it through
the state House. Competing proposals to build state-run facilities were
pushed aside. But each private plan eventually died, falling victim to
local opposition, resistance from correction-worker unions and skepticism
from some state officials. Lurking around each successive plan were
complaints about backroom dealing. "What I see, over and over, is
repeated sole-source, prearranged, heavy-money deals that go to specific
contractors," Rep. Eric Croft, D-Anchorage, complained in a hearing last
year. "It's never been a clean competitive proposal." History of
private prisons in Alaska Plans to build the first private prison in Alaska
have set off controversy in recent years: • APRIL 1997: Corrections Group
North, a partnership between halfway house operator Allvest and oil field
service company Veco, withdraws plans for controversial 768-bed
medium-security prison in South Anchorage. Project is scrapped days before
city voters reject the plan by a 2-to-1 margin. • JANUARY 1998: Voters in
Delta Junction approve plan by Allvest to build 800-bed prison on former
Fort Greely Army post. • AUGUST 1998: National prison company Cornell
Corrections Inc. buys Allvest for $21 million. • SEPTEMBER 1999: Delta
Junction City Council repeals contract with Cornell/Allvest. • OCTOBER
2001: Voters on the Kenai Peninsula defeat a proposal, backed by Cornell,
for an 800-bed private prison by a 3-to-1 margin. • MAY 2002: Plan allowing
private prison in Whittier, proposed by Cornell, passes House and stalls in
Senate during Legislature's closing days.• March 2005: City of Whittier
cuts ties to Cornell, and company says it has no plans to pursue a private
prison in the state.
May 23, 2002
Plans to build a big private prison in Alaska are dead again. But
private-prison backers say they're willing to try again next year,
depending on how things go in the November election. This year's plan for a
1,000-bed prison in Whittier, the fourth such idea to hit the Legislature
since 1996, passed the House but stalled in the Senate in the session's
final days. The Legislature did clear up a lingering headache from
one of those earlier private prison proposals. Lawmakers agreed in the
closing days to give a $1 million no-interest loan to the city of Delta
Junction to pay off a legal settlement with Allvest Corp., the private firm
that once had teamed with Delta to develop a prison for the state.
But the Knowles administration -- and several key legislators -- preferred
an alternative this year that would expand regional prisons and jails. The
administration's resistance toughened in the closing days of the session,
when Corrections Commissioner Margaret Pugh issued a letter recommending a
veto of the Whittier bill. Cornell will still follow the local debate
and continue to run six Alaska halfway houses, said company spokesman
Doucette. Delta Junction is glad to have the $1 million loan, given
that the legal settlement was due July 1, said city administrator Pete
Hallgren. He said the city has already undertaken a study of forming a
local borough, in part as a response to a flood of federal money now
reaching the area as part of the national missile defense project being
built at nearby Fort Greely. The former Army post was to have been
the site of the private prison. Delta Junction backed out of the deal with
Allvest, the principal company in the Delta Correction Group, amid local
controversy over a lack of competitive bidding. Allvest sued and won a
settlement from the city. (Anchorage Daily News)
May 21, 2002
Private prison bill Special
session resurrection should stay in committee House Bill 498,
authorizing a private 1,000-plus-bed prison in Whittier, has come
to life again as Senate Bill 2012 in the current special
session of the Alaska Legislature.
SB 2012 has been referred to the Rules
Committee and then the Finance Committee. If the goal of
senators is to further explore the pros and cons -- forgive
the pun -- of a private prison in Alaska, fair enough. But
that's as far as this legislation should go. As of Monday,
lawmakers already were deep into overtime trying to finish
their work. And there's still the matter of a special session
to consider a constitutional amendment on subsistence.
This is no time to push for a private
prison in Alaska. Whether it's called HB 498 or SB 2012,
this bill and previous attempts at private prison projects
have been exercises in special interests. The need to increase
Alaska's prison capacity is clear, with an inmate population
growing by 200 a year, but neither special interests nor the
desires of Whittier to boost its economy are reason to rush to
approve a private prison -- particularly as a byproduct in a
special session. The burden of proof must be on the
backers of a private prison to show why their proposal is
beneficial to Alaska beyond the interests of a relatively
small group of people who would stand to profit.
They haven't made a convincing case so
far, and it won't happen in the waning hours of this
session. (Anchorage Daily News)
May 13, 2002
The Senate Finance Committee on Sunday night approved a bill for a private
prison in Whittier. With just two days left in the regular session,
the legislature faced a logjam of bills this morning, from the routine to
the historic. A bill authorizing a government-owned, privately operated
1,000-bed prison in Whittier was approved by the Finance Committee
6-3. The city would contract with the state, and Cornell Cos. Inc.
would contract with the city. But the Knowles administration favors a
more regional approach to increasing jail capacity, said Margot Knuth of
the Department of Corrections. For example, 100 more beds each are
needed in Fairbanks and the Matanuska-Susitna Borough, Knuth said.
"What you need are regional beds where inmates who are pre-trial or
who have short sentences can stay." (The Juneau Empire)
May 13, 2002
House Bill 498 to authorize a private 1,200-bed prison in Whittier appears
stuck in the Senate Finance Committee. Alaska will be better off if
it dies there. Whittier's desire for economic life beyond tourism,
boating and its status as a unique light at the end of the tunnel is
understandable. But the state's primary interest is not Whittier's
development. It's the integrity, professionalism and security of its
corrections system. Private prison plans have gotten the boot twice
before in Alaska, and legislation for them has been an exercise in special
interests looking for a home. Neither special interests nor the
desires of one community are reason enough to approve a private
prison. The need to increase prison capacity is clear. But HB
498 is not the way to do it. (Anchorage Daily News)
May 9, 2002
Last Saturday, a line of just over a dozen cars paid $15 to drive
single-file through the Whittier tunnel. Whittier’s bane used to be
its inaccessibility. Now it’s the tunnel. But if the momentum in the
state legislature continues, what Whittier may soon have instead is a
1,000-bed prison, the largest in the state – so big that it would dwarf
Whittier’s scant population. The prison would be owned by Whittier, built
by Veco Construction, and run by Cornell Companies, a private, for-profit
prison firm. Cornell, whose finances the Wall Street Journal recently
likened to Enron’s, has been down this road before. The company tried
to build a private prison in South Anchorage, Delta Junction and Kenai
before coming to Whittier. All of its previous efforts failed, as well
as its overtures to Wrangell and Ketchikan, at least in part because, given
a say, a lot of residents weren’t thrilled about having a big private
prison in their backyards, even in a big backyard. Mayor Ben Butler
says that’s not a problem in Whittier. Cornell Companies, his erstwhile
partner, says the solution is simple: just don’t give people a
say. About 670 Alaskans are currently incarcerated in a private
prison in Florence, Arizona. If nothing else, the Whittier proposal would
bring them home – although, says Rep. Eric Croft, "Whittier is almost
as remote as Arizona." Cornell and Veco are lobbying
heavily for a private prison in Whittier. To that end, they’ve retained
Kent Dawson, Mark Higgins and Joe Hayes, heavy hitters in the capitol. The
Whittier bill was co-sponsored by Rep. Eldon Mulder, the house finance
chair. Mulder’s wife, Wendy, works for Hayes. Croft, who’s against the
Whittier project, says he finds that "disturbing" and
"almost beautiful in a corrupt sort of way." People
from Anchorage and Girdwood will come to Whittier for $13-an-hour jobs,
said Cornell spokesman Paul Doucette. And if that doesn’t work, Doucette
says they can hire from Outside. Not likely, says Louise Green. She’s the
vice president for marketing at Corrections Corporation of America (CCA),
the nation’s biggest private prison contractor, which runs the private
prison where Alaska inmates are housed in Arizona. "They definitely
won’t be bringing people up from the Lower 48 to live in Whittier,"
Green said. Staffing is just one hurdle. Management and Training
Corporation (MTC), another leading private prison contractor, didn’t
bid on the Whittier project because they thought the site was inadequate.
Both MTC marketing manager Mike Murphy and CCA senior director of
business development Kevin Ashburn said that the first things private
prison contractors look for is an adequate pool of potential employees, and
infrastructure: water supply, sewer systems, and nearby health and
fire facilities. Whittier has none of that, says state Department of
Corrections strategic planning coordinator Margot Knuth. "Of all of
the proposals I’ve seen, this is the worst," she said at recent state
senate hearing. "It requires a level of sophistication that Whittier
doesn’t have. It worries me and it should worry you. We could have a
hundred-million-dollar embarrassment on our hands." The way to
prevent that is a feasibility study, says CCA’s Ashburn. Cornell, said
Ashburn, has "probably done a feasibility study. I’m sure they would
have. That should come first." No, said Cornell’s
Doucette: No feasibility study. But having a relatively uniformed, or
quiescent, citizenry seems to be part of Cornell’s plan. When Cornell was
courting Ketchikan, Frank Prewitt, a Cornell executive, and former Alaska
DOC commissioner, sent an email to Ketchikan real estate agents telling
them how to expedite the prison proposal. They needed to "select a
local government entity that is legally able, and politically willing, to
sell revenue bonds without a public vote," Prewitt wrote.
Under the current plan, Whittier will sell revenue bonds to help finance
the private prison. Will the people of Whittier vote on
that? No, says Butler. "It’s not a requirement," he
said. "Because it’s not going to cost the citizens of Whittier
anything." (The Anchorage Press)
April 30, 2002
A bill clearing the way for a 1,000-bed private prison in Whittier was
passed in the House on Monday. The House voted 24-14 for the measure,
which calls for the state to contract with the city of Whittier to house
state inmates. Whittier would contract with Cornell Cos. Inc. to
build and operate the prison. Opponents said Whittier won't be easy
for rural residents to visit. If the concern is rehabilitation, they
said, inmates should be brought home to prisons nearer their own
communities. This is the fourth time a private prison proposal has
come up in the Legislature. Previous efforts, including one in Kenai
last year, were derailed by community opposition. Rep. Eric Croft,
D-Anchorage, objected to the sole-source selection process. He said
he has seen four private prison proposals since 1996, with different
justifications each time. But each time it involved the same private
prison company, he said, "with the same powerful, influential people
pushing it." "This is not about privatization. This
is about getting a lot of money to one entity," Croft said.
"We wouldn't do this buying 1,000 pencils. But we're going to do
it with hundreds of millions of dollars." (Anchorage Daily
News)
April 17, 2002
A bill calling for a private prison to
be built in Whittier now also calls for expanding a public
prison in Bethel. The measure passed the House Finance
Committee on Tuesday. The change could broaden support for the
bill, although the administration and some legislators still
don't like it. The bill's chief backer, Rep. John Harris,
R-Valdez, said he added the 96-bed expansion at Bethel because
that seemed to be the highest priority for the Department of
Corrections. Lawmakers are looking at several competing
prison proposals. Sen. Lyda Green, R-Wasilla, is sponsoring a
bill that would have 11 cities and boroughs float $190 million
in bonds to build or expand prisons and lease them to the
state. The state would pay $72 million annually to operate the
prisons and make lease payments to the communities.
The Knowles administration proposes to
sell $117 million bonds to add 563 beds to prisons in Palmer,
Bethel, Fairbanks and Seward and design future prison
expansions. The Department of Corrections has opposed the
private prison bill. Language stating that the Legislature
intends to spend no more than $89 to $91 a day on the Whittier
prison is not binding, and the actual cost could be higher, Knuth
has said. (Anchorage Daily News)
March 26, 2002
The Alaska Legislature has repeatedly
tried to open the door for profit-making prisons in the state.
Each time prison industry lobbyists have persuaded state
lawmakers to give the idea a whirl, local opposition has
stymied the project.
The private prison industry refuses to
give up, though. And it has a powerful patron in House Finance
Committee Chair Eldon Mulder, whose wife works for a prison
industry lobbyist. Privatizing an important public safety function
like prisons makes no more sense than hiring Pinkerton security
guards to replace state troopers. A private outfit can undercut the price
of a state-run prison or state cops, but the lower cost is
made possible by our settling for lower quality and less
professionalism. Alaska definitely needs more space in
its jails and prisons. It's an embarrassment to have to send
800 inmates thousands of miles away to a private prison in
another state. The Legislature ought to give up its obsession
with building a private megaprison and support a more
practical regional expansion plan. (Anchorage Daily
News/Opinion)
March 6, 2002
A House committee looked at a plan
Tuesday to build a large private prison in
Whittier, while a Senate committee took up a competing
proposal to expand state-run prisons around the state.
Frank Prewitt, a consultant for
Cornell Companies, said that firm's proposal for a 1,200-bed
private prison in Whittier would cost $44 a day less than a
Knowles' administration plan to expand existing prisons and
jails. Administration officials said they're not
sure Prewitt used the right variables in comparing
state and private proposals, but they could not be certain
without further analyzing his numbers. Marvin
Wiebe, senior vice president for governmental affairs at
Cornell Companies, said the firm can do the job for less than
the state partly by providing less space for prisoners
and paying employees less. Also, it's more economical to put
1,200 prisoners in one place than to add space to prisons
around the state, Wiebe said. Compensation, including benefits, will
total $36,000 for a beginning correctional officer with
no experience, Wiebe said. The state, by contrast, pays its
beginning correctional officers about $48,400 with benefits,
said Bruce Richards, a special assistant in the Corrections
Department. This is the third time the Legislature has considered
a private prison. It approved previous proposals for private
prisons in Delta Junction and then in Kenai, but both fell
apart in the face of community opposition. The
Senate State Affairs Committee took its first look Tuesday at
an alternative proposal, Senate Bill 336. The Knowles administration
bill calls for floating a $117 million bond to add 563 beds to
prisons in Palmer, Bethel, Fairbanks and Seward and design
future prison expansions. "I think it's a
wise use of state funds," said Steve Sweet of Fairbanks.
"I think it's important for family members to be close to
inmates for visitation rights." (Anchorage Daily
News)
January
24, 2002
Frank Prewitt neglected to list his
full credentials in his bio following his Jan. 22 article in
the Empire. If a used car salesman did what Frank Prewitt just
did, he would be fired for his lack of ethics. Yes, Cornell salesman
Frank Prewitt, the "former commissioner for the Department of Corrections"
who was fired from that post by Gov. Walter Hickel, neglected to
say that he is much more than a former commissioner and "practicing
attorney" in Anchorage. Mr. Prewitt is a full-time employee of
one of the largest campaign contributors in Alaska, Cornell
Corrections. (Bill Rogers/The Public Safety Employees Association)
January 14, 2002
The seeds of Alaska's first private
prison may have found fertile soil in the economically barren
city of Whittier. On Dec. 21, a 6-0 vote by Whittier's
city council selected Cornell Cos., based in Houston to plan,
promote, design, construct and operate a minimum 800-bed
medium security correctional facility. Not selected was Corrections
Corp. of America, which operates a facility in Florence, Ariz.,
where about 800 Alaska prisoners are incarcerated because of a shortage
of bed space in Alaska prisons. Whittier's interest in a private
prison came after 73 percent of Kenai Peninsula Borough voters
gave the Cornell-led project the cold shoulder Oct. 2.
"We thought that was about as
strange as it could be," Whittier Mayor Ben Butler said.
"So we thought Whittier should give it a try, and we started
the process." He said Whittier views the prison as a
way to save a "dying community."
"We are not trying to debate the
philosophical reasons between a private- and a state-operated
prison," Butler said. "What we're trying to do is
get some economic development going in this town."
Paul Doucette, Cornell's public
relations spokesperson in Houston, said Cornell stood ready to
work with Whittier. He described the project as a 1,200-bed
medium security prison, larger than the 800-bed facility approved
by the Whittier council. Despite voting for the partnership
with Cornell, Whittier city council member Arlen Arneson
doesn't support the project. "The majority of (Whittier)
people won't 'fess up to it, but 60 to 70 percent of them are
against the prison, too," he said. "The simple reason
is that the ordinance was written to exclude a public vote. ...
There's no public vote. Not even an
advisory vote." Arneson also voiced concern over lack
of a feasibility study. However, Butler said, "We don't
have any problems with thinking the prison isn't feasible. The
contractor will do a site evaluation and that will be a
feasibility study." In 1998, the Legislature authorized
the creation of a private prison by the city of Delta Junction
at abandoned U.S. Army facilities at Fort Greely. Corrections
Group North, formed by Cornell and Weimar Investments, worked
with Delta Junction on that project. Pete Hallgren, the
executive director of Delta Junction's department of economic development
and the city administrator, said a $75,000 feasibility study "indicated
that there wasn't anywhere near enough money appropriated under
the enabling legislation to make it financially feasible."
Constructing the private prison was
not pursued, lawsuits were filed, and Hallgren said, "We
came out of the project defending against a lawsuit by the
proposed prison operator. We ended up settling the case for
$1.1 million." Delta Junction has paid $100,000. The
remaining $1 million is due July 1.
"It's more money than we've
got," Hallgren said. Jeff Sinz, finance director of the
Kenai Peninsula Borough, said the borough invested $75,000 in
the project that was ultimately rejected by voters.
(Alaska Daily News)
November 15, 2001
Whittier would seem to be ahead of Ketchikan and Wrangell as the three
towns vie for a possible private prison development that would house 800
Alaskans now incarcerated out of state. Frank Prewitt, a consultant
for the Texas-based Cornell Companies Inc., wrote last month that Ketchikan
political leaders must act quickly to promote a private prison project and
sell revenue bonds without a public vote. (Daily News)
Donald W. Wyatt Detention Center, Central Falls, Rhode Island
October
25, 2011 AP
The management company that formerly ran a Rhode Island prison is suing the
facility's governing body, saying it is owed more than $671,000, according
to a complaint filed in federal court. In a lawsuit filed Monday in U.S.
District Court in Providence, Cornell Corrections of Rhode Island, Inc.
says the corporation running the Donald W. Wyatt Detention Facility in
Central Falls still owes money it agreed to pay the firm in 2008. The
prison is run by the Central Falls Detention Facility Corporation, a
quasi-public agency. Cornell Corrections operated Wyatt from its opening in
1993 to July 31, 2007, when the corporation took over, according to a 2009
report on the facility. Cornell Corrections says it reached a deal in 2008
with the corporation over the amount of money it was owed under an earlier
agreement. The lawsuit says Wyatt's governing board still hasn't paid. The
suit seeks $671,808, plus interest, costs and attorneys' fees. The
corporation stopped making full payments to Cornell Corrections in 2006,
according to a report released last month by former R.I. Auditor General
Ernest A. Almonte. As of August 2007, the corporation owed Cornell
Corrections more than $3.9 million, Almonte's report found. The 776-bed
facility houses medium- and maximum-security federal detainees awaiting
trial or transfer to federal Bureau of Prisons facilities. It lost a
contract to house federal immigration detainees after one died in its
custody in 2008. The jail has been beset by financial problems in recent
years, having lost $6.2 million and taken on $3.5 million in additional
debt from 2007 to 2009, Almonte's report said. The city of Central Falls
once banked on revenue from the prison, but hasn't been paid in three
years. The city filed for bankruptcy earlier this year. Attorneys for
Cornell Corrections and the corporation did not immediately return messages
on Tuesday.
September 1, 2010 Smart Money
Owners of municipal bonds issued to pay for jails might not get to pass
Go--and could have trouble collecting interest payments as well. These tax
free bonds don't have a monopoly on defaults, but they're well represented
among failures and troubled issues among the more speculative classes of
municipal bonds. Data from Municipal Market Advisors reveals a slew of
tax-free bonds issued to fund construction of privately run prisons and
detention facilities in states from Texas to Rhode Island to Montana. The
most recent example is Littlefield, a West Texas town of about 6,500
people. Located between the New Mexico border and Buddy Holly's hometown of
Lubbock, Littlefield had to dip into reserves to cover payments for about
$1.2 in bonds and other debt used to finance the Bill Clayton Detention
Center. The bonds were issued in 2000, but the expected revenue stream
evaporated when, after a prisoner suicide in 2008, the 310-bed private
prison lost its contract to house out-of-state inmates. In 2009, the Geo
Group (GEO), formerly known as Wackenhut Security, ended its operating
agreement with the detention center, leaving it unoccupied. In April, Fitch
Ratings, which in 2009 lowered the bonds to BB from BBB, affirmed a
negative rating outlook. Littlefield city manager Danny Davis says the city
is scrambling to avoid default on the $780,000 worth of annual payments and
plans to cut police and fire service while dramatically raising property
taxes when the new fiscal year begins Oct. 1. The property could be sold or
could be taken over by the state, though neither option is certain.
"It's going to be difficult," he says. "In the meantime,
we're just trying to keep our heads above water until we get to a
solution." Bob Libal is the Texas campaign coordinator for Grassroots
Leadership, a lobbying group which opposes for-profit prisons, and the
editor of the blog Texas Prison Bid'ness. He says many small towns agree to
build "speculative prisons" to be run by private contractors
using municipal bond financing but that many of these projects in a
post-Sept. 11 boom have had trouble. Libal criticizes the development
groups that get paid up front for building detention centers thus saddling
the bond-issuers (usually special public facilities corporations created
solely for those projects) with risky debt. "They go after a lot of
towns without a lot of sophistication and resources to do the due
diligence," Libal says. "If they let the bonds go under, it's
very difficult for them to issue any more debt." Matt Fabian, director
of research at Municipal Market Advisors, cites similar bond woes in
Central Falls, R.I.; Hardin, Mont.; and Baker County, Fla., where about
$105 million in total debt has run into trouble because the prison projects
haven't worked out as expected. "The incarceration rates drives
speculation," he says. "There's an idea that you can profit from
this prison trend." Investors in these increasingly-insecure jail
bonds have certainly had to assume more risk, even though they get higher
yields. The $99 million Central Falls Detention Facility bond issue of 2005
entered technical default in 2009 when it drew on its reserves to make
payments. The bonds, issued at par with a yield of 7.25%, last traded at
the end of 2009 at 85.3 cents to the dollar, with a yield of 8.69%.
Municipal revenue bonds issued in 2002 that funded the West Alabama Youth
Services detention facility defaulted in 2005. The bonds last traded in
February at 9 cents to the dollar with a yield of 73.6%. Fabian says some
of the biggest private prison busts are unlikely to have simple
resolutions. A shopping center is easy to repurpose; a detention center is
not. "It's hard to restructure," he says. "Even the land
underneath a prison isn't worth as much as it was." Even with a
resurgent effort by the private prison industry to use their facilities to
detain illegal immigrants and an attempt by the U.S. Immigration and
Customs Enforcement agency to overhaul detention procedures, problems
persist. The Baker Correctional Development Corporation, created to finance
a correctional facility and immigration detention center west of
Jacksonville, Fla., dipped into reserves for its August payment to holders
of bonds issued in 2008. With those bonds trading last at 71.25 cents to
the dollar with a yield of 20.73%, investors looking to lock up their money
should probably seek less risky types of municipal bonds.
November 11, 2009 AP
The widow of a Chinese immigrant wants the federal government to remain a
defendant in her lawsuit over the death her husband, who was detained at a
Rhode Island jail. Hiu Lui Ng died of liver cancer in August 2008 while he
was being held for overstaying a visa. Investigators say he was abused and
denied medical care at the Wyatt Detention Facility in Central Falls . The
private jail contracted with the federal government to house immigration
detainees. The government has asked to be dismissed from the case, saying
Wyatt staff were private contactors and not government employees. But
lawyers for Ng's widow say federal immigration authorities failed to act
even after it became clear that Ng was being seriously mistreated.
July 30, 2009 The Providence Journal
A former employee at the Donald W. Wyatt Detention Facility has agreed
to plead guilty to a charge that he lied to federal investigators about
having sexual contact with an immigrant detainee in the jail’s infirmary.
Glenn Rivera-Barnes, a medical technician, allegedly tried to falsely
convince the investigators that the detainee sexually assaulted him when
there was no evidence that it ever happened. Instead, officers from the
Justice Department’s Office of Inspector General and U.S. Marshals Service
had DNA samples proving that Rivera-Barnes initiated the sexual conduct
with the detainee on May 11 and May 24, 2008. In exchange for the guilty
plea, filed in U.S. District Court on Tuesday, federal prosecutors have
recommended that Rivera-Barnes serve a one-year sentence in home
confinement with an electronic bracelet attached to his ankle. Rivera-Barnes
and the victim are both men. “Clearly, Mr. Rivera-Barnes’ conduct was
deplorable,” said Bill Fischer, the jail’s spokesman. “His conduct is not
becoming of the type of employee that we want at Wyatt.” He credited the
jail’s Professional Standards Unit and the Rhode Island State Police for
their work on tracking the DNA evidence. The state police took custody of
the DNA samples and delivered them to the state Department of Health lab in
Providence. The jail’s Professional Standards Unit launched its
investigation in the spring of 2008 after the detainee, identified only as
M.P.A., claimed that Rivera-Barnes had unwanted sexual contact with him in
the jail. On July 15, 2008, he was placed on unpaid administrative leave
and the internal investigative team referred the case to the federal
authorities. Bill Fischer, Wyatt’s spokesman, said that Rivera-Barnes was
fired on Jan. 21. It’s a crime to lie to a federal investigator and
punishable by up to five years in prison and a $250,000 fine. No such penalty
exists for lying to a local or state police officer. In March, The Journal
first reported about the investigation and the jail’s warden, Wayne T.
Salisbury Jr., issued a news release that said the jail first learned of “a
serious allegation” in the spring of 2008 involving a staff member and “two
detainees.” He pointed out that the staff member, now identified as
Rivera-Barnes, was hired on June 28, 2007, by Cornell Corrections, the
Texas-based firm that ran the prison until Aug. 1, 2007. One of the detainees,
Allen Seymour, of Oxford, Mass., contacted The Journal, claiming that
Rivera-Barnes had victimized him. He said he went to the prison infirmary
in April 2008 and was inappropriately touched and groped. Upon his return
to the cellblock area, Seymour said, he told the immigrant detainee
identified in the plea agreement as M.P.A. about his experience. He said
the detainee told him that he had a similar experience with the same
medical technician. Seymour’s allegation is not mentioned in the criminal
complaint or plea agreement. No date has been set for Rivera-Barnes to
enter his guilty plea in federal court. He lived in Woonsocket when he
worked at Wyatt and now lives outside of Boston.
March 26, 2009 Providence Journal
The current executive director of the Donald W. Wyatt Detention
Facility was paid nearly $1 million to oversee the $48-million expansion of
the jail while he was also collecting an annual fee for other consulting
work at the detention center for federal immigrant detainees and prisoners
awaiting trial or sentencing. Anthony Ventetuolo Jr. confirmed this week
that he and his firm, Avcorr Management LLC, of Warwick, was paid $961,671
for the second job over a three-year period that ended in October 2007. The
payment represented 2 percent of the project’s cost, a fee structure that
Ventetuolo said is customary for large capital construction projects.
Ventetuolo had no competition for the job, which more than doubled the
number of beds at the jail. Albert M. Romanowicz, then chairman of the Central
Falls Detention Facility Corp., the municipal agency that owns Wyatt,
approved on Feb. 23, 2004, an amendment to the Avcorr contract to provide
correctional consulting services that also designated Avcorr and Ventetuolo
to serve as “project representative” for the three year addition project at
the same time. In a phone interview this week, Romanowicz said that
Ventetuolo’s experience in corrections and his knowledge of the Wyatt jail
made him the perfect choice for the job. Romanowicz, who resigned as board
chairman last month, remains aggravated that city officials have in the
last few weeks questioned Ventetuolo, his salary and the way he has run the
jail since he became executive director in August 2007. “He’s got a helluva
lot more integrity than the people going after him,” he said. During the
time Ventetuolo and his firm served as project representative or
construction manager, Avcorr also collected between $133,863 and $157,000
annually for correctional consulting services there, monitoring Cornell
Corrections, the large Texas corrections company that was the management
services contractor hired to run Wyatt until mid-2007.
March 5, 2009 Providence Journal
Federal investigators are looking into allegations that a former
medical technician at the Donald W. Wyatt Detention Facility, in Central
Falls, sexually assaulted two prisoners in the jail’s infirmary last year.
The technician has since been fired and agents from the U.S. Marshals and
the Justice Department’s Office of Inspector General in Boston have
questioned him, the alleged victims and other prisoners, officials
confirmed. The medical technician and the two prisoners are men. The
investigation is the latest development in a series of problems that have
plagued the Wyatt jail since an immigrant federal detainee, Hiu Lui “Jason”
Ng, died in custody last August. Separate inquiries, by Immigration and
Customs Enforcement, which had detained Ng; the state police and the jail’s
Professional Standards Unit, all condemned several corrections officers and
the nursing staff for failing to provide proper treatment to Ng. A
corrections captain and the director of nursing have been fired. Ng, who
suffered from excruciating back pain, had liver cancer and a fractured back
that went undiagnosed until the final days of his life. Last month, Ng’s
widow, Lin Li Qu, and her two young boys, filed a federal wrongful death
lawsuit against ICE, Wyatt and a host of other defendants, saying that Ng’s
medical needs were “ignored and ridiculed,” and that jail staff subjected
him “to physical abuse that resulted in serious physical harm.” Ng’s death
and inadequate medical care for jailed detainees across the nation has
gained more attention in recent months. On Tuesday, the Homeland Security
Subcommittee of the House Appropriations Committee held a hearing on health
services for immigration detainees in the custody of Immigration and
Customs Enforcement. “Mr. Ng’s case of medical abuse should have sounded an
alarm that our health services for immigration detention are badly broken,”
said Steven Brown, executive director of the Rhode Island Affiliate of the
American Civil Liberties Union. “Unfortunately, Mr. Ng was just one of over
80 deaths in a system that undermines American values of fairness and
dignity. Reforming immigration detention is truly a matter of life and
death.” Brown urged Congress to ask officials of U.S. Immigration and
Customs Enforcement “what steps they can take to prevent another incident
such as Mr. Ng’s case from occurring in the future.” IN RESPONSE to a
Journal inquiry about the latest issue, Wyatt’s warden, Wayne T. Salisbury
Jr., issued a news release that said the jail first learned of “a serious
allegation” last April involving a staff member and “two detainees.” He
said the jail’s Professional Standards Unit launched an investigation and
turned its findings over to the federal Inspector General’s Office.
Salisbury pointed out that the staff member had been hired by Cornell
Corrections, the Texas-based firm that ran the prison until Aug. 1, 2007. Avcorr
Management of Warwick, and its president, Anthony Ventetuolo Jr., now run
the jail under contract with the Central Falls Detention Facility
Corporation, a municipal agency. “Since this matter is still under
investigation, we will have no further comment at this time,” the statement
reads. Salisbury did not name the staff member or the detainees. The
Journal is not identifying the medical technician because he has not been
charged with any crimes.
February 26, 2009 Providence Journal
The current executive director of the Donald W. Wyatt Detention Facility
was paid nearly $1 million to oversee the $48-million expansion of the jail
while he was also collecting an annual fee for other consulting work at the
detention center for federal immigrant detainees and prisoners awaiting
trial or sentencing. Anthony Ventetuolo Jr. confirmed this week that he and
his firm, Avcorr Management LLC, of Warwick, was paid $961,671 for the
second job over a three-year period that ended in October 2007. The payment
represented 2-percent of the project’s cost, a fee structure that
Ventetuolo said is customary for large capital construction projects.
Ventetuolo had no competition for the job, which more than doubled the
number of beds at the jail. Albert M. Romanowicz, then chairman of the
Central Falls Detention Facility Corp., the municipal agency that owns
Wyatt, approved on Feb. 23, 2004, an amendment to the Avcorr contract to
provide correctional consulting services that also designated Avcorr and
Ventetuolo to serve as “project representative” for the three year addition
project at the same time. In a phone interview this week, Romanowicz said
that Ventetuolo’s experience in corrections and his knowledge of the Wyatt
jail made him the perfect choice for the job. Romanowicz, who resigned as
board chairman last month, remains aggravated that city officials have in
the last few weeks questioned Ventetuolo, his salary and the way he has run
the jail since he became executive director in August 2007. “He’s got a
helluva lot more integrity than the people going after him,” he said.
During the time Ventetuolo and his firm served as project representative or
construction manager, Avcorr also collected between $133,863 and $157,000
annually for correctional consulting services there, monitoring Cornell
Corrections, the large Texas corrections company that was the management
services contractor hired to run Wyatt until mid-2007.
February 19, 2009 Providence Journal
The Rhode Island Affiliate of the American Civil Liberties Union yesterday
questioned the wisdom of selling the troubled Donald W. Wyatt Detention
Facility, now owned by the City of Central Falls, to a private corporation
that owns and manages more than 65 correctional, detention and juvenile
institutions nationwide. Steven Brown, executive director of the affiliate,
faxed a letter to Mayor Charles D. Moreau that highlighted a host of
problems — including inmate deaths — in jails run by Corrections
Corporation of America, the Nashville, Tenn.-based prison firm. “Selling the
facility to a corporation like CCA is, from our perspective, like jumping
from the frying pan into the fire,” Brown wrote. “… Please consider the
consequences that flow from such public-private partnerships that seek to
make money, often by cutting corners, with little oversight and with little
regard for anything other than the bottom line.” On Feb. 5, two CCA
representatives spent several hours touring the jail with Moreau, prison
administrators and two newly appointed members of the Central Falls Detention
Facility Corporation, the board that is appointed by the mayor and oversees
the jail. Moreau has repeatedly said that “everything is on the table right
now,” and that the city would consider selling the jail to CCA or anyone
else who would pay top dollar and provide the best deal for taxpayers in
this financially troubled, one-square-mile city. The jail and land have
been appraised at a total of $45.1 million, according to
www.appraisalresource.com. Yesterday, Moreau said that there have been no
further discussions with CCA and the city has no intention of jumping into
a purchase-and-sales agreement. Still, he said that anyone in the
corrections business has had problems including deaths within its jails.
“There are deaths that happen in prison facilities across the country every
day,” he said. “If we were to sell the facility, it would be to a reputable
company. I’m not going to do anything that’s not going to bolster this
city.” The operation of the city-owned jail has come under fire following
the death of Hiu Lui Ng, a Chinese national, last summer while in Wyatt
custody. Ng’s death led to three separate investigations, and U.S.
Immigration and Customs Enforcement withdrew all 153 of its immigrant
detainees from the jail in December. The Ng family has filed a wrongful
death lawsuit against Wyatt, the corporation board and Avcorr Management,
the Warwick firm that oversees the management of the jail. Last month, ICE
announced that it was terminating its contract to send detainees to Central
Falls. The move has sent jail and city officials scrambling to replace the
prisoners, a deal that was bringing the detention facility $100,000 a week
and the city about $50,000 a month. Brown, in his letter, said that
problems at CCA jails have trailed them for years. He cited a 1998 Justice
Department report that was highly critical of a CCA jail in Washington,
D.C., where two inmates were stabbed to death, there had been deaths
attributed to poor medical care, and there had been several escapes. CCA
agreed to pay damages of $1.65 million, Brown wrote. Brown also pointed out
overcrowding, violence and accusations of excessive force at CCA-run jails
in San Diego; Olney Springs, Colo., and Hutto, Texas. In the Texas jail,
Brown wrote, children “as young as two years of age were held in the former
medium-security facility in prison garb; received inadequate education,
medical care and recreation.” He said that guards also threatened to
permanently separate them from their families. A call left with CCA seeking
comment was not returned yesterday.
January 31, 2009 Pawtucket Times
The consultant charged with overseeing the operations of the Donald W.
Wyatt Detention Facility may become a target of a legal complaint from a
second detainee alleging mistreatment at the facility, just months after
the death of a Chinese national there. Both the Wyatt and the federal
Immigration and Customs Enforcement (ICE) agency have in recent weeks
released the results of internal investigations into the death of Hiu Lui
“Jason” Ng. A Hong Kong native, Ng died in ICE custody waiting to face
immigration-related charges. He succumbed last summer to advanced stage
cancer that had apparently gone undiagnosed during his brief stay at the
Wyatt. Now a former Wyatt detainee who once shared a cell with Ng has filed
a legal complaint regarding his own treatment there. In that complaint,
Marino De Los Santos is looking to have Wyatt executive director Anthony
Ventetuolo and his consulting firm, Avcorr, named as defendants. On Friday,
attorney Angel Taveras confirmed that he had submitted a request in federal
court to have Ventetuolo and his company recognized as defendants, as an
amendment to a complaint originally filed by his client, de Los Santos, who
is from Bridgeport, Conn. According to Taveras, De Los Santos made several
complaints to Wyatt staff in writing, alleging that he received inadequate
medical treatment or no medical treatment on several occasions during his
incarceration. He claims that he fell and suffered injuries on two
occasions. According to a New York Times report, Ng had indicated that he
might have been singled out as a possible “troublemaker” by Wyatt staff
after he had been observed speaking with De Los Santos. A complaint filed
by Taveras states that De Los Santos was being held on drug-related charges
at the Wyatt on two occasions: the first from April 2006 to May 2007, the
second from November 2007 until August 2008. According to the complaint, De
Los Santos continues to endure physical pain and difficulty walking due to
injuries suffered as a Wyatt detainee and subsequent lack of proper
treatment. The complaint named several defendants, including Cornell
Corrections Inc. (which formerly ran the facility), the Central Falls
Detention Facility Corporation, Wyatt Warden Wayne Salisbury, an associate
warden, and several correctional and medical staffers. In the complaint, De
Los Santos claims that he suffered injuries after falling near the showers
on two occasions. The first fall allegedly occurred on Aug. 30, 2006. “Due
to an excessive and unsafe accumulation of water in the shower area, there
was water leaking out from the showers and running into the hallway,” the
complaint read. “Despite the unsafe conditions of the floor, there were no
signs posted indicating that the floor was wet or slippery. As Mr. De Los
Santos was walking toward the showers, he slipped on the slippery floor and
fell.” De Los Santos allegedly “suffered severe pain and injuries to his
neck, back and right foot” as a result of the fall. A guard then allegedly ordered
employees to mop the floor and, following “several minutes of Mr. De Los
Santos unsuccessfully attempting to pick himself off the floor,” requested
medical attention for him. According to the complaint, De Los Santos was
seen by a doctor, who sent him back to his cell after giving him “two
Tylenol.” He allegedly “remained bedridden for approximately two weeks,”
requiring the assistance of other inmates in daily activities. The
complaint alleges that De Los Santos made several unsuccessful attempts to get
further medical attention. On Nov. 5, 2006, he reportedly suffered a
similar fall, causing him to “defecate and temporarily lose consciousness,”
and further injuring his back and neck. De Los Santos was then taken to a
hospital, the complaint states, where he was diagnosed with a chest wall
contusion, a soft tissue contusion and a neck sprain. He was prescribed a
neck brace, but a Wyatt doctor allegedly removed and confiscated it upon
his return. In May 2007, De Los Santos was transferred to the New Haven
(Conn.) Correctional Center in response to his written request to the U.S.
Marshals Service. In November of that year, however, he was transferred
back to the Wyatt. Continuing to experience pain, De Los Santos allegedly
submitted several requests for medical care and a wheelchair. A nurse is
said to have indicated that he did not “meet the criteria” for a
wheelchair, and that her department would not communicate with him further
regarding his medical issues. The complaint added that in April 2008, a corrections
officer placed his hands around De Los Santos’ chest without consent, in an
effort to “straighten” him out. A grievance form he submitted regarding
this incident allegedly “received no response.” Wyatt spokesman Dante
Bellini had no comment on the matter. He had previously indicated that Ng
had received ample medical attention, and that the facility’s staff was
held to high standards. Several staffers were reportedly disciplined or
fired following the ICE investigation into Ng’s death. The ICE abruptly
removed all 153 of its detainees from the Wyatt in December after the Ng
investigation. As part of an effort to get ICE detainees back — and the
funding that comes with them —Mayor Charles Moreau has replaced four of the
five board members that oversee Wyatt operations via the Central Falls
Detention Facility Corp.
January 15, 2009 ICE PR
Today, U.S. Immigration and Customs Enforcement (ICE) has notified the
Central Falls Detention Facility Corporation of the agency's intention to
terminate the agreement to house detainees at the Donald Wyatt Detention
Facility in Rhode Island. ICE will terminate the agreement effective 60
days from Friday, January 16, 2009. Due to an investigation into the
circumstances surrounding the death of Mr. Hiu Lui Ng at Wyatt, ICE took
precautions and promptly ceased sending additional detainees to the Wyatt
contract facility and quickly relocated the remaining 153 ICE detainees
from the facility in December 2008. The investigation, which was completed
on January 12, 2009, revealed a consistent lack of communication regarding
Mr. Ng's healthcare needs between medical and security personnel at Wyatt.
The investigation also revealed that there were instances of non-compliance
by Wyatt contract personnel with the ICE National Detention Standards and
multiple failures to adhere to the facility's rules and policy. As part of
the investigation, ICE reviewed the policies and procedures used by Wyatt
to evaluate the health care needs of Mr. Ng and to provide him with access
to health care. ICE further reviewed the procedures used to distribute
medication to detainees and the use of wheelchairs to assist in the
transportation of detainees, including Mr. Ng. ICE's Office of Professional
Responsibility (OPR) found that contract personnel at Wyatt failed to
provide Mr. Ng a wheelchair on a number of occasions, resulting in Mr. Ng
effectively being denied access to his counsel as well as to a medical
appointment. ICE OPR also found that the facility guards and medical staff
failed to adhere to the facility's use of force policy. ICE strives to
maintain safe, secure and humane detention conditions and quality health
care. We make every effort to enforce all existing standards and whenever
possible, to improve upon them. ICE requires that all facilities housing
detainees meet our National Detention Standards, which meet or exceed
industry standards. When we find that our standards are not being met by
contract facilities, we take immediate action to ensure the safety and well
being of all ICE detainees.
August 20, 2008 New York Times
A lawsuit filed in federal court a year ago by a Dominican detainee
makes complaints about health care at a detention center in Rhode Island
that are similar to accounts of how the center treated a Chinese New Yorker
who died Aug. 6 in immigration custody. That inmate was suffering from a
fractured spine and extensive cancer that had gone undiagnosed until five
days before his death. The lawsuit, filed in Providence, asserts that
employees at the Donald W. Wyatt Detention Center, in Central Falls, R.I.,
denied a wheelchair to Marino De Los Santos, who said that he suffered
serious injuries to his neck, back, chest and spine in two falls at the
center in 2006. According to the suit, employees accused Mr. De Los Santos
of faking his injuries and refused to take him to scheduled examinations by
a spine specialist. Cornell Corrections of Rhode Island, one of the
defendants, which ran the center at the time covered by the suit, denied
any wrongdoing in its answer. In the case of Hiu Lui Ng, who was the
subject of an article last week in The New York Times, lawyers and
relatives said that when he was racked with pain and too weak to walk,
detention officials refused him a wheelchair, failed to take him to
scheduled appointments for an M.R.I. exam or a CT scan, and instead took
him in shackles to Hartford — where he was pressured to withdraw his
appeals and accept deportation. The lawsuit by Mr. De Los Santos and
details of earlier medical evaluations that fell short of diagnosing Mr.
Ng’s terminal illness and debilitating injury, emerged this week as members
of Congress demanded a full accounting by Immigration and Customs
Enforcement, part of the Department of Homeland Security. In a telephone
interview on Tuesday, Mr. De Los Santos, 37, said that Mr. Ng was briefly
his cellmate early last month and that his extreme back pain and weakness
were apparent. “He was crying all night,” Mr. De Los Santos said from his
home in Bridgeport, Conn., where he returned after he was released on bond
on Friday. He faces deportation as a convicted drug dealer. “I got bottom
bunk, he got the upper bunk, and when he’s going to bed, it’s terrible. And
I got problems, too, in my back, but him, when I see him, I can’t sleep.”
Mr. Ng was eventually assigned to a lower bunk in another cell, but by late
last month he could barely walk, Mr. De Los Santos said. “When you line up
to take medicine, he would grab a chair, because he couldn’t stand. And
they would tell him he had to let the chair go, he had to stand, but he
couldn’t.” He said that when Mr. Ng was bedridden, he saw a nurse go to
check him in his cell. “She came out laughing and saying he was faking,”
Mr. De Los Santos said. Mr. Ng, a computer engineer with no criminal
record, overstayed a visa years ago and had been applying for a green card
through his wife, a United States citizen, when he was swept into the
detention system in July 2007. Kelly A. Nantel, a spokeswoman for
Immigration and Customs Enforcement, said in an e-mail message that the agency
“continues to investigate allegations that Mr. Ng was mistreated in any way
while in detention.” But she added: “Based on a review of the medical
records, it appears that Mr. Ng was examined by medical staff at the
facility where he was detained and at the local hospital in Rhode Island
both as a normal course of admission to the facility and for individual
complaints he had. Tragically, but not unlike similar situations involving
citizens of this country, Mr. Ng was diagnosed with advanced-stage cancer
and sadly succumbed to the illness within days of the diagnosis.” Officials
at Wyatt would not answer questions last week, but asserted in a written
statement that Mr. Ng had received proper care. In a letter to Michael
Chertoff, secretary of the Department of Homeland Security, on Monday,
Representatives John C. Conyers Jr., chairman of the House Judiciary
Committee, and Zoe Lofgren, chairwoman of its subcommittee on immigration,
said that based on the article, “ the treatment provided to Mr. Ng is simply
unforgivable.” It is “particularly distressing,” the letter added,
“considering that much of it took place when ICE was facing intense
scrutiny over the quality of its medical care system and when agency
personnel had assured Congress that problems had been addressed.” According
to Mr. Ng’s relatives and lawyers, he began complaining of severe back pain
and an itchy rash in April, when he was being held at the Greenfield County
Sheriff’s lockup in St. Albans, Vt., where little or no health care was
available. When he was transferred to Wyatt on July 3, a health screening
form listed a rash, but no back pain. Later, he was seen by detention
center doctors for back pain, and after his relatives urged further tests,
given an X-ray of his back and hip on July 20, medical records show. The
radiologist’s report came back with a diagnosis of mild scoliosis, without
complications. Since Mr. Ng’s spine fracture was diagnosed 12 days later,
when an M.R.I. also found terminal cancer in his bones, lungs and liver, it
is unclear whether the radiologist missed evidence of his broken back or if
that injury occurred sometime between the X-ray and his Aug. 2 admission to
Rhode Island Hospital, in Providence. A doctor at the detention center
noted in the record that a CT scan should be performed if Mr. Ng’s pain did
not respond to painkillers and muscle relaxants. Instead, on the evening of
July 26, a Saturday, Mr. Ng was taken to the emergency room at a hospital
in Pawtucket, R.I., which does not perform CT scans on weekends. Doctors
there scheduled a CT scan for the following Monday, but according to
affidavits from Mr. Ng’s lawyers, the detention center’s staff made no
effort to take him back there. Another scan was scheduled for Tuesday, the
affidavits said, but Mr. Ng missed that one, too, because, his lawyers
assert, he was unable to walk to the car and detention center officials
refused to give him a wheelchair, then reported that he had refused to go.
According to affidavits, concern over Mr. De Los Santos’s lawsuit may have
played a role in Mr. Ng’s treatment. Mr. Ng’s lawyers said that he told
them that a detention captain had ordered him to stop talking to a detainee
who had filed a civil suit over a back injury suffered at Wyatt. After his
painful trip to Hartford on July 30, Mr. Ng expressed fears that he, too,
had been labeled “a troublemaker” by detention officials, and that they had
determined to get rid of him or to prove that he was faking illness.
August 1, 2007 Providence Journal
The Central Falls Detention Facility Corp. today takes over the management
of the Donald W. Wyatt Detention Facility from Texas-based Cornell
Corrections. That means the detention board — made up of five people
appointed by the mayor of Central Falls — will take over the day-to-day operations
of the expanded prison, which houses about 575 inmates and has been run by
Cornell for the past 13 years. The detention board decided to take over
after contract negotiations broke down in May when the sides failed to
agree on what Cornell would be paid to run the facility. The board had
expected to celebrate the completion of a $47-million expansion, which
doubled the size of the prison and its number of inmates, by the time it
took over management of Wyatt but construction delays will postpone its completion
for another month, says Dante Bellini Jr. of RDW Group, the spokesman for
the Central Falls Detention Facility Corp. The detention board rehired
former warden Wayne Salisbury to serve as Wyatt’s warden. Cornell removed
Salisbury in May during contract negotiations with correctional officers.
Salisbury, who was hired by Avcorr Consulting, which provides professional
oversight to Wyatt, served on a transition team that included Central Falls
Police Chief Joseph Moran, Avcorr president Tony Ventetuolo Jr., Tammy
Nova, a Wyatt accountant who will now serve as its chief financial officer,
and Eugene Racquier, a member of the detention facility board, as well as
Ray Meador, Don Hunt, Paula Lisa and Keith Martin. “We did a lot in a very
short time, said Bellini. “There was a punch list of over 150 specific
items that needed to be resolved. Everything from payroll issues,
financial, benefit issues, everything you could imagine when taking over
this kind of facility,” he said.
June 22, 2007 Providence Journal-Bulletin
The Central Falls Detention Facility Corporation gave notice to Cornell
Corrections, which has run the Donald W. Wyatt Detention Facility for the
past 13 years, that come Aug. 1, it will take over the prison. The
corporation is set to operate the facility at about the same time it
expects to celebrate the completion of a $47-million expansion that has
doubled the size of the prison and the number of inmates. Contract
negotiations broke down last month when both sides could not agree on what
the detention board would pay Cornell to run the prison, said Anthony
Ventetuolo Jr., president of Avcorr Consulting, which provides operational
oversight to Wyatt. Under enabling legislation passed in 1991, the
detention board has the authority to operate the facility with its own
forces or contract out. The board has told Wyatt employees that they can
stay. Of the 190 employees, 150 of those agreed to stay, according to
Ventetuolo. Cornell is one of eight private prison operators in the United
States and the third largest in the country. The Texas-based company posted
its revenue earnings at $9.2 million (excluding direct reimbursements) in
2006 under the contract with Wyatt. Ventetuolo said that Wyatt’s rising
debt service due to its expansion and the increasingly high cost of paying
Cornell factored in the board’s decision to run its own detention facility.
“We went from a debt service of $2.7 million a year to $8.4 million which
is a big jump but we’ve got additional [detainees] that will help offset
that over the next two years of transition,” Ventetuolo said. He said that
prior to expansion construction, the corporation paid Cornell $12 million a
year to run the prison. Cornell wanted “too much money for the next year
and a half for what was reasonable,” Ventetuolo said. “We think we can save
between 10 and 15 percent which is critical to us right now.” The detention
board has negotiated a $96-per-day rate for each prisoner, up from $89.90,
with its primary users, the U.S. Marshal’s Office and the U.S. Immigration
and Customs Enforcement, Ventetuolo said. Wyatt added 120,000 square feet
of space which include two additional floors and an additional building for
training. The number of detainees the prison can hold went from 342 to 642.
There are now 600 detainees at Wyatt. The detention board directed
Ventetuolo to form a transition team to determine what needs to be done to
transfer the operation by Cornell to the corporation. Former warden Wayne
Salisbury, who ran Wyatt until last month when Cornell abruptly removed
him, is a member of the transition team and is also working for Avcorr.
Ventetuolo said he hired Salisbury for his expertise with the prison. He
said that once the corporation takes over it will hire a new warden and
Salisbury would be in contention for the post.
May 31, 2007 Prime News Wire
Cornell Companies, Inc. (NYSE:CRN) announced today that the Central
Falls Detention Facility Corporation has notified the company of its intent
to transition the management contract for the Donald W. Wyatt Detention
Center to another provider following the conclusion of the current
management agreement at the end of July, 2007. Revenues (excluding direct
reimbursements) earned in 2006 under this contract were approximately $9.2
million. Management intends to discuss any changes to 2007 guidance as a
result of this contract transition at the same time guidance is updated to
reflect the company's recently-announced contract award from the Arizona
Department of Corrections.
May 31, 2007 Providence Journal-Bulletin
Cornell Corrections, the private company that runs the Donald W. Wyatt
Detention Facility, has removed warden Wayne Salisbury from his job. No one
is giving the reason for Salisbury’s removal. Cornell made its decision May
25 to replace Salisbury, according to Dante Bellini Jr. of RDW Group, the
spokesman for the Central Falls Detention Facility Corporation, which owns
the prison. Cornell Corrections replaced Salisbury with acting warden
William Massingill, who has already started work at the detention center,
according to Bellini. Massingill once served as chief of security for the
prison. Salisbury’s removal comes at a time when Cornell Corrections is in
the midst of contract negotiations with the Rhode Island Private
Correctional Officers Union. They are scheduled to reconvene for
negotiations June 4, according to Christine Parker, spokeswoman for Cornell
Corrections. A federal mediator has been brought in to work with the two
sides. Cornell, one of eight private prison operators in the United States
and the third largest in the country, is also in negotiations with Wyatt to
continue to run the prison. Cornell’s contract with Wyatt ran out in
January. The prison has been trying to get an increase in the $89.90 per
day it receives from federal agencies. Parker would not discuss the reason
for Salisbury’s removal, saying that the company does not comment on
personnel matters. “We continue to operate the facility. We have a seasoned
team of qualified and experienced personnel that we are utilizing to
continue operations of the facility,” Parker said. Salisbury became acting
warden in 2003 and later became the warden. Wyatt houses federal detainees
mostly from the U.S. Marshals and the Bureau of Immigration Customs
Enforcement.
May 7, 2007 Pawtucket Times
After four days of silence, talks between the Rhode Island Private
Correctional Officers Union and the Donald W. Wyatt Detention Facility
resumed Monday, although a strike is "still a very strong
option," according to union President Heath Letourneau. On May 1, the
day before their three-year contract was scheduled to expire, Wyatt's 107
correctional officers voted to authorize a strike. Despite the fact that
the two parties have agreed to return to the bargaining table next Tuesday
and Wednesday, Letourneau said Tuesday's meeting, which was refereed by a
federal mediator, bore no fruit. The main sticking point, he said, was the
prison's insistence on cutting an hour of previously guaranteed overtime.
"Since their last offer, they haven't moved at all," said Letourneau.
"In that offer, all they did was move the money from our guaranteed
hour [per week] of overtime and factor it into our hourly wage..."
According to a Wyatt press release, the most recent offer provides for a
16.5 percent pay increase over five years, with a 4.5 percent hike in the
first year. Not surprisingly, prison workers' right to strike is limited by
the federal government's interest in public safety, a fact duly noted by
prison officials in a statement to The Times. "The National Labor Relations
Act requires that unions provide adequate notice before a strike," a
prison spokesperson wrote. "While there is no specified definition of
'adequate notice,' existing court decisions suggest that six weeks' notice
is adequate for guard services such as those provided by RIPCO at the Wyatt
Detention Center."
May 3, 2007 Pawtucket Times
The 107 correctional officers employed by the Donald W. Wyatt Detention
Facility voted to authorize a strike Tuesday, according to a written
statement from the Rhode Island Private Correctional Officers Union. The
employees' three-year contract expired today, although the statement did
not say when or under what circumstances a strike would occur. "The
major issues which the parties have yet to resolve include wages, proper security
measures, training and minimum staffing," wrote Union President Heath
Letourneau. "We are seeking your support and assistance in our quest
to be treated fairly during this period of negotiations." Attempts to
contact Letourneau with the telephone number provided in the statement were
unsuccessful. For their part, prison officials said they hadn't heard
anything about a strike and warned that a sneak attack would be unwise.
"The National Labor Relations Act requires that unions provide adequate
notice before a strike," a prison spokesperson told The Times in a
written statement. "While there is no specified definition of
'adequate notice,' existing court decisions suggest that six weeks' notice
is adequate for guard services such as those provided by RIPCO at the Wyatt
Detention Center." The prison recently contacted a federal mediator to
facilitate ongoing contract negotiations between the prison and the union.
The discussion between the two parties has not progressed since the
prison's most recent - but not final - proposal, which provides for a 16.5
percent pay increase over five years, with a 4.5 percent hike in the first
year. No mediation meeting has been scheduled. "Our primary concern at
this point is for the safety and security of our detainees," said
Warden Wayne Salisbury, Jr. "We cannot allow for these necessities to
be compromised by labor negotiations. As such, we have begun making
contingency plans in the event that RIPCO members do strike. Meanwhile, we
hope that the strike can be avoided altogether. Our negotiator remains
available during normal business hours to meet with both the federal
mediator and union representatives."
January 30, 2007 Connecticut Post
A federal judge, frustrated by the medical attention given to two inmates,
ordered one released on $1 million bond so he could seek private care,
while the other must be taken by prison officials to an orthopedic surgeon.
U.S. District Judge Janet C. Hall issued the orders after hearing lawyers
in two separate hearings just hours apart complain that their clients did
not receive adequate treatment. "It is my view that the United States
of America, through its Bureau of Prisons, should take care of the medical
conditions of its prisoners in custody," Hall said Monday. The inmates
are Bruce Forest, 50, the reputed Porta-Potty bomber from Weston, and Gary
John, the 58-year-old retired FBI agent from Stratford recently convicted
of assaulting a federal marshal. Both are in the custody of the U.S. Bureau
of Prisons at the private Donald C. Wyatt detention center in Central
Falls, R.I. "Lawyers have an incredible sense of frustration with the
medical care at Wyatt," said Robert Mann, John's lawyer. "Our
clients are just not getting the medical attention needed at Wyatt."
Wyatt officials did not return telephone calls Monday. However, Felicia
Ponce, a spokeswoman for the prisons bureau, said her agency takes
"any medical concerns of our inmates very seriously & we make it
our utmost priority." Ponce could not comment directly on the two
cases.
March 19, 2005 Pawtucket Times
This weekend, the federal inmates at the Donald W. Wyatt Detention Center
can pretend they’re at the beach. After a 3,000-gallon water heater burst
Thursday afternoon, the prison’s showers became as brisk as a public-use
cabana, according to prison officials. The Times received a concerned phone
call Friday from a relative of an inmate who said prisoners had been
without heat and hot water for two days and had been denied blankets by
prison guards. On Friday afternoon, prison consultant Tony Ventetuolo said
the public can rest easy: the problem is temporary and not at all serious.
After 13 months without making
contributions to the city budget, the Central Falls Detention Facility
Corp. announced that it will resume making monthly payments to the
municipal coffers.
The corporation’s board of directors, which
oversees the Wyatt Detention Facility, will immediately resume paying the
city $25,704 per month. The board is not legally obligated to pay a
specific dollar amount to the city, but does pay an "impact fee"
from money still left over after paying the prison’s debts and operating
costs. Al Romanowicz, chairman of the jail board, said the number of
prisoners held at Wyatt had dropped, reducing the prison’s revenue.
"The census at the facility dropped, and the city is last in line for
its fees," Romanowicz said. "Bondholders come first. Operational
expenses come second, and the city is last in line to get any of the
proceeds." (Pawtucket Times, April 29, 2004)
A strike at the Wyatt Detention Facility
that had been called for this morning was averted when union and management
reached a three-year agreement late last week. The R.I. Private Correctional Officers, which
represents 72 COs at the private, for-profit High Street jail, initially
set a strike deadline of midnight on April 1 when its prior three-year
contract expired. Although Cornell pays no taxes on the operation, it
is one of Central Falls’ top revenue producers, consistently making
payments to the city of about $500,000 a year. (Zwire.com, April 13,
2004)
The Rhode Island Private Correctional
Officers' Union has given notice that it plans to go on strike April 13 at
6:45 a.m. if no contract is reached with the Donald W. Wyatt Detention
Center.
The union and Wyatt had broken off contract
negotiations Wednesday and were facing a possible strike by its 73
correctional officers last night at midnight when the union's contract
expired. "We are making $8,000
less than the guards at the ACI [Adult Correctional Institutions]. It takes
us six years to get what people at the ACI get," he said. A starting
correctional officer at Wyatt makes $25,667, according to Weston.
(Providence Journal, April 2, 2004)
Dunn
M. Beckett, the former prison guard convicted last year of possessing a
sawed-off shotgun, has begun serving a 33-month federal prison sentence.
Beckett had worked as a guard at the Donald W. Wyatt Federal Detention
Center in Central Falls for eight years, and had served as president of the
Rhode Island Private Correctional Officers' Union. (The Providence
Journal-Bulletin, March 24, 2003)
A
corrections officer was found guilty yesterday in U.S. District Court of
possessing a sawed-off shotgun. A federal jury convicted Dunn M. Beckett,
33, on one count of possessing an unregistered shotgun shorter than the
legal length. Federal agents found a shortened shotgun barrel and a shotgun
stock in Beckett's garage while searching his home, at 58 Edgewood Drive,
Cumberland, Aug. 16 in connection with a murder investigation. (The
Providence Journal-Bulletin, March 30, 2002)
Dunn M. Beckett, a corrections officer at the Donald W. Wyatt Detention
Center, in Central Falls, was identified by a federal prosecutor as a
"suspect or target of two murder investigations" during his
appearance yesterday in U.S. District Court on federal firearms charges.
Beckett the president of the 57-member Rhode Island Private Correctional
Officer's Union has been charged with possession of a shotgun shorter than
the legal length and possession of a stolen firearm. (The Providence
Journal-Bulletin, September 1, 2001)
A carbon monoxide leak at a privately run prison Wednesday afternoon sent a
dozen inmates and employees to the hospital. The leak affected inmates and
employees in the Donald W. Wyatt Detention Facility laundry and kitchen
area. All other inmates who were not injured were left in their cells.
Wyatt is a private, for-profit jail owned by Texas-based Cornell Companies
Inc. Most of the inmates are federal prisoners awaiting trial or
sentencing. (AP, August 8, 2001)
Guards at the Donald W. Wyatt Detention Facility reached an agreement with
the jail's parent company right before midnight Tuesday, and called off a
planned strike. The prison's parent company, Texas-based Cornell Companies
Inc., and the union representing the guards negotiated for several hours
before agreeing on a 5 percent pay raise this year, and a 4.5 pay raise for
each of the following two years. Health care costs, which had also been an
issue, will not change. (AP, April 4, 2001)
Guards at the Donald W. Wyatt Detention Facility voted Saturday night to go
on strike Wednesday, as a union-imposed deadline passed with no new
contract for correctional officers at the private, for-profit jail. Union
members voted to begin the strike Wednesday at 7 a.m. After a day of
picketing and demonstrations, the guards except to return to work Thursday
morning. Union president Dunn Beckett called an earlier offer from the
company insulting. That proposal called for 2 percent raises in each of the
next three years, and required union members to pay higher premiums for
their health insurance. Nonunion employees will be used during the planned
one-day strike, and if needed, the prison's parent company, Texas-based
Cornell Companies Inc., can also draw resources from its other facilities
around the country, Chief Deputy William Fallon of the U.S. Marshal's
office in Providence said. (AP, April 1, 2001)
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