|
American
Service Group
Brentwood, Tennessee
PHS
August 17, 2007 Tennessean
America Service Group Inc. said Thursday that its Prison Health Services
subsidiary would lose its contract with the Alabama Department of Corrections.
The contract expires on Oct. 31. PHS provides medical services to inmates.
Brentwood-based America Service Group said it would update its fourth-quarter
earnings estimate later. It had projected revenues from a renewed contract of
$12.3 million in the three months ending Dec. 31.
April 12, 2007 Business Wire
America Service Group Inc. (NASDAQ:ASGR) announced
today that it has executed an asset purchase agreement for the sale of certain
assets of its indirect subsidiary, Secure Pharmacy Plus, LLC (SPP), to Maxor
National Pharmacy Services Corporation (Maxor). Additionally, as a part of the
transaction, Maxor and Prison Health Services, Inc. (PHS), the Company's primary
operating subsidiary, have entered into a long-term pharmacy services agreement
pursuant to which Maxor will become the provider of pharmaceuticals and medical
supplies to PHS. The asset purchase agreement is to be effective April 30, 2007,
subject to standard closing conditions. The pharmacy services agreement will
commence May 1, 2007, subject to the closing of the asset purchase agreement.
America Service Group Inc., based in Brentwood, Tennessee, is a leading provider
of correctional healthcare services in the United States. America Service Group
Inc., through its subsidiaries, provides a wide range of healthcare and pharmacy
programs to government agencies for the medical care of inmates. More
information about America Service Group Inc. can be found on the Company's
website at www.asgr.com or www.prisonhealthmedia.com.
December 11, 2006 AP
Prison health care and pharmacy service provider America Service Group Inc.
lowered its 2006 guidance again on Monday, but said it expects "stronger, more
consistent performance from its contract portfolio in 2007." The company now
sees adjusted 2006 earnings of $5.3 million, or 50 cents per share, on sales
between $640 million and 650 million. In October, the company forecast adjusted
earnings in a range of 58 cents to 61 cents per share, on sales between $650
million to $655 million. In August, America Service said it saw profit of 72
cents to 75 cents per share on revenue between $650 million and $660 million for
the year. The company said its lower 2006 outlook is due mainly to the Florida
Department of Corrections' decision to "reject all bids to provide comprehensive
health care services in its Region IV," and to expected cost increases,
including professional liability expenses. Looking toward 2007, the company sees
adjusted earnings of $8.2 million, or 86 cents per share, on sales in the range
of $570 million to $580 million. Shares fell 91 cents, or 5.8 percent, to $14.69
in after-hours trading. The stock had closed unchanged at $15.60 on the Nasdaq.
November 14, 2006 Burlington Free Press
Vermont prisons are looking for a new medical services provider for the
second time in three years following a decision by Prison Health Services Inc.
to opt out of its contract with the state. Robert Hofmann, state Corrections
Department commissioner, said Monday the Tennessee-based Prison Health Services
notified him Oct. 30 that it would stop providing care to the state's 1,700
in-state inmates at the end of January. "Obviously, we're disappointed and a
little bit surprised," Hofmann said of the company's decision. "There were some
bumps in the road at the start of their contract but, really, over the past 12
months, they had been doing a very good job." The company's top three officials
in Vermont resigned their posts just 10 months after it began operations in
Vermont and the firm, along with the state, was sued last month by the family of
an inmate who died from heroin withdrawal symptoms in 2005. Prison Health
Services won the three-year, $26 million contract to provide health care to
inmates at the state's nine prisons in early 2005. The previous contractor,
Correctional Medical Services Inc., had come under fire for $700,000 in billing
mistakes, including $144,547 for services that company employees never provided.
Susan Morgenstern, a spokeswoman for Prison Health Services, said Monday that
the company decided to opt out of the contract at the end of the second year
because it was losing too much money. "The cost of providing health care to
inmates has risen beyond the contract's ability to cover that cost," Morgenstern
said in a statement released by the company. "Prison Health Services will never
compromise the quality of our patient care because of financial reasons."
According to a company Web site, Prison Health Services lost $1 million on its
Vermont contract in the third quarter of 2006 alone, a figure that Hofmann
disputed. Morgenstern said the staffing costs were an issue for the company in
Vermont.
August 9, 2006 Milwaukee Journal Sentinel
Attorney General Peg Lautenschlager's campaign took her opponent, Dane
County Executive Kathleen Falk, to task for taking donations from those pursuing
Dane County business. Lautenschlager's aides said that was inconsistent with
Falk's statements that as attorney general she would not take money from people
subject to enforcement actions by the state Department of Justice.
Lautenschlager's campaign blasted Falk for accepting a $10,000 donation June 27
from the political action committee of Unite Here, a laundry workers union. The
donation came six days after Dane County started an audit of non-union laundry
contractor Superior Health Linens - a company that Unite Here has long
criticized for its labor practices. Lautenschlager's campaign also criticized
Falk for: • Accepting $1,500 from America Service Group Inc.'s political action
committee in 2004 because its subsidiary Prison Health Services has a contract
with the county. • Taking $2,500 from Government Payment Service CEO Dale Conrad
last year because his firm has a county contract allowing people to pay bail
with credit cards. • Receiving money from developers and others who sat on a
committee that Falk convened to advise her on a land-use plan.
August 2, 2006 Nashville Business Journal
America Service Group Inc. saw its earnings for the second quarter plummet
81 percent compared to results for the same period last year. The provider of
prison health care and pharmacy services showed a profit of $514,000, or 5 cents
per diluted share, in the quarter ended June 30 compared to $2.8 million, or 26
cents per diluted share last year. Though earnings were down, the second quarter
saw the company return to an operating profit - something that hasn't occurred
since the second quarter last year. Nevertheless, the company's stock dropped
nearly 19 percent, trading at $11.66 at 10:20 a.m. The 52-week range of the
stock is $11.32 to $23.20. Brentwood-based America Service (NASDAQ: ASGR)
lowered its guidance and now expects revenues to fall between $650 million and
$660 million and earnings to range between $7.7 million to 8 million. The
company cited an underperforming Florida Department of Corrections contract as
the cause of the reduction. The company's previous guidance called for revenues
between $660 million and $680 million and earnings between $9.4 million and $10
million. Second-quarter revenues were on the upswing, coming in at $160 million
compared to $139 million in the second quarter a year ago. Expenses increased to
$150 million in the quarter compared to $128 million in the second quarter last
year. The company also recorded $1.0 million in charges associated with an audit
committee investigation of its Secure Pharmacy Plus subsidiary. On March 15, the
company said an investigation into financial improprieties at its Secure
Pharmacy Plus unit found that the company failed to properly credit customers
with discounts, rebates and savings and failed to give customers proper credit
for returned pharmaceuticals. Expenses related to the audit amounted to $4.6
million through the first half of this year and the company expects it will
spend another $400,000 to $900,000. The company continued its stock repurchase
program approved in July of last year to repurchase and retire 217,000 shares at
a value of $3.0 million. The repurchase was suspended during part of the second
quarter when the company received a third-party proposal to acquire pharmacy
services subsidiary Secure Pharmacy Plus. Ultimately, a deal wasn't reached.
June 22, 2006 Tennessean
America Service Group Inc. says it has received notice that its stock won't
be dropped from the Nasdaq National Market. Last month, after two directors
quit, the Brentwood-based prison health company said it had received notice that
it was no longer in compliance with Nasdaq rules requiring a majority of
independent directors. On June 14, ASG added four independent directors. On
Wednesday, it said Nasdaq had determined the company is now in compliance with
rules governing board membership and corporate oversight.
June 14, 2006 Tennessean
Brentwood’s America Service Group Inc., the prison health company whose
stock was in danger of being dropped by the Nasdaq National Market, named four
new independent members to its board today. The move should bring the company
back into compliance with Nasdaq’s rules requiring a certain number of outside
directors and allow the stock to continue to be listed, company officials said
this afternoon. Two outside directors bolted from America Service Group’s board
earlier this year after they unsuccessfully tried to oust CEO Michael Catalano.
New board members are: • John C. McCauley, assistant vice chancellor of risk and
insurance management at Vanderbilt University. • William E. Hale, formerly
president and chief executive of Beech Street Corp., a preferred provider
organization. • John W. Gildea, managing director of Gildea Management Co., and
a former board member of America Service Group from 1986-1999. • William M.
Fenimore, managing partner of BridgeLink LLC, Swiss-based capital advisors.
May 30, 2006 Tennessean
America Service Group Inc., the beleaguered prison health-care company, expects
to beat a June 14 deadline to fill at least one vacancy on its board of
directors so its stock won't be dropped from the Nasdaq National Market. Under
Nasdaq rules, the departure this month of two board members who quit after
trying to oust CEO Michael Catalano meant the company no longer complied with a
requirement that a majority of its directors be independent. A third independent
director left in December. Only two of its four remaining directors have no
other ties to the company. ASG has until its next annual meeting, scheduled for
June 14, to address the vacancies on its board. Catalano said the company would
fill at least two of the three vacant seats by that deadline. "We're confident
we'll come back into compliance," he said. But this month's departure of two
board members and Nasdaq's threat to drop or delist the Brentwood-based
company's stock as a result aren't its only problems. It has come under fire in
several states over the quality of medical care it provides to inmates. The
Washington Post in an editorial recently called on officials to keep a closer
eye on the company's Prison Health Services subsidiary after the Associated
Press reported that some inmates in Virginia had said medical care there was so
shoddy that they feared for their lives. Last spring, a report by the Metro
Health Department blamed the death of a diabetic inmate at Metro Jail on myriad
failures by the jail's nurses, who were employed by PHS. Catalano wouldn't
comment on the specific allegations against the company but said competitors get
similar complaints about the quality of care they provide.
May 19, 2006 Nashville Business Journal
America Service Group Inc. announced today it received an expected notice on
May 17 from NASDAQ Listing Qualifications indicating it no longer complies stock
exchange's independent director and audit committee requirements. The company
received the notification due to the resignation of Michael E. Gallagher and
Carol R. Goldberg on May 6 and May 8 from the company's board of directors.
NASDAQ rules requires that a majority of board members be comprised of
independent directors and that the company's audit committee be comprised of at
least three members, each of whom are independent. Gallagher and Goldberg were
members of the company's audit committee. The addition of one qualified
independent director to serve on the audit committee will allow the company to
regain compliance. The company is actively conducting a search for at least two
independent directors to serve on its board of directors and audit committee,
according to a release announcing the NASDAQ notice. Gallagher is the director
of Edgar Group LLC, a health care consulting firm and was a partner in Shamrock
Investments LLC, a health care advisory firm. Goldberg is president of AVCAR
Group Ltd., a management consulting firm. Brentwood-based America Service
(NASDAQ: ASGR - News) provides prison health services through its subsidiaries
Prison Health Services and Secure Pharmacy Plus.
May 11, 2006 Tennessean
America Service Group Inc. says two members of its board quit after saying
they'd lost confidence in the company's chief executive officer. Michael
Gallagher, who led the board's audit committee, which recently looked into
mismanagement at the company's prison pharmacy unit, submitted his resignation
on Friday. Carol Goldberg, who led the board's compensation com- mittee,
resigned on Monday. Brentwood-based ASG, which is being sued by shareholders in
federal court over the problems at its Secure Pharmacy Plus subsidiary,
disclosed the resignations in a regulatory filing after the markets closed
Tuesday. According to the filing, the company's remaining board members met
Tuesday and "confirmed their view that the company's chief executive officer
should continue to serve in that capacity." CEO Michael Catalano, who chairs the
board, "abstained from consideration of this matter," the company said in its
filing. On Wednesday, Catalano said in a statement that the company wouldn't
allow itself to become distracted by the developments. "While the public filings
from America Service Group Inc. speak to the issues of two directors'
resignations, I think it is important to know that our focus remains unchanged,"
Catalano said. "The dedicated health-care professionals representing our company
are committed to the mission of providing quality medical care to the patients
we serve in jails and prisons nationwide." Gallagher and Goldberg, who couldn't
be reached yesterday, told a meeting of the board's governance committee they
believed "the company would be better served by replacing its chief executive."
Gallagher apparently resigned soon after the meeting. Goldberg e-mailed her
resignation letter to the company on Monday. She said simply, "I hereby tender
my resignation as a director of America Service Group Inc., effective today. I
wish the company the best in its future endeavors." In his letter, Gallagher
wrote that because "my fellow independent board members are unwilling to make a
change … I have no other alternative but to hold true to the courage of my
convictions and resign. "It is my business judgment that while there are many
good people in the executive ranks of the company there nonetheless needs to be
a change at the top," Gallagher said. "Such change is urgently needed in order
to maximize the probability of successfully meeting the company's challenges and
to ensure the full implementation of the recommendations resulting from the
recent investigation (into Secure Pharmacy Plus)," he said. In March, the
company said the audit committee recommended strengthening the company's
internal controls and compliance functions after finding that problems at Secure
Pharmacy Plus caused the company as a whole to post inflated earnings over a
four-and-a-half-year period. ASG, which provides health services at jails and
prisons nationwide, said that problems with the subsidiary had caused the
company as a whole to overstate profits by $2.1 million for 2001 through the
second quarter of 2005. It also agreed to refund $3.6 million to clients who
were overcharged for prescription drugs. It found that some clients weren't
properly credited with discounts or rebates on drug purchases and others weren't
properly credited for prescription drugs that were returned. The resignation of
two board members was "just one of those unfortunate things following a hard
year," said Anton Hie, an analyst with Jefferies & Co. in Nashville. In a
research note to clients, he maintained his "hold" rating on the stock. ASG said
in its quarterly earnings filing on Wednesday that it had 104 health-care and
pharmacy contracts as of April 1, five fewer than it had a year earlier. It
posted a net loss of about $1.1 million in the first quarter, compared with a
profit of $3.9 million in the first quarter of 2005. Still, shares of the
company were up Wednesday, climbing 44 cents, or 3.4 percent, in moderate
trading on the Nasdaq Stock Market to close at $13.42 a share, well below its
52-week high of $23.81.
May 3, 2006 Nashville Business Journal
Prison health services provider America Service Group Inc.'s troubles with
its Secure Pharmacy Plus business helped push the company into a first-quarter
loss. The company posted a loss of $1.4 million in the quarter ended March 31
compared to a profit of $3.9 million in the first quarter a year ago. Revenue
from health care services were up nearly 26 percent to $167 million, but
expenses to provide those services rose nearly 30 percent. Further denting the
first-quarter numbers was a $3.6 million charge associated with an audit
committee investigation into financial improprieties at Secure Pharmacy Plus.
Brentwood-based America Service (NASDAQ: ASGR) expects to record another
$200,000 to $700,000 in expenses related to the audit this year. That audit
found that the company failed to properly credit customers with discounts,
rebates and savings and failed to give customers proper credit for returned
pharmaceuticals. The investigation also found that SPP inappropriately created
reserves over the past five years to ensure the company's reported earnings
matched budgeted results. The company restated its earnings going back to 2001.
Excluding that charge, income from operations prior to income tax, interest and
discontinued operations, would have been $2.4 million. Income from operations in
the first quarter a year ago amounted to $6.2 million. The company also saw a
$1.6 million increase in selling, general and administrative expenses, with $1
million of that coming from share-based compensation expense. The company has
affirmed its guidance for 2006 and expects total revenue to be in the range of
$660 million to $680 million. Earnings per diluted share are expected to be in
the range of 90 cents to 96 cents. The revised 2005 number was 39 cents.
April 11, 2006 Nashville City Paper
A Brentwood prison health company’s announcement that it will restate
earnings because of internal problems in its pharmacy subsidiary has spawned a
shareholders’ lawsuit by a union pension fund. The Plumbers and Pipefitters
Local 51 Pension Fund filed the suit last week in U.S. District Court in
Nashville against America Service Group, which provides health care services to
prisons. The complaint stems from the company’s March 15 disclosure of an
internal investigation that uncovered several problems with its Secure Pharmacy
Plus (SPP) subsidiary, which contracts with governments to distribute
medications to inmates. The announcement “shocked the market,” the suit states.
The company’s stock price fell nearly 29 percent, or $5.65 per share, to close
at $13.95. The pension fund claims that America Service Group, through its
public statements and filings, knowingly misled shareholders about the company’s
financial health, which artificially inflated ASG’s common stock. The pension
fund’s law firms — Barrett, Johnston & Parsley of Nashville and Lerach,
Coughlin, Stoia, Geller, Rudman & Robbins of New York — are seeking class-action
status on behalf of shareholders of common stock between Sept. 24, 2003, and
March 16, 2006. The suit asks for unspecified damages.
April 7, 2006 Tennessean
The law firm of Lerach Coughlin Stoia Geller Rudman & Robbins LLP said
yesterday that a potential class-action lawsuit has been filed in federal court
here on behalf of investors who bought stock in America Service Group Inc.
between Sept. 24, 2003, and March 16, 2006. Attorneys said the suit stems from
the Brentwood-based prison health services company's internal investigation into
the business practices of its Secure Pharmacy Plus subsidiary. Last month, ASG
said an investigation into the unit had caused the company as a whole to
overstate profits by $2.1 million for 2001 through the second quarter of 2005.
ASG also said it would refund $3.6 million to clients who were overcharged for
prescription drugs. It found that some clients weren't properly credited with
discounts or rebates on drug purchases and others weren't properly credited for
prescription drugs that were returned.
March 29, 2006 Tennessean
Brentwood-based America Service Group Inc. has named Richard Hallworth as
chief operating officer. He will also serve as president and chief executive
officer of the company's wholly owned subsidiary, Prison Health Services Inc.
Hallworth previously held several executive positions with Tufts Health Plan, a
managed care company. He began his career as a certified public accountant,
first with Coopers & Lybrand and then as a partner with Ernst & Young LLP. He
will replace former executive vice president Trey Hartman as president of Prison
Health Services, which provides medical care to jail and prison inmates. In a
filing with the Securities and Exchange Commission, America Service Group said
Hartman was fired for cause in December in connection with an internal probe
into whether the company’s Secure Pharmacy Plus subsidiary had overcharged for
drugs and failed to follow proper accounting procedures. Hartman was a former
head of the pharmacy unit.
March 16, 2006 Nashville Business Journal
Prison health care services company America Service Group Inc. has released
the findings of an internal investigation into financial improprieties at its
Secure Pharmacy Plus subsidiary. The results: restated earnings going back to
2001, a stock price plunge and a $3.7 million bill for the investigation. Last
October, the company announced that the audit committee of its board of
directors would conduct an investigation of SPP over pharmaceutical pricing and
accounting practices. Independent forensic accountants conducted the
investigation and found that SPP failed to properly credit customers with
discounts, rebates and savings and failed to give customers proper credit for
returned pharmaceuticals. Brentwood-based America Service (NASDAQ: ASGRE) plans
to refund $3.6 million, plus interest, to customers as a result. Management of
SPP also inappropriately created reserves over the past five years to ensure the
company's reported earnings matched budgeted results. Auditors determined the
company's pre-tax income was $355,000 higher than previously reported. Auditors
also found that SPP charged some of its customers less than it should have to
the tune of $5.9 million. The company will try to collect that money, but is
uncertain of how much success it will have doing so. The news slammed America
Service shares. At 12:40 p.m., they were trading at $13.90, down more than 29
percent their closing price Wednesday. The 52-week range of the stock is $12 to
$26.10. On Dec. 7, the company fired Grant Bryson, president and CEO of SPP, in
connection with the investigation. Two days later, it sent packing Trey Hartman,
president and chief operating officer of Prison Health Services Inc., a move
also connected with the investigation. Hartman was with SPP when America Service
bought the company in 2000. Kendall Lynch is now CEO of SPP. In a statement
announcing the results of the investigation, America Service said both the
Securities and Exchange Commission and the U.S. Attorney for the Middle District
of Tennessee are conducting informal inquiries. The company says it will
continue to cooperate with both. As it wrapped up its own investigation, the
company had delayed reporting its third-quarter results. Those financials were
released after the market closed March 15 along with fourth-quarter and
full-year numbers and restated earnings going back to 2001. Fourth-quarter
results show America Service with a loss of $1.2 million compared to restated
earnings of $4.9 million in the fourth quarter of 2004. Revenue for the quarter
ended Dec. 31 came to $149 million compared to $130 million the year before. The
fourth-quarter loss includes $3.3 million in expenses related to the
investigation. During the third quarter ended Sept. 30, the company also posted
a loss of $1.2 million compared to restated earnings of $81,000 last year.
Revenue for the quarter came to $140 million compared to $135 million last year.
Third-quarter results include $370,000 in expenses related to the investigation.
Other restated earnings: The company's earnings for the first two quarters of
2005 were $6.7 million instead of the $7.1 million that was reported. Revenues
for the two-quarter period were $273 million instead of $315 million. In 2004,
the company had a profit of $9.9 million instead of the $9 million that was
reported. Revenues for the year were $517 million instead of $665 million.
Earnings in 2003 were $11.3 million instead of the previously reported $11.9
million. Revenues for the year were $380 million instead of $517 million. In
2002, the company's profit was $11.3 million instead of $11.9 million. Revenue
for the year was $293 million instead of $410 million. The company's loss in
2001 was $46.5 million rather than the reported $45 million. Revenue for the
year was $299 million instead of $397 million.
January 16, 2006 Tennessean
Prison health care services provider America Service Group Inc. will
continue to be listed on NASDAQ. The company had received notice from the stock
exchange in November that it was subject to delisting because it had failed to
make timely financial filings with the Securities and Exchange Commission. The
company delayed its third quarter financial reports pending the conclusion of an
internal investigation by its audit committee of a subsidiary, Secure Pharmacy
Plus. On Jan. 10, the company received a letter from NASDAQ that it would
continue to be listed on the exchange provided it files its quarterly report for
the third quarter ended Sept. 30 by March 15, according to a statement released
by the company. The company also must provide the final report of the internal
investigation by Feb. 28. The investigation was to "determine whether SPP
provided pricing of pharmaceuticals in accordance with" client contracts and
whether accruals and reserves maintained by the company were in line with
accounting principles, according to a Oct. 24 statement by the company. America
Service Group fired Grant Bryson, president and CEO of Secure Pharmacy, on Dec.
7 in connection with the internal investigation. On Dec. 9, the company also
fired Trey Hartman, president and chief operating officer of Prison Health
Services Inc. His termination also was based on the ongoing internal
investigation. Hartman formerly served as the head of Secure Pharmacy. The
trading symbol for the company currently is "ASGRE." The "E" will be removed
from the trading symbol when the company has fully complied with NASDAQ filing
requirements.
December 13, 2005 Tennessean
Brentwood-based America Service Group Inc. said today that it has fired two
people in connection with an ongoing investigation into the billing practices of
its prison pharmacy subsidiary. The company fired Trey Hartman, its executive
vice president, on Dec. 9 and Grant Bryson, head of Secure Pharmacy Plus, on
Dec. 7. Hartman also was president and chief operating officer of Prison Health
Services, which provides medical services to jail and prison inmates. He
previously ran America Service Group's pharmacy unit. The company said Hartman
and Bryson were terminated for cause. Bryson had been on paid leave. He wasn't
an executive officer of the company. America Service Group also said that
Richard M. Mastaler would resign from the company's board of directors on Dec.
30 to pursue other interests. The company said his resignation is unrelated to
its internal investigation of the pharmacy unit. The company announced in
October that it was looking into whether its pharmacy operation overcharged for
drugs and failed to follow proper accounting procedures. It said its audit
committee had hired outside counsel who, in turn, had brought in a team of
independent auditors to review the books of Secure Pharmacy Plus. Secure
Pharmacy's former controller, who recently resigned, had identified the issues
that are under investigation, the company said.
November 17, 2005 Tennessean
NASDAQ notified the company on Nov. 11 that its stock may be delisted because of
a delay in filing its third-quarter report. ASG announced late Monday that it
had received the notice. It informed the Securities and Exchange Commission on
Tuesday. The Brentwood-based jail and prison health-care company said on Nov. 9
that it would be late in filing its quarterly financial report because of a
previously announced internal investigation into a pharmacy subsidiary. On
Tuesday, the company's stock symbol changed from "ASGR" to "ASGRE."
Shares in the company were at $16.27, down 83 cents, or 4.85%, in early trading
today. If the company is dropped from the stock exchange, its shares would be
traded over the counter. Some institutional investors have policies against
owning shares in companies that aren't traded on one of the major exchanges,
analyst Anton Hie said. If these investors are forced to sell a large amount of
stock, the price would probably fall sharply, said Hie, an analyst with
Jefferies & Co. in Nashville.
October 25, 2005 Tennessean
Shares in America Service Group Inc. plunged 28% yesterday on news that the
company is looking into whether its pharmacy unit overcharged for drugs and
failed to follow proper accounting procedures. The Brentwood-based prison
health-care company said its audit committee had hired outside counsel who, in
turn, had brought in a team of independent auditors to review the books of
Secure Pharmacy Plus. Secure Pharmacy's former controller, who recently
resigned, had identified the issues that are under investigation, the company
said. The unit's president, Grant Bryson, has been placed on paid leave. America
Service Group didn't name the former controller, and there was no controller
listed on the unit's Web site yesterday, but an earlier version of the site,
saved on www.google.com, identified him as Randy Beaman. Beaman would not
comment on issues under investigation. Because of the probe, America Service
Group has withdrawn its earlier financial guidance and warned that it will delay
filing its quarterly earnings report.
October 24, 2005 Tennessean
America Service Group Inc.'s stock tumbled in early trading today on the
disclosure that its audit committee is investigating the company's pharmacy
subsidiary. The Brentwood-based prison health company said in a news release
this morning that the inquiry is being conducted to determine whether Secure
Pharmacy Plus is providing pricing of prescription drugs in accordance with the
terms of its contracts. America Service Group also is looking into whether some
of the unit's financial accounts were established and utilized in accordance
with generally accepted accounting principles. By mid-morning, the company's
stock was trading at $13.31 a share, down $4.85, or nearly 27%, from Friday's
closing price of $18.16 on the NASDAQ Stock Market. Jeffries & Company
analysts Anton Hie downgraded the stock to "hold" from "buy"
and lowered his target price to $20 from $22.50. The internal investigation is
only the latest setback for America Service Group. Since its stock closed at $30
a share in February, the price has dropped on a string of bad news beginning
with a series in The New York Times that month that claimed the company's care
was "flawed and sometimes lethal." It also has lost several large
contracts since the first of the year, including one to treat inmates at
Nashville's Metro Jail. The company's nurses were blamed in the death of a
diabetic inmate there last winter.
October 24, 2005 Yahoo
America Service Group Inc. (NASDAQ:ASGR - News) announced today that the Audit
Committee of its Board of Directors is conducting an internal investigation into
certain matters related to its subsidiary, Secure Pharmacy Plus ("SPP").
The Company said the investigation primarily is being conducted to determine
whether SPP provided pricing of pharmaceuticals in accordance with applicable
client contract terms and whether some of the accruals and reserves maintained
by SPP were established and utilized in accordance with generally accepted
accounting principles. "We take allegations of impropriety very seriously,
and we are conducting a thorough investigative process to determine if the
issues described in this press release, as well as any other issues which may be
identified as a result of the investigation, will impact the Company's
previously reported financial results," said Michael Gallagher, a member of
the Company's Board of Directors and Chairman of its Audit Committee. "We
will report on our findings as soon as the investigation is complete."
Secure Pharmacy Plus provides pharmacy services to the Company, in facilities
where the Company provides correctional medical services, as well as to third
party clients who provide their own correctional medical services. The Audit
Committee's inquiry into whether SPP charged its clients in accordance with
applicable contract terms includes reviewing whether discounts received from
wholesalers, rebates received from manufacturers or wholesalers, certain
temporary price reductions from alternate vendors and distributions received
from a group purchasing organization of which SPP is a member should have been
credited, under the terms of the contracts, to such clients. The Audit Committee
also is examining whether returns of unused pharmaceuticals were appropriately
credited to clients.
September 25, 2005 Tennessean
America Service Group Inc., whose business is built around providing care for
sick or injured inmates, is having a rough year. Or, it's doing OK. It depends
on your point of view. Since its stock closed at $30 a share in February, the
price has fallen about 45% on a run of bad news — beginning with a series in
The New York Times that month that claimed the company's care was "flawed
and sometimes lethal." Based in Brentwood, the company has lost at least
six contracts since the first of the year, including one to treat inmates at
Nashville's Metro Jail. The company's nurses were blamed in the death of a
diabetic inmate there last winter. Recently, it warned Wall Street of lower
profits. Originally, the company expected to earn $1.45 to $1.52 a share on the
year, but last month, on a Friday night, it disclosed the loss of yet another
contract and lowered its earnings estimate by 2 cents. Its stock fell an
additional 8% the following Monday. Only about a third of the country's
correctional health services are provided by for-profit companies, said Michael
Catalano, America Service Group's chairman, president and chief executive. But
every year, more agencies privatize their medical services in hopes of reducing
costs and improving the quality of care. It's not clear whether privatization
improves the quality of correctional care; but since the 1970s, a growing number
of public officials have decided that "it's much easier to turn it over to
a health consortium, and they can handle the whole nine yards," said Ken
Kerle, managing editor of American Jail, the magazine of the American Jail
Association. America Service Group has 21% of the outsourced correctional health
market, behind Correctional Medical Services, which has an estimated 22%,
Catalano said. CMS, a privately held company based in St. Louis, underbid
America Service Group by about 10% in Maryland, about 14% in Idaho and about 21%
in Indiana. Catalano said he doesn't understand why CMS believes it can provide
adequate care for less money. "We're there providing services," he
said. "We know what it costs." Catalano said, "The most
significant rebids we haven't won this year have been based upon price."
But this month in South Carolina, the Richland County Council voted unanimously
to fire Prison Health Services after the deaths of three mentally ill inmates.
One council member told The State newspaper of Columbia the treatment of the
prisoners was "unacceptable and inhumane." Richland County officials
didn't return calls to The Tennessean. And locally, the company's contract with
Metro Jail will be allowed to expire Sept. 30. In March, a city government
report blamed the Jan. 19 death of a diabetic inmate on a "failure to
adhere to established practices on the part of individual employees of Prison
Health Services." Claims of poor medical care are common throughout the
correctional health industry. Correct Care Solutions, the Nashville company
replacing Prison Health Servicesat Metro Jail, was criticized by the family of a
Virginia woman who died in July in a Norfolk jail. Relatives said she complained
that her pneumonia wasn't being treated. Officials said the company wasn't to
blame. A month earlier, the American Civil Liberties Union sued CMS, alleging
that inmates of a Mississippi prison were misdiagnosed and received poor care.
July 3, 2005 The Tennessean
America Service Group couldn't seem to catch a break in the second quarter. Its
stock fell 28.4% in the three months ended June 30, shoved lower by troubles
that unnerved many investors and left the health-services company lying near the
bottom of the Bloomberg Tennessee Index. Of
73 businesses on the list, onlyonefell harder in the period.
"ASGR
has had a tough 2005 so far," analyst Anton Hie said, referring to the
Brentwood-based company by its stock symbol. Its
stock took a hit in the first quarter after The New York Times ran several
stories questioningthe quality of care provided by its Prison Health Services
subsidiary, which cares for inmates. But investors really started to worry
in the most recent three months, as the company announced the loss of lucrative
contracts with the Maryland, Idaho and Indiana prison systems. He said
ASGR's greatest challenge, at least in the short term, could be aggressive
bidding by one of its competitors, Correctional Medical Services. CMS,
based in St. Louis, is privately held, meaning it doesn't have the legal and
auditing costs associated with filing quarterly earnings reports, Hie
said. Patrick
Swindle, an analyst with Avondale Partners in Nashville, said CMS also doesn't
have to please investors by posting ever-increasing quarterly earnings. "What
a private company can do," Swindle said, "is take lower margins in the
short term, hoping to improve those margins in time." CMS
underbid ASGR in Maryland and Idaho and is likely to replace the company in
Indiana, as well, Swindle said. One
issue that has affected the company's stock but shouldn't affect its ability to
win business in the future is negative news about the company. In a
front-page story in February, The Times reported that a yearlong investigation
into the company's operations had found numerous examples "of medical care
that has been flawed and sometimes lethal." "The
company's performance around the nation has provoked criticism from judges and
sheriffs, lawsuits from inmates' families and whistle-blowers and condemnations
by federal, state and local authorities," the newspaper said. Locally,
the Metro Health Department concluded recently that the death of a diabetic
inmate at the Metro Jail in January could have been prevented if nurses working
for Prison Health Services had followed procedures. The report said nurses
failed to properly document the patient's medical problems when he was booked,
lost track of his medical history and ignored repeated requests for help.
Board
of Probation and Parole
STOP
February 1, 2005 Tennessean
A state contract for satellite tracking of 600 sex and
violent offenders will go up for bid a second time after a protest by a company
chaired by the former chief executive officer of Corrections Corporation of
America. Satellite Tracking of People LLC's challenge of
plans for an award to rival Sentinel Offender Services has delayed start of the
pilot project. ''We
were anticipating it being up and running,'' said John W. Carney Jr., district
attorney general for Montgomery and Robertson counties. Nashville-based
STOP was among four bidders under the first request for proposals. STOP's
chairman is Doctor Crants, co-founder of prison operator CCA. After
the state's Board of Probation and Parole decided Sentinel had the best program,
STOP protested. STOP, meanwhile, also sued another bidder, Pro Tech Monitoring
of Odessa, Fla., last week. STOP's suit seeks to block Pro Tech from offering a
rival product that STOP claims violates its patent. The patent in question was
inherited through STOP's purchase earlier this year of a business called
VeriTracks from defense contractor General Dynamics.
Brentwood
Patrol
Forest Hills, Tennessee
September 3, 2003
The president of a private security firm at the center of a federal
civil-rights lawsuit contends that he has ''nothing to hide'' as lawyers and
state regulators begin combing through the firm's hiring practices and patrol
activities. A security guard for Brentwood Patrol was arrested last year
after he was charged with rape and kidnapping. Metro police say that in August
2002, Loren Janosky flashed his green lights at a motorist, pulled her over, and
after purportedly arresting her on DUI charges, took her to a Forest Hills swim
club where he raped her. His jury trial is scheduled for November. One
past employee listed in the suit, Joseph Lee Bernell Bryant, had worked for
Brentwood Patrol in 1993-94. After that, he worked for another security company.
While employed at Integrity Security, he was charged with raping a colleague and
was later convicted. Before his employment at Brentwood Patrol, court records
show, he had amassed a lengthy criminal record in the 1980s. (Tennessean.com)
Chad
Youth Enhancement Center
Clarksville, Tennessee
Universal Health Services (formerly run by
Keystone Education and Youth Services)
October 12, 2007 The Tennessean
A troubled Philadelphia, Pa., teen who was sent to a Tennessee youth center
for treatment died of strangulation after a confrontation with staff members, a
coroner found. The death of Omega Leach, 17, was ruled a homicide, according to
the autopsy report by state medical examiner Bruce Levy. He found that Leach had
multiple hemorrhages of his neck muscles after a struggle with two staff members
at the Chad Youth Enhancement Center in Clarksville, Tenn. A grand jury in
Montgomery County will have to decide if charges are warranted, said Ted Denny,
a spokesman for the county sheriff's office. The Philadelphia Department of
Human Services has sent scores of emotionally troubled youngsters to Chad since
2001, saying no Pennsylvania facility would take them. Leach's death on June 3
prompted city officials to begin removing children from Chad, but eight still
remain there, a city official told The Philadelphia Inquirer on Tuesday. The
autopsy found other scrapes and bruises on Leach's body, but also noted that the
teen's enlarged heart contributed to his death. Tennessee child-welfare
officials have already cited Chad in the Leach case, saying staff members
needlessly provoked him.
August 6, 2007 AP
A Pennsylvania family court judge has begun removing troubled Philadelphia
children from a controversial treatment center in Montgomery County, Tenn.,
where a 17-year-old resident died after a confrontation with staff. The children
were sent to the Chad Youth Enhancement Center in Montgomery County by
Philadelphia's Department of Human Services, even though an agency official who
visited the facility in 2005 concluded that "residents were being harshly and
improperly restrained." Chad leaders rebuked -- The family court's top judge,
Kevin Dougherty, ordered six Philadelphia children discharged from Chad on
Friday, and more hearings are planned. Dougherty said he harshly rebuked Chad
leaders in court. "I told them I was not sending another kid down there," he
told The Philadelphia Inquirer for Sunday's editions. "They were too
aggressive." Philadelphia has sent scores of emotionally troubled youngsters to
the center since 2001, saying it has been forced to do so because no
Pennsylvania facility would take them. It has paid Chad $6 million in the past
three years. A 14-year-old Long Island, N.Y., girl died of heart failure at Chad
in 2005 after a confrontation with staff. Then in June, Omega Leach of
Philadelphia died after Chad staff physically restrained him, pushing him
face-down to the floor and apparently cutting off his air, investigators said.
On the day Leach died, Philadelphia had 44 children and teens in Chad, all under
city oversight. The Philadelphians — some from abusive homes, others with arrest
records — made up the biggest share of 85 residents who slept, attended school
and got therapy at Chad. Arthur C. Evans Jr., the acting human services
commissioner, said his agency's oversight of Chad was unacceptable. The
department has come under harsh criticism and has seen an administrative
shake-up after Inquirer reports detailing the number of children who have died
under its watch. Center defends its staff -- Chad spokesman Nick Ragone said in
a statement Friday that staff put youngsters in physical holds only as a last
resort to protect them or others. Moreover, he said, Chad worked zealously to
train its staff and responded quickly to issues raised by Tennessee regulators.
August 5, 2007 Philadelphia Inquirer
In March 2005, a man called the Philadelphia child-abuse hotline with a warning:
His coworkers were using "improper and illegal" force against city youngsters
sent to the Chad Youth Enhancement Center. In June 2005, a Philadelphia
child-care investigator learned that a staffer at the Tennessee center had been
fired after he allegedly slammed a boy to the floor so hard the child fouled
himself. In September 2005, the city was told that a 14-year-old girl from Long
Island, N.Y., had dropped dead of a heart attack after a confrontation with
staff. While an investigation cleared Chad of blame in the death, New York and
Tennessee stopped sending children to the residential treatment center. But
Philadelphia, despite a drumbeat of warnings that children were being violently
subdued and injured, continued to send emotionally troubled children to Chad.
The city's Department of Human Services stuck with Chad even after a top DHS
official concluded that "residents were being harshly and improperly
restrained." Not until the June death of 17-year-old Philadelphian Omega Leach
did the city finally lose faith. In a physical restraint gone wrong, Leach died
after Chad staff pushed him face-down to the floor, apparently cutting off his
air, investigators say. When done safely, restraints can calm youths who are out
of control and prevent children from hurting themselves or others. But when they
go wrong, these "holds" can be brutal. They can dislocate a shoulder, split a
chin or snap an arm. In extreme cases, they can kill. On the day Leach died,
Philadelphia had 44 children and teens in Chad, all under DHS oversight. The
Philadelphians - some from abusive homes, others with arrest records - made up
the biggest share of 85 residents who slept, attended school and got therapy at
Chad. Since 2001, the city has sent scores of youngsters to the center, saying
it has been forced to do so because no Pennsylvania facility would take them. It
has paid Chad $6 million in the last three years. Arthur C. Evans Jr., the
acting DHS commissioner, took command late last year after Mayor Street ousted
its top official following an Inquirer investigation into a string of child
deaths in Philadelphia. "A good facility should not rely on restraints," Evans
said. "This is really unacceptable." Further, he said, his agency's oversight of
Chad was also unacceptable. Nick Ragone, a Chad spokesman, said in a statement
Friday that the facility put youngsters in physical holds only as a last resort
to protect them or others. Moreover, he said, Chad worked zealously to train its
staff and responded quickly to issues raised by regulators. Last week, as a
result of Leach's death, Philadelphia began Family Court hearings in a first
step to pull children out of Chad. The court's top judge, Kevin Dougherty, said
Friday that he had harshly rebuked Chad leaders in court. "I told them I was not
sending another kid down there," he said. "They were too aggressive." On Friday,
Dougherty ordered six children discharged from Chad, with more hearings to come.
The Inquirer has obtained hundreds of regulatory documents about Chad, drawn
from government files in Pennsylvania and Tennessee. Based on these records and
interviews with former Chad staff, regulatory officials in both states, and
former Chad residents and their families, the newspaper found: Chad's workers
resorted to physical force at high rates - rates experts term excessive. By
Chad's own count, filed with Tennessee officials, its workers used 104 holds in
one month alone in 2006. Chad staff would on occasion hold residents down for
long periods - even though experts warn that deaths can occur within six minutes
of a hold. In May, Chad reported one floor-hold that lasted 23 minutes, and
others that lasted 20 and 15 minutes. Tennessee repeatedly cited Chad for
failing to tell its regulators about children who had been injured there. In one
case, the state learned that three residents had tried to strangle another only
when the victim's mother called police, records show. Philadelphia acknowledges
it never reviewed Tennessee licensing documents about Chad, which would have
revealed the center's heavy reliance on physical holds. No tour permitted -- Set
in rolling hills about 40 miles west of Nashville, Chad was refashioned out of a
former county nursing home. The 20-acre site is surrounded by horse farms and
not far from Fort Campbell, home of the 101st Airborne Division across the
Kentucky state line. When a reporter drove up its 800-yard entranceway recently,
John McDuffie, a top administrator at Chad, emerged from its offices before his
visitor could reach the front door. He said no one at the facility would answer
questions or provide a tour. Chad was founded in 1996 by a psychologist, Robert
D. Glasner, who named it after a son who had died young in a car crash. It is
owned by a King of Prussia for-profit corporation, Universal Health Services
Inc. UHS, which owns 110 mental-health facilities in 33 states, bought Chad in
the fall of 2005, paying $210 million for Chad and 29 other centers. Chad has a
gym, a classroom building and three dorms, where residents live two to a room.
Boys range in age from 7 to 17, girls from 13 to 17. When the youths arrive,
they sign a form acknowledging that, if they misbehave, they may be put in a
"protective hold." Leach signed his May 2, his first day there. During holds,
staff members restrain children by locking the residents' hands behind their
backs. Sometimes, the children are held upright, or against a wall. In more
serious cases, they are put to the floor, face-down. Such holds are
controversial. In Pennsylvania, Gov. Rendell's administration has been on a
crusade to all but eliminate physical holds in psychiatric hospitals,
mental-health centers, reform schools and the like. Instead, public welfare
secretary Estelle Richman is pushing facilities to get control of unruly
residents with conversation or by isolating them in a quiet space. In
interviews, experts and advocates said the sheer number of holds Chad used on
children appeared troubling. "I worry about the culture of the facility. Why is
it so restraint-happy?" asked Michael Carter, a lawyer with the federally funded
Disability Law and Advocacy Center of Tennessee. His staff has been
investigating Leach's death. When presented with the "restraint logs" from Chad,
DHS Commissioner Evans agreed. He said the data reflected a workplace culture
with few alternatives for calming residents or gaining control. "That, to me, is
just not acceptable," Evans said last week. "One thing I can't and will never
tolerate is the mistreatment of children." Evans said DHS had failed to
recognize Chad's problems soon enough. In response to recent reports about
Chad's performance, he said, he reassigned the man who oversaw contracts for
DHS, Steven C. Oakman. Oakman did not respond to requests for comment in
telephone calls and a letter left at his house. In his statement, Chad spokesman
Ragone disputed the data showing a high number of holds at Chad. He said the
figures reflected a wide variety of "hands-on" contact by staff with residents,
not just the most serious interventions. Kim J. Masters, a child psychiatrist
who wrote the guidelines on restraints for the American Academy of Child and
Adolescent Psychiatry, said he was struck by Chad's data showing as many as 100
holds in a month. "That's a lot," he said. When he took charge some years ago at
one center - larger than Chad - Masters considered its tally of 100 restraints a
year to be "out of control." Its staff now do about two per month. A high number
of restraints, Masters said, reflects "a coercive environment that says, 'You
have to do this or else.' " Such techniques rarely work and may backfire, he
said. "Kids act out when they don't feel safe," Masters said. "And they don't
feel safe when they're being restrained all the time." A litany of problems --
Regulatory files on Chad are publicly available in the state capital in
Nashville and show a history of problems. In 2004, for example, Tennessee
officials wrote: "Serious incident reports revealed that the agency uses what
appears to be an excessive number of physical restraints." That year, Chad
admitted that a worker had to be pulled off a resident after the staffer threw
16-year-old John T. Boy against a wall. The worker said he had "overacted" and
apologized, records show. Chad acknowledged that the aide had had "problems like
this two or three times in the past" and said he would be fired "once they found
someone to take his place." In an interview in Tennessee, Boy's mother said she
had been astounded that Chad kept the worker on. "They did not care about kids
at this facility," Sharon Pruett said. "It needs to be shut down." The employee
was finally dismissed, records show. Boy was shot to death last year, in a
killing unrelated to his Chad experience. In 2005, when Tennessee staged a
surprise inspection of Chad, a girl told the inspectors that a Chad supervisor
"will try to hurt students during restraints and 'wants us to scream.' " Another
youngster said she had seen "Big Mike slam kids down real hard on the floor. I
don't want that happening to me, so I try hard to do everything they ask me to
do." In March 2005, the anonymous caller, identifying himself as a Chad
employee, called the DHS hotline to warn about force at the facility. In
response, DHS dispatched an investigator to Chad - three months later. According
to the investigator's report, just 14 Philadelphia youths were at Chad at that
time. All had been restrained - some as many as five times, the investigator
found. In one case, DHS staffer Haiying Xi reported, a youngster had been cut on
the chin in a restraint, requiring stitches. Chad had not reported this to
regulators, DHS learned. Finally, DHS official Stephen Rosenberg wrote to Chad.
"The investigation could not determine any pattern for the use of illegal
physical restraints," Rosenberg wrote. "However, the investigation did validate
the allegations that some residents were being harshly and improperly
restrained." In a reply, Chad administrator McDuffie assured DHS that Chad was a
"nurturing and positive environment." He said the facility had hired more staff
and made children's safety a priority. The former owners of Chad also said it
was a safe and therapeutic place for children when they handed over the keys to
Universal Health in October 2005. "Our goal was to effect treatment in as
nonphysical a way as possible," former chief executive officer Michael G.
Lindley said. Al Smith, another former top executive with Chad's former owner,
said: "Did untoward events happen? Absolutely. But was it a culture? I don't
believe so." After Universal Health purchased Chad, regulators continued to flag
problems. In 2006, the state complained again that Chad wasn't reporting serious
incidents to regulators. Another boy went to an emergency room for cuts
sustained in a restraint. And a mental-health associate quit after she got into
an argument with a youth and shoved her, records show. According to a Tennessee
investigation, other youths were injured this year. On Jan. 2, Tennessee
officials disclosed, staff broke the left arm of a 16-year-old boy during a
restraint. Later in the year, Chad told regulators, another teenage resident was
"taken to the floor" in a restraint that required four stitches for cuts on the
lips. In May, Edith Ruland pulled her son, Dennis, 10, out of Chad after she
found numerous bruises on him, she said. Ruland, who lives near Chad, took
photographs of the bruises, which the boy said staff had inflicted in a
restraint hold. Though Tennessee had stopped sending children in state custody,
it still permitted families to use it. "They treat people wrong," Dennis said in
an interview. "And they shouldn't be having a facility that would bruise people
and stuff." In response, a spokesman for Chad said Tennessee had investigated
and had been "unable to substantiate these complaints." Rob Johnson, a spokesman
for regulators in Tennessee, agreed that investigators couldn't unravel the
episode. "They know that the child got injured somehow," Johnson said. "They
just don't know how." Out of sight, out of mind -- Experts and members of the
commission appointed by Street to overhaul DHS say the city's heavy use of Chad
exemplifies another key failing of the agency: its reliance on out-of-state
treatment centers. At last count, 233 of Philadelphia's 1,554 children in
residential facilities were outside Pennsylvania. Critics note that a main goal
for social-service agencies is to eventually reunite troubled children with
their families. Yet faraway locations make parental or guardian visits far more
difficult. And as a DHS administrator noted in a 2005 report on Chad, such
far-off facilities have an obvious weakness. It's hard for officials in
Pennsylvania to regulate what happens in Tennessee. Philadelphia officials said
they recognized the problem and were moving to solve it. They said they often
had little choice but to lean on out-of-state facilities to care for the city's
most troubled youths because many in-state treatment centers wouldn't take them.
Smith, the former Chad executive, said kids who lashed out violently at
authority figures were hard to place. "If a child has hit a teacher, you can be
certain they'll have no problem going after staff," he said. So, each year,
Philadelphia shops its most hardened cases to area centers, but ends up sending
hundreds to Tennessee, Utah and Virginia for mental-health treatment.
Child-welfare officials in other states, such as Illinois, and the
second-largest child-welfare system in Pennsylvania, that of Allegheny County,
say they have found ways to keep children closer to home. Marc Cherna, who heads
the Allegheny child-welfare agency, studied DHS as a member of Street's reform
panel. He said none of the children under his care were placed out of state. An
agency task force makes sure that even the toughest cases are placed close to
home. And money is no object, Cherna said. "We will pay extraordinary rates for
people who are extraordinarily difficult," he said. "Our goal is to return these
children back to the community." In 1995, Illinois was shipping 784 children out
of state for care. Eventually, the state realized that counselors in far-flung
treatment centers were abusing children. "We flew to facilities we used in a
dozen states, and in every one it got worse and worse," said Ron Davidson, a
psychologist who helped the state evaluate the programs. Today just a dozen
children from Illinois are placed outside the state. "Children just perform
better closer to home," said Kendall Marlowe, an Illinois child-service
official. Philadelphia's acting DHS commissioner, Evans, agrees. He wants to
reduce the number of children placed out of state. "It's a very high priority
for me," Evans said. "We send too many kids away from Philadelphia." One of
those kids was Omega Leach. A month before he died, a therapist placed a note in
his file. "Omega is frustrated with being placed so far from home," the
therapist wrote. "But he has expressed the desire to complete the program
successfully so that he can return home and start working on getting his life
together." A Key City Report, Uncensored -- In 2005, an investigator for the
city wrote a detailed report focusing on the Chad Youth Enhancement Center in
Tennessee. The city made the report public at The Inquirer's request. Before
releasing it, however, city lawyers removed the most explosive section - pages
with allegations that Philadelphia children were being abused at Chad. In
redacting the document, the city cited an exemption in Pennsylvania's
right-to-know law that allows governments to withhold investigations, even
finished ones, from the public. The Inquirer later obtained a complete version
of the report. In this version, the only information removed is the names of
children.
August 5, 2007 Philadelphia
Inquirer
Tennessee regulators have concluded that a center for troubled children
needlessly provoked the confrontation that led to the death in June of a
17-year-old Philadelphia teen. The Chad Youth Enhancement Center in Ashland City
"violated its own policy and procedures" in subduing Omega Leach, social-service
regulators said. The state said a Chad staffer should have given Leach space to
calm down June 2 when Leach had retreated to a dorm after a fight with another
resident. Instead, the staffer, Randall D. Rae, 22, ordered Leach to leave the
dorm, and Leach attacked him. The worker then forced Leach prone on the floor,
face-down, and the teenager lost consciousness. Leach was pronounced dead the
next day. Police say they think the hold cut off his air supply. In a response
to the state, Chad officials did not directly address Leach's death, but said
repeatedly that they would improve training of staff members and work to better
teach them "verbal de-escalation." The confrontation began at 3:50 p.m. when Rae
told Leach that residents weren't permitted in the dorm at that time of day.
"His training should have told him this is not the time to approach this child,"
said Tracey Robinson-Coffee, head of licensing for the Tennessee Department of
Mental Health and Developmental Disabilities. Leach leaped on Rae, trying to
choke him. Rae grabbed Leach - a slender 5-foot-9 and 152 pounds - and pulled
Leach's hands behind his back and put him on the floor. Rae did that even though
Chad's policies allow such holds only when at least two staffers are present,
regulators say. At some point, Rae turned his grip on Leach over to another
aide, Milton G. Francis, 31. A Chad nurse arrived and placed a block under
Leach's head to help him breathe. While police and the state medical examiner
are investigating, no criminal charges have been filed, and the cause of death
is pending. But state regulators have already faulted Chad and frozen all
admissions there until at least October. Rae hung up on a reporter Friday.
Francis did not respond to a letter requesting comment. In its July ruling, the
state also faulted Chad over its training of Rae and other staffers. So far,
according to documents obtained by The Inquirer, investigators have been
provided with at least three estimates for how long the hold on Leach lasted.
Nursing staff said it had lasted 13 minutes. Other Chad officials said 11
minutes. In a third document, the duration was put down as seven or eight
minutes. The timing is significant. In a 2006 policy statement, Pennsylvania
social-service officials said that "most deaths occur within the first six
minutes of a restraint," and "that in most situations a restrictive procedure
should not last longer than 10 minutes."
July 22, 2007 Tennessean
As officials await results of a state toxicology report on the death of a
troubled teen at Chad Youth Enhancement Center in Ashland City, a community
group is calling for the center to be closed. Montgomery County Sheriff's
officials said they had received reports of abuse and other problems at the
facility and that state health officials had ordered a corrective plan for the
facility after two other residents were injured while being restrained by staff.
"Chad definitely needs to be shut down," said Terry McMoore, director of the
Urban Resource Center. "Chad is a big corporation and has a corporate mentality
when it comes to business, and you can't have that with kids." County and state
agencies have been looking into Chad since the death of Omega Leach, 17, who had
been placed at the center by the Philadelphia (Pa.) Department of Human
Services. Leach died June 3 after being restrained a day earlier by Chad staff
at the center. According to a report to the state from Mike Wallace, risk
manager at Chad, Leach attacked staff member Randell Dale Rae Jr. after an
argument over leaving his room. "The staff member and the resident struggled
until the staff member was able to place the resident into a neutral protective
hold," Wallace reported. State officials have said Leach was pinned to the
floor, held down by staff members. Rae and staff member Milton Gerald Francis,
31, kept Leach in the hold for seven to eight minutes until he became calm — and
unresponsive. Staff members tried to resuscitate Leach, Wallace wrote. Leach was
pronounced dead the next day at Monroe Carell Jr. Children's Hospital at
Vanderbilt, where doctors reported he had suffered "significant" internal
bleeding, a report says. Rae and Francis have been put on administrative leave,
according to state officials. The Montgomery County Sheriff's Office is
investigating Leach's death, and that investigation is awaiting the release of a
state toxicology report.
June 25, 2007 AP
A teenager sent to a Tennessee facility for troubled youth died after a
confrontation with the center's staff, prompting Philadelphia officials to
consider relocating dozens of teens sent there. Omega Leach, described by
Philadelphia officials as a 17-year-old whose many troubles included racing a
stolen car, was sent last month to the Chad Youth Enhancement Center, a private
50-bed residential treatment center near Clarksville for children with a history
of emotional and behavioral problems. Leach is the second student to die at the
Chad Youth Enhancement Center in less than two years, and authorities and the
Tennessee Department of Children's Services are investigating. Leach got into a
physical confrontation with the staff June 3 and died the next day at a
Nashville hospital. He tried to choke one counselor, and another staffer pushed
Leach face down to the floor and pulled his arms behind his back, police said.
Investigators are trying to find out whether he was restrained improperly,
keeping him from breathing. Agency may move others: "There's no doubt that the
kid had an attitude and probably needed to be locked up somewhere," Sgt. Brian
Prentice, of the Montgomery County Sheriff's Department, told The Philadelphia
Inquirer for a story Sunday. "It doesn't mean he has to be dead." Leach's care
was the responsibility of Philadelphia's Department of Human Services. The
agency was paying Chad $285 a day for Leach's treatment, even though questions
had been raised about the center. In September 2005, Linda Regina Harris, 14, of
Long Island, died there of heart failure as she was being escorted by a
counselor. The Philadelphia agency has frozen admissions to Chad and said it is
putting into place "a contingency plan" for relocating 45 city children, pending
further investigation. Chad and its corporate owner, Universal Health Services
Inc. of King of Prussia, Pa., declined to respond to detailed questions, instead
issuing a statement to the Inquirer defending their record. "We have a
reputation and history of being a high-quality provider of behavioral health and
substance-abuse services to troubled youth and their families," said Duwayne
Glaser, chief executive officer.
September 20, 2005 Tennessean
The Montgomery County Sheriff's Office yesterday was
investigating the death of a 14-year-old girl who died while in the custody of a
Montgomery County juvenile detention facility. According to officials, the girl,
whose name had not been released, was being escorted by a staff member to
another room of the privately owned Chad Youth Enhancement Center on Oak Plains
Road near the Montgomery-Cheatham county line when she collapsed Sunday night. A
press release from the Keystone Education and Youth Services in Nashville, which
owns the Chad Youth Enhancement Center and 50 other facilities, said the girl
was having trouble breathing and was immediately given CPR by the staff
physician.
Con-Link
Transportation
Memphis, Tennessee
November 25, 2003
After five days on the lam, a Tennessee prisoner was captured Sunday afternoon
in a residential area a half-mile from where he escaped from custody, police
said. On Nov. 18, a private transport service was taking Robert L. South,
21, from Indiana to Blountville, Tenn., to stand trial on a bomb threat charge.
The transport officers got off Interstate 64 at the Lewisburg exit about 11 p.m.
and drove to a nearby Subway restaurant for a rest room break. Despite being
handcuffed, South took off running across a parking lot and disappeared behind a
construction site. Police later found his orange jump suit in the woods behind
the Brier Inn and Conference Center. Officers from the Lewisburg Police
Department, the Greenbrier County Sheriff's Department, State Police and other
law enforcement agencies scoured the area that night and warned residents to
lock their doors. Despite the use of a tracking dog, they were unable to find
South. Sunday at approximately 2:30 p.m., after receiving a 911 call from a
resident, Lewisburg police officers J.C. Dove and D.W. Hedrick found South in
the crawl space under a house on Village Road. They apprehended him without
incident. South apparently had been hiding under houses in the subdivision
for several days. Earlier, he had stolen clothing from an unlocked
vehicle. South was charged with escape in Greenbrier County Magistrate
Court and was taken to the Southern Regional Jail. Other charges are
pending. Lt. L.E. Reed of the Lewisburg Police Department said he is
relieved South was captured without anyone being harmed. "That's the main
thing, that we were able to do it without any problem," he commented.
As for South's escape, Reed said there will be an investigation of how he was
able to run away from custody and later get free of his handcuffs and
"belly chain." "That never should have happened," he
said. "Somebody's got some explaining to do." The transport
officers worked for Con-Link Transportation, based in Memphis, Tenn. (The
Register-Herald)
Corrections
Corporation of America
Nashville, Tennessee
June 25, 2009 The Tennessean
Whether Nashville’s Corrections Corporation of America, a private company that
runs state prisons, is equivalent to a governmental entity and should turn over
records is in the hands of the State’s Court of Appeals. Appellate judges heard
arguments this morning from CCA’s attorney, Joe Welborn, and civil rights lawyer
Andy Clarke, who is representing Alex Friedmann, the prison reform activist
requesting the records. CCA appealed a Chancery Court judge’s ruling last year
that stated the for-profit prison operator must follow public records law and
open its files for viewing. From the start, CCA’s argument has been that
allowing access to some of their records will set a bad precedent with other
private companies who contract with the state. Welborn says CCA does only 10
percent of its business in Tennessee and the company is not a state agency. In
the lawsuit, Friedmann, a former inmate with CCA, is requesting records of
audits by state and local agencies, every lawsuit, claim and legal action taken
against them, settlement agreements, judgments, databases showing all litigation
against CCA and contracts between the state and the company. “This will tell us
how they operate these facilities that are all funded by taxpayer dollars,” says
Friedmann.
June 10, 2009 Times Free Press
The company that runs Silverdale Detention Center in Hamilton County has
settled a national class-action lawsuit that claimed it had a history of not
paying employees for certain types of work. The settlement amount that
Corrections Corp. of America must pay is confidential, according to Kansas
attorney Brendan Donelon, who filed the lawsuit on behalf of 17 original
plaintiffs last year in U.S. District Court in Kansas City, Mo. The plaintiffs
now include about 282 corrections officers from 14 states who work in 29 CCA
facilities. All CCA employees, including those in Hamilton County, who think
they might have been affected by policies that allegedly prevented them from
receiving compensation have until July 27 to file claim forms. Tommy Standifer,
the superintendent at Silverdale, declined Tuesday to comment on the matter,
specifically with regard to whether local employees are entitled to any back
pay. He said the lawsuit was against CCA and has nothing to do with Hamilton
County, which has a contract with CCA to run Silverdale. According to court
documents, CCA “has a policy of not paying corrections counselors, case managers
and clerks for work performed in violation of the Fair Labor Standards Act.” In
particular, court documents state that CCA requires employees to be present at
work before their shift starts but fails to compensate them for that time.
Employees also are required to attend meetings off the clock, documents state.
May 20, 2009 Tennessean
A former business partner is suing several entities connected to past
Corrections Corporation of America CEO Doctor R. Crants Jr., accusing the groups
of taking stolen money from a homeland security company both men worked on.
Bruce Siddle said in a lawsuit filed in the Southern District of Illinois that
apparently 19 parties knowingly accepted a total of more than $27.3 million
stolen or unlawfully taken from Homeland Security Corp. The money could have
been illegally taken from Siddle, his wife, a trust or Siddle’s company PCCT
Management Systems Inc., the lawsuit said. The suit, filed in U.S. District
Court in Illinois on Tuesday, is asking for more than $81.9 million in damages
and names as defendants companies ranging from Connectgov Inc. to Lattimore
Black Morgan & Cain that handled the accounting services to Homeland Security
Corp. “All allegations of misconduct about LBMC are just false,” said Larry
Thrailkill, the accounting firm’s outside counsel. “They will be defending the
litigation very vigorously.” Siddle’s involvement with Homeland Security Corp.
began after the Sept. 11 terrorist attacks, when he agreed to have all of PPCT
stocks purchased by Homeland Security Corp. Crants founded Homeland Security
Corp. in 2001 after he was ousted from Nashville-based prison operator
Corrections Corporation of America. Working together, Siddle and Crants went
after contracts, including a deal that involved training 80,000 baggage
screeners for the U.S. Transportation Security Administration after the Sept. 11
attacks. It also trained air marshals for Delta Air Lines. Siddle sued Crants
last year, alleging that Crants bilked Homeland Security Corp. of more than $41
million through self-dealings and embezzlement, among other allegations. Siddle
also listed others as defendants who apparently assisted the racketeering
activity. That case is still pending in federal court in Nashville. Siddle’s
attorney, Bruce Carr, said there could be more lawsuits filed in the future on
his client’s behalf. “We’re continuously finding out different things that
Crants did,” Carr said. Crants’ attorney Steven Riley said he would comment
after reviewing the case this afternoon.
March 30, 2009 Nashville Post
Nashville attorney Gregg Ramos has been interviewed by members of President
Barack Obama's administration for vacancies on the U.S. Court of Appeals for the
6th Circuit and U.S. District Court, Middle District of Tennessee, according to
NashvillePost.com sources. The vacancies on the courts were created when 6th
Circuit Judge Martha Craig Daughtrey took senior judge status on Jan. 1 and when
Memphis based Judge Robert L. Echols took senior judge status in 2007. Echols'
slot had been the focus of much controversy when then-President George W. Bush
nominated Nashvillian Gus Puryear to fill the seat in June of 2007. Puryear,
general counsel for Corrections Corp. of America, was the subject of an intense
lobbying effort that eventually doomed his nomination.
March 12, 2009 AP
The agency that oversees Florida's six privately run prisons needs to ensure
that problems found during audits _ such as broken alarms and unsanitary
infirmaries _ are quickly fixed, lawmakers were told Thursday as part of a
report reviewing the agency. Audits of private prisons by the Florida Department
of Corrections had previously found broken escape sensors and buildings that had
not been checked for any attempts by inmates to tunnel out. Audits also found
delays in medical care and problems involving contraband. "Some of these
problems were repeated year after year at the same prisons," said analyst Vic
Williams, who summarized the report for lawmakers in testimony before the Senate
Committee on Criminal and Civil Justice Appropriations. The report was written
by the Office of Program Policy Analysis & Government Accountability and
released in December. Lawmakers heard a formal presentation of the details
Thursday. An official with the Department of Management Services, the agency
that oversees the private prisons, told lawmakers that his agency has already
begun to address some of the issues raised by the report. "We've already started
the process to implement a lot of these recommendations," Department of
Management Services' J.D. Solie told the panel. Solie promised that any future
violations found by Department of Corrections audits would be corrected within
45 days. "This is an eye-opening report," said Sen. Frederica Wilson, D-Miami.
The state has six private prisons housing approximately 8,000 inmates or about 8
percent of the state's inmates. The facilities cost the state about $133 million
a year, or some 6 percent of the Department of Corrections' $2.2 billion budget.
The state currently contracts with two private prison companies: Nashville-based
Corrections Corp. of America and Boca Raton-based GEO Group Inc. The state's 131
other facilities are run by the Florida Department of Corrections. CCA said in a
statement that it has "worked closely" with the state to "ensure contract
compliance and will continue to do so." A message left for a spokesman at GEO
was not immediately returned. Among recommendations, the report also said
private prisons should be required to track the percentage of inmates who
successfully complete substance abuse and education programs. It also noted that
phone calls made from private prisons are more expensive than calls from prisons
run by the Department of Corrections. A 15 minute phone call from a private
prison costs around $6 while the same call costs 50 cents in a state-run prison,
lawmakers were told. And while families can visit state-run prisons on Saturdays
and Sundays, private facilities allow visits either every other weekend or only
one of the two weekend days, the report found. The Department of Management
Services said future contracts would require private prisons to measure and
report graduation rates from education and treatment programs. Contracts will
also require that phone call prices be "more in line" with the cost at state-run
prisons, according to a written reply from the agency. But, the agency wrote it
believed the visitation policies at private prisons were appropriate, though it
agreed to ask inmates and families about their satisfaction.
March 6, 2009 Tennessean
Five national journalist groups and the Tennessee chapter of the American Civil
Liberties Union have joined forces supporting a prison reform advocate who is
seeking public records from Nashville-based Corrections Corporation of America.
A friend of the court brief filed in state appeals court Tuesday asks the court
to uphold a July ruling by a Nashville chancellor saying that CCA must follow
public records law and open its files for viewing. Alex Friedmann, a former
inmate who is now an advocate and associate editor for Prison Legal News, has
taken the nation's largest for-profit prison operator to court, seeking access
to public records under the Tennessee Public Records Act. He has campaigned for
records that deal with the deaths and questionable treatment of inmates.
Friedmann, the journalism associations and the ACLU contend CCA is performing a
governmental function, operating prisons, detention centers and jails with
public funding, and, therefore, the public has a right to access documents. "Our
state government cannot contract away its accountability to the public by hiring
private, for-profit companies like CCA to perform core governmental functions,
such as operating prisons," Friedmann said. "Taxpayers have a right to know how
their money is being spent." The journalism groups are: Society of Professional
Journalists, American Society of Newspaper Editors, Association of Capitol
Reporters and Editors, Reporters Committee for Freedom of the Press and the
Associated Press. Nashville Chancellor Claudia Bonnyman had ruled that CCA, by
running jails and prisons, which are essential governmental roles, was a
"functional equivalent" to a governmental entity. Since most of its revenues are
taxpayer-funded, she ordered the company to make all of its records available,
except those sealed by a court order. CCA fights ruling -- CCA, which operates
the Metro Detention Facility and six other detention facilities across
Tennessee, has maintained the company does not have to comply with public
records requests because it is private. CCA had its own ally file on its behalf.
The Tennessee Secondary Schools Athletic Association claims in its brief that
the chancery court's ruling would affect other government contractors. Louise
Grant, CCA's spokeswoman, declined to comment, referring to their appellate
brief.
February 11, 2009 Nashville City Paper
U.S. stocks fell Tuesday, sending the Standard & Poor’s 500 Index to its biggest
drop since Barack Obama’s inauguration, on skepticism that the government’s bank
rescue will work. Bank of America Corp. and Citigroup Inc. slipped more than 15
percent after Treasury Secretary Timothy Geithner said he’s still “exploring a
range of different structures” to bail out lenders. Principal Financial Group
Inc. plunged 30 percent on concern the life insurer needs more capital. Alcoa
Inc. slumped 10 percent after S&P cut the aluminum producer’s credit rating to
the lowest investment grade. Corrections Corp. of America fell 27 percent, the
most since November 2000, to $11. The Nashville-based company, which is the
biggest U.S. private operator of prisons, said it expects to earn 26 cents a
share at most in the first quarter. That missed the 30-cent average estimate
from analysts in a Bloomberg survey.
February 10, 2009 AP
Stocks that moved substantially or traded heavily Tuesday on the New York Stock
Exchange and the Nasdaq Stock Market: Corrections Corp. of America, down $3.37
at $11.65. The private prison operator gave first-quarter and fiscal year profit
predictions that undershot average Wall Street predictions.
February 10, 2009 AP
Private prison operator Corrections Corporation of America on Tuesday issued
first-quarter and fiscal year profit predictions that undershot average Wall
Street predictions, partially as a result of fewer days in the 2009 periods.
Corrections Corp. said it expects to post a first-quarter profit of 24 cents to
26 cents per share, while 2009 profit is expected to fall within a range of
$1.10 to $1.20 per share. Analysts surveyed by Thomson Reuters expect a
first-quarter profit of 30 cents per share and a 2009 profit of $1.34 per share.
Corrections Corp. said the 2009 periods will have fewer days than the comparable
periods last year as a result of the leap year in 2008. The first quarter's
results are also expected to be hurt by unemployment taxes as base wage rates
reset for state unemployment tax purposes. The company said its guidance also
reflects higher depreciation and interest expense, along with a decline in
capitalized interest on expansion and development projects. Corrections Corp.
added that it remains cautious about the economic outlook through this year, but
believes that the long-term growth opportunities remain very attractive.
January 13, 2009 Press Release
A report released today by the Southwest Institute for Research on Women and
the Bacon Immigration Law and Policy Program describes harsh conditions of
confinement for the roughly three hundred women housed in immigration detention
facilities in Arizona. The report, Unseen Prisoners: A Report on Women in
Immigration Detention Facilities in Arizona, is based on over a year of
research, including over 40 interviews with detainees, their family members,
attorneys, and service providers. “Few people realize that we are locking up
huge numbers of immigrants every day and holding them for months and in some
cases years at a time. They are not being punished for a crime, and yet they are
held in facilities that are identical to, and often double as, prisons or
jails,” said Nina Rabin, the lead researcher and author of the report. “Women
immigration detainees in particular are an invisible population. We hope this
report will raise awareness about women locked up just an hour away from here in
conditions that would shock most Americans. We also hope to raise awareness
about the U.S. citizen children separated from their mothers right now because
of immigration detention.” The report provides detailed information about
day-to-day life in the three facilities that house women immigration detainees
in Arizona: Central Arizona Detention Center, Pinal County Jail, and Eloy
Detention Center. Rabin and several University of Arizona law students conducted
interviews and extensive background research for the report over a twelve month
period between August 2007 and August 2008. Rabin described the study’s
participants: “In our small sample size of detainees who agreed to participate
in this research study, we encountered pregnant and nursing mothers, domestic
violence victims, low-wage workers swept up in worksite raids, and
asylum-seekers fleeing persecution and sexual violence.” The federal agency in
charge of the detention and removal of immigrants, Immigration and Customs
Enforcement (ICE), contracts for two of the facilities to be run by the private
prison company the Corrections Corporation of America. In the case of Pinal
County Jail, ICE contracts with the county. ICE permitted the researchers access
to two of the three facilities, but declined requests to interview ICE
representatives or facility personnel for the report. Rabin met with ICE
representatives in December to discuss the report’s findings and
recommendations. Key findings of the report include: • Family separation: The
majority of women interviewed were separated from at least one U.S. citizen
child under the age of 10 and were transferred to Arizona from out of state. As
a result, they were hundreds or at times thousands of miles away from their
families and communities during their time in detention. • Severe penal
conditions for women who are not serving criminal sentences: Women described
conditions of confinement that are in many cases more restrictive than in county
jails or prisons, including limited access to recreation, a complete absence of
programming or activities, frugal provision of food and other supplies, and the
routine use of strip searches and shackling during transport. • Aggressive
government prosecution and detention of women who pose no security threat or
flight risk: Attorneys reported that ICE routinely appeals decisions to release
pregnant women on bond; rejects or does not respond to applications for
humanitarian parole of victims of domestic violence, refugees, or women with
serious health conditions; and refuses to reduce bonds for families unable to
pay. • Inadequate medical care: Women reported inadequate gynecological and
obstetrical care, long waits for medical attention, and dismissive responses to
medical requests. The report contains detailed recommendations for Congress, the
Department of Homeland Security, ICE, and the individual facilities researched.
Recommendations range from broad policy changes, including the need for
increased consideration of the impact of immigration detention on families, to
specific facility-level concerns, such as the lack of outdoor recreation in
Pinal County Jail. The report will be available beginning on January 13, 2009,
at http://www.law.arizona.edu/depts/clinics/ilc//UnseenPrisoners.pdf. For more
information, please contact Nina Rabin at (520) 621-9206 or rabin@email.arizona.edu.
January 12, 2009 Tallahassee Democrat
Bill Cotterell: Perhaps privatized prisons just doesn't work -- There comes
a point, when a car or a business venture or a relationship has repeatedly
turned out to be more trouble than fun, when we need to step back and say,
"Maybe this just is not going to work." A new report from the Legislature's
fiscal analysts indicates that Florida may be at that point with private
prisons. One of Gov. Jeb Bush's lasting legacies, particularly among
Republicans, is the belief that privatization works. But the Office of Program
Policy Analysis and Government Accountability says — again — that our $133
million commerce in corrections might be something less than a smashing success.
OPPAGA says the Department of Management Services has improved its oversight of
the six privately run prisons, with state monitors spotting contract violations
that resulted in removal of three prison wardens and levying of $3.4 million in
fines and deductions from state payments to the companies. But over the years,
prison privatization has been as troublesome, or more so, than the state's
attempts at outsourcing personnel, purchasing and insurance administration. At
least those "outsourcing" efforts, while profitable to the companies that got
contracts and headaches for the employees who had to deal with them, didn't
affect public safety. Prisons are different. Significantly, OPPAGA doesn't
single out either of the worldwide companies that operate private prisons in
Florida. It's the system itself — the corporate need to make money by cutting
corners, the government's bureaucratic blame-shifting — that draws critical
attention. The Department of Corrections inspects the six corporate-run prisons,
which house nearly 8,000 inmates, and here is some of what OPPAGA said the
inspectors found: Security violations, "including inoperable alarms, spotlights
and escape sensors; buildings not checked for tunneling; and missing tools that
could be crafted by inmates into weapons." "Contraband violations including
positive inmate drug tests and inmate possession of drugs and drug residue, gang
material and weapons as well as staff and visitors arriving at the prison in
violation of contraband policies." Medical treatment violations, including lost
or never-ordered laboratory tests, delays up to five months in filing records,
"unsanitary conditions and nursing staff vacancies." Another way private prisons
can operate 7 percent cheaper than comparable state institutions — as required
by law — could be by having far fewer inmates with serious health and mental
problems. At the Graceville prison, OPPAGA said, 18 percent of inmates were
classified "psychological grade 3," compared with 67 percent in a comparable
state prison; 16 percent of Graceville's inmates had medical upgrades, compared
with 53 percent in a state prison of similar size. "As special-needs inmates are
more expensive to serve than other inmates, the difference in the populations of
public and private prisons results in the state shouldering a greater proportion
of the cost of housing these inmates," said the report. "As a result, the
requirement that the private prisons operate at 7 percent lower cost than state
facilities is undermined." Then there are the phone calls home and visitation
with families, which are considered important to rehabilitation. "While the
families of inmates in state prisons pay 50 cents for a 15-minute collect call,
families of inmates in private prisons, on average, pay $6.18 for the same
length call," OPPAGA reported. State prisons normally allow visits on Saturdays
and Sundays, but OPPAGA said the private prisons allow them on one of those
days, not both. DMS said that's because of space limitations in common areas,
but OPPAGA said "these centers have twice the median square feet of those in
public prisons." There's an adage in corrections that people go to prison "as"
punishment, not "for" punishment. Once there, they're supposed to get some help,
so they don't come out — and almost every one of them is coming out, eventually
— worse than they went in. But the OPPAGA report said DMS contracts for private
prisons don't set standards or measure performance in GED completion, graduation
from treatment programs, completion of vocational training or transition
programs meant to reduce recidivism. OPPAGA, which does performance studies on
agencies and reports to the Legislature on how things are going, also said the
inmates' own money is not being properly accounted for in the private prisons.
About $1.5 million a year is collected from sale of snacks, cigarettes and
toiletries in the prison canteens, to be used for some extras that the taxpayers
shouldn't have to provide. But OPPAGA said the some of the money was used to buy
computers and software for administrative staff of the prison companies, and
sometimes prisons simply couldn't account for some of it. If these were a few
small, isolated events, they might be just unfortunate glitches and
misunderstandings in a big, statewide operation of business and government. But
the history of prison privatization is a troubled one. Under the old
Correctional Privatization Commission, one executive director was fined and
fired for ethics violations and another went to jail (admittedly not the
companies' or the state's fault; he just happened to make a better inmate than
executive). Shortly after assuming oversight, the DMS inspector general reported
widespread billing of the state for nonexistent employees. There have been
frequent disputes over who pays for equipment and services, and allegations of
corner-cutting on staffing and security. True, a lot of the complaining has come
from the Police Benevolent Association, which represents correctional officers
in state prisons and understandably doesn't like privatization in any form. And
DMS says it is currently satisfied that problems are being fixed and the
7-percent savings rate is being attained. The private prisons are a big
business, hiring some of Tallahassee's top lobbyists. But when an enterprise has
been so troubled, so long, maybe it's time to reconsider doing it. Contact Bill
Cotterell at (850) 671-6545 or bcotterell@tallahassee.com.
November 14, 2008 Nashville City Paper
Tennessee Democrats had a losing record this election season in the state,
but they are likely about to see a pack of federal appointments in the legal
system roll their way. With the changing of the guard from President George W.
Bush’s administration President-elect Barack Obama’s in 2009, appointments for a
federal judgeship in the U.S. District Court for Middle Tennessee and the
positions of U.S. Attorney and U.S. Marshall for the same region are on the
table. Currently filling those posts are U.S. Attorney Ed Yarbrough and U.S.
Marshall Denny King. The spot that is open on the U.S. District Court has been
publicized not because who was once in the seat, but who was nominated for it —
Gus Puryear. Puryear, who is the executive vice president and general counsel
for Nashville based Corrections Corporation of America, was nominated for the
bench by President George W. Bush in June of 2007. Although Puryear did get a
nomination hearing, the U.S. Senate, which has final say on these lifetime
appointments, never voted on his appointment. Puryear’s nomination suffered from
negative press reports about his ties to Belle Meade Country Club as well as the
alleged practices of CCA in its prisons. Puryear was also targeted by an
organization opposed to prison privatization. The Florida group had ties to
organized labor that represents state corrections officers. Traditionally, when
openings for a federal judgeship occur, the U.S. Senators from that state tell
the president whom they want and he nominates them. When the Senators are from
an opposing party, as is the case of Lamar Alexander and Bob Corker, that
courtesy falls to Democratic members of the U.S. Congress, in this case
primarily Congressmen Jim Cooper and Bart Gordon. Because Cooper was such an
early and strident supporter of Obama’s, he likely will have the upper hand.
Protocol would dictate that Alexander and Corker would be given advance notice
of the nomination and as a courtesy they would say if they had any major
objections to the nomination.
October 5, 2008 San Francisco Chronicle
They're not dueling initiatives. But a pair of anti-crime measures on the
Nov. 4 state ballot could hardly be more different in their approach to
improving California's criminal justice system. Proposition 5 would divert more
drug addicts and nonviolent offenders from prison to rehabilitation programs.
Proposition 6 would set aside money for anti-crime agencies and put more
convicts - gang members in particular - behind bars. One would shrink the prison
system, the other make it bigger. ... Spending boost -- Prop. 6, the other
measure, would require the state to spend at least $965 million a year on
programs for police and probation departments, prosecutors, jails and juvenile
lockups. That's a $365 million increase from current spending, a figure likely
to rise to $500 million within a few years, the legislative analyst said.
Penalties would increase for some crimes, particularly offenses that are
gang-related. Civil injunctions restricting the movement of alleged gang members
- like those that San Francisco City Attorney Dennis Herrera has pursued in
recent years - would become easier to obtain. "It's a response to the growing
gang problem, which is affecting all parts of California," said Prop. 6
supporter Scott Thorpe, who leads the California District Attorneys Association.
Macallair said Prop. 6 would worsen the crisis in prisons and noted that law
enforcement contractors had donated to the Prop. 6 campaign, including
Corrections Corporation of America, which builds and manages prisons.
September 24, 2008 Nashville Scene
Yesterday, Lamar Alexander, the lead water-carrier for judicial nominee Gus
Puryear, read the campaign its last rites. Alexander's statements are the last
nail in the coffin for Puryear, lead counsel for private prison giant
Corrections Corporation of America. They're also an unofficial acknowledgment of
the power of the one-man campaign. No matter where your loyalties lie, it's
tough to argue that anyone deserves more of the credit (or blame) for Puryear's
failed nomination than Alex Friedmann. Getting the locals to care about who
swings a gavel in Middle Tennessee is one thing. Getting pub from national
outlets is another. Now with the campaign over, Friedmann is a stick without a
spoke. He says he'll continue working on the humdrum elements of vigilanteism
and may even aim his scope at larger targets. "There's always Palin," he jokes.
We here at Pith, however, think Friedmann's bandwagon should be steered
elsewhere. Trudging through the muck of rancorous politics during this election
season has left us exhausted. It's time all of Nashville had a cause worth
championing. Something fun and family-friendly that makes us forget about the
world while alternately making us worry about the cleanliness of our
undergarments.
September 24, 2008 Tennessean
Nominations of two Tennesseans — Gus Puryear of Nashville to be a federal judge
and Susan Williams of Knoxville to be a TVA board member — have been derailed by
political squabbles. Several prison rights and civil rights groups have objected
to the nomination of Puryear, general counsel for Corrections Corporation of
America, the private prison giant based in Nashville. CCA had been hammered by
allegations of underplaying serious incidents in its jails and misrepresenting
the circumstances of in-custody deaths. Sen. Lamar Alexander, the third-ranking
Republican in the Senate, said Tuesday that neither nomination would be approved
before the end of the year. That means the nomination process for both slots
will begin again after a new president takes office in January. "That's another
example of the Democratic Congress not approving a qualified nominee," Alexander
said of Puryear's choice by President Bush to be a judge in the Middle District
of Tennessee. Democrats opposed both -- Puryear was caught in an election-year
political fight. Republicans have tried to gain approval for as many of Bush's
nominees as possible before the end of his term. Reasons cited by opponents as
to why Puryear should not be confirmed include: a lack of trial and judicial
experience, his role as chief lawyer for the country's largest private prison
company, and the company's handling of the 2004 death of Estelle Richardson
while she was in the Metro Detention Facility in Nashville. Democrats, who
control the Senate, say they have treated the president's nominees as well as
Republicans did near the end of Bill Clinton's presidency. But they have slowed
the process, hoping they will be able to fill the vacancies if their nominee,
Sen. Barack Obama, wins the presidency. Williams' nomination to the TVA board
was a casualty of a battle between Alexander and Senate Majority Leader Harry
Reid, D-Nev. Reid held up her nomination and that of Bishop William Graves of
Memphis because he wants a Democratic representative on the TVA board. In June,
Reid let Graves' nomination go through after Alexander and Sen. Bob Corker
blocked a nomination Reid wanted. In response to Alexander's comments, Puryear
released a written statement through CCA. "I was honored to be nominated and
understand fully how election-year politics works in Washington. I am very happy
in my current job and look forward to continuing to work with my friends in
Nashville to make our city and state a better place." Alex Friedmann, vice
president of Private Corrections Institute, coordinated much of the opposition
to the Puryear nomination, which Bush made in June 2007. "Mr. Puryear was an
unqualified, inexperienced, conflicted and controversial nominee for a lifetime
appointment to the federal bench. The citizens of Middle Tennessee deserve
better and hopefully will receive a more qualified candidate during the next
administration," Friedmann said in a statement.
September 23, 2008 Tennessean
The nominations of Gus Puryear of Nashville to be a federal judge and Susan
Williams of Knoxville to the board of the Tennessee Valley Authority are dead
for this year, Sen. Lamar Alexander said this morning. "That's not going to
happen," Alexander said at a briefing with Tennessee reporters, referring to the
nomination of Puryear for a federal judgeship in the Middle District of
Tennessee. "That's another example of the Democratic Congress not approving a
qualified nominee." The nomination by President Bush of Puryear, general counsel
for Corrections Corporation of America, had been criticized by prison rights and
civil rights organizations because of his role in representing the largest
private prison company in the country. Williams' nomination has been stalled
because Senate Majority Leader Harry Reid, D-Nevada, wants a Democratic
representative on the TVA board. Puryear issued a statement through CCA. "I was
honored to be nominated and understand fully how election-year politics works in
Washington. I am very happy in my current job and look forward to continuing to
work with my friends in Nashville to make our city and state a better place."
September 21, 2008 Las Vegas Sun
Some state lawmakers plan to push to end local governments’ hiring of
lobbyists to represent them at the Legislature, but the Clark County Commission
last week agreed to negotiate a contract with R&R Partners to lobby on behalf of
University Medical Center. Is there a particular lobbyist who will be working on
the UMC account? Yes, a former assemblyman, Jim Spinello. He has a long history
in state politics. The year after he lost a bid for secretary of state in
November 1990, he became assistant general manager of the State Industrial
Insurance System. Last year, he was appointed chairman of a 60-member committee,
Nevada Educators for Edwards, established by then-presidential candidate John
Edwards. Didn’t the county select someone else for the lobbying job recently?
The county’s choice of R&R represents quite a change from its previous choice of
J3, the lobbying firm of Robert Uithoven, a longtime Republican who withdrew his
name from consideration in August. Democrats dominate the commission 5-2, with
Rory Reid, son of the U.S. Senate majority leader, serving as chairman.
Uithoven’s being considered for the job drew many questions. Not only has
Uithoven worked on behalf of Republican Gov. Jim Gibbons, he argued last summer
that the casino industry should be able to obtain refunds for up to $150 million
in state taxes that casinos paid on comped meals. How much is the R&R contract
for? The amount is to be negotiated before being brought to the commission for
final approval. Who else does R&R represent? Perhaps the better question is: Who
doesn’t it represent? During the 2007 session, lobbyists for the firm
represented myriad businesses and industries including the Andre Agassi
Foundation, the Corrections Corp. of America, the Lou Ruvo Brain Institute,
Medic West, Las Vegas Monorail, the Nevada Cancer Institute, the Nevada Mining
Association, the Nevada Resort Association, Opportunity Village, Planned
Parenthood, the Southern Nevada Home Builders Association and US Airways.
September 14, 2008 Indianapolis Star
Attorney Paul Ogden has been kicking some dirt lately about potential conflicts
of interest involving the law firm of Barnes & Thornburg. Ogden's firm, Roberts
& Bishop, has four lawsuits pending against Corrections Corporation of America,
the company that manages the city's minimum-security jail. The suits evolve from
allegations of inadequate medical care at the facility. Barnes & Thornburg
represents CCA. Last week, Ogden wrote a letter to Democratic council members
noting that the chairman of the council's Public Safety Committee is Ryan
Vaughn, a Barnes & Thornburg attorney. Vaughn said he's open to scrutiny of the
relationship. He said he's not a partner, so his salary does not change
depending on the firm's revenues. He acknowledged there could be a situation
where he would face a conflict in the future, such as if there were a proposal
to privatize the maximum-security jail. "That's the nature of a representative
legislature where the members have a full-time job," Vaughn sad. "Unless you're
retired, most people will have a conflict at some level if you look hard
enough." Vaughn said the solution is full disclosure and abstaining from any
matters where the benefit for his firm would be obvious. Jackie Nytes, a
Democratic council member, agreed. She said Vaughn will have to be careful
because conflicts can arise. "The trouble with ethics legislation," Nytes said,
"is that people have to work for a living."
September 7, 2008 Murfreesboro Post
Look, can we get this out of the way right here? When a teenager, Alex
Friedmann pulled an armed robbery, got into a shoot out, was wounded, tried,
convicted then spent 10 years in the pen. Unlike the rest of us, he made some
mistakes when he was a teenager. “I can’t provide any reasonable explanation. I
was stupid. I was greedy. In addition, I was a terrible criminal and was caught
right away.” That was in ’87. “I was young, but there are a lot of young people
out there who don’t get in trouble.” He’s aware of maybe a debt he still owes.
“I’ve tried to make amends. The experience led me to become interested in
criminal justice issues,” he said from his Nashville office where he is
associate editor of Prison Legal News (www.prisonlegalnews.org). He’s also vice
president of the non-profit Private Corrections Institute. Friedmann, who spent
the usual college years—18-26 – behind bars, is an articulate spokesman for
prison reform. “Look, we have 2.3 million locked up now and the number’s going
up, and 95 percent of them will be released back into society. They’ll be given
50 bucks and shoved out the gate. They’ll go back, most of them, to their old
neighborhoods that probably are crime infested. They’ll have trouble getting a
job. Sixty percent of them will be back in prison sooner or later.” “We’re not
preparing prisoners to be released. Drugs are a problem, OK, but many crimes are
the result of alcohol.” Friedmann, a graduate of both types of prison, is
solidly against privatization of prisons. “I have moral and philosophical
objections to the privatization of prisons. Now, I want to be very careful not
to imply that our public prisons are great. They aren’t. “But the privately run
prisons are operated for one reason: profits. That’s a poor excuse to be in the
prison business.” He points out that our “corrections system” fails to correct.
“And I have a big gripe that we think institutionalizing is the only punishment.
Most of the nation’s prisoners are not murderers or bank robbers. They are into
drugs, drinking, fights, stealing, fraud, and they can be punished by drug and
alcohol courts, fines, community work service, weekend incarceration, electronic
monitoring, counseling, treatment. All this is cheaper than prison and will
increase the chances of bringing about corrections in behavior.” Friedmann likes
drug, alcohol and mental treatment courts. “Most of our citizens want less
crime, less victimization. These measures will generate some correctional
behavior.” Friedmann drew regional attention in mid-August when he led a fight
to derail a federal court nominee.
September 2, 2008 Trading Markets
Corrections Corp. of America (CCA) recently promoted several senior-level
employees within the company's Business Development department at its
headquarters in Nashville, company officials announced. "These proven
professionals bring a wealth of experience to their new roles at CCA," said Tony
Grande, executive vice president and chief development officer. "The knowledge
and skills of these individuals will only enhance our company as we maintain our
leadership position in the corrections industry." According to the company,
Lucibeth Mayberry has been promoted to vice president, deputy chief development
officer. Mayberry began her career at CCA in 2003 as a senior director, Customer
Relationship Manager (CRM). She has since served as managing director, State
Customer Relations and most recently served as vice president, Research,
Contracts and Proposals. Natasha Metcalf now serves as vice president, Customer
Contracts. Metcalf also joined CCA in 2003 as vice president of Local Government
Customer Relations and most recently served as vice president and associate
general counsel, Contract Management, within CCA's Office of the General
Counsel. Brad Regens is now managing director, State Customer Relations. Regens
began his career at CCA in 2007 as senior director of State Customer Relations,
where he was responsible for managing business relationships with established
and prospective state partners in the southwestern United States. Bart VerHulst
has assumed the role of managing director, Federal and Local Customer Relations.
VerHulst spent 12 years on the staff of United States Senator Bill Frist in
Washington, D.C., most recently as his chief of staff. The company also
announced the addition of a new member to its Business Development team. Ben
Shuster has joined CCA as a senior director/customer relationship manager for
State Customer Relations. He previously served as a consultant for the U.S.
Department of Health and Human Services in Washington, D.C. Shuster has also
worked as special assistant to the Chief of Staff of the U.S. Department of the
Treasury and as trip coordinator/lead advance representative in the White House
for the Office of the Vice President. CCA is the founder and industry head of
the private corrections management industry.
August 31, 2008 Murfreesboro Post
Four years ago, Estelle Richardson, 34, was murdered in a Nashville jail run
by Corrections Corporation of America. That's a tangential issue in the legal
career of Gustavus A. Puryear IV, just one of the things that has caught the
attention of Alex Friedmann, an ex-con gone good and now an editor of Prison
Legal News, an organization devoted to digging out mistreatment and maltreatment
of prisoners. Charges were filed against four guards who were accused of beating
Richardson to death. But their conviction foundered on a technical matter
involving time of death. It is one of the things that troubles Friedmann (once a
convict himself) about Puryear's nomination for a lifetime appointment to the
federal district court in Middle Tennessee. Puryear is chief lawyer of
Corrections Corporation of America that is headquartered in Nashville. "CCA is
the defendant in scores and scores of lawsuits each year. It is difficult to see
how Puryear could ever serve as presiding judge in a trial involving his old
bosses." The nomination---presented before the Senate Judiciary Committee by
Republican Senators Corker and Alexander---came about the way most do: Puryear
has been a worker in the vineyards for Tennessee and national Republicans. He
gave important money to Corker and Alexander and coached up Dick Cheney for the
'00 vice presidential debates. He worked for Fred Thompson. He's been named a
"Republican heavyweight" by a Nashville newspaper. Unhappily, his qualifications
for a federal judgeship are wanting. Friedmann says Puryear has been personally
involved in only five federal cases and two trials over his entire legal career,
and lost one of those. "He has not served as a practicing attorney for years,"
Friedmann says. Republicans answer that Puryear has been rated as "qualified" by
the American Bar Association. "Well," Friedmann says, deconstructing the
classification methodology. "ABA rates lawyers Qualified, Unqualified, or Well
Qualified. Seventy-five percent of all lawyers get the Well Qualified
classification. Puryear, therefore, is in the bottom 25 percent." But
Friedmann's great objection to Puryear's appointment remains his conflicted
position. He's a CCA man and has been their chief lawyer for years. He says
he'll recuse himself from their cases for five years. "Well, CCA's in the courts
all the time. And what about after five years? He doesn't say what he'll do
after that." In typical Republican fashion of the past seven years, Puryear's
record was great from a political standpoint but wanting for professional creds.
Today, the nomination is being held up in the Senate Judiciary Committee, which
indicates it failed to get pro forma approval, a bad indicator for the state's
Republican senators and party. There is a chance that Puryear won't be approved
in the Senate committee. This would, in effect, kill the nomination.
August 21, 2008 The Nashville Scene
So this is hilarious. Corrections Corporation of America, the widely
condemned prison company in Green Hills, has launched a Pravda-styled website
aimed at providing "factual information" about its operations. The site makes
out CCA to be as sweet and innocent a business as your daughter's lemonade
stand. Sadly, as the company's PR push notes, a "local daily paper" has
willfully mischaracterized the outfit's open and efficient approach to doing
business. That's right: Only The Tennessean has raised pertinent questions about
CCA. No one else has said a word, correct? Well, actually there was The New
Yorker, arguably the most respected magazine in the country, which reported that
CCA dressed the young children of detainees at its immigration farm in Texas in
prison garb. At that same facility, the magazine continued, CCA stored women and
children in the same cell, where they would sleep on bunk beds next to an open
toilet. Nice to see how the company (which maintains strong Republican ties)
practices its family values. For more horror stories, we turn to The New York
Times, which wrote that CCA refused to divulge information about the immigrants
who mysteriously die in its facilities. The Times chronicled how one inmate at a
CCA facility in New Jersey—a man who had merely overstayed a tourist visa—found
himself "shackled and pinned to the floor of a medical unit." He moaned and
vomited and was thrown in a disciplinary cell for 13 hours, even as he foamed at
the mouth like a rabid raccoon. The man later died. Then there's Time magazine,
which reported the astonishing tale of a former CCA insider who suddenly grew a
conscience. He told the magazine CCA kept two sets of books: an accurate one
that chronicled an array of prison disturbance—and a heavily doctored one
designed to limit bad publicity and federal fines. Meanwhile, the man who
oversaw CCA's fraudulent reporting system was none other than Gus Puryear, the
company's hapless corporate counsel, whose nomination to the federal bench
appears to have gone belly up. (A side note: The local bar, which would like to
argue cases before a competent jurist, couldn't be happier at Puryear's demise.)
Next, in the Scene's recent cover story about CCA, we reported that the
Immigration and Customs Enforcement Division (ICE), a body hardly known for its
vigilance, slapped the company for running its Texas immigration facility on the
cheap. "CCA is losing staff as quick as they can hire them," one internal memo
said, tearing into the privatized prison company for paying its guards even
less—much less—than the local county jail. "As long as CCA continues to hire
employees at this rate per hour," the memo concluded, "they will continue to
experience the problems they are currently experiencing on the floor." Finally,
in that same story, we also reported that the Tennessee Department of Correction
investigated allegations of abuse at CCA's Hardeman County Correctional
Facility. So what did they uncover? How about a warden who shoved an inmate to
the ground and then punched him in the face? That warden, a refined 40-something
gentleman named Glen Turner, later resigned and pleaded guilty to a charge of
official oppression. My guess is that he's now angling for the top job at Gitmo.
His time at CCA would serve him well.
August 20, 2008 The City Paper
Bedeviled this year by negative publicity on several fronts, Corrections
Corp. of America late last week launched a public relations push to counter what
it says are biased reports. The Nashville-based company has been under the
microscope since its general counsel, Gus Puryear, was nominated for the federal
judgeship of the Tennessee Middle district in February. At the same time,
activists have stepped up their work against the company, seeking the company’s
contracts and other papers under public-record laws. CCA’s response includes an
advertising campaign pointing people to a new Web site that promises an
“unfiltered, full, 360-degree view of CCA.” The company has bought advertising
on NashvillePost.com and the Web site of its sister publication, The City Paper.
The company also published an open letter in The City Paper’s Monday print
edition. The campaign, designed by local firm MMA Creative, accuses "a local
daily paper" of ideological bias that CCA spokeswoman Louise Grant says has
produced a media smear campaign. “It’s completely baffling,” Grant said. “We
definitely think there’s a bias that’s been there for years and years.” Grant
said the company was particularly stung by a recent Tennessean article that drew
renewed attention to the unanswered questions surrounding the death of CCA
inmate Estelle Richardson. “There was no new news in it," she said. "It was a
very editorialized article." The article reiterated the details leading to
Richardson’s death, featuring the comments of fellow inmate and friend Sharron
Peterman, who called for the cold case to be solved. The Web site, called The
CCA 360, responded by dissecting the article line by line, linking to evidence
Grant says the company believes has been withheld from public consumption. She
says accusations leveled against four prison guards were dropped because medical
experts hired by both the prosecution and the defense found that Richardson
sustained her injuries before the accused guards were in contact with her. The
site also claims The Tennessean printed allegations against CCA without
publishing the company’s accompanying denials. Grant also said that the paper
ignored the medical evidence and focused only on the negative side of the story.
“We have achieved excellence on American Correctional Association audits and our
customers hold us in high regard,” Grant said. “That wasn’t a fair and balanced
viewpoint.” Grant also said Tennessean editors have told CCA representatives
that they oppose private correctional facilities from an editorial standpoint.
Tennessean Editor Mark Silverman would only say that the paper stands by its
article. But Alex Friedmann, a prison reform activist and associate editor of
Prison Legal News, dispute the Web site’s claim to a 360-degree view of the
issue. “They’re a corporation — their only responsibility is to their
shareholders,” he said. “They’re interested in this incident because it causes
problems with their stock price and shareholder confidence.” Shares of CCA
(Ticker: CXW) are down about 6 percent in 2008 and are up almost 10 percent from
a year ago. The Standard & Poor’s 500 Index has dropped more than 11 percent
since last summer. Friedmann believes that, for the Web site to be considered
balanced, it should have included a sheriff’s report excoriating CCA practices
as well as an initial autopsy that conflicts with those conducted by the
examiners during the trial. Friedmann’s credibility is also questioned on the
Web site, which points to his lack of academic expertise and refers to him as a
“former inmate.” Friedmann says everyone has an agenda and freely admits to his
own. “Obviously, I have a bias. I have been an inmate at a CCA prison,” he said.
“But CCA, they’re a private, for-profit organization. They have a $1.45 billion
bias.”
August 15, 2008 AP
Private prison company Corrections Corp. of America spent $240,000 lobbying the
federal government on legislation dealing with prison spending and policy,
according to a recent disclosure form. The Nashville, Tenn.-based company
lobbied on legislation dealing with private prisons and public safety, as well
as on issues involving immigration, labor and more. Besides Congress,
Corrections lobbied the Department of Homeland Security, Justice Department,
Office of Management and Budget, and the Bureau of Indian Affairs, according to
a report filed July 18 with the House clerk's office.
August 14, 2008 AP
Had this been like most nominations for federal judgeships, the chief lawyer
with Corrections Corporation of America might have been packing up his office
and heading for the courthouse by now. But a determined opponent — a former
prisoner at a Corrections Corporation of America facility in Clifton, Tenn. —
has worked tirelessly to see that would not happen. And he may have succeeded.
More than a year after President Bush nominated Gustavus A. Puryear IV to become
a U.S. district judge in Nashville, the 40-year-old's appointment appears to be
in serious trouble, thanks in no small part to Alex Friedmann, a convicted armed
robber turned inmate advocate. Friedmann, 39, contends Puryear is unqualified
because he lacks experience in federal courts — he's been involved in only two
federal trials — and might have a potential conflict of interest in hearing
cases that involve CCA. On his Web site, http://www.againstpuryear.org,
Friedmann also has detailed Puryear's ties to powerful Republicans like Dick
Cheney, whom he helped prep for a 2000 debate, and portrayed Puryear as someone
who got the nomination because of his connections rather than his
qualifications. The Senate Judiciary Committee held a hearing on Puryear's
nomination in February but has yet to vote on whether to send his name to the
full Senate. Erica Chabot, the press secretary for committee Chairman Patrick
Leahy, said Puryear is one of only three people who have been nominated for
district judgeships since January 2007 and have had hearings before the
committee but have not had their nominations voted on. Leahy, D-Vt., has said
the panel will not consider any more nominees this session without the consent
of leaders from both parties. "I understand they have put Puryear in the
'controversial' category," said Brian Fitzpatrick, who once worked for
Republican Sen. John Cornyn of Texas defending Bush's Supreme Court nominees and
is now an assistant law professor at Vanderbilt University. "It's very rare for
a district court nominee to become controversial. Usually they just fly
through." The Senate typically defers heavily to the senators from the nominee's
home state, and Republican Sens. Lamar Alexander and Bob Corker of Tennessee
solidly support Puryear. But the opposition has been unusually committed.
Multiple organizations, including the left-leaning Alliance for Justice and the
National Lawyer's Guild, have challenged Puryear's nomination, all of them using
research that originated with Friedmann, occasionally quoting it verbatim.
Friedmann says he learned of the nomination because he keeps track of
Nashville-based CCA, which manages 66 facilities around the country. He looked
through dockets and court cases, contacted former co-workers and made Freedom of
Information Act requests. To get the word out, he relied on the nonprofit
Private Corrections Institute, for which he serves as vice president, and a
group he formed called Tennesseans Against Puryear. Puryear did not return calls
from The Associated Press for this story. White House spokesman Blair Jones said
the White House suggests that nominees not speak to the media, prior to
confirmation, out of respect for the deliberative process of the Senate. "Groups
can attack a nominee, but you'll never see (the nominee) respond to anything
except at hearings," said Puryear's friend Ed Haden, an attorney in Birmingham,
Ala. Haden said the obstacles to Puryear's nomination are political, and don't
mean he is not qualified for the job. "As far as his qualifications go, he was
at the top of his class in law school, he clerked on the U.S. Court of Appeals,
he has legislative experience in the U.S. Senate, he manages litigation for a
big Fortune 500 company, and the ABA (American Bar Association) rated him as
qualified," Haden said. "Gus realizes this is a lame duck year in politics," he
added. "It's true for all nominees — whether you're in the deal or not is beyond
your control." Puryear's nomination remains active until Congress adjourns, and
he could still be confirmed. The most likely scenario for that would be a deal
struck between senators. "At the end of the session, it's, 'Who wants a bridge
in Vermont?'" said Haden, who has worked with two U.S. senators on judicial
nominations. Meanwhile, Friedmann is continuing his opposition campaign in the
hopes of making a last-minute deal less likely. "I'm glad the Judiciary
Committee is taking a closer look at Mr. Puryear as a candidate because the
issues we raised are legitimate issues," he said. "But," he added, "I'm
definitely not claiming victory."
August 13, 2008 Tennessean
Alex Friedmann doesn't think people can see past his conviction, so he's the
first one to bring it up. He spent 10 years in a cell — six of them at a
Corrections Corporation of America prison in Tennessee — for armed robbery and
attempted murder. "I was absolutely not cut out for a life of crime," Friedmann,
39, says. "And I was quite incompetent at it. I deserved the punishment. But
punishment, technically, ends at some point. Society says it doesn't, and that
lasts for the rest of your life. It follows you around like a legacy." Now,
years removed from prison, Friedmann is engaged in an ardent struggle against
Nashville-based CCA, the nation's largest for-profit prison company. He is a
self-described underdog, battling the multibillion-dollar corporation that has
drawn nationwide criticism for its treatment of prisoners. He didn't like the
way he was treated while he was incarcerated, and he has questioned whether CCA
gave prompt medical attention to a friend who died while in CCA custody many
years ago. CCA, in turn, paints him as a less-than-credible advocate for prison
reform and a pawn of unions that oppose privatized prisons like those run by CCA,
which has 17,000 employees nationwide and holds more than 75,000 inmates. "He is
a former inmate convicted of armed robbery at Green Hills," said Louise Grant, a
spokeswoman for CCA. "The fact that he shot at a father and a son is lost. He
now works for a union-funded company.'' Still, Friedmann says prison reform is
what defines his life. "I admire people who devote their lives to causes — to
saving whales, the environment, child abuse," he said. "This cause gives meaning
to my life." He's a CCA shareholder -- In that role, Friedmann has
single-handedly taken CCA to task over the years — even at the shareholder
meetings. Friedmann owns one share of CCA stock, giving him the right to attend
and ask questions at the meetings. "What I'm saying is that CCA is for-profit
and it colors their decision," he said. "It's their business model." He is
seeking access to CCA records. He won that access, albeit briefly, when a judge
said that because the for-profit prison operates similar to a government entity,
it should make its records open to the public, but CCA is appealing the judge's
ruling. Friedmann is vice president of Private Corrections Institute, which is
against the privatization of correctional institutions and is supported by
unions. He says he does not collect a paycheck in his role with Private
Corrections Institute. The company has paid for his travel and he has been
reimbursed for expenses. He also is associate editor of Prison Legal News,
working 60 hours a week reading and editing dozens of stories for the monthly
publication, which looks at the nation's penal system. Then he leaves his desk
to hand out fliers asking for more information regarding the death of a CCA
inmate. He went to Congress to testify against the federal judgeship nomination
of Gus Puryear, CCA's general counsel, a battle he is even keener about. He
double-checked every answer Puryear gave to the Senate Judicial Committee. He
investigated the general counsel's commission meetings and memberships in a
country club, and he challenged a contradictory statement regarding the death of
an inmate. He started a Web site, againstpuryear.com. His was 'a harsh crime' --
Friedmann considers himself a private person despite the public battles he has
waged against CCA. During a lunch interview, he does not want to talk in any
depth about his family, his personal life or religious affiliations. He is
succinct. His father's family was Jewish, his mother a Southern Baptist.
Friedmann was born outside of Boston and left for Dhahran, Saudi Arabia, with
his parents as a 1-year-old only child. His father worked for Aramco, the
Arabian American Oil Co. "I did not have to share my toys," he said jokingly as
he eats a salad and waits for his pizza to cool down. They lived in a compound
with people from around the world. Years later, with extended family in
Tennessee, Friedmann returned to the U.S. as a teen. It was the 1980s and he was
not accustomed to American society, he said. Caught in a downward spiral of
greed, stupidity and his personal struggle to assimilate back to American life
after being raised in Dhahran, the 18-year-old Friedmann armed himself with a
gun and robbed a Green Hills store. During the robbery he got into a gunfight
with the store owner, who shot Friedmann in his left hand. "It was a harsh
introduction to the system, but I committed a harsh crime," he said. Friedmann
says he was able to get probation but still fouled up. His probation was revoked
and he had to serve 10 years after he was busted for shoplifting. In prison he
read a number of books, including the classics and a couple that sparked his
interest in activism: Alexander Solzhenitsyn's The Gulag Archipelago and One Day
in the Life of Ivan Denisovich, a story based on a character who served 10 years
in prison in Stalin's gulag. He began writing and learning how to do research.
He admired the in-depth investigative pieces produced by reporters. Today, he
worries it's not done enough. He has no social life, he says. His downtime
consists of zipping around in his restored 1982 Corvette and working on computer
systems. But he sees himself as a reporter and an activist.
July 31, 2008 Nashville Scene
On Tuesday, Alex Friedmann and CCA went to court. Friedmann, whose
Dumpster-diving exploits we profiled this week, was there on behalf of Prison
Legal News (PLN) where he works as associate editor. Back in April of ‘07, PLN
made a formal request for CCA records. The paper wanted to know how much the
prison-operator paid out in lawsuit settlements. CCA said it couldn’t have the
info. PLN’s logic seemed simple enough. Locking up criminals is a public
service. And even though CCA is a private company, 100 percent of its funding
comes from the government, making it subject to the same transparency expected
of their agencies. Simple, right? If you answered “yes,” then you’re obviously
not a lawyer… Because if you’d been to law school, you would have understood
CCA's higher allegiance to semantics. Using the patented “Grasping at Straws”
stratagem, CCA lawyers argued that the millions the company gets from Tennessee
each year isn’t technically funding. It's “contractual payments for services
rendered.” See? Running a prison is just like paying your cell phone bill. You
wouldn’t call the money you give Verizon every month “funding,” would you? Good.
Glad to know you’re not a commie. Fortunately for PLN and fans of logic
everywhere, the ruling judge wasn’t havin’ it. “The court just cut right through
that (argument),” says Friedmann. Which means a momentary victory for Friedmann
and PLN, even if CCA is almost guaranteed to appeal. We'll keep ya posted.
July 30, 2008 Tennessean
Nashville-based Corrections Corporation of America must follow public
records law and open its files for viewing, a Chancery Court judge ruled
Tuesday, a decision that could lead to more transparency in a historically
hidden industry. Alex Friedmann, an ex-offender and vice president of advocacy
group Private Corrections Institute, had filed suit after CCA denied his request
for records about prison operations and lawsuits they were part of. CCA, which
operates the Metro Davidson County Detention Facility and six other detention
facilities across Tennessee, maintained the company did not have to comply with
public records requests because it is private. Access to prison records could
accomplish two main goals, said Michele Deitch, an expert on private prison
issues and adjunct professor at the University of Texas at Austin: shedding
light on the operation of the private facilities and showing taxpayers how much
money is spent on settlements with those who claim mistreatment. "When the
private sector says, 'We can do this cheaper and better,' people don't think
about what happens if things go wrong," Deitch said. "Who pays for that? In
fact, it does come back to the taxpayers and the government. We need that
information for a fuller picture of the true cost of these prisons." CCA plans
to appeal the ruling, according to attorney Joe Welborn, who represented the
company. Public-private line blurs - It's too soon to say whether there will be
national implications to the decision, said Gene Policinski, vice president and
executive director of the First Amendment Center. But as more governmental
functions are turned over to private industry, he said, the issue of what
documents remain public can get muddied. "These issues will be litigated more
and more," Policinski said. "Where does public responsibility and public
visibility end, and a private institution's own records begin, when performing
public functions and accepting public money?" Chancellor Claudia Bonnyman ruled
that CCA was a "functional equivalent" to a governmental entity, because the
operations of jails and prisons are essential governmental functions, and most
of their revenues are taxpayer-funded. She ordered the company to make all of
its records available, except those sealed by a court order. Andrew Clarke,
attorney for Friedmann, said he kept his arguments simple because he felt the
facts supported his client's assertion that CCA performs a governmental
function. "Sometimes it just is what it is," Clarke said. 'A layer of secrecy'
The chancellor has not yet ruled on whether to award attorney's fees to
Friedmann. CCA spokesman Steve Owen said the company is reserving comment until
a final order has been issued. CCA has been hammered in recent months by
allegations of underplaying serious incidents in its jails and misrepresenting
the circumstances of in-custody deaths. Much of the heat came after CCA's
general counsel, Gus Puryear, was nominated to a federal judgeship. The
company's treatment of mentally ill inmates locally also was questioned after it
was reported that an inmate hadn't left his cell or showered for nine months.
Friedmann's organization recently offered reward money for anyone who could shed
light on the death of Estelle Richardson, who died in the Metro jail in 2004.
CCA officials said that, because of a malfunction, there was no tape of the
incident that led to Richardson's fatal injuries. Friedmann served six years in
a CCA-run facility before his release in 1999. "This important ruling strips
away a layer of secrecy that CCA has misused to conceal embarrassing and
negative information from the public," Friedmann said.
July 29, 2008 AP
A Nashville judge ruled Tuesday that private prison company Corrections Corp. of
America is subject to Tennessee's open records law. Chancellor Claudia Bonnyman
ordered CCA to provide information on settlements, judgments and complaints
against the company to Alex Friedmann, who first requested the information in an
April 2007 letter. Joe Welborn, an attorney representing CCA, said the company
will appeal. Bonnyman said the overriding issue was whether the company performs
a government function. "The court finds that CCA is the equivalent of a
government agency based first and foremost on the fact that the Tennessee
constitution makes the maintenance of prisons and keeping of prisoners a state
function," she said. The ruling only applies to records of Tennessee prisons,
not to federal prisons the company runs, or prisons in other states. Attorney
Andy Clarke said he represented Friedmann pro bono because he felt the
Nashville-based company was deliberately trying to keep damaging information
from becoming public. "Information is knowledge," he said. "They probably don't
mind a $4,000 settlement for a broken back becoming public, but if someone gets
killed, they probably do." Friedmann, a Tennessee resident and associate editor
at the monthly magazine Prison Legal News, sued CCA after the company denied his
records request, claiming it was not subject to the state's open records law.
Among other things, he asked to see verdicts against the company and settlement
agreements with prisoners. The judge ruled that even confidential settlements
were public records and had to be turned over as long as they had not been
sealed by a court order.
July 1, 2008 News Channel 5
A victim's advocate claims someone got away with murder at a Nashville
detention facility. On July 5, 2004, Estelle Richardson died while in solitary
confinement at the Davidson County Detention Facility operated by Corrections
Corporations of America. An autopsy showed she died from blunt-force trauma to
the head. She also had several broken ribs. Her file at the facility indicated
that she died of "homicide ... unsolved murder." "She died a brutal, painful,
vicious death," said Denver Schimming, a victim's advocate. Schimming, a
reformed felon who served time for bank robbery, has turned his life around. He
is determined to solve the Richardson case. "She did get the death sentence.
Yeah, CCA was the judge, jury, and executioner in this case," he said about the
mother of two. Schimming was among a small gathering of people standing outside
the medium security prison Tuesday night to commemorate Richardson and keep the
investigation open. "We're saying that justice has not been served. That we need
to dig harder, work harder, and find out who it is," he said. "The question is
not did it happen? It did happen. The question is who it is. Let's find out who
murdered Estelle Richardson." Richardson was found unresponsive in solitary
confinement 24 hours after cell extraction, which is described by some as a
violent procedure to forcibly remove an inmate. Charges were dismissed against
four former CCA guards indicted for her death because the district attorney
general had "no definitive proof that (Richardson) died as a result of the
actions of these defendants." The medical examiner, according to the district
attorney, ruled "the blunt trauma that eventually killed Ms. Richardson likely
took place several days before she was extracted from her cell." A key piece of
evidence in the case is a videotape of Richardson's cell extraction. It no
longer exists. Schimming said it's protocol to record such maneuvers, but CCA
claims the camera malfunctioned. The district attorney general's office said the
case isn't solved, but it's not being actively investigated either.
June 26, 2008 Nashville Scene
Regarding the Scene’s cover story on CCA, “Locked and Loaded” (June 19),
when it comes to prisons—particularly private prisons—the devil’s in the
details. While the article was informative and wide-ranging, it missed some
important details, including these: It wasn’t clear that there was a cover up of
the assault on inmate James Ingram at CCA’s Hardeman County facility. The
assault by Warden Turner occurred on May 17, 2007, but the Tennessee Department
of Correction wasn’t notified until July 19—two months later. Nor were they notified
by CCA; they learned about the incident from Ingram’s attorney. CCA staff had
tried to hide the incident from state officials. CCA employees apparently have
problems following the law. From February 2003 to April 2008, at least 55 CCA
employees at three prisons in Tennessee (Hardeman County, Whiteville and South
Central) were charged with criminal offenses—or an average of one a month. That
doesn’t include arrests of CCA staff members at the company’s 62 other
facilities. Gerald Townsend, the inmate at the CCA-Metro facility who was beaten
to death by his cellmate in January, was the brother of Judy Townsend—who,
ironically, was present at the same CCA-run facility in July 2004 when Estelle
Richardson was found “unresponsive” in her segregation cell and later died. Four
CCA guards were indicted in connection with her death, but the charges were
later dropped. A $35,000 reward has been offered for information related to
Estelle’s murder: See whokilledestelle.org. Alex Friedmann Vice President,
Private Corrections Institute (and former CCA prisoner)
June 19, 2008 Nashville Scene
Located in a bland, almost anonymous Green Hills office park of fake lakes
and fountains is the headquarters of the nation’s largest private prison
company, which, at the moment, may be the most disparaged corporation in the
country. Since its inception in 1983, CCA has encountered legions of angry
detractors who believe that the business of punishing criminals should not
be—well, a business. But if the company has become accustomed to criticism over
the years—like a best-selling author whose novels garner predictably bad
reviews—it is now mired in a series of scandals, embarrassments and
public-relations catastrophes that may tar its reputation for years to come. In
the last 18 months alone, CCA has been the target of several stinging lawsuits
supported by detailed affidavits and third-party reports alleging dangerous and
inhumane practices that have put inmates’ lives at risk. Whistle blowers, once
in positions of trust at CCA, have emerged from the shadows to tell vivid tales
of corporate misconduct. Federal authorities have castigated the publicly traded
corporation for operating an immigration detention facility in Texas on the
cheap. And at that CCA complex—which at one point forced children of immigrant
detainees to dress in prison garb—dozens of incarcerated women and children have
come forward with gut-wrenching tales of anguish and neglect. Here in Nashville,
CCA’s officers volunteer on the boards of noble nonprofits. But the company’s
local detention center, far removed from the world of tony fundraisers and
white-tie dinners, has been the setting for a string of grim events. One inmate
beat his cellmate to death. A mentally ill man apparently went nine months
without being allowed a shower. And another inmate lost his ear in a fight. So
considering the company’s problems in its own backyard, not to mention its
near-epic failings in Texas, it may seem odd to begin our story at a CCA
facility in West Tennessee, where last May a few inmates brawled inside a prison
chapel. The disturbance at the Hardeman County Correctional Center, located in
the tiny town of Whiteville, was no different from any other jailhouse scuffle,
and it’s not clear that anyone was even hurt. But an inmate who saw the fight—and
maybe even threw a punch or two—got a lesson about the workings of CCA’s
particular brand of law and order and its longtime penchant of avoiding
scrutiny. On May 16, 2007, James Ingram, an inmate from Memphis who battled a
drug problem, was serving a 17-year sentence for aggravated robbery at the
medium-security prison. Clean-cut and not much older than 30, Ingram was walking
to his pod at the time of the brawl and overheard a group of inmates fighting at
the chapel. Ingram fell into a fetal position to demonstrate, in his lawyer’s
words, “a spirit of surrender and cooperation.” If that sounds implausible,
consider the next part of the inmate’s story. After prison officials quelled the
fight, they took Ingram to a back room and demanded that he give up the names of
the prisoners who squared off. Ingram saw who was involved, but he wouldn’t
talk. So the warden, a 40-something man named Glen Turner and the brother of one
of CCA’s corporate vice presidents, placed him in solitary confinement. Shortly
after, Turner shoved him to the ground and Ingram fell on his back. The warden
then punched him in the face, opening a 2-inch cut below his eye. Typical
convict hogwash, right? The state didn’t agree. Ingram called a lawyer, who
called the Tennessee Department of Correction (TDOC) to look into what happened.
Joined by the Tennessee Bureau of Investigation, TDOC investigated the incident
and determined that Turner assaulted Ingram by “throwing him to the floor and
striking him at least twice in the head with the closed fist of his right hand.”
In August, Ingram resigned as warden. A month later, he pled guilty to a charge
of official oppression. It’s not clear when CCA’s headquarters learned what
happened at its West Tennessee prison. But state authorities hint that company
officials were slow to act. In an email to his colleagues, Jerry Lister, then
TDOC’s acting director of internal affairs, notes that it was only when his
department learned of the allegations from Ingram’s lawyer that “anyone at the
facility [began] to acknowledge the excessive use of force by Warden Turner.” As
a private company, CCA doesn’t have to answer for what happened at its prison.
It refused a request from the Scene to review Turner’s original résumé, job
application and disciplinary file. Meanwhile, TDOC never issued a press release
about the findings of its investigation. As a result, the publicly traded company
escaped the rounds of bad publicity that a state-run prison would have endured
had one of its wardens pummeled an inmate. Until now, the media has never
reported the details of Turner’s attack on Ingram. But if CCA was able to dodge
a PR nightmare last summer, its luck has since faded. Now it can’t seem to serve
so much as a cold meal without landing in hot water. The well-heeled company finds
itself embroiled in an array of ugly incidents, both in Nashville and throughout
the country, that have been featured on the pages of national newspapers and
magazines and in the bold type of heavy-hitting lawsuits. Taken separately, the
company’s struggles may not seem extraordinary. The business of incarceration is
a rough one, even for those who don’t view it as a business. But for CCA, which
for most of the decade has been able to avoid criticism from everyone other than
a thin cast of anti-privatization foes, there seems to be a growing series of
corroborated accounts that sketch a new portrait: that of a reckless, callous
enterprise that treats inmates—even those who haven’t been convicted of a
crime—as if they were cattle. Maybe, then, it’s appropriate that we move our
story to cattle country. Elsa is a sturdy woman in her mid-20s with soft, round
cheeks and straight, black hair that she sometimes pulls behind her head. Before
she found herself locked up in a dusty Texas town, she lived in Honduras with
her two children, Richard and Angelina. Here is her story: Elsa was happy in her
native country and “didn’t need anything from anyone to be well-off.” Then one
day, while walking on a quiet road, a man grabbed her hair and put a gun to her
head. He forced her to take off her clothes, and then he hit her. He called her
a “perra” or bitch and laughed as he ran his weapon over her body. Elsa cried
and screamed and then, after being raped, begged for her life. “Please don’t
kill me. I have two children.” The man struck her again, but let her live so
that he could haunt her once more, showing up on a whim at her friend’s place to
let her know he could have her again whenever he chose. The man’s father worked
for the local police department, and Elsa knew the only way to flee him was to flee
Honduras with Richard and Angelina. When she arrived in the United States, an
immigration agent took her and her family to the T. Don Hutto Residential Center
in Taylor, Texas, 30 miles north of Austin. It would be anything but a safe
haven. In 2005, Michael Chertoff, secretary of the Department of Homeland
Security, which runs the Immigration and Customs Enforcement Division (ICE),
ended the practice of “catch-and-release”—which permitted undocumented
immigrants like Elsa to remain free at-large while they awaited their day in
court. Under catch-and-release, no-shows were common. So after 9/11, the specter
of illegal immigrants from all over the world roaming the country became a
security issue. Pilot programs sprung up that tracked immigrants with electronic
bracelets, though Chertoff went with a draconian plan instead: Throw many of
these men, women and children in Hutto, a former medium-security prison that was
surrounded by a 15-foot fence topped with rings of barbed wire when it reopened
in 2006 as a place for immigrant families. After she arrived in Taylor, Elsa and
her family shared a tiny living area, where they’d be loudly awoken at 5:45 a.m.
Elsa, Richard and Angelina then had 20 minutes to eat breakfast. When they
didn’t finish on time, guards would just snatch their food and throw it in the
trash. “When this happens, the children cry and cry,” Elsa later explained in an
affidavit that chronicled her plight. The detention center was very cold, so much
so that the guards walked around wearing gloves. But they’d yell at Elsa if she
asked for a blanket. One time they came into her cell and confiscated two of her
sweaters. “They don’t care that we are cold,” she said. “They don’t care if we
eat or if we don’t eat.” Elsa and her children wore prison uniforms and spent
hours in their pod, often with no toys or books for the kids. One day, Elsa and
her family were in the doctor’s office, where all the kids were playing with
crayons. Angelina drew a picture, but a guard grabbed the girl’s artwork. She
cried a lot at Hutto, wondering what her family had done wrong. “Mommy, where is
God that he doesn’t want to help us? Mommy, tell God to come and take us out of
here and take us to our house,” Elsa recalled her daughter saying. “Mommy, why
do they have us as prisoners if we have never killed anybody?” In March 2007,
the ACLU helped bring suit against Michael Chertoff and the immigration officers
who ran Hutto. As a part of that litigation, attorneys collected more than 20 affidavits
from detainees like Elsa, nearly all of whom were bidding to receive political
asylum from their home countries. The detainees hail from different
continents—some are adults, others young children—but they all tell the same
story because they lived it together. Raouitee Pamela Puran fled her home
country, where her husband was kidnapped and murdered. Seeking political asylum
in the United States, she and her daughter Wesleyann wound up at Hutto. The
young girl, just 4 years old, had trouble sleeping. It was always cold, and it
didn’t help that the guards kept turning the lights on and off in their living
quarters. The food was awful too. When Wesleyann would talk to her aunt on the
phone, she’d plead with her to cook her chicken curry and rice. That always
stung her mom. Even worse, Wesleyann would hear the guards threaten the children
who acted up. If you don’t behave, they’d tell them, we’re going to separate you
from your parents. Wesleyann was terrified. A sixth-grader at a junior high
school in Ohio, Aissha Ibrahim came to Hutto with his mother, brother and sister
on Nov. 30, 2006. Aissha, whose family had fled war-torn Somalia, said in an affidavit
that when his sister Bahja got in trouble, the guards threatened to take her
away from her family. Another guard told Aissha that if he complained, he would
never see his mother again. “I would be scared if I never got my mom back, and I
would think of how she took care of me when I was a baby,” he said. Just about
every affidavit from a child or mother portrayed Hutto the same way—as a rough
and cold place, where kids lie awake at night hungry and crying in the dark. And
if they act up, like children often do, a guard would threaten to remove them
from their families. To hear the stories from inside the walls, Hutto seems more
like a medieval dungeon than a 21st century facility run by a wealthy company.
“The conditions were shocking,” says Barbara Hines, a University of Texas law
professor who spent many hours inside the facility representing detainees.
“There were children in prison garb dressed like their parents; it was like an
adult prison system. Seven times a day parents and their children were required
to stay in their pods so they could be counted. Laser beams shined through the
cells at night.” Just about everyone else who walked through the gates at Hutto,
including federal authorities, saw it as a deeply troubling facility. In March
2007, ICE inspectors visited Hutto and, in their own distinct bureaucratic
language, corroborated the anguished accounts of the detainees. The inspectors
noted that their “overall review of the facility can be accurately rated as deficient”
and determined that the staff wasn’t following basic standards of detention.
“The Review Team’s observation of CCA’s overall attitude is of disinterest and
complacency in their work performance,” the agency noted in its report. A month
later, an interoffice memo from ICE said that at Hutto, CCA is “losing staff as
quick as they can hire them.” That’s because the company was only paying its
detention officers around $10 an hour, nearly $4 less than what they could make
at the county jail. “As long as CCA continues to hire employees at this rate per
hour, they will continue to experience the problems they are currently
experiencing on the floor,” read the memo. “The current problems CCA is
experiencing are a direct result of what ‘they are paying their employees for.’
Unfortunately, it is at ICE’s expense.” Among other issues, the Scene asked CCA
to address the portrayal of Hutto that emerges from both federal officials and
the people who lived there. The company declined to comment on any and all
matters in this story, instead emailing news clips and a U.S. magistrate’s
report of the facility. That report, which came three months after the ACLU filed
its federal lawsuit, depicted a more humane place than other earlier accounts
and noted, “there have been attempts to ‘soften’ the feel of the building.” The
magistrate observed that the staff removed door locks and hung murals on the
walls, “although the building still retains a very institutional feel.” In
August, the ACLU announced a settlement with ICE over the treatment of immigrant
families at the Hutto facility. The settlement called for several common-sense
measures, including installing privacy curtains around toilets in common areas
and letting kids play with toys in their rooms. All 26 children and their
parents who took part in the suit were released into the custody of family
members who are legal residents of the United States. By all accounts, Hutto is
no longer as oppressive as it was when Elsa and her family first arrived from
Honduras. But why didn’t CCA get it right from the start? Or to put it more
bluntly, why did a rich company—one with $388 million in revenues last
quarter—have to be told by the ACLU to cease treating innocent children like
criminals? “The point I’d like to make is that none of these changes were done
voluntarily,” says Hines, the attorney. “When you look at CCA and ICE, the
question is, how would this facility have been if no one found out about it?”
The apathetic treatment of Hutto’s immigrants was hardly an anomaly. CCA also
operates a detention facility in San Diego that drew a separate ACLU lawsuit
last year. In the complaint, the group claims that CCA routinely denied basic
medical care to immigrant detainees with hepatitis, diabetes and other serious
illnesses. One man from Ghana died from heart failure after the center’s staff
allegedly asked him to fill out some paper work—even though he was seen kneeling
on the floor of his cell and complaining of chest pains. At jails and prisons
across the country, inmates routinely die under dire circumstances; some commit
suicide after nurses fail to fill their anti-psychotic prescriptions, others find
themselves on the wrong end of a baton stick. And in fairness, CCA doesn’t have
a monopoly on jailhouse horror stories. For every dark tale of cruelty at CCA,
there is an equal travesty in a county jail or federal penitentiary. The
difference, though, is that CCA can duck responsibility for what happens inside
its walls, whereas a government-run facility can’t. CCA doesn’t have to turn
over the disciplinary file of a disgraced guard or give a press conference when
one of its inmates escapes over the fence. It has the luxury to operate in the
shadows and turn a booming profit without having to explain how it runs the
business. We don’t know a lot about Patrick Perry, a onetime captain for CCA’s
Metro Detention Facility, located on Harding Road in South Nashville. But we do
know that on the morning of Jan. 31, 2008, Perry arrived at the Metro Health
Department to talk about his employer and offer a glimpse into some of its
secret practices. Metro Health officials would later write a memo detailing what
the captain told them. Perry was worried about a troubled inmate named Frank
Horton, who was imprisoned on a drug conviction and had stayed in the same
segregation cell since May 2007. Perry said that CCA’s policy dictates that an
inmate has to leave his cell at least once every three days or else guards need
to remove him by force. But at CCA’s Harding facility, the warden reprimanded
the staff if they followed this policy. That’s because every time they had to
escort an inmate against his will, it raised the facility’s “use of force”
numbers. And that placed the Metro Detention Center in a negative light when CCA
officials evaluated it against its other jails and prisons across the country. At
first blush, the warden’s directive may not seem out of order. If an inmate
doesn’t want to leave his cell, why should the guards care? But Frank Horton was
a special case. As Perry told Metro officials, the 23-year-old inmate seemed
disoriented and was speaking gibberish. At the very least, he needed medical
care. (Metro Health Department officials say they made sure Horton received a
psychiatric screening after their visit with Perry, but say they can’t divulge
any more details due to privacy concerns.) Horton’s mother, Cytherea Braswell,
had tried to visit her son before Christmas but says that a guard couldn’t find
the necessary forms. She later had a lawyer, John Clemmons, drop in to see him
in March, after she learned her son wasn’t well. When Clemmons arrived, a guard
told him that Frank was just fine, that he’d received a shower and a shave. But
when he went to see his client, what he saw troubled him. “He had a big, unkempt
goatee, and some stubble on his face and lint on his hair,” Clemmons says. “He
was completely naked except for a blanket draped around him, and when they
walked me back there, they didn’t act like this was unusual.” Now contemplating
a lawsuit against CCA, Clemmons says that his client went nine months without
taking a shower, which dovetails with Perry’s account of how Horton went the
better part of 2007 without leaving his cell. Even worse, Horton appeared as if
he were completely oblivious to the outside world and lost in his own muddled
thoughts. Brawell says that, as a child, her son was diagnosed with
hyperactivity and mild to moderate bipolar disorder. As a young adult, he worked
at a Waffle House and played basketball with his friends. With the right
treatment, she says, he could live a normal life. “He was an average person,”
she says. “He had a job, he went to work every day, he had friends. He knew how
to take care of himself.” But when Clemmons went to visit Braswell’s son, he was
talking in the same mysterious language that Perry described in his visit with
Metro officials. It was an odd blend of broken Spanish and English, and Horton
spoke it as if it were his native tongue, repeating the same incoherent phrases
to identical questions. “When I saw him, he was in a state where he had no
awareness of his mental capacity,” Clemmons says. With the help of the Metro
Legal Department and the Davidson County Sheriff’s office, Clemmons was able to
transfer Horton to a state facility for inmates with special needs. Now in the
process of researching his case, Clemmons isn’t sure what kind of, if any,
mental health treatment his client received behind bars. For that, he may
subpoena Patrick Perry to discover whether the CCA facility risked Horton’s
health to polish its internal data. “When I was there, the only medical staff I
saw was a nurse who merely walked from window to window and looked at the
inmates through a slot in the door,” he says. “It just looked like all they were
concerned with was that their physical well-being was intact.” In his meeting
with Metro Health officials, Patrick Perry also said that an alarm for inmates to
trigger in the event of an emergency wasn’t working. He added that CCA knew the
call system was a problem “but did nothing about it.” The former captain may find
himself testifying about that observation as well. Two weeks before Perry came
forward, Gerald Townsend, a 36-year-old inmate at the Harding facility who loved
scary movies, died at Vanderbilt University Medical Center after being diagnosed
with internal bleeding. His spleen was ripped open and blood had flooded his
lungs. In his final hours, Townsend told a nurse that Ronnie Sullivan, his
22-year-old cellmate, assaulted him. Metro police later charged Sullivan with
Townsend’s murder. Attorney Blair Durham is representing Townsend’s mother,
Jackie, who plans to file a suit against CCA this week. Durham says he’s learned
that inmates were banging on their cells as Sullivan began to assault his
cellmate. But no one rushed to help. Durham also heard that the alarm, which
could have saved Townsend’s life, wasn’t working. A month after Townsend’s
death, an inmate fled the same jail through an air vent. At first, the company
announced that the man, who had a history of escape attempts, was simply hiding
inside the grounds. A day or so later, when the Scene called to see if he had
been found, the company refused to comment. Earlier this year, after CCA endured
a series of PR nightmares at the Metro Detention Center during which the company
largely ducked interviews with the media, the private jailer reassigned the
facility’s warden, Brian Gardner. For the Davidson County Sheriff’s office, which
contracts with CCA to run the Harding jail, the company needed to reevaluate its
management of the facility. “We are satisfied that CCA has responded with a
policy change as well as the fact that they have changed their management since
these incidents have occurred,” says Karla Wiekal, the sheriff’s spokesperson.
“At some point, (CCA) recognized there needed to be a leadership change and at
this point forward we will see if these changes are effective.” In June 2007,
President George Bush nominated CCA corporate counsel Gus Puryear to a federal
seat in the U.S. District Court of Middle Tennessee. Initially viewed as a safe
bet to receive a lifetime appointment, Puryear faltered badly in his hearing
before the Senate Judiciary Committee in February, appearing to some as arrogant
and unprepared. The 39-year-old nominee, who twice served as debate coach for
Vice President Dick Cheney, struggled in particular to explain how his company
handled the brutal 2004 death of Nashville inmate Estelle Richardson, at one
point wrongly stating that the guards initially charged in connection with her
murder were “exonerated.” Now Puryear’s bid has turned into an unofficial
referendum on CCA, and it appears unlikely that the Senate will confirm him
before the end of Bush’s presidency. It’s been that kind of year for the private
jailer. Puryear’s struggles, playing out awkwardly on a big stage, make up just
the latest bout of bad publicity for the Nashville company, which has also been
battered in the national press. In February, The New Yorker reported the definitive
story about the company’s Hutto facility in Texas. The magazine detailed how
immigrant families shared a tiny cell with a bunk bed, thin mattress and an
exposed toilet, while ill-trained guards rounded them up seven times a day for a
head count. Then in March, Time.com detailed the accusations of a former
high-ranking CCA official who claimed that the company repeatedly misled state
and local authorities about the rate of violent incidents at the prisons and
jails it had under contract. In May, The New York Times chronicled how an ailing
detainee was treated at a CCA facility in New Jersey just before he lapsed into
a coma and died. The paper uncovered records that show that the man, a
52-year-old tailor from Guinea who overstayed a tourist visa, was “shackled and
pinned to the floor of the medical unit.” He vomited and moaned and then was
dumped in a disciplinary cell for 13 hours, even though he was foaming at the
mouth. Operating 65 facilities in the country with more than 70,000 inmates and
detainees in its custody, CCA will never have a perfect record. But what may say
more about the company anchoring a Green Hills office park is not the middle-aged
detainee who died of a heart failure or the sinister warden who struck an
inmate, but the 9-year-old boy who was forced to live like a common criminal.
Kevin Yourdkhani, whose parents fled from torture in their native Iran, wound up
at CCA’s Hutto facility on Feb. 9, 2007. There, he shared a small cell with his
mother and had to climb a tall ladder to get to his bunk bed. He slept right
next to an open toilet that smelled. The boy also complained about the food—he
called it “garbage”—saying that all he was ever fed were beans. “We are lucky if
we get 30 minute to eat,” he said an affidavit for the ACLU’s lawsuit against the
place. “It is usually 20 minutes, and they are always rushing.” In his pod, a
small living area that he shared with other detainees, the children were always
sick. Lots of kids had eye infections. Kevin attended school but rarely learned
anything. All he did was watch “Spanish movies” and color and draw pictures. One
day his father, who was being kept at another part of the facility, came to
visit Kevin. That infuriated a guard, who told Kevin that he would be placed in
foster care if his dad ever dropped by to see him again. “I cried and cried so
much that I lost my energy and went to sleep.”
June 17, 2008 AlterNet
Gustavus "Gus" Puryear, head legal honcho for the nation's largest private
prison company, Corrections Corporation of America (CCA), isn't the kind of guy
who's accustomed to sitting in the hot seat, much less showing visible signs of
discomfort. The kind of discomfort, say, that Puryear might have felt when he
heard that up to $35,000 in cash reward money had been announced for information
leading to the conviction of Estelle Richardson's murderer(s). Ten thousand
dollars will go to anyone who can recover "missing" cell extraction video
footage from within the CCA-operated Nashville prison where Estelle was found
dead in her solitary confinement cell. The cash reward announcement came a
couple of weeks after AlterNet ran the two-part investigative feature I wrote
about the Estelle Richardson, and what any of the events surrounding her life
and death has to do with Puryear's bid for federal judgeship. This money's quite
real, and the offer is quite legitimate, although the actual donor has chosen to
remain anonymous. Check it out for yourself at WhoKilledEstelle.org. The
grassroots organizing front has picked up steam, as well, especially after Amy
Goodman took interest in the story and brought me on Democracy Now! to discuss
some of the particulars. Many readers and viewers have followed up by going to
AgainstPuryear.org, run by a man named Alex Friedmann. [T]he judicial nomination
of CCA general counsel Gus Puryear is largely in the toilet," Friedmann wrote to
me in a recent e-mail, referring to an article from The Tennessean. Wow. When
President Bush nominated him to a lifetime federal judicial appointment last
year, it seemed to most people paying attention that he'd be confirmed without
much fanfare or fuss. Puryear had always been a staunch GOP loyalist, but he
wasn't the kind to rock the boat with public, proclamations about controversial
issues. Instead, he proved himself to be the behind-the-scenes guy; the kind of
guy, for example, who got a kick out of prepping Dick Cheney for the 2000 and
2004 vice-presidential debates. By the time he was nominated for the U.S.
District Court judgeship. Puryear also proved himself to be a relentlessly
corporate litigator whose loyalty to CCA's bottom line had been (and still is)
handsomely rewarded. If it weren't for the fact that CCA brought in a corporate
commando in 2001 by the name of John Ferguson (and that Ferguson decided to
bring Puryear in to create a new, formidable legal fortress), CCA's
scandal-ridden, stock-price-tanking, shareholder-suing mess would have surely
have brought the entire company crashing to the ground. (Yes, CCA scandals are
now more prevalent than ever, but so are the number people cycling in and out of
prison. Where federal and state governments have run out of options, CCA and
other prison privatizers have made in their business to make themselves
indispensable.) With a net worth of $13 million (and climbing), the 39-yr-old
Puryear didn't just show up with an old-money pedigree and a seemingly
skeleton-free closet; he was able to turn it up a few notches as a quick-witted,
nattily-attired, blue-eyed whippersnapper eager to play his part to freshen up a
stale party image. And what better way to do so than to slip on a nice, roomy
judge's robe and decide on the fate of people's lives? He was riding in the
slipstream of the most reprehensible driver of the American prison machine,
Sure, he hit a few small speed bumps along the way, and Estelle Richardson was
one of those. I'm grateful that Friedmann wasn't willing to let her memory fade
away. "But the fight isn't over yet," he cautions. "Puryear can still be
confirmed anytime from now until January 2009. Since his nomination is presently
on the ropes, it's time for a knock-out blow. If you or your organization
haven't already done so, now is the time to contact the Senate Judiciary
Committee and object to Puryear's pending nomination. I'll second that.
www.againstpuryear.org. Estelle, I hope that you can rest in peace.
June 13, 2008 Tennessean
A year ago today, Gustavus "Gus" Puryear IV was nominated for a federal
judgeship in Nashville and appeared headed to an easy confirmation. Now
Puryear's confirmation seems unlikely. In addition to questions raised about his
qualifications and actions as general counsel for Corrections Corporation of
America, Puryear's fate is now caught in intense election-year battles between
Republicans and Democrats in the Senate over lifetime judicial appointments.
Senate Democrats are looking to approve as few of Republican President Bush's
appointments as they can before his term expires, hoping Democratic Sen. Barack
Obama of Illinois wins the presidency. Republicans did the same during the final
months of the Democratic Clinton administration. Sen. Joe Biden, D-Del., a
longtime member of the Senate Judiciary Committee, which vets nominees, said at
a committee hearing Thursday that this practice is simply the "fact of the
matter." "It is legitimate," Biden said. "These are lifetime appointments."
Judiciary Committee Chairman Pat Leahy, D-Vt., said at the end of the hearing,
which included approval of three judicial nominees, that no more judges would be
confirmed unless there is agreement among him and ranking committee Republican
Arlen Specter of Pennsylvania and the Democratic and Republican leaders of the
Senate. Even Tennessee's two Republican senators, who signed off on Puryear's
nomination, acknowledge his confirmation is in trouble. "Gus Puryear is a
qualified nominee who deserves an up-or-down vote in the Senate, and we're
continuing to pursue every option to that end," Sen. Bob Corker said in a
written statement. "The current atmosphere in the Senate makes his confirmation
more difficult — not impossible, just increasingly more difficult as we approach
the fall elections." Sen. Lamar Alexander said he was still hopeful. "But the
Democrats have slowed confirmation of President Bush's nominees to a ridiculous
extent," Alexander said in a recent interview. CCA spokesman Steve Owen,
responding to a request for Puryear to comment, said the company has "no way of
knowing what the outcome of the confirmation process will be. We continue to
believe that Mr. Puryear would make an excellent federal judge. He has served
the company admirably and with great integrity as general counsel." The
Judiciary Committee held a hearing on Puryear's nomination in February but has
not scheduled a vote on whether to send his name to the full Senate for a vote.
Reasons cited by opponents as to why Puryear should not be confirmed include: a
lack of trial and judicial experience, his role as chief lawyer for the
country's largest private prison company, and the company's handling of the 2004
death of Estelle Richardson while she was in the Metro Detention Facility in
Nashville. Among those opposing Puryear's confirmation are: The Alliance for
Justice, an umbrella group of national civil rights and other organizations,
Private Corrections Institute Inc., which opposes prison privatization and the
American Federation of State, County and Municipal Employees.
May 19, 2008 Press Release
On May 19, 2008, Prison Legal News (PLN), an independent monthly publication
that reports on corrections and criminal justice-related issues, filed suit in
Davidson County Chancery Court against Corrections Corp. of America (CCA), the
nation's largest private prison firm, which is headquartered in Nashville. Last
year PLN's associate editor, Alex Friedmann, submitted a public records request
to CCA under Tennessee's open records law. In 2002 the Tennessee Supreme Court
had ruled that private companies which perform functionally equivalent public
services must comply with public records requests to the same extent as
government agencies. Although CCA performs an equivalent government function by
operating prisons and jails through contracts that are funded with taxpayer
dollars, the company refused to produce the requested records. CCA claimed it
was not subject to the state's public records law despite the Tennessee Supreme
Court's clear ruling to the contrary. PLN had requested records related to
successful litigation against CCA, as well as "reports, audits, investigations
or other similar documents which found ... that CCA did not comply with one or
more terms of its contracts" with government agencies. The lawsuit filed by PLN
is to ensure that records maintained by CCA as a private prison contractor are
available to the public to the same extent as from government agencies, in order
to ensure accountability and public oversight of CCA's prison and jail
operations. "Public agencies cannot contract away the public's ability to review
records that otherwise would be publicly accessible under the state's open
records law. The public's right to know is not delegable to private
corporations," said Paul Wright, PLN's editor. In a 2007 news article, Steven
Owen, CCA's Director of Marketing, was quoted as saying prison privatization was
"one of the most transparent industries out there." As CCA has refused to comply
with Tennessee's public records law, PLN's lawsuit will put the company's
self-proclaimed transparency to the test. The case is Friedmann v. CCA, Chancery
Court of Davidson County, Tenn., Case No. 08-1105-I. PLN is represented by Andy
Clarke of the Memphis law firm of Borod and Kramer, PLC.
May 7, 2008 Nashville Post
A series of articles by the New York Times have Washington, D.C. insiders
saying that Gus Puryear should keep his day job. Puryear, executive vice
president and general counsel for Nashville based Corrections Corporation of
America, was nominated by President George W. Bush last year to serve on the
U.S. District Court for Middle Tennessee. Since the nomination, Puryear has been
attacked here and in Washington for everything from his handling of CCA legal
matters, his membership in the Belle Meade Country Club, to his lack of
experience outside of corporate law. While the nomination of Puryear has not
moved due to objections of U.S. Senators Ted Kennedy and Diane Feinstein, he
still has had hope of being confirmed to the bench. Now, a number of
NashvillePost.com sources are saying that hope is even in more jeopardy.
Democratic insiders in Washington contacted by NashvillePost.com say that what
hope Puryear had was effectively killed by a series of articles published this
week by the New York Times. Republican insiders acknowledge that the articles
have made Puryear's bid "more complicated" and there is no momentum to push him
forward at this time. While the articles don't mention Puryear by name, CCA is
sharply criticized for their handling of the death of Boubacar Bah and the
labeling of his inmate file as "proprietary information - not for distribution."
Bah was 52-year-old tailor from Guinea who had overstayed a tourist visa. While
incarcerated, Bah had fallen and hit his head and became incoherent. According
to the NYT, "documents detail how he was treated by guards and government
employees: shackled and pinned to the floor of the medical unit as he moaned and
vomited, then left in a disciplinary cell for more than 13 hours, despite
repeated notations that he was unresponsive and intermittently foaming at the
mouth." He was eventually transported to a hospital, but his family was not
notified of his whereabouts for five days. He died four months later. The Times
also ran an editorial on this matter yesterday.
May 6, 2008 AlterNet
Until very recently, Puryear has enjoyed an easy climb up the political and
corporate ladder. It hasn't hurt that the 39-year-old Republican Party loyalist
has always kept the right company, starting with the day that he was born.
Puryear's paternal lineage is flush with old money tied, in particular, to the
Southern banking industry. (It's a tradition that Puryear has carried on by
joining the board of the Nashville Bank & Trust Company.) Born in Atlanta,
Puryear attended an exclusive Christian private school, Westminster. After high
school graduation in 1986, Puryear received a full academic scholarship to Emory
University, and then to the University of North Carolina School of Law. In 1993,
freshly equipped with his J.D., Puryear landed a plum assignment as law clerk to
Judge Rhesa Hawkins Barksdale, Fifth U.S. District Court of Appeals. (Hawkins
was appointed to the bench in 1990, by President George H.W. Bush.) In an odd
twist of fate, clerking for Judge Barksdale brought Puryear close to the lives
of prisoners, at least insofar as their legal paperwork. In an October 2005
feature in South magazine, "No more get out of jail free," Puryear noted that
one-third of all the cases they dealt with were pro se prisoner cases: "In fact,
when I got out of law school, I was appointed to represent an inmate in a
Section 1983 civil rights action, and we took it to a jury trial," he told
writer Greg Land, adding dryly, "We lost." Land made the apt observation that
Puryear's district court experience was "fitting foreshadowing for the young
lawyer who would eventually make 'no settlements' a key corporate goal at CCA."
That case was to end up as one of only five federal cases Puryear has ever
personally handled as practicing attorney, only two of which went to trial, in
addition to one trial in Tennessee state court in the 1990s. This, despite
Puryear's three years as an associate attorney at Farris, Warfield & Kanaday
(now Stites & Harbison), a law firm to which his grandfather had longstanding
ties. Perhaps Puryear had a sense all along that he was destined to use his
legal mind for a different purpose, say, for the glory of the GOP and the size
of his pocketbook. Puryear made the leap to GOP employment very quickly, serving
as counsel from 1997-1998 for a legal team assembled by former Sen. Fred
Thompson (R-TN), as part of the U.S. Senate Committee on Governmental Affairs.
The Committee was busy investigating a major campaign finance scandal; 22 people
were eventually convicted for fraud or illegally funneling foreign money to the
DNC's federal election coffers. Puryear's work was duly noted. From 1998-2000,
Puryear held the position of legislative director for Republican Senator Bill
Frist, a former state deputy director for the 1992 Bush-Quayle campaign. Frist,
who served in Congress from 1995-2007, was also a Belle Meade Country Club
member, although he (unlike Puryear) had the common sense to resign from the
historically racially segregated organization before heading toward his
political career. Puryear's close friendship with beltway insider and Republican
attorney/lobbyist powerhouse, Philip Perry, also yielded convenient connections
to the Bush administration. When he was asked to help Perry's father-in-law
prepare for high profile, televised debates, Puryear set about filling up the
father-in-law's tricky brain with facts, statistics, zingers, and parrying
tactics. The father-in-law and VP-to-be? Dick Cheney. The occasion? The 2000 and
2004 vice presidential debates. Friends like these can come in handy when it
comes time to search for nominees for a slate of empty federal court benches.
With his connections to Frist, Thompson, Barksdale, Perry, and Cheney in place,
Puryear has also had a knack for knowing when to write the requisite donation
checks to GOP leaders: to date, he's donated at least $13,000 to state and
federal Republican campaign committees since 2001, including $1,000 to Mitt
Romney in 2007. When Puryear donates money, he seems to do so to with a special
patriotic flare: on September 11, 2003, he donated $2,000 to George W. Bush's
re-election campaign to emphasize his loyalty to the War on Terrorism. Puryear
would hardly be the first person appointed to the bench despite overtly partisan
political allegiances and/or paltry legal chops. There's really no question
about either. Puryear's affiliation with the ultra-conservative echelons of the
Republican Party has spanned the course of his entire career, and his
connections in the party clearly run quite deep. Small surprise, then, when Sen.
Frist rose to Puryear's defense in an April 13th opinion piece for The
Tennessean about the mounting opposition to his confirmation. One could almost
hear the tremolo in Frist's voice as he bemoaned his besieged former employee's
plight: "The infusion of political posturing, fed by outside groups, into our
nomination process means that nominees are sometimes subject to unfair attack ….
The toll on nominees and their families cannot be underestimated. The
confirmation process has become so brutal that people who want to serve the
public no longer do so." It's unlikely that Puryear's going to wilt away, no
matter how vocal the opposition. After all, he's still got the right friends,
wealth, and business connections. Most importantly, the people behind him have a
lot at stake. If Puryear were to be confirmed, he would help cement a
GOP/Corrections Corporation of America (CCA) stranglehold in the State of
Tennessee. Most of these ducks are already in a row: both of Tennessee's U.S.
Senate seats are controlled by CCA-supportive politicians, Republican Senators
Lamar Alexander and Bob Corker (both of whom have received tens in thousands in
donations from CCA's PAC, as well as company employees and their spouses), and
former Senator Frist is rumored to be running for governor in the next election
cycle. The House that CCA Built -- It's worth taking an even closer look at the
ties that have made CCA the corporate entity that it is. CCA's press materials
tout the company's expansive network of detention centers (and its subsidiary
prison transport company, TransCor America), as "prison privatization at its
best." The company's top brass have all enjoyed illustrious careers in
high-ranking positions as state legislative aides, lobbyists, and influential
legislators. Some CCA officials held cushy jobs in governor's offices, while
others came to CCA from the Immigration and Naturalization Service (now
Immigration and Customs Enforcement), the U.S. Marshals, or the Federal Bureau
of Prisons. Chuck Kupferer, CCA's Senior Director of Federal Customer Relations
for U.S. Marshals Service and Immigration and Naturalization Service, is a
former L.A. cop who became a chief deputy in New Orleans, and then went onto be
the chief inspector with the CIA's Counter Narcotics Center in Virginia. With
annual earnings and compensation nearing $1.5 million, Richard Seiter is
handsomely compensated as CCA's Chief Corrections Officer and Executive Vice
President. Of all the major CCA figureheads, Seiter's background is the one most
based in corrections. Seiter was formerly the Chief Operating Officer for
Federal Prison Industries (also known as UNICOR, which is in the business of
selling prisoner-made goods and services), as well as the warden of two federal
prisons, and one-time director of the scandal-ridden Ohio Department of
Rehabilitation and Corrections. CCA board members are similarly loaded with
connections to state and federal level offices and agencies, including Donna
Alvarado, former Deputy Assistant Secretary of Defense for the U.S. Department
of Defense. Board member Anthony Grant was the Commissioner of Economic
Community Development for Tennessee, while former Senator Dennis DeConcini
(D-AZ), is perhaps best remembered as one of the Keating Five. (John McCain
(R-AZ) was one of the lesser-implicated figures in the scandal.) These days,
CCA's financial horizon looks quite splendid, even if the conditions in which
the company's "customers" are housed are far from it. With projected 2008
revenue of roughly $390 million, and 4,000-6,000 new beds in development, CCA
can generally report good news back to its shareholders (NASDAQ: CXW) -- as it
is anticipated to do in its May 6th, first-quarterly report. Although CCA is
hardly the only player in the facility operating-and-owning aspect of the
private corrections industry (e.g., GEO and Corrections Corporation), CCA is the
undisputed leader of the pack. To be sure, corrections-related stocks are
generally on the upswing because the demand for incarceration has far
outstripped the ability of city, county, state, and particularly federal
agencies to handle all of those shackled bodies. (Federal agencies already
constitute over 40% of CCA's revenue base.) Between demand and the opportunity
for profit, it's no wonder that private prison companies hold at least seven
percent of the national prison population behind their walls. In a recent
article, "Lock in Some Dollars with Corrections Corporation of America," the
stock advisory site, SeekingAlpha.com, makes no bones about the cold, hard
facts: "Collectively, $44 billion was spent on corrections last year, a 127%
increase over 1987 totals In this same time period, spending on higher education
increased at just 21% -- this is dire news to hear, we know, but we believe
policies aiming to cut the massive amounts of dollars spent on corrections will
take longer than expected. This means jail stocks will still be good investments
over the next couple of years The demographics at play suggest more crime is on
its way, and no one's better positioned than CXW." Never mind that overall crime
rates haven't, actually, been going up, especially when it comes to serious
and/or violent criminal offenses. Because CCA can't bank on actual crime
statistics, they must rely to some extent on the culture of fear that feeds the
American prison machine. When the Institute on Money in State Politics studied
the 2002 and 2004 election cycles, they found that private prison companies,
directors, executives and lobbyists gave no less than $3.3 million to candidates
and state political parties across 44 states. In general, CCA and other private
prison companies have favored giving money to states with the toughest
sentencing laws, because those are the states that are most likely to generate
the bodies for empty jail and prison beds. Those states are also the ones most
likely to have passed "two-strikes" or "three-strikes" laws -- including CCA's
home turf, Tennessee. And those laws, in turn, are based on cookie-cutter
legislation pushed by the American Legislative Exchange Council (ALEC), whose
corporate and "Criminal Justice and Homeland Security Task Force" members have
come from the ranks of CCA and other private prison companies. It's a twisted
game of prison-and-politics, and CCA certainly knows how to play it. According
to disclosures filed with the Senate's public records office, CCA spent nearly
$2.5 million in 2007 (down from 3.4 million in 2005) to lobby Congress and
federal agencies, including the Department of Homeland Security, the Department
of Justice, and the Bureau of Indian Affairs. In particular, CCA sought to build
support for immigration "reform" policies that would yield more arrests and
deportations, and to build opposition against the Public Safety Act, which would
outlaw private prisons, as well as the Private Prison Information Act, which
would force private prisons to make public the same information that
government-run detention facilities must provide. In the meantime, CCA's PAC
money keeps flowing, as well: in the past four months alone, the PAC has spent
nearly $200,000, including $52,500 to federal candidates, of whom 80% are
Republican. But when Puryear was brought on board in 2001, CCA was saddled with
debt, and company stock was in a tailspin. Puryear was hand picked by CCA
President and Chief Executive Officer John Ferguson. Ferguson was determined to
set the company on the right track. The former Commissioner of Finance for
Tennessee, Ferguson was obviously up to the challenge -- actually, he exceeded
expectations by leaps and bounds. Small wonder that his resulting financial
reward has been of enormous magnitude. In FY 2007, Ferguson earned over $2.8
million in cash compensation, and holds over $28.5 million in unexercised
stocks, by today's market value. Puryear's position in the company therefore
became one of utmost importance. His no-nonsense, "no-settlements" approach is
still the right fit for a company besieged by lawsuits and scandals. As it was
true then, it is now: CCA must do everything it can to prevent cases from going
to trial because the accompanying press almost always negatively impacts stock
prices, and jeopardizes the renewal or acquisition of local, state, and federal
contracts. To keep shareholders (and company executives) happy, CCA needed to
avoid coughing up too much money to settle even a small percentage of the
hundreds of lawsuits biting at the heels of company at any given time. (In the
interview with South magazine, Puryear offered that the number of claims and
lawsuits facing CCA on any given day range from 700-1,000.) In another interview
with Corporate Legal Times in 2004, Puryear quipped thusly: "Litigation is an
outlet for inmates ... it's something they can do in their spare time."
Richardson, of course, had none of that spare time to speak of. But Puryear
seemed to have handled her case, as most others, with the kind of diplomatic
finesse upon which his reputation has been built. Unlikely Friends and Foes --
In the scope of things, Estelle Richardson's murder was hardly the biggest
lawsuit or scandal that CCA ever faced. Indeed, if the Senate Judiciary
Committee members had wanted to spotlight larger-scale scandals that took place
during Puryear's tenure, they could have pointed to one of the biggest prison
riots in recent memory, at the CCA-operated Crowley County Correctional Facility
in Olney Springs, Colorado. On July 20, 2004, just days after a mass interstate
of nearly 200 prisoners from Washington State, and despite numerous signs of
impending trouble (including lack of food and grossly inadequate medical
staffing), prisoners staged a full-scale riot that brought the facility to its
knees. In the ensuing hours, all of the prison's living units but one were taken
over, burned, and destroyed. Unbelievably, there were only 33 uniformed guards
on duty when the riot broke out, although the prison population stood at 1,122
inmates. Most of the staff fled their stations, as a post-riot incident report
revealed, while those that stayed were waiting on word from CCA headquarters.
Ill-trained in emergency containment and medical response, munitions and
chemical weapons usage, the prison was nearly burned to the ground by the time
that the outside law enforcement agencies moved in to stop the situation from
escalating even further. All totaled, 13 staff and prisoners were assaulted, not
including the hundreds of prisoners who were gassed, beaten, shot, and made to
lie in excrement in the post-riot "containment" situation. Those prisoners
injured and abused post-riot, who had not participated in the violence and havoc
to begin with, sued CCA in 2005 and 2006. According to a Trial Lawyers for
Public Justice press release, "the punishment of bystanders included forcing
tightly bound inmates to urinate and defecate in their own clothing; dragging
handcuffed inmates from their cells face down through water filled with glass
shards, blood, and raw sewage; shooting inmates who were lying down, or sitting
or walking with their hands up; using tear gas on plaintiffs who were locked in
their cells or were prone at gunpoint, waiting to be cuffed; withholding
drinking water and medications; denying shower privileges and clean clothes for
more than a week; and forcing inmates to strip and parade naked in front of
female guards who snapped pictures and videotaped inmates bathing without a
shower curtain." These extreme, Abu Ghraib-like circumstances, testified to by
hundreds of prisoners, were not enough to gain remedy, something that Puryear's
legal team would have had a hand in. The U.S. District Court of Appeals
dismissed the complaint for "failure to exhaust administrative remedies," a
common ruling in federal courts after the passage of the Prison Litigation
Reform Act. The Senate Judiciary Committee could also have taken a look at
conditions at the CCA-run T. Don Hutto detention center in Taylor, Texas, where
immigrant adults and children are imprisoned in a medium-security correctional
setting, and how the company's legal department worked with the Department of
Homeland Security (DHS) Immigration and Customs Enforcement (ICE) to mitigate
the damage brought about by a (now settled) ACLU lawsuit on behalf of the
detainees. Also of concern could have been how CCA's legal team dealt with the
knowledge that one of their own guards, who raped a female detainee at that
facility, went without prosecution despite ample evidence of the crime.
Puryear's nomination is opposed by a wide variety of organizations, including
the National Lawyers Guild, AFSCME, Alliance for Justice, People for the
American Way, and the Private Corrections Institute (PCI). In March, Women's
Equal Rights Legal Defense and Education Fund president Gloria Allred issued her
own a statement against Puryear's confirmation, after it was revealed that he is
a resident member of the Belle Meade Country Club. Puryear's nomination is
supported, on the other hand, by the likes of Frist, Thompson, Corker and
Alexander, as well as Thurgood Marshall, Jr., something touted by his allies as
evidence of Puryear's non-racism. All of that would sound good indeed, were it
not for the fact that Marshall, Jr., is actually on the board of CCA. Why would
the Senate Judiciary Committee focus on Richardson's case, then? The answer
comes down to two words: Alex Friedmann. The organizer of the grassroots effort
to derail Puryear's nomination for the U.S. District Court, Tennesseans Against
Puryear, Friedmann is also a former CCA prisoner, a bonafide genius of a
jailhouse lawyer, and vice president of PCI. Friedmann speaks with a steady
pace, in a nearly expressionless monotone, but the words he chooses are
carefully placed and to the point: "People should be concerned about this
nomination as a matter of justice," he explains. "We shouldn't make the mistake
and think that U.S. District Court nominations are not something to be worked up
about. In fact, these judges are among the most powerful in the country. They
make serious, precedent-setting, and life-and-death decisions on a regular
basis." It was because of his efforts that the Senate Judiciary Committee first
came across information about Richardson's case, and it was primarily because of
his efforts that Puryear's relative lack of experience as a trial lawyer in any
court system caught the committee's notice. (And then there is that pesky bit
about Puryear's membership in the Belle Meade Country Club; Puryear can thank
Friedmann for that, as well.) Because of Friedmann's efforts, much of the
opposition to Puryear's appointment has centered on the question of whether the
top corporate lawyer could possibly be impartial enough to serve as a U.S.
District Court judge in the same district where CCA headquarters are located.
Hundreds of lawsuits related to CCA have been filed in that court, but Puryear
insists that this would not be a problem: he has promised, in advance, that he
would recuse himself from any such lawsuits for a period of five years.
Friedmann says that he didn't actually set out to highlight Richardson's case,
because he didn't anticipate that the committee members would even bring their
attention to it. Moreover, he didn't anticipate that Puryear would so blatantly
downplay the very fact and circumstances related to Richardson's murder. Nor did
he expect that the committee would fire off a series of challenges to Puryear's
February testimony, or that Puryear would rally his defense troops in such a way
that one of the primary attorneys who sued CCA on behalf of Richardson's family
would wind up on his side. After it became evident that Puryear's original
testimony before the Senate Judiciary Committee hadn't gone particularly well, a
series of behind-the-scene moves appear to have been set into motion. That
process seems to have accelerated after Dr. Bruce Levy, Chief Medical Examiner
for the State of Tennessee, got wind of Puryear's assertions. Dr. Levy took
particular exception to Puryear's suggestion that Richardson's broken ribs were
quite possibly the result of CPR, and that it was also quite possible that she
hadn't been murdered, after all. Because Dr. Levy had personally conducted the
autopsy on Richardson, he took it upon himself to fire off an unusually
opinionated letter. "The committee should be very concerned about a nominee for
federal judge who is less than truthful when answering questions from the
[committee]," he wrote on February 21, 2008, emphasizing that there was no
question that Richardson had, indeed, been brutally beaten while still alive --
and that her injuries led directly to her death. Then, in quick succession,
these events transpired: On February 22, David Randolph Smith, lawyer for the
Richardson family and Joseph Welborn, representing CCA, files a joint motion in
U.S. District Court (Middle District of Tennessee) to unseal the transcript of
the settlement hearing re: Richardson's minor children. The attorneys argue that
the transcript would not violate the confidentiality component of the agreement
because that portion didn't contain the actual terms of the settlement (or the
monetary amount). Judge Campbell grants the motion, although none of the
Richardson family members are notified that the action is taking place; That
transcript, however, did make clear the actual dollar amount of CCA's gross
settlement: $2 million dollars, of which one-quarter went to various plaintiffs'
attorneys. Of that $500,000, Richardson family attorney Smith received $192,000;
On February 25, Smith, freed from certain confidentiality concerns, sends an
unexpected letter of support for Puryear to the Senate Judiciary Committee. In
the letter, he agrees that Richardson could have died for any number of reasons
and that her death was not necessarily a murder at all; On February 26, James
Sanders, a Tennessee attorney with Neal & Harwell, issues a three-page letter of
support, praising Puryear's skills and talents. Also freed from confidentiality
concerns, Sanders, who helped to represent CCA in the Richardson case, addresses
her death specifically: "I can tell you that the facts, particularly the medical
evidence, showed conclusively that Ms. Richardson's death was not caused by
correctional officers extracting Ms. Richardson from a cell in short, there is
no credible evidence to support Dr. Levy's homicide conclusion, other than the
head injury and the death itself." Ah, yes, just those bothersome little
details. The head injury and the death itself. In his written response to the
Senate Judiciary Committee in March, Puryear tried to show his sympathetic side:
"I regret that this uncertainty leaves a cloud over CCA; however, I know that
the far greater tragedy is that the children of Estelle Richardson will likely
never know exactly why their mother died." But if Richardson herself could speak
from her grave, she would be likely to say that the far greater tragedy is this:
That a man like Puryear would have the sheer audacity to try to sweep her murder
under the rug, yet again. Silja J.A. Talvi is an investigative journalist and
the author of Women Behind Bars: The Crisis of Women in the U.S. Prison System
(Seal Press: 2007). Her work has already appeared in many book anthologies,
including It's So You (Seal Press, 2007), Prison Nation (Routledge: 2005),
Prison Profiteers (The New Press: 2008), and Body Outlaws (Seal Press: 2004).
She is a senior editor at In These Times.
May 5, 2008 AlterNet
It's hard to say what Estelle Ann Richardson would have thought if she had would
have the chance to meet the man who authorized a hefty settlement check for her
children. Maybe she would have noticed that he moved in the world like someone
who was used to things going his way, that he had a lot of money, or that he
looked a lot younger and more relaxed than most of his corporate peers. It's
hard to say, because she never had the chance to be introduced to the
harmless-enough looking man possessed of a rather ostentatious name: Gustavus
Adolphus Puryear IV. The 39-year-old lawyer, awaiting a lifetime appointment as
a judge in U.S. District Court, prefers to be called "Gus." By all accounts, Gus
is a charismatic, outgoing guy who likes to spend time with his family. He
volunteers as a Deacon in the Presbyterian Church, and serves as a board member
of The Exchange Club of Nashville, where one of his responsibilities is to
organize the annual Antiques and Garden Show. From a corporate standpoint,
Puryear has excelled in his job as general counsel for Corrections Corporation
of America (CCA), the nation's largest and most influential private prison
company. Under his direction, CCA's in-house attorneys work with a stable of
contracted law firms to handle corporate legal matters of all kinds, not the
least of which are the hundreds of claims and lawsuits filed against the company
at any given time. A smart, enthusiastic GOP stalwart, Puryear is the kind of
guy the party wants around. It doesn't hurt that he's also very, very rich:
between his bank account, assets, and unexercised CCA shares, he's worth about
$13 million, give or take a few thousand. On the other hand, Richardson, a
low-income, African American mother of two, moved through a world quite removed
from that of the upper-echelon neighborhoods, schools, and workplaces that
afford Puryear his comfort zone. It's unlikely that the two would have ever met
under even the most random of circumstances. The exclusive, members-only Belle
Meade Country Club to which Puryear belongs, for instance, wouldn't have been
the kind of place Richardson would have set foot in, particularly considering
that African Americans weren't even allowed to join until 1994. (To this day,
the only Black member lives out-of-state. To boot, none of the women who have
been admitted to the club, called "lady members," hold voting privileges.) Belle
Meade country clubbers probably raised a glass to toast Puryear when President
Bush nominated him to sit on the federal bench in the Middle District of
Tennessee. Yet, instead of breezing through what should have been an easy,
perfunctory hearing before the Senate Judiciary Committee this past February,
Puryear was confronted with a series of uncomfortable questions about his legal
and professional qualifications for the bench. Nothing about Puryear's
hobnobbing, rapid ascent to the status of a GOP darling suggested emergence of
an ad-hoc, grassroots movement to derail his nomination, much less the
methodical persistence of a former CCA prisoner-turned-jailhouse lawyer hell
bent on exposing the judicial candidate's affiliations, biases, and lack of
courtroom experience. What Richardson's story has to do with all of this isn't
obvious on the face of it, but the connection between the two has bubbled to the
surface amidst a strange series of post-nomination twists and turns that no one,
including Puryear, could have seen coming. A mysterious homicide -- On July 5,
2004, Richardson's lifeless, 34-year-old body was found slumped on the floor of
an isolation cell in a Corrections Corporation of America (CCA)-operated
detention facility in Nashville, Tennessee. An autopsy revealed that she died as
a result of massive blunt force injuries to the head, resulting in a cracked
skull. Richardson also had four broken ribs and serious internal organ injuries.
Dr. Bruce Levy, Tennessee's chief medical examiner, ruled that Richardson's
death was homicide. His autopsy revealed a set of injuries that were consistent
with a "deceleration injury," meaning that her head and body slammed
simultaneously toward a hard surface, such as a wall or a floor. In an interview
with The Tennessean in September 2004, Dr. Levy emphasized that Richardson's
injuries could not have been the result of a fall or suicide. Richardson, as he
pointed out, was in a highly restricted segregation unit, allowed no freedom of
movement outside of her small, one-woman cell, much less contact with other
prisoners. "It's a restricted area," he said. "There's a limit to what you can
do. If she had fallen from a high window or if she had been hit by a car, I
would expect to see these types of injuries." Richardson was murdered in the
notoriously overcrowded and understaffed CCA-run Metro Detention Facility (MDF).
Previously known as the Metro Davis County Detention Facility, MDF serves as a
multipurpose role as a pre-trial detention facility, a jail for misdemeanant
offenders and, under $17 million annual contract with the Tennessee Department
of Corrections (TDOC), a medium-security prison for convicted felons serving
one-to-six year sentences. Overseeing the entire operation is Sheriff Daron
Hall, a former prison administrator for a CCA-run prison in Brisbane, Australia.
While Richardson was locked up at MDF, the prison still held men and women alike
in grossly overcrowded conditions. (A few months after her death, women were
moved into a separate facility.) Two years before Richardson's death, a 12-year
period of federal court supervision related to overcrowding had finally been
lifted, but it would have been hard for anyone to argue that conditions had
improved to any meaningful extent. Operated by CCA since 1992, MDF was designed
to accommodate fewer than 900 people. MDF's population now surpasses 1,300
inmates. Chronic overcrowding and understaffing in private or public detention
facilities has inevitable consequences, ranging from the spread of contagious
diseases to an increase in sexual and physical violence. At MDF, in just a
three-and-a-half year period (2000-2004), ten prisoners died in custody. Eight
of those were deemed "natural" deaths, although specific details on these kinds
of incidents are difficult to suss out, especially because the TDOC does not
collect any incident reports or statistics from MDF. The state prison system
uses the strange rationale that these inmates are housed in a county jail run by
an outside contractor, and therefore not subject to the same kind of reporting
requirements. With 70,000 juveniles and adults in its custody in 65 detention
facilities nationwide, CCA contracts with all three federal corrections
agencies, nearly half of all states, and more than a dozen municipalities.
Representing the fifth-largest prison system in the country, CCA is the nation's
largest private prison corporation and, as such, the publicly traded company is
directly accountable to its shareholders, not to taxpaying citizens. Although
the company is expected to comply with federal and state laws and provide
contract-specific reports to governmental agencies, there can be long delays
before an agency (much less the public) receives word of in-detention suicides,
violence, disease epidemics, employee sexual harassment complaints -- even
prison escapes and riots. In March, a former CCA employee, Ronald Jones, went
public with his assertion that Puryear directly told him and other staff in the
quality assurance department to create two audit reports relating to serious
incidents at their detention facilities-such as riots, escapes, and "unnatural"
deaths. According to Jones, one of the audit reports was intended for clients,
board members, and shareholders, while the other was kept secret as an internal
company document. CCA responded by calling his assertions inaccurate and those
of an employee bent on retaliation for a pending termination: "If our interest
was in under-reporting or not finding quality issues, we simply would not have
created this department or its programs in the first place," CCA spokesperson
Louise Grant told The Tennessean. Richardson's death occurred in 2004, one year
before Puryear subsumed quality assurance under the legal department and
instituted the policy. As such, Richardson's murder might have generated little
media interest were it not for the fact that she died during three weeks in
solitary confinement, and was allowed out of her cell only one hour a day for
either closely supervised "recreation" time or a brief opportunity to bathe in a
caged shower under guard supervision. In search of a better life -- In 1999,
Richardson headed down to Tennessee with her young children in tow. Diane Buie,
her older sister, says that Richardson had grown tired of stagnating in her
hometown. Although she had skills as both a medical technician and an interior
decorator, Richardson was struggling financially, working a dead-end job as a
telemarketer. She had decided to go after the necessary training to become a
surgical assistant, Buie explained, because she wanted to provide a better life
for her children. The interstate move in 1999 didn't prove to be a fortuitous
one. Richardson missed her sister and mother back home, and she was having real
trouble making ends meet. Somewhere along the way, Richardson fell in with a
crowd of small-scale hustlers who sold prescription drugs on the black market.
At first, she helped out with obtaining the drugs sold to habitual pill poppers.
Later, she started to sample the goods, and developed a habit of her own,
resulting in a March 2002 arrest when she tried to acquire painkillers with a
forged prescription. Her children were with her at the pharmacy, and so in
addition to charges of illegal drug possession, forgery, and theft, the D.A.'s
office added a charge of attempted child neglect. Richardson pled guilty in
September 2002, and was handed a suspended six-year sentence, as long as she
complied with the terms of her parole. Like so many others struggling in the
grip of both addiction and poverty, Richardson tried to hold everything together
for a while, but eventually fell back into drug use. In November 2003, she
failed urine analysis by testing positive for marijuana and cocaine; her
probation officer issued an arrest warrant when Richardson didn't turn herself
in. Busted for food stamp fraud in March 2004, Richardson was sent to MDF as a
pre-trial detainee. It wasn't until April 23, 2004, that a judge decided to
revoke her probation and sentence her to a two-year prison term. Buie was in
regular contact with her younger sister by phone. She says that they were able
to keep each other strong by focusing on Richardson's post-release plan of
returning to Michigan to be reunited with her children, who had since moved back
to Lansing. "I was going to help her find a nice place and buy new furniture for
her," Buie explains. It was going to be the end of a bad chapter in Richardson's
life, and the beginning of a new day. Unbeknownst to Buie, Richardson hadn't
been at MDF for long before CCA staff identified her as a "special needs"
inmate. According to information that CCA shared with the press after a $60
million lawsuit was filed on behalf of Richardson's minor children, Richardson
had gotten into three fights since she had been imprisoned, and that she
required psychotropic medication. To be more specific, CCA noted that she had
been classified "mentally deficient and psychologically impaired," something
that the company's legal defense team, directed by Puryear, would later make a
point of great emphasis. While CCA spokespersons seemed to have no problem
letting out the information about Richardson's special classification and her
need for medication, they claimed the imperative to protect the confidentiality
of medical records as the reason why they couldn't provide more detail about
what kind of care Richardson actually received and when, if at all, a mental
disorder had been diagnosed. Whether Richardson was actually mentally ill or
"deficient" cannot be conclusively established. Some family members seemed eager
to allow the lawsuit against CCA to highlight this alleged mental deficiency as
an indication of her vulnerability. Buie and her mother, Estella, reject it
altogether, and see it as yet another attempt by CCA to point the finger at
Richardson's allegedly erratic behavior instead of the violence inflicted by
their prison guards. To boot, Richardson's probation officer said that she had
never seen evidence of any kind of mental deficiency. On the other hand, it is
quite possible that Richardson had developed psychological problems that weren't
as obvious until she got to prison. Understandably, the experience of being
separated from her children, trying to recover from drug addiction without any
kind of treatment incarceration, and being in prison for the first time in her
life, would compromise her mental health. Whatever the underlying factors, CCA
staff made the decision to put her in a segregated, "lockdown" area of the
prison reserved for the ill-defined "special needs" population, and/or for those
who had been deemed too disruptive for the general population. The last days --
What we are able to piece together about these last few weeks of Richardson's
life are the products of a police and prosecutor's investigation, copies of MDF/CCA
prison logs in evidence, the public statements of one prison guard, in-detention
videotape of physically violent encounters, and sworn affidavits from four women
who were also locked up in administrative segregation. Together, they point
toward a brutal end to Richardson's life. As the plaintiffs in Vilella v. CCA
asserted: "CCA employees routinely and systematically unconstitutionally used
excessive force and caused injuries to Estelle Richardson." Most significantly,
the evidence gathered by the plaintiff's investigation reveal circumstances
leading to her death radically different from the explanations that Puryear has
tried to put forth: On April 26, 2004, a CCA guard pepper-sprayed Richardson
while she was in the "shower cage" of the segregation unit, something captured
by the automatic video cameras mounted throughout the unit, according to the
lawsuit. (Buie attests to the existence of the videotape, which was entered into
evidence and cited in the lawsuit. She still possesses transcripts of this and
later altercations.) The lead attorney for the plaintiffs, David Randolph Smith,
notes in the Second Amended Complaint to Vilella v. CCA that Richardson that had
been pepper-sprayed for not "putting on her pants following the shower quickly
enough to suit the officer." Richardson was then cuffed and placed in leg irons,
placed face down on the floor. During the incident, one or more officers put
their body weight on Richardson's back. On or about June 27th, 2004, guards
notified medical personnel that Richardson had "blood on her head." The nurse
who examined her in the early morning hours of June 28th noted that Richardson
had "blood oozing from [left] ear," gave her Tylenol, and made an urgent
doctor's referral for an appointment later that day. There is no record she was
subsequently seen by a physician. On June 29th, 2004, CCA Captain Hambrick
recorded Richardson's pleas for medical attention in the unit log: "Can you get
the nurse down here? I am hurting, and if you don't get the nurse down here I am
going to die." Other prisoners in the isolation unit later attested to
Richardson's attempts to stop constant, untreated ear bleeding with sanitary
napkins or tampons. Hambrick reported that she notified medical personnel. There
is no record of a follow-up examination by a nurse or physician. According to
the complaint, these observed injuries were "the result of the use of excessive
force by [unidentified CCA guards]," and that a physician's order on July 2 was
ignored. When CCA was asked to validate whether Richardson was seen (or not),
the company cited the need to protect medical confidentiality. On July 2nd,
2004, four prisoners in the segregation unit offered similar accounts of another
incident in Shower Cage 3. According to their affidavits, CCA guard Shirley
Foster assaulted Richardson with "excessive force." Richardson screamed, and
there was "blood all over the shower cage," said prisoner Cameron James. Another
noted that the guard pushed Richardson so hard that she fell and "busted her
mouth." One prisoner, who kept her own, daily calendar, had written an entry
that day: "Foster slamed [sic] Estelle in shower Fri." From that point forward,
there are numerous and consistent prisoner accounts of Richardson's blood stains
on her sheets, of non-stop bleeding from her ear, and of disregard by prison
guards for her well-being. It is particularly notable that these prisoners were
willing to come forward and provide affidavits despite their fears of
retaliation. Indeed, It is possible, although not provable, that retaliation did
take place, after all. This past January, 36-year-old Gerald Townsend, died from
internal bleeding after, Ronnie Sullivan, 22, attacked him for an unknown
reason. Townsend was serving a sentence for non-violent burglary and vehicle
theft, while Sullivan was had been convicted for an aggravated assault charges.
As it turned out, Gerald was the brother of Judy Townsend, one of the four women
who were willing to sign affidavits regarding the assault on Richardson. Then,
on July 4, 2004, Richardson was to have her last, physical encounter with CCA
guards. According to information gathered from the guards and prisoners in the
unit, Senior Officer Keith Andre Hendricks told Richardson to get her "nasty ass
up and clean [your] room," referring to bloodied sanitary napkins and other
debris in her cell. When she did not respond, he entered the cell with Officer
Joshua Shockman, with Officer Jeremy Neese observing. According to the
investigation, Hendricks pulled her off the cell bed and threw her to the
ground. James, one of the prisoners, recalled that he kicked Richardson [while
she was face down," with his knee in her back. Another prisoner in the unit,
Ruby Champlin, swore that she heard Richardson's head hit the floor, before
Hendricks sprayed her with mace. In her diary from that time, prisoner Tracey
Alexander recorded that all three officers beat Richardson after she was maced.
Early the next morning, at 5:37 a.m., a call to 911 came in from MDF. A CCA
supervisor alerted the 911 operator that a "female inmate was on the floor and
needed medical assistance." Paramedics arrived and found her unresponsive at
6:00 a.m. Richardson was pronounced dead at Southern Hills Medical Center.
Police conducting the murder investigation shortly after Richardson's death
asked to see the videotape footage which would have been recorded by the
constantly running video camera in the unit. According to the CCA guards, the
video camera somehow malfunctioned during this incident. Upon examination, the
police investigators noted that there appeared to be nothing wrong with the
camera. Two of the four CCA guards were working double-shifts because of
staffing shortages at MDF. Three of the four were young, relatively new
employees: Schockman, 23; Wood, 26; and Ness, 24. Only Keith Andre Hendricks,
35, was a senior prison guard, with four years of experience. Neese had only
been on the job for four months. Shockman, who shared a residence with Neese,
had been on the job for little over a year, coming to CCA from a background as a
boxing instructor and club bouncer with extensive experience in various martial
arts. It is very unlikely that the three younger guards had receiving sufficient
training to help them understand (or manage) the psychological stressors of
working in a lockdown unit, in which prisoners are likely to exhibit various
states of distress, anger, and/or serious psychiatric problems. Even experienced
correctional officers tend to avoid working in these prisons-within-a-prison, in
these increasingly prevalent 23-hour lockdown units known as "Administrative
Segregation," "Security Housing Units (SHU)," Intensive Management Units (IMU),"
"Special Management Units (SMU)," or what MDF refers to as "Admin Max." With
little else to do but sit and stew in stripped-down cells for days, weeks,
months (or even years on end), many prisoners begin to lose touch with reality
altogether, which is only exacerbated by the absence of natural light, human
touch, limited or non-existent reading materials or phone privileges.
Hallucination, paranoia, aggression, self-mutilation, and suicidal ideation are
among the more common by-products of this form of isolation, which Harvard
Medical School psychiatrist Stuart Grassian first identified and entitled the "SHU
syndrome" in the 1980s. As such, it's entirely possible that Richardson was mad
at the prison for putting her in a unit like this one, and it's also quite
possible that her first experience dealing with this kind of
deprivation-oriented punitive confinement led her to act disruptively. Based on
the incident the day before she was found dead in her cell, it is just as likely
that she could have been responding sluggishly or erratically. The latter
scenario is even more likely in the wake of autopsy and toxicological reports
that revealed Richardson had not only suffered severe physical trauma, but that
she had died with extremely high doses of psychiatric medicines in her system.
The levels of Paxil and Doxepin found in her body were extremely high, according
to post-mortem toxicological analysis by a Vanderbilt University clinical
pharmacist; Richardson would have likely been behaving abnormally. There's also
the possibility that Richardson could have incurred the wrath of these guards
because she persisted in asking for help for pain and bleeding. No matter what,
Richardson would have been very weak, which begs the question: why would it take
four, healthy adult males to perform a forcible cell extraction with the use of
a chemical agent? By definition, cell extractions in jails and prisons are very
physical: armed with some kind of chemical agent, electrified or non-electrified
shields, riot gear, batons, and/or stun guns, any number of guards rush into a
prisoner's cell to subdue him/her as quickly as possible, to get that person
down to the ground, and to hogtie (or otherwise restrain) that person. According
to most jail/prison guidelines, cell extractions are only to be committed as a
matter of last resort (especially in relation to the safety of the individual,
or other prisoners and staff); usually with the presence of medical staff; and
must be videotaped from start to finish. The commonplace mandate for cell
extractions to be videotaped isn't hard to deduce: people get hurt. Considering
the force with which prisoners are taken down, injuries sustained by prisoners
related to cell extractions are more common than not, whether in the form of
lacerations, broken teeth, or more serious bodily harm. Without videotaped
evidence, prisoners can sue on grounds of cruel and unusual punishment-for
short-term injuries or permanent disabilities sustained. Without videotaped
evidence, it was the word of those four prisoners and the opinion of the state's
top medical examiner, who conducted the autopsy that Richardson died as a result
of one or more serious assaults inflicted by CCA guards -- the only people who
could have possibly had physical contact with Richardson for nearly three weeks
on end. Handling the damage -- It took one year and three months for the four
male guards to be charged with reckless homicide. (The female guard was not
charged.) During that time period, all four guards were on paid administrative
leave. After they were arrested, ach posted bail and were quickly released from
custody. While the prosecution moved forward, the Richardson family filed the
$60 million lawsuit against CCA for being responsible for her murder by failing
to provide adequate training and supervision of its guards. Under Puryear's
direction, a bevy of outside lawyers were already hard at work so as to minimize
the damage to CCA. Medical experts were brought in to challenge chief medical
examiner Dr. Bruce Levy's original autopsy conclusions about the injuries
indicating that she had been murdered, who reported that her fatal injuries were
several days old and thus could have been self-inflicted or caused by earlier
fights with prisoners. CCA's hired pathologist, Dr. William McCormick, went so
far as to postulate that the "cause of the rib and liver injuries is almost
certainly the resuscitative attempts made on Ms. Richardson." In the process,
Puryear and his legal while emphasizing their empathy for the family's "tragic
loss," their desire to comply with the investigation, and alleged that her death
could have been the result of earlier injuries sustained from fights with other
prisoners, a seizure, or a self-inflicted injury. "My understanding of the
medical experts' opinions is that this raises the possibility that Ms.
Richardson could have unintentionally struck her own head against an object or
concrete floor (as in the case of a seizure or fall)," Puryear wrote to the
Senate Judiciary Committee. CCA's interpretation of the injuries leading to
Richardson's death, a lack of videotaped evidence, provided the necessary level
of doubt to help Puryear lessen the PR and financial damage to CCA. Puryear's
legal strategy worked. His timing was good: not only had the medical findings
cast doubt on the circumstances surrounding Richardson's death -- something that
would making a court victory much harder to obtain -- but severe infighting
between economically struggling family members had worn them down. Buie's mother
lost custody of Richardson's children. As a result, they were shut out of the
lawsuit, although the two of them had always been in the children's lives (and
had assumed the primary responsibility of raising the kids when Richardson left
for Tennessee), Buie and her mother aren't related to Richardson by blood; they
were her mother- and sister-by-adoption. On February 22, 2006, Puryear
personally represented CCA in the final mediation between the company and
Richardson's family members. CCA settled with the plaintiffs for an undisclosed
sum after plaintiffs dropped all civil actions against the four guards. Citing
lack of definitive proof that the four guards caused her death, the Davidson
County D.A.'s office dropped all charges against them, while acknowledging that
she had, indeed, been killed. Richardson's murder remains unsolved to this day.
A story like this isn't particularly unusual within the American prison system.
It's not unusual for correctional employees accused of abuses behind prison
walls to have charges dropped once enough time has passed -- that is, if charges
got filed in the first place. It's certainly not unusual for public and private
prison systems to settle lawsuits away from the public eye, reassured by the
knowledge that strict non-disclosure clauses can keep aggrieved parties from
speaking out. It's not unusual that Richardson entered the CCA jail as a
non-violent offender with a drug problem, or that she was abused in the confines
of an out-of-sight segregation unit. What is unusual is that a woman with so
little power in her day-to-day life, particularly in the eyes of the people who
arrested, sentenced, and imprisoned her, would heavily influence Puryear's
hearing before the Senate Judiciary Committee this past February. Much of the
reason why Richardson's murder popped back up to haunt Puryear's appointment as
a federal court judge is attributable to a former CCA prisoner, Alex Friedmann.
It can be said with a fair amount of certainty that Puryear couldn't possibly
have seen Friedmann's agitation against his confirmation coming his way. And he
certainly couldn't have expected that Estelle Richardson's unsolved murder
didn't just go away with a few handshakes, a confidentiality agreement, and a
two million dollar settlement check. In Part 2: Puryear battles his opposition
with a few unlikely allies, including the lead attorney on the lawsuit against
CCA, Thurgood Marshall, Jr., U.S. Senators, and bipartisan Tennessee attorneys.
What most of them have in common is the company that Puryear has spent over a
half-decade defending, the GOP, and a bunch of well-placed campaign donations.
Silja J.A. Talvi is an investigative journalist and the author of Women Behind
Bars: The Crisis of Women in the U.S. Prison System (Seal Press: 2007). Her work
has already appeared in many book anthologies, including It's So You (Seal
Press, 2007), Prison Nation (Routledge: 2005), Prison Profiteers (The New Press:
2008), and Body Outlaws (Seal Press: 2004). She is a senior editor at In These
Times.
May 5, 2008 New York Times
The four sons of Maya Nand, 56, are still haunted by the last collect call he
made to them from an immigration detention center in Eloy, Ariz. “This was the
first time we ever heard our dad cry,” said one, Jay Ashis Nand, 25. “He said,
‘Son, if you don’t get me out of here today, I’m going to die.’ ” Mr. Nand, a
legal immigrant from Fiji who was diabetic, had been calling his family with
mounting desperation over a 10-day period, the sons said. Already ailing when he
was abruptly taken into custody at the family’s home in Sacramento early in the
morning of Jan. 13, 2005, he had deteriorated after a week at the Arizona
detention center, which is run for the federal government by Corrections
Corporation of America, a publicly traded prison company. “He felt a lot of pain
in his heart,” Jay Ashis said. “He would stand up all night because he couldn’t
breathe.” The sons, all naturalized American citizens, said their father told
them that the medical staff at Eloy did not take his condition seriously, and
that when he could barely walk, guards would tell him to stop faking. The sons
kept calling the center to plead for medical attention, they said, but could get
through only to an answering machine. They said they hired a lawyer to reach the
warden, but nothing changed. And in their father’s last call, it seemed his life
was hanging in the balance. That he was being detained at all was hard for the
family to understand. Mr. Nand, whose forefathers were brought to Fiji from
India as slaves by the British, had waited 10 years so he could move the family
legally to the United States, in November 1998. A former civil servant, he
struggled to find work as an architectural draftsman, and eventually applied for
United States citizenship. It was the rejection of his citizenship application,
because of a 2002 misdemeanor conviction for domestic violence, that apparently
prompted his arrest. The misdemeanor was the lone blot on his record, his sons
said, and had been resolved to the court’s satisfaction with a year of anger
management classes. But immigration authorities considered it grounds for
deportation. And instead of summoning him by letter to immigration court, where
he could have fought to stay in the United States, immigration agents arrested
him without warning and shipped him to detention in another state. On Jan. 25,
2005, the day after Mr. Nand’s last call from Eloy, about midway between Phoenix
and Tucson, he was found slumped in the lobby of the detention center’s clinic
suffering cardiac arrest, said his second son, Jay Pranawnip Nand, 27. Then he
was taken by ambulance to an emergency room in Casa Grande, Ariz., where,
according to a letter to the family from an immigration official, doctors
diagnosed congestive heart failure and later a heart attack. He was airlifted to
a hospital in Tucson, on life support. After driving 12 hours to get to the
hospital, the sons and their mother, Malti, said they watched helplessly as Mr.
Nand’s damaged heart failed. He died Feb. 2, shackled to the bed. Asked about
Mr. Nand’s treatment, Corrections Corporation officials said in a written
statement that he had been medically screened when he arrived at the Eloy
center, seen and treated “multiple times” by its medical staff, and taken to a
hospital. According to a government list of deaths in immigration custody, Mr.
Nand was one of five detainees to die at Eloy within a 26-month period; none of
the deaths have previously been brought to public attention. “After the funeral,
I was like, ‘I want to sue the hell out of them,’ ” Jay Pranawnip said. “I don’t
want money. I just want them to realize what they have done and change the
policy, because there are people dying.” But he said an inexperienced lawyer who
took the case dropped it a year later without having filed anything. After
hunting fruitlessly for a replacement, the family gave up. “Just talking about
it now, I’ve got goose bumps,” he added. “I’ve got rage and anger and sorrow at
the same time.”
May 5, 2008 New York Times
Word spread quickly inside the windowless walls of the Elizabeth Detention
Center, an immigration jail in New Jersey: A detainee had fallen, injured his
head and become incoherent. Guards had put him in solitary confinement, and late
that night, an ambulance had taken him away more dead than alive. But outside,
for five days, no official notified the family of the detainee, Boubacar Bah, a
52-year-old tailor from Guinea who had overstayed a tourist visa. When frantic
relatives located him at University Hospital in Newark on Feb. 5, 2007, he was
in a coma after emergency surgery for a skull fracture and multiple brain
hemorrhages. He died there four months later without ever waking up, leaving
family members on two continents trying to find out why. Mr. Bah’s name is one
of 66 on a government list of deaths that occurred in immigration custody from
January 2004 to November 2007, when nearly a million people passed through. The
list, compiled by Immigration and Customs Enforcement after Congress demanded
the information, and obtained by The New York Times under the Freedom of
Information Act, is the fullest accounting to date of deaths in immigration
detention, a patchwork of federal centers, county jails and privately run
prisons that has become the nation’s fastest-growing form of incarceration. The
list has few details, and they are often unreliable, but it serves as a rough
road map to previously unreported cases like Mr. Bah’s. And it reflects a
reality that haunts grieving families like his: the difficulty of getting
information about the fate of people taken into immigration custody, even when
they die. Mr. Bah’s relatives never saw the internal records labeled
“proprietary information — not for distribution” by the Corrections Corporation
of America, which runs the New Jersey detention center for the federal
government. The documents detail how he was treated by guards and government
employees: shackled and pinned to the floor of the medical unit as he moaned and
vomited, then left in a disciplinary cell for more than 13 hours, despite
repeated notations that he was unresponsive and intermittently foaming at the
mouth. Mr. Bah had lived in New York for a decade, surrounded by a large circle
of friends and relatives. The extravagant gowns he sewed to support his wife and
children in West Africa were on display in a Manhattan boutique. But he died in
a sequestered system where questions about what had happened to him, or even his
whereabouts, were met with silence. As the country debates stricter enforcement
of immigration laws, thousands of people who are not American citizens are being
locked up for days, months or years while the government decides whether to
deport them. Some have no valid visa; some are legal residents, but have past
criminal convictions; others are seeking asylum from persecution. Death is a
reality in any jail, and the medical neglect of inmates is a perennial issue.
But far more than in the criminal justice system, immigration detainees and
their families lack basic ways to get answers when things go wrong. No
government body is required to keep track of deaths and publicly report them. No
independent inquiry is mandated. And often relatives who try to investigate the
treatment of those who died say they are stymied by fear of immigration
authorities, lack of access to lawyers, or sheer distance. Federal officials say
deaths are reviewed internally by Immigration and Customs Enforcement, which
reports them to its inspector general and decides which ones warrant
investigation. Officials say they notify the detainee’s next of kin or
consulate, and report the deaths to local medical authorities, who may conduct
autopsies. In Mr. Bah’s case, a review before his death found no evidence of
foul play, an immigration spokesman said, though after later inquiries from The
Times, he said a full review of the death was under way. But critics, including
many in Congress, say this piecemeal process leaves too much to the agency’s
discretion, allowing some deaths to be swept under the rug while potential
witnesses are transferred or deported. They say it also obscures underlying
complaints about medical care, abusive conditions or inadequate suicide
prevention. In January, the House passed a bill that would require states that
receive certain federal money to report deaths in custody to their attorneys
general. But the bill is stalled in the Senate, and it does not cover federal
facilities. The only tangible result of Congressional concern has been the list
of 66 deaths, which names Mr. Bah and many other detainees for the first time,
but raises as many questions as it answers. For Mr. Bah’s survivors, the mystery
of his death is hard to bear. In Guinea, his first wife, Dalanda, wept as she
spoke about the contradictory accounts that had reached her and her two teenage
sons through other detainees, including some who speculated that Mr. Bah had
been beaten. In New York, a cousin who is an American citizen, Khadidiatou Bah,
38, said she was unable to bring a lawsuit, in part because other relatives were
afraid of antagonizing the authorities. “They don’t want to push the case, or
maybe they will be sent home,” she said. “This guy was killed, and we don’t know
what happened.” Lingering Questions -- The list of deaths where Mr. Bah’s name
surfaced is often cryptic. Along with 13 deaths cited as suicides and 14 as the
result of cardiac ailments, it offers such causes as “undetermined” and
“unwitnessed arrest, epilepsy.” No one’s nationality is given, some places of
detention are omitted, and some names and birth dates seem garbled. As a result,
many families could not be tracked down for this article. But when they could
be, they posed more disturbing questions. In California, relatives of Walter
Rodriguez-Castro, 28, said they were rebuffed when they tried to find out why
his calls had stopped coming from the Kern County Jail in Bakersfield in April
2006. Then in June, his wife went to his scheduled hearing in San Francisco’s
immigration court and learned that he had been dead for many weeks, his body
unclaimed in the county morgue. The coroner found that Mr. Rodriguez-Castro, a
mover from El Salvador in the country illegally, had died of undiagnosed
meningitis and H.I.V., after days complaining of fever, stiff neck and vomiting.
The cause of death on the government’s list: “unresponsive.” Immigration
authorities said on Friday that the case was now under review, but would not
answer questions about it or other deaths on the list. Sgt. Ed Komin, a
spokesman for the jail, said the death had been promptly reported to immigration
officials, who were responsible for notifying families. Four sons in another
family, in Sacramento, described trying for days to get medical care for their
father, Maya Nand, a 56-year-old legal immigrant from Fiji, at a detention
center run by the Corrections Corporation in Eloy, Ariz. Mr. Nand, an
architectural draftsman, had been ailing when he was taken into custody on Jan.
13, 2005, apparently because his application for citizenship had been rejected,
based on an earlier conviction for misdemeanor domestic violence. In collect
calls, the sons said, he told them that despite his chest pains and breathing
problems, doctors at the detention center did not take his condition seriously.
The Corrections Corporation said he had been seen and treated “multiple times.”
But a letter to the family from an immigration official said his treatment was
for a respiratory infection. The letter said that Mr. Nand was taken to an
emergency room on Jan. 25, where congestive heart failure was diagnosed, and
that he “suffered an apparent heart attack while at the hospital.” He died on
Feb. 2, 2005, shackled to a hospital bed in Tucson. Boubacar Bah had more going
for him than many detainees. He had a lawyer and many friends and relatives in
the United States, and his detention center in New Jersey was one of the few
frequented by immigrant advocates. But three days after he suffered a head
injury in detention last year, no one in his New York circle knew that he was
lying comatose in a Newark hospital, where he had already been identified as a
possible organ donor. “Thank you for the referral,” an organ-sharing network
wrote on Feb. 3, 2007, according to hospital records. “This patient is a
potential candidate for organ donation once brain death criteria is met.” Four
days after the fall, tipped off by a detainee who called Mr. Bah’s roommate in
Brooklyn, relatives rushed to the detention center to ask Corrections
Corporation employees where he was. “They wouldn’t give us any information,”
said Lamine Dieng, an American citizen who teaches physics at Bronx Community
College and is married to Mr. Bah’s cousin Khadidiatou. On the fifth day, they
said, a detention official called them with the name of the hospital. There they
found Mr. Bah on life support, still in custody, with a detention guard around
the clock. “There was one guard who knew Boubacar,” Ms. Bah said. “He told me on
the down-low: ‘This guy, you have to fight for him. This guy was neglected.’ ”
Within the week, word of the case reached a reporter at The Times, through an
immigration lawyer who had received separate calls from two detainees; they were
upset about a badly injured man — named “something like Aboubakar” — left in an
isolation cell and later found near death. But advocacy groups said they were
unaware of the case. And Michael Gilhooly, the spokesman for Immigration and
Customs Enforcement, said that without the man’s full name and eight-digit alien
registration number, he could not check the information. For those who knew Mr.
Bah, it was hard to understand how such a man could lie dying without
explanations. “Everybody liked Boubacar,” said Sadio Diallo, 48, who has a
tailor shop in Flatbush, Brooklyn, where he and Mr. Bah had shared an apartment
with fellow immigrants since arriving in 1998. “He’s a very, very, very good
man.” For six years, Mr. Bah had worked for L’Impasse, a clothing store in the
West Village, sewing dresses that sold for up to $2,000 with what a former
manager, Abdul Sall, called his “magic hands.” Mr. Bah often spent Sundays at
the Bronx townhouse his cousins had inherited from the family’s first American
citizen, a seaman who arrived in 1943. In Africa, Mr. Bah’s earnings not only
supported his first wife, sons and ailing mother, but in Guinean tradition,
allowed him to wed a second wife, long distance. It was his longing to see them
all again after eight years that landed him in detention. When he returned from
a three-month visit to Guinea in May 2006, immigration authorities at Kennedy
Airport told him that his green card application had been denied while he was
away, automatically revoking his permission to re-enter the United States. An
immigration lawyer hired by his friends was unable to reopen the application
while Mr. Bah waited for nine months in detention, records showed. Mr. Bah died
on May 30, 2007, after four months in a coma. His lawyer, Theodore Vialet,
requested detention reports and hospital records under the Freedom of
Information Act. But by the time the records arrived last autumn, the idea of a
lawsuit had been dropped. So Mr. Vialet just filed the records away — until a
reporter’s call about a name on the list of dead detainees prompted him to dig
them out. After the Fall -- There are 57 pages of documents, some neatly typed
by medics, some scrawled by guards. Some quote detainees who said Mr. Bah was
ailing for two days before his fall on Feb. 1, and asked in vain to see a
doctor. The records leave unclear exactly when or how Mr. Bah was injured in
detention. But they leave no doubt that guards, supervisors, government medical
employees and federal immigration officers played a role in leaving him
untreated, hour after hour, as he lapsed into a stupor. It began about 8 a.m.,
according to the earliest report. Guards called a medical emergency after a
detainee saw Mr. Bah collapse near a toilet, hitting the back of his head on the
floor. When he regained consciousness, Mr. Bah was taken to the medical unit,
which is run by the federal Public Health Service. He became incoherent and
agitated, reports said, pulling away from the doctor and grabbing at the unit
staff. Physicians consulted later by The Times called this a textbook symptom of
intracranial bleeding, but apparently no one recognized that at the time. He was
handcuffed and placed in leg restraints on the floor with medical approval, “to
prevent injury,” a guard reported. “While on the floor the detainee began to
yell in a foreign language and turn from side to side,” the guard wrote, and the
medical staff deemed that “the screaming and resisting is behavior problems.”
Mr. Bah was ordered to calm down. Instead, he kept crying out, then “began to
regurgitate on the floor of medical,” the report said. So Mr. Bah was written up
for disobeying orders. And with the approval of a physician assistant, Michael
Chuley, who wrote that Mr. Bah’s fall was unwitnessed and “questionable,” the
tailor was taken in shackles to a solitary confinement cell with instructions
that he be monitored. Under detention protocols, an officer videotaped Mr. Bah
as he lay vomiting in the medical unit, but the camera’s battery failed, guards
wrote, when they tried to tape his trip to cell No. 7. Inside the cell, a
supervisor removed Mr. Bah’s restraints. He was unresponsive to questions asked
by the Public Health Service officer on duty, a report said, adding: “The
detainee set up in his bed and moan and he fell to his left side and hit his
head on the bed rail.” About 9 a.m., with the approval of the health officer and
a federal immigration agent, the cell was locked. The watching began. As guards
checked hourly, Mr. Bah appeared to be asleep on the concrete floor, snoring.
But he could not be roused to eat lunch or dinner, and at 7:10 p.m., “he began
to breathe heavily and started foaming slightly at the mouth,” a guard wrote. “I
notified medical at this time.” However, the nurse on duty rejected the guard’s
request to come check, according to reports. And at 8 p.m., when the warden went
to the medical unit to describe Mr. Bah’s condition, the nurse, Raymund Dela
Pena, was not alarmed. “Detainee is likely exhibiting the same behavior as
earlier in the day,” he wrote, adding that Mr. Bah would get a mental health
exam in the morning. About 10:30 p.m., more than 14 hours after Mr. Bah’s fall,
the same nurse, on rounds, recognized the gravity of his condition:
“unresponsive on the floor incontinent with foamy brown vomitus noted around
mouth.” Smelling salts were tried. Mr. Bah was carried back to the medical unit
on a stretcher. Just before 11, someone at the jail called 911. When an
ambulance left Mr. Bah at the hospital, brain scans showed he had a fractured
skull and hemorrhages at all sides of his swelling brain. He was rushed to
surgery, and the detention center was informed of the findings. But in a report
to their supervisors the next day, immigration officials at the center described
Mr. Bah’s ailment as “brain aneurysms” — a diagnosis they corrected a week later
to “hemorrhages,” without mentioning the skull fracture. After Mr. Bah’s death,
they wrote that his hospitalization was “subsequent to a fall in the shower.”
The nurse, Mr. Dela Pena, and the physician assistant, Mr. Chuley, said that
only their superiors could discuss the case. The Public Health Service did not
respond to questions, and the Corrections Corporation said medical decisions
were the responsibility of the Public Health Service. Mr. Bah’s cousins demanded
an autopsy, but the Union County medical examiner’s confidential report was not
completed until Dec. 6. It was sent to the county prosecutor’s office only as a
matter of routine, because the matter had been classified as an “unattended
accident resulting in death.” Prosecutors said they did not investigate.
“According to the report, Bah suffered a fall in the shower,” Eileen Walsh, a
spokeswoman for the prosecutors, said in an e-mail message. “We are not privy to
any other bits of information.” In the home movies Mr. Bah made of his last
journey home, he is only a fleeting presence: a slim man with a shy smile. But
without his support, relatives in Africa say they have little money for food and
none for his sons’ schooling. His body went back to Guinea in a sealed coffin.
“I stayed here seven years, waiting for him,” his second wife, Mariama, said in
French, recalling their long separation and the brief reunion that led to the
birth of their son, now a toddler, while Mr. Bah was in detention. “I wanted
them to open the casket,” she added, “to know if it was him inside. Until today,
I cry for him.”
April 25, 2008 Nashville Scene
State Rep. Mike Turner has fired off a missive to Tennessee Department of
Correction Commissioner George Little about the spate of questionable practices
and incidents that have landed Corrections Corporation of America in the news.
CCA, as you'll recall, contracts with Tennessee (along with many other state and
federal authorities) to run their prisons and jails. In his April 16 letter,
which Pith obtained this morning, Turner mentions the Time magazine story that
alleges CCA counsel Gus Puryear allegedly whitewashed incident reports on
escapes and unnatural deaths, so as not to alarm the company's clients. He also
cites The Tennessean piece on an inmate at a Metro-controlled, CCA-run
correctional facility who went nine months without a shower, as well as the
recent Nashville Scene article that reported how guards at that same facility
falsely claimed a jail-cell surveillance camera wasn't working—just one day
after an inmate was found in her cell with a broken skull, according to the
detective who wanted to review the footage. In other words, it's just another
day in the life of CCA and Gus Puryear—who, we should add, is called out in the
upcoming issue of the National Law Journal for being one of Bush's most
controversial judicial appointees.
April 11, 2008 AP
The president and chief executive of private prison operator Corrections
Corp. of America exercised options for 18,000 shares of common stock under a
prearranged trading plan, according to a Securities and Exchange Commission
filing. In a Form 4 filed with the SEC Thursday, John D. Ferguson reported he
exercised the options Tuesday for $5.70 apiece and then sold all 18,000 shares
on the same day for $27.57 to $28.02 apiece.
April 10, 2008 Muckety
On the spectrum of freedom, Charles Overby pretty much has the full range
covered. He heads the Freedom Forum, which opens its new $450 million Newseum
Friday in Washington, D.C. And, in his free time, he’s a director at the
Corrections Corporation of America, which runs the nation’s largest privatized
prison system. The Freedom Forum says it is a “nonpartisan foundation dedicated
to free press, free speech and free spirit for all people.” CCA says its vision
is “to be the best adult corrections company in the United States.” Overby is a
former Gannett newsman who led The Clarion-Ledger in Jackson, Miss., to a public
service Pulitzer in the early 1980s. He became president and CEO of the Gannett
Foundation in 1989. In 1991, after former Gannett CEO Al Neuharth re-directed
(some might even say “hijacked”) the foundation’s mission and money, it was
renamed the Freedom Forum. Overby joined the Nashville-based Correction
Corporation’s board in 2001. Today, he is chairman, president and CEO of the
Freedom Forum and CEO of the Newseum.
April 2, 2008 AP
The executive vice president and chief corrections officer of private prison
operator Corrections Corp. of America exercised options for 9,000 shares of
common stock, according to a filing with the Securities and Exchange Commission
Tuesday. In a Form 4 filed with SEC, Richard P. Seiter reported he exercised the
options on Tuesday for $13.06 apiece, then sold all 9,000 shares on the same day
for $27.51 apiece.
March 31, 2008 Honolulu Advertiser
State lawmakers today will consider ordering an audit of two
Corrections Corporation of America facilities in the wake of national
media accounts alleging that the huge private prison company
misrepresented statistical data to make it appear that CCA facilities
had fewer violent acts and other problems than was actually the case.
Hawai'i pays CCA more than $50 million a year to house more than 2,000
men and women convicts in CCA prisons in Arizona and Kentucky. Senate
Bill 2342 calls for the State Auditor to conduct performance audits of
two of the three Mainland prisons that house Hawai'i inmates, including
reviews of the food, medical, drug treatment, vocational and other
services provided to Hawai'i inmates. The audit also would scrutinize
the way the state Department of Public Safety oversees the private
prisons and enforces the terms of the state's contracts with CCA.
According to the bill, "there has never been an audit of the private
Mainland prisons that Hawai'i has contracted with to house the state's
inmates, despite the fact that deaths and serious injuries have occurred
at several of the contract prisons on the Mainland." Clayton Frank,
director of the state Department of Public Safety, testified against the
proposed audits in Senate hearings last month, calling the audits
"unnecessary and repetitive" because his department already conducts
quarterly audits to make sure CCA is complying with its contracts with
the state. Frank also suggested his department was being singled out,
arguing that if lawmakers want performance audits to provide more
accountability and transparency to the public, "then it should apply to
all state contracts and not be limited to just the Department of Public
Safety." Critics of the Mainland prison contracts contend the audits are
needed because the private prisons are for-profit ventures designed to
keep costs as low as possible. During the decade that Hawai'i has housed
inmates on the Mainland, the state itself has criticized private prison
operators when the companies failed to provide Hawai'i inmates with
programs that were required under the contract. Now, supporters of the
audit bill say an independent review is necessary to scrutinize what is
one of the state's largest ongoing contracts of any kind with a private
vendor. "Are we getting what we pay for? We'd like to know," testified
Jeanne Y. Ohta, executive director of the Drug Policy Forum of Hawai'i.
The audit would cover the 1,896-bed Saguaro Correctional Center in Eloy,
Ariz., which houses only male prisoners from Hawai'i, and the 656-bed
Otter Creek Correctional Center in Wheelwright, Ky., which holds about
175 Hawai'i women inmates. The House Finance Committee hearing on the
bill today comes in the wake of Mainland media reports citing a former
CCA manager who said he was required to produce misleading reports about
incidents in CCA prisons. The company operates about 65 prisons with
about 75,000 inmates. Time magazine interviewed former CCA senior
quality assurance manager Ronald T. Jones, who said CCA General Counsel
Gus Puryear IV ordered staff to classify sometimes violent incidents
such as inmate disturbances, escapes and sexual assaults as if they were
less serious events to make the company performance appear to be better
than it was. Jones said more detailed reports about the prison incidents
were prepared for internal CCA use, and were not released to clients.
CCA denied the allegations, which Time published as Puryear is being
considered for a post as a federal judge. The Private Corrections
Institute Inc., an organization opposed to private prisons, wrote to
Hawai'i prison officials urging them to investigate CCA's reporting
procedures in the wake of the Time report. Alex Friedmann, vice
president of the institute, said most state monitors who are overseeing
CCA prisons "largely rely on information and data provided by CCA;
further, the accuracy of incident reports is entirely dependent on
whether those incidents are documented by the company's employees."
Hawai'i Public Safety officials did not respond to requests for comment
on the allegations in the Time article.
March 27, 2008 AP
The president and chief executive of prison-operator Corrections Corp. of
America exercised options for 18,000 shares of common stock under a prearranged
trading plan, according to a Securities and Exchange Commission filing
Wednesday. In a Form 4 filed with the SEC, John D. Ferguson reported he
exercised options for the shares on Monday for $5.70 apiece and then sold them
all the same day for $26.73 to $27.68 apiece.
March 26, 2008 Tennessean
Add women’s rights groups to the list opposing the federal judicial
nomination of Gus Puryear IV, the embattled general counsel for the Corrections
Corporation of America. Puryear’s membership to Nashville’s Belle Meade County
Club is under fire by the women’s rights organization who say women are unable
to vote or hold office at the private golf club. National Organization of Women,
the National Council for Women’s Organizations and the Women’s Equal rights
Legal Defense and Education Fund have sent a letter to the Senate Judiciary
Committee. Puryear’s nomination ignited a debate whether the general counsel of
CCA, the for-profit prison giant, is suited for the bench in light of
allegations that he encouraged misleading incident reports. Private Corrections
Institute, an advocacy group that opposes prison privatization, has been an
outspoken critic of Puryear's nomination. The Alliance for Justice and the
National Lawyers Guild are among the opposition. There’s also a website,
www.againstpuryear.org, is part of the opposition campaign. The hearings were
held last month and the committee has not voted on his nomination. President
Bush nominated Puryear last June to serve as a federal judge for the Middle
District of Tennessee.
March 21, 2008 Nashville Scene
Yesterday I talked with Rob McGuire, the local prosecutor who brought
charges against four CCA guards in the death of inmate Estelle Richardson, who
in 2004 was found in her solitary cell with a broken skull and four cracked
ribs. McGuire ultimately dropped the case, after doctors for both CCA and
Richardson's family determined that her head injuries might have been sustained
before she was placed in solitary confinement. Now, though, the Richardson case
has taken center stage in the nomination hearings of Gus Puryear, the CCA
general counsel who was nominated by President George W. Bush to a federal
judgeship in Tennessee's Middle District. The Senate Judiciary Committee has
grilled Puryear about his statements about the case—he falsely claimed the
guards were “exonerated”—and how his company handled the investigation. On that
count, McGuire has a rather interesting story to share. And now we're going to
have to jump. McGuire says that when a Metro homicide detective began to
investigate Richardson's death, he asked to see videotape of the
extractions—i.e., those times when an inmate is ushered in and out of her cell.
Instead, guards told him the camera had mysteriously malfunctioned. Wouldn't you
know it, the detective was told, there's no footage available—which is not much
different than when the suspect tells Lennie Briscoe he doesn't remember what he
was doing the night of the murder. At that point, the detective examined the
camera and could find nothing wrong with it. “He turns it on and it appears to
be working just fine,” McGuire says. “That was a significant problem for us; it
did not help their cause.” Of course, McGuire ultimately had to drop the case
when it appeared that any number of different people—from inmates to
guards—could have caused Richardson's head injuries. And because she was heavily
medicated at the time, it was certainly possible that the inmate could have
endured a serious injury without realizing until it was too late. But none of
this lets CCA off the hook. First, there's the issue that, no matter how you
look at it, Richardson was almost certainly killed in a CCA facility, which
Puryear glosses over in his correspondence with members of the U.S. Senate
Judiciary Committee. In fact, Puryear makes her death out to be a veritable
mystery, even though it's ludicrous to imagine how someone could break their
skull and crack their ribs by simply slipping on the floor. So if—and we're
using the word “if” lightly here—she was killed in jail, that doesn't reflect
well on CCA. Then, of course, there's McGuire's fresh anecdote about the
supposedly malfunctioning camera, which makes you wonder if CCA took an awkward
stab at a cover-up. CCA and Puryear are already under fire for last week's
Time.com report, in which a former prison manager accused the company of lying
to its government clients about the safety of its prisons. Is there a pattern
here? It's next to impossible to gleam objective data from CCA, even though it
manages public facilities across the country. But with Puryear likely to face
additional additional questions from the members of the judiciary committee
about the Richardson case and other CCA matters, a little more transparency
might be in order. Developing....
March 21, 2008 The California
Majority Report
Governor Arnold Schwarzenegger -- who railed against special interests
during his recall campaign and has since shattered all fundraising efforts --
has quietly been padding his campaign accounts with hundreds of thousands of
dollars during the past few weeks. In the last week, Schwarzenegger has added
five- and six-figure donations from health care interests, pharmaceutical
companies, homebuilders, and private prison companies -- just as he begins
reviewing legislation being passed in the legislature reviewing those
industries. For example, he has received $25,000 from Pacific West Pharmacy,
$5,000 from the Corrections Corporation of America, and $25,000 from General
Motors Corporation. The funds have been funneled to this "California Dream Team"
account, one of several the governor has to raise campaign cash. It should be
noted, however, that Schwarzenegger cannot run for re-election. Fascinating that
Schwarzenegger can shake down the wealthy and contributions from millions in
campaign money but rules out Democratic proposals to tax these very same
interests to pay their fair share for our kids education.
March 18, 2008 The Huffington Report
At a moment when Democratic Party officials are urging voters to trust
unelected superdelegates to act in the country's best interests, HuffPost's
Off-The-Bus investigation into the background of DNC superdelegates reveals at
least one appointed superdelegate who is as likely to use his political
connections for personal profit as for the greater good. Take the case of Joseph
F. Johnson, a member-at-large of the Democratic National Committee from
Chantilliy, Virginia -a suburb of Washington D.C. -- and a superdelegate
currently tilting toward Hillary Clinton. Using his web of connections, Johnson
successfully lobbied for the construction of a private prison linked to a
company on whose board he sat; he managed to have that prison contract with
other companies he was linked to; and though the prison became a notorious and
dangerous failure, Johnson benefited personally, pulling in millions of dollars
in stock options and fees. Johnson first rose through the ranks of the
Democratic machine in the early 1990s, as executive director of Jesse Jackson's
Rainbow PUSH Coalition. He brought with him strong ties to D.C. government that
he'd built after his first job in the nation's capital, as chief of staff for
the city of Washington DC's city council head. He also managed Douglas Wilder's
successful campaign to become Virginia's first African-American governor in
1991. And Johnson advised Mark Warner on his successful 2001 gubernatorial bid
in Virginia. Johnson's reputation as a mover and shaker in D.C. Democratic
politics helped pave the way for his appointment to the board of Corrections
Corporation of America, the largest operator of private prisons in the country.
While serving in that position from 1996 to 1999, Johnson was instrumental in
convincing the local government in Washington, DC to pay CCA to run a prison in
Youngstown, Ohio for DC inmates, according to SEC filings for the company.
Meanwhile, two of Johnson's own companies, National Corrections and
Rehabilitation (NCRC) and MedCorr, were contracted to provide employment
rehabilitation and health services in the same prison he helped establish. The
private Ohio prison which Johnson helped establish was, according to
Youngstown's then-mayor, "a nightmare." By 1998, there had been two fatal
stabbings, 44 assaults, and six escapes at the prison. A Department of Justice
report found that under CCA, the prison had "failed to accomplish the basic
mission of correctional safety;" and prisoners eventually collected $1.65
million in damages and legal costs for their treatment under CCA. News reports
traced the problems at the prison to both CCA's management and D.C. Corrections'
practice of sending high-security inmates to the medium-security facility. The
problems, Johnson told the Washington Post at the time, weren't "anyone's fault,
it was just one of those things." Mr. Johnson nonetheless profited from the
deal, receiving $2.6 million in stock options for his work linking CCA with
officials in Washington, D.C. Calling his work "instrumental" to their receipt
of the contract, CCA said that Mr. Johnson had "exceeded his duties and
obligations" to the company and also paid him $382,000 for his "consulting
services" in helping to arrange the deal, and $991,000 for NCRC's services in
another CCA prison in Texas. Johnson had also helped arrange for Washington,
D.C. to sell one of its local prisons to CCA in 1996. Local activists complained
that procurement rules had been skipped over to hand the bid to CCA, but the
deal ultimately went through, and CCA then managed the facility and used NCRC to
provide services to inmates. When the Washington Post asked Johnson if he
considered his dual roles as a conflict of interest, he replied, "Not in my
mind." Two years later, the Washington Post reported that CCA faced $1.3 million
in fines for failing to provide services to inmates, including $536,000 in fines
for failing to properly administer medications and another $77,400 for failing
to provide vision services. The city's Department of Corrections, despite being
$8.8 million in the red, suspended most of the fines, according to Post reports
from the time. Johnson has over time expanded his list of companies; NCRC is
technically a subsidiary of his firm, the Johnson Companies [www.jcmps.com].
Under that umbrella, Mr. Johnson also houses the Houston-based Satellite
Tracking of People, LLC (STOP), which deals in GPS tracking devices for inmates
and parolees; the Nashville-based ConnectGov, Inc, which coordinates distance
learning; and the National Preparedness Training Center, which trains first
responders to disasters.
March 14, 2008 Nashville Scene
Once thought to be a sure thing, Gus Puryear's nomination to the federal
bench is now in serious trouble. A devastating story published on Time
magazine's website yesterday alleged that the young attorney whitewashed company
reports in his role as corporate counsel for Corrections Corporation of America
(CCA). The story revolves around Ronald T. Jones, a former CCA prison manager
described as a loyal Republican like the judicial nominee himself. Jones claims
Puryear oversaw a reporting system in which the company basically lied to its
public-sector clients, minimizing outbreaks of prison disturbances in the jails
it operates. In theory at least, CCA is supposed to provide thorough and
objective reports to the government agencies who have outsourced the management
of its jails to the private company. But Jones says his ex-boss Puryear masked
or omitted details that could result in litigation, fines or bad press. That
aside, he behaved admirably. “When Puryear felt there was highly sensitive or
potentially damaging information to CCA, I would then be directed to remove that
information from an audit report,” Jones told Time.com. Today, The Tennessean
published a well-reported front-page story that included additional details,
including how in 2005 a CCA official once had the temerity to issue a memo with
potentially damaging information about a prison incident. That led to a change
in company policy—in which any reports to be made public had to be cleared by
the office of the general counsel. The Private Corrections Institute, which has
led the charge against Puryear, issued a press release calling on the Senate
Judiciary Committee to summon the nominee back to Washington for yet another
hearing. The group may well get its wish. It's been a dismal week for Puryear—right
as he tries to explain his membership in the historically discriminatory Belle
Meade Country Club, he now will likely have to defend himself against serious
charges of turning CCA’s cold, hard facts into creative fiction. It's still
possible for Puryear to survive this latest onslaught of bad press and go on to
become a good judge. But considering how much trouble he's had so far convincing
people he's up for the job, couldn't the Bush administration have just plucked
someone else? There are plenty of intelligent Republican attorneys in Nashville.
How many of them have Puryear's baggage?
March 14, 2008 Tennessean
A former Corrections Corporation of America manager is accusing the
company's general counsel and federal judicial nominee Gus Puryear IV of
overseeing a practice that produced misleading reports about safety incidents at
its prisons. Ronald T. Jones, who until last year worked as a senior manager in
quality assurance at the Nashville-based prison operator, said that Puryear
directed him and other staff to classify incidents such as escapes, unnatural
deaths and disturbances as less serious to make its performance look better in
reports to government agency clients. Reports prepared for internal use,
meanwhile, included more details about the specific incidents, Jones said.
Private Corrections Institute, an advocacy group that opposes prison
privatization and has been an outspoken critic of Puryear's nomination, Thursday
urged the Senate Judiciary Committee to hold another round of hearings at which
Jones could testify and Puryear be asked more questions about his actions.
"Alternatively, we support the position of not bringing Mr. Puryear's judicial
nomination forward for a committee vote," said Alex Friedmann, a former inmate
at a CCA prison and the group's vice president. At a Feb. 12 hearing before the
Judiciary Committee, Puryear faced tough questions on the 2004 death of a woman
at the Metro Detention Facility, possible conflict of interest with cases
involving CCA and its executives that are often filed in Middle Tennessee
District, where he would serve, and his membership in the exclusive Belle Meade
Country Club. In response, Puryear said that he would recuse himself for at
least five years from all cases involving CCA and its executives: said there
were disagreements among medical experts about what happened in the death of
Estelle Richardson at the detention facility; and promised to resign from Belle
Meade if he found its membership policies violated the code of judicial ethics.
Committee staff said any action on Puryear's nomination is unlikely until April
at the earliest. The committee has no more business meetings this week and
Congress is on Easter break for the next two weeks. The Judiciary Committee
usually does not hold additional hearings with the nominee and other witnesses.
Instead, the senators rely on written responses to questions and the transcript
of the original hearing when discussing and voting on a nominee. Puryear
couldn't be reached last night for comment. CCA denies allegations -- Louise
Grant, a CCA spokeswoman, called Jones' allegations inaccurate and added that it
paints a false picture of CCA's quality assurance process and of Puryear's role.
"We question the motives of this former employee, who was not in a leadership
position in quality assurance and resigned in lieu of termination," Grant added.
"If our interest was in under-reporting or not finding quality issues, we simply
would not have created this (quality assurance) department or its programs in
the first place." Jones denies that he faced termination at CCA. He now lives in
Detroit and said he left CCA to pursue a legal career. He said in his job he was
responsible for tracking information on events such as unusual deaths,
disturbances and audit findings and that the misleading practices began in early
2005, when the quality assurance department was put under Puryear as general
counsel. A CCA staff member in 2005 provided a report containing potentially
damaging information about an incident at a prison to a government client
without corporate approval, Jones said. That incident, according to Jones, led
to a new policy in which any reports that could be made public needed to be
cleared by the office of the general counsel. "Mr. Puryear then directed me, and
other quality assurance department staff who process audit report finding, to
create two reports for distribution of audit findings," Jones wrote in a
statement sent to the Senate Judiciary Committee. "I would prepare one report
with all of the audit findings and auditor comments in it for "internal purposes
only" and a separate more generic report that contained only general information
about audit results as a whole." In a separate interview with The Tennessean,
Jones added that the more information that could potentially damage the company
if it was released publicly, the more that its operations and financial status
could be affected. In the corrections industry, the number of incidents such as
prison escapes, riots, and sexual assaults are among variables often used to
determine bonuses for employees from wardens to chief executives, industry
observers said. If a prison contract provides for a bonus, such incidents also
would be taken into account by a client government agency in determining the
award. CCA is required to file reports with the state on incidents such as
inmate-on-inmate assaults or inmate-on-staff assaults, disturbances and a daily
census of inmates at its prisons that house state inmates, said Dorinda Carter,
a spokeswoman for the Tennessee Department of Corrections. The department has
onsite contract monitors and other designated employees at the prisons that
report daily on incidents and another division that conducts annual audits of
the CCA prisons, she said. "We feel pretty sure that we're finding out about
incidents as they happen," Carter said. She added that CCA is required to follow
the same policies as the 13 prisons run by the state and that officials are
confident in their monitoring of the company.
March 13, 2008 Mother Jones
Most ambitious lawyers know that if they want to become a federal judge,
they have to fulfill several key requirements. First, they must schmooze the
right people, sit on the right bar committees, and make the requisite political
contributions. Then, above all, they must 1) pay nanny taxes, and 2) wait until
after securing a lifetime appointment to join an exclusive, discriminatory
country club. Gustavus Adolphus Puryear IV, Bush's choice for a trial court seat
in the middle district of Tennessee, had ticked off most of the items on the
list by the time he was nominated last summer. He'd given money, befriended Dick
Cheney's son-in-law, and even prepped Cheney for the vice-presidential debates
in 2000 and 2004. But he forgot about rule number 2, an oversight that might be
his undoing. As a prison company lawyer with virtually no litigation experience,
Puryear's resume offers any number of reasons why he shouldn't be confirmed. But
inexperience has never stopped the politically connected from ascending to the
bench. Country club memberships, however, are a different matter. And Puryear
happens to be a member of the exclusive Belle Meade Country Club in Nashville, a
club whose racist history is so well known that even former Senate Majority
Leader Bill Frist had the good sense to quit the club before running for office.
After Puryear's surprisingly contentious confirmation hearing last month,
several senators asked him to provide additional written answers to their
questions. According to the Nashville Scene, Puryear's responses aren't likely
to win him any friends with the Democrats on the committee, particularly Ted
Kennedy, who sent Puryear four sets of questions regarding the club, including
one about its racial diversity. Puryear replied in legalese, writing, “I am
advised that the club does not track its members based on race, nor does it
respond to such requests. I am personally aware that there are minority members,
but I do not myself know the number,” he wrote. The number of black members of
the Belle Meade Country Club is an open secret in Nashville, largely because the
number is exactly one. Belle Meade didn't allow black members until 1994, when
they admitted one guy, a lawyer from Atlanta. Today, that same guy remains the
only black member of the club. So either Puryear is being incredibly
disingenuous, or he is a lot dumber than his supporters claim. (The Nashville
Scene had no trouble figuring out how many black members the club had, after
all, so it's hard to believe Puryear, who's actually a member, couldn't do the
same.) It's rare for the Senate to see confirmation fights over trial court
judges, but Puryear could be the exception. His country club membership has
caught the attention of women's groups, who are mounting some opposition.
Feminist lawyer Gloria Allred has written a letter to the Judiciary Committee
raising questions about Puryear's nomination. She, too, doesn't buy his claim of
ignorance about the club's discriminatory practices, noting that the club's
"entire voting membership is male, "Lady members" are not allowed to vote, and
no women have been proposed for Resident Member status that would afford voting
privileges." As a trial court judge, Puryear would preside over a fair number of
sexual and racial discrimination trials, which is another reason women's groups
are worried about his nomination. If Puryear can't see the blatant, longstanding
discrimination going on in his own country club, can you imagine what he'd be
like in the courtroom? Egads!
March 13, 2008 AP
The president and chief executive of prison operator Corrections Corporation of
America exercised options for 18,000 shares of stock under a prearranged trading
plan, according to Securities and Exchange Commission filings. In Form 4s filed
with the SEC Wednesday, John D. Ferguson reported he exercised the options
Monday for $5.70 apiece and then sold all the shares the same day for $26.14 to
$27.20 apiece. The stock sale was conducted under a prearranged 10b5-1 trading
plan, which allows a company insider to set up a program in advance for such
transactions and proceed with them even if he or she comes into possession of
material nonpublic information.
March 13, 2008 TIME
As the top lawyer for America's biggest private prison company, Corrections
Corporation of America (CCA), Gus Puryear IV, is known to sport well-pressed
preppy pink shirts, and his brownish mop of hair stands out among most of
President Bush's graying nominees to the federal bench. A favorite of G.O.P.
hardliners, Puryear, 39, prepped Dick Cheney for the vice presidential debates —
both in 2000 and 2004 — and served as a senior aide to two former senators and
onetime presidential hopefuls, Bill Frist and Fred Thompson. Political
connections, though, may not be enough to get Puryear a lifetime post as a
federal district judge in Tennessee. Puryear recently confronted tough questions
about his conduct, experience and potential conflicts of interest from Democrats
on the Senate Judiciary Committee, which must approve him before a full Senate
vote. Now, a former CCA manager tells TIME that Puryear oversaw a reporting
system in which accounts of major, sometimes violent prison disturbances and
other significant events were often masked or minimized in accounts provided to
government agencies with oversight over prison contracts. Ronald T. Jones, the
former CCA manager, alleges that the company even began keeping two sets of
books — one for internal use that described prison deficiencies in telling
detail, and a second set that Jones describes as "doctored" for public
consumption, to limit bad publicity, litigation or fines that could derail CCA's
multimillion dollar contracts with federal, state or local agencies. CCA owns or
operates 65 prisons, housing some 70,000 inmates across the U.S. According to
the company's website, it has a greater than 50% share of the booming private
prison market. CCA is also a major contributor to Republican candidates and
causes, and spends millions of dollars each year lobbying for government
contracts. (Puryear enjoys a friendship with Cheney's son-in-law, Philip Perry,
who lobbied for CCA in Washington before serving as general counsel for the
Department of Homeland Security, which has millions of dollars in contracts with
CCA, from 2005 to 2007.) The company has likewise given financial support to
tax-exempt policy groups that support tough sentencing laws that help put more
people behind bars. Like other prison companies, CCA has faced numerous lawsuits
that stem from allegedly inadequate staff levels that can be a cause of high
levels of violence in the prisons. Though hundreds of such lawsuits are often
pending at any given time, many brought by inmates in its own facilities, CCA
under Puryear has mounted an especially vigorous defense against them, refusing
to settle all but the most damaging. Jones knows CCA intimately. Until last
summer, the longtime Republican was in charge of "quality assurance" records for
CCA prisons across the U.S. He says that in 2005, after CCA found itself
embarrassed on several occasions by the public release of internal records to
government agencies, Puryear mandated that detailed, raw reports on prison
shortcomings carry a blanket assertion of "attorney client privilege," thus
forbidding their release without his written consent. From then on, Jones says,
the audits delivered to agencies were filled with increasingly vague performance
measures. "If the wrong party found out that a facility's operations scored low
in an audit, then CCA could be subject to litigation, fines or worse," explains
Jones. "When Mr. Puryear felt there was highly sensitive or potentially damaging
information to CCA, I would then be directed to remove that information from an
audit report." Puryear would not comment on the allegations. Jones resigned from
CCA last summer to pursue a legal career. According to Jones, Puryear was most
concerned about what CCA described as "zero tolerance" events, or ZT's —
including unnatural deaths, major disturbances, escapes and sexual assaults.
According to Jones, bonuses and job security at the company were tied to
reporting low ZT numbers. Low numbers also pleased CCA's government clients, as
well as the company's board, which received a regular tally, and Wall Street
analysts concerned about potentially costly lawsuits that CCA might face. In
2006, for example, Jones says CCA had to lock down a prison in Texas to control
rioting by as many as 60 inmates. Despite clear internal guidelines defining the
incident as a ZT, Jones says he was ordered not to label it that way. Instead it
was logged as, "Altered facility schedule due to inmate action". And this was
not unusual, says Jones: "Information was misrepresented in a very disturbing
way concerning the company's most important performance indicators, which
included escapes, suicides, violent outbreaks and sexual assaults." Companies
often try to show their best face to customers, and safeguard internal records
with "attorney-client privilege." But according to Stephen Gillers, a leading
expert on legal ethics at New York University, CCA's use of that privilege seems
like "a wholesale, possibly overreaching claim," similiar to the blanket
assertions of major tobacco companies that tried to keep damaging internal
documents from public view. Those assertions of privilege have been rejected by
federal judges as an attempt to improperly conceal their internal data on the
dangers of smoking from customers, the courts and legal adversaries. CCA could
also be in legal trouble if it minimized the tally of serious prison incidents
and, by implication, its possible financial liability. As chief legal counsel,
Puryear would have also had an obligation to ensure his board had all the
information it needed, good or bad, to make decisions. If Puryear's reporting
system had the effect of withholding information relevant to official prison
oversight, that could bear on his suitability as a federal judge by suggesting
his "disdain for the proper operation of an important function of government,"
notes Gillers. Contacted by TIME, CCA says that Puryear, "has served the company
well and honorably as general counsel and will be an outstanding judge." The
company denies allegations that it keeps two sets of books, saying: "A final
audit report is made available to our customers. Appropriate information
gathered in the audits is separately provided to our legal department." The
company adds that "CCA has produced all relevant, non-privileged documents in
litigation," that its board is regularly apprised of the most serious prison
incidents, and that "all appropriate" information is given to the financial
community. President Bush recently called Puryear and his 27 other judicial
nominees facing Senate confirmation "highly qualified." Whether or not the
Senate agrees on Puryear, Bush is likely to leave the White House with fewer
judges approved than Bill Clinton or Ronald Reagan, both two-term chief
executives.
March 7, 2008 Tennessean
Long list of problems exists in use of CCA By ALEX FRIEDMANN Corrections
Corporation of America, the nation's largest for-profit prison firm, has a
history in Tennessee that dates back to 1983. It hasn't always been a proud
history, though. Last May, the warden of CCA's Hardeman County facility
assaulted an inmate who was in restraints. The warden resigned, was prosecuted
and pled guilty. The prison's internal affairs officer was charged with an
unrelated assault. On July 30, 2007, a riot occurred at CCA's South Central
Correctional Center in Wayne County. The company's tactical officers responded;
however, there was a delay when they tried to enter the housing units because no
one had the gate keys. On Jan. 14, 2008, an inmate at the CCA-run Metro-Davidson
County Detention Facility was beaten to death by his cellmate. Also, a prisoner
escaped from CCA's Metro jail. CCA initially didn't know he had absconded on
Feb. 16. Those are just the latest in a long line of assaults, escapes, inmate
and employee deaths, and riots at CCA facilities in Tennessee. Most people don't
care because they don't have a private prison in their backyard. That will soon
change for residents of Trousdale County, where CCA plans to build a 2,040-bed
detention center. Type of jobs an issue -- Proponents cite the estimated
350 jobs the prison will bring. But what kind of jobs? According to internal CCA
documents, as recently as October 2007, guards at the Hardeman County prison
were paid a starting wage of $9.41 an hour; after two years, they were earning
less than $10.25. An administrative clerk at the prison was hired at $7.67 per
hour. CCA's supporters also point to taxes and fees the company will pay. Those
payments are partially offset by other costs, such as $6 million in water and
sewage upgrades that Trousdale County will make in preparation for the prison.
In at least two cases, in Ohio and Texas, CCA was sued over tax breaks and
failure to pay taxes owed. In another case, CCA sued the state of New Mexico in
an attempt to recover $2.5 million in tax payments. A 2003 report titled, "Big
Prisons, Small Towns," found that incarceration is a poor form of economic
development. Once a city becomes a "prison town" other industries are less
likely to move in, making the community dependent on the facility for income —
and in the case of a private prison, at the mercy of the company that owns it.
Last month, CCA threatened to remove inmates from one of the company's prisons
in Colorado if the state didn't increase its payments. After a for-profit
facility is filled, the contracting government agencies can be held captive to
rate increases or other demands, as they have nowhere else to put their
prisoners. The residents of Trousdale County may be stuck with a private prison
despite the objections of concerned community members whose repeated requests
for a public hearing were denied. Those who favor the CCA facility will deserve
exactly what they get.
March 5, 2008 Tennessean
The accuracy of testimony by Gustavus "Gus'' Puryear IV at his confirmation
hearing to be a federal judge is being questioned by four Democratic members of
the Senate Judiciary Committee. Puryear is general counsel of Nashville-based
private prison giant Corrections Corporation of America and was nominated by
Republican President Bush. After the February hearing, he provided written
answers to additional questions about the company's handling of the death of an
inmate at a company-run facility in Nashville, potential conflicts of interest
he would face as a judge and his membership in the Belle Meade Country Club. The
sometimes-pointed questions and Puryear's responses again raise the stakes in
his confirmation. Once thought to be routine, Puryear's nomination is being
fought by a coalition of civil rights, labor and other groups spearheaded by the
Private Corrections Institute, which opposes prison privatization. Puryear's
responses were released Thursday. Inmate death testimony -- Judiciary Committee
Chairman Sen. Patrick Leahy of Vermont, along with Sens. Ted Kennedy of
Massachusetts, Dianne Feinstein of California and Russ Feingold of Wisconsin
questioned the testimony Puryear gave last month about the 2004 death of Estelle
Richardson. Richardson died at the Metro Detention Facility after she was
forcibly removed from her solitary confinement cell by four guards. She had a
fractured skull, broken ribs and liver damage. The state's medical examiner
ruled the death a homicide and the four guards were charged, but the indictments
eventually were dropped. Later, a civil suit brought by Richardson's family was
settled out of court when experts representing the family and the CCA concluded
the skull fracture occurred before she was extracted from her cell. At his Feb.
12 hearing, Puryear testified it was not clear how Richardson received her head
injuries and that they could have been self-inflicted. He said CPR done in an
attempt to revive Richardson could have caused her broken ribs and liver damage.
All four senators questioned that testimony, citing a letter sent to the
committee from Dr. Bruce Levy, Tennessee's chief medical examiner, who conducted
the autopsy on Richardson. He reiterated that the death was a homicide caused by
blunt force trauma that was not self-inflicted. Levy called "misleading at
best'' Puryear's comment about CPR causing injuries. Puryear responded by citing
a letter to the committee from David Smith, attorney for the Richardson family,
who wrote that the "the circumstances and causes of Ms. Richardson's tragic
death were complex and debated ... our own experts attributed the death to a
seizure.'' "There were also issues on whether CPR may have caused the liver and
rib injuries,'' Smith wrote. Puryear said the company's expert, Dr. William
McCormick, former deputy chief medical examiner for Tennessee, wrote that the
rib and liver injuries were "almost certainly'' caused by CPR and cited medical
research to back his claim. Promises made -- Puryear expanded on a promise made
during testimony that he would recuse himself for at least five years from CCA
cases and would also not take on personal cases involving company executives. He
said at the hearing he also would sell all of his CCA stock. Puryear also wrote
that he would resign from the Belle Meade Country Club if he discovered that the
club's membership practices violated the judicial code of conduct. Kennedy wrote
that the club did not allow blacks to join until 1994 and does not give women
the right to vote on club business. Puryear said there are no women who are
"resident members,'' the class allowed to vote, but that he knows of no policy
that restricts women from being recommended for that category. "I am not aware
... that any woman has been proposed or has sought to be proposed as a 'resident
member,' " he said. Judiciary Committee spokesman Erica Chabot said the
committee would likely not deal with the nomination until April at the earliest
because members may want to ask follow-up questions and Congress is out of
session the last two weeks of March. The full Senate must confirm the nomination
once it is out of committee.
February 27, 2008 AP
The president and chief executive of prison management company Corrections Corp.
of America exercised options for 18,000 shares of common stock under a
prearranged trading plan, according to a filing with the Securities and Exchange
Commission. In Form 4s filed with the SEC Tuesday, John D. Ferguson reported he
exercised the options on Friday for $5.70 apiece, then sold all 18,000 shares on
the same day for $25.92 to $26.70 apiece.
February 25, 2008 Tennessean
Gustavus "Gus" Puryear IV is the top attorney for Corrections Corporation of
America, the Nashville-based private prison giant. He graduated with honors from
law school, is a deacon in his church and serves on the boards of numerous
community organizations. Now President Bush has nominated him to be a federal
judge for the Middle District of Tennessee. But Puryear has never been a judge,
has little trial experience, and works for and holds stock in a company enmeshed
with the federal government through campaign donations, lobbying and huge
contracts. And the company he represents gets sued a lot, many times in federal
court in Nashville. Civil rights and prison rights advocates and others say
those and other concerns make Puryear a poor choice to be a judge in the very
court where his company is often a defendant. And his answers at his
confirmation hearing earlier this month are raising questions among some
senators and the state's top medical examiner. What appeared to be a routine
confirmation process has suddenly become complicated. "During that hearing, a
lot of red flags were raised," said Erica Chabot, spokeswoman for Sen. Patrick
Leahy, D-Vt., chairman of the Senate Judiciary Committee. "You can bet there are
some follow-ups." Senators on the committee were given two weeks to submit
additional questions that will be sent to Puryear for written responses. Puryear,
39, declined to comment on questions about his fitness for the bench while the
confirmation process is ongoing, said Steve Owen, spokesman for CCA. Trial
experience lacking -- Letters opposing Puryear were sent to the committee by
Private Corrections Institute Inc., which opposes prison privatization; the
Alliance for Justice, an umbrella group of dozens of national civil rights and
other organizations; and the American Federation of State, County and Municipal
Employees. Among their arguments: Puryear doesn't have the proper legal
qualifications. Puryear spent less than three years in private practice in
Nashville before signing on as counsel for the Senate Committee on Governmental
Affairs, headed by then-Sen. Fred Thompson. Next, he served as legislative
director for former Sen. Bill Frist for about three years before becoming
general counsel and vice president at CCA in January 2001. Puryear's lack of
trial experience is a greater concern than his role as a corporate lawyer and
his lack of judicial service, said Douglas Laycock, a professor of the
University of Michigan Law School. "District court judges have to run a trial
and run it efficiently. It's just a different skill set," Laycock said. An
analysis of a database of the nearly 1,200 sitting and senior federal judges
shows slightly more than one-third served as judges prior to their appointment.
Only 18 served as general counsels or assistant or associate general counsels
for private companies. Puryear's lack of trial experience is probably why he
received a "qualified" rating by the American Bar Association, instead of the
higher "well qualified," Laycock said. Of the 67 judges nominated by President
Bush since January 2007, 14 received a unanimous or majority "qualified" rating.
The rest had unanimous or majority "well-qualified" ratings. Alex Friedman, vice
president of Private Corrections Institute, said conflict of interest is a major
reason not to confirm Puryear because lawsuits against the company and its
executives are often filed in the court on which he would serve. Friedman served
six years in a CCA-run facility in Tennessee. Puryear told the committee he
would sell off all his CCA stock and recuse himself from cases involving the
company. Laycock said "that CCA gets sued a lot is not a problem" because the
number of cases would be relatively small and could be picked up by other
judges. CCA and Puryear have strong connections to the federal government.
Puryear gave $3,000 to Tennessee Sen. Bob Corker's campaign in 2005-06 and
$1,000 to Tennessee Sen. Lamar Alexander in 2005. CCA executives and its
political action committee have given $48,950 to Alexander since 1989, according
to the Center for Responsive Politics. Corker has received $27,250 from CCA and
its executives. Puryear is a registered lobbyist for CCA and the company spent
more than $3 million in 2007 lobbying the federal government, according to
lobbying reports. It has received nearly $1.2 billion in federal contracts since
2004, according to a database of federal contracts compiled by the Office of
Management and Budget. Nashville death cited -- Another complaint is the
company's handling of the 2004 death of Estelle Richardson in the Metro
Detention Facility in Nashville. Puryear testified at his confirmation hearing
that her broken ribs and liver injuries could have been caused by CPR attempts
to revive her. Tennessee's Chief Medical Examiner, Dr. Bruce Levy, who conducted
the autopsy on Richardson, said in an e-mail that Puryear's "statement that the
rib fractures and liver damage could have been caused by CPR is in error and is
not based on sound forensic medicine." Levy has contacted the judiciary
committee. But Dr. William McCormick, the state's former deputy chief medical
examiner, concluded in a report prepared for attorneys defending the company in
a civil lawsuit that the injuries were "almost certainly" caused by the CPR,
said Joe Welborn, one of the attorneys. Four CCA guards were charged, but the
charges were dropped and Richardson's family ultimately settled a lawsuit
against the company. Both Tennessee Republican senators, Alexander and Corker,
released written statements last week repeating their support for Puryear. "The
American Bar Association investigated all allegations raised by liberal interest
groups, but still concluded that Mr. Puryear was qualified to serve on the
federal bench," Alexander said. The Senate Judiciary Committee is not likely to
hold a second hearing on the nomination, said Chabot, spokeswoman for chairman
Leahy. The committee will rely on the record of the first hearing and answers to
written questions to vote. It is not clear when that vote will take place.
February 22, 2008 National Lawyers Guild PR
On June 13, 2007, President Bush nominated Gustavus Adolphus Puryear IV for a
position on the U.S. District Court for the Middle District of Tennessee. Mr.
Puryear currently serves as vice president and general counsel for Corrections
Corporation of America (CCA), the nation's largest for-profit private prison
company. If appointed he would serve as a federal judge in the same jurisdiction
where CCA is headquartered. Since 2000, at least 260 federal lawsuits naming CCA,
company subsidiaries or CCA employees have been filed in the Middle District of
Tennessee. Such cases would constitute a conflict of interest for Mr. Puryear,
and assigning them to other judges would not be an effective use of judicial
resources. Of greater concern is that Mr. Puryear lacks familiarity with the
federal courts and has little trial or litigation experience. By his own
admission he has tried only two cases to verdict; he has been personally
involved in only five federal cases, most recently a decade ago. He is not
admitted to practice before the Sixth Circuit Court of Appeals, which is over
the Middle District of Tennessee, and received only a "qualified" rating from
the American Bar Association rather than a "highly qualified" rating. Both
Tennessee Senators Lamar Alexander and Bob Corker strongly support Mr. Puryear's
nomination. Neither Senator has acknowledged the substantial financial
contributions received from Mr. Puryear and his employer, CCA – which include
over $80,000 to Senator Alexander and $27,000 to Senator Corker since 2004.
Further, Mr. Puryear mentioned in disclosure statements that he is a member of
the Nashville-based Belle Meade Country Club. The fact that Mr. Puryear
maintains membership in an exclusive, predominately white club that did not
admit its first minority member until 1994, and reportedly does not afford
voting privileges to female members but only to male members, is a matter of
significant concern for a federal judicial nominee. In an Associated Press
national wire article concerning Mr. Puryear's nomination, Vanderbilt Professor
Stefanie Lindquist was quoted as saying his judicial appointment "might slide
through as a compromise." The National Lawyers Guild does not believe the people
of Tennessee should have to compromise or settle for a less-than-qualified
federal judge to represent their interests in U.S. District Court. The National
Lawyers Guild calls on the Senate Committee on the Judiciary to vote down this
unqualified, conflicted and controversial judicial candidate.
February 21, 2008 AP
A private prison company executive nominated to become a federal judge has run
into a determined opponent — a former inmate. President Bush in June nominated
Gustavus A. Puryear IV, chief lawyer with Corrections Corporation of America, to
become a U.S. district judge in Nashville. That led Alex Friedmann, who spent
six years at the company's prison in Clifton, Tenn., to investigate Puryear's
qualifications. He looked up every case where Puryear was listed on the docket
as counsel. The prisoner-turned-inmate advocate found only five instances where
Puryear was the attorney of record. By his count and Puryear's, the judicial
nominee has been involved in only two federal court trials during his career.
That's just one more case than Friedmann himself has handled in federal court.
Convinced that the well-connected Puryear was unqualified to be a federal judge
and might face a conflict of interest overseeing litigation involving his former
employer, Friedmann began a public relations campaign against the nomination
that led all the way to the Senate. He formed the group Tennesseans Against
Puryear and enlisted the help of the liberal Washington-based Alliance for
Justice and the American Federation of State, County and Municipal Employees,
both of which sent letters opposing the appointment. Puryear, a 1993 graduate of
the University of North Carolina law school, didn't respond to several phone and
e-mail requests left at his home and office for an interview with The Associated
Press. At a Feb. 12 hearing of the Judiciary Committee, Sen. Diane Feinstein, D-Calif.,
questioned Puryear about several issues originally raised by Friedmann and the
nonprofit Private Corrections Institute, a group opposing private prisons that
Friedmann helps run. Puryear told the Senate committee he already was selling
off his stock in the company, according to reports in The Tennessean newspaper.
He owned CCA shares valued at just under $1.3 million as of Feb. 1, according to
Lionshares.com, an online database of stock ownership. He also pledged to recuse
himself from cases involving CCA even after he no longer holds a financial
interest. The committee also questioned Puryear about whether the volume of
lawsuits against Nashville-based CCA — the nation's largest for-profit private
prison company — would burden other judges who would have to hear the cases when
Puryear recused himself. Puryear said it would not be a significant burden.
Friedmann's campaign against Puryear continues. He plans to send a letter to the
Committee on the Judiciary pointing out what he contends are inaccuracies in
Puryear's answers. The two men have never met. Although Friedmann learned of the
nomination because he keeps tabs on CCA, he insists his crusade is based on
Puryear's lack of qualification and not because he's a CCA executive. Friedmann
sued CCA and several employees in 1996 while incarcerated for six years for
armed robbery. Serving as his own lawyer, Friedmann eventually won a $6,000
judgment against a former prison unit manager for a civil rights violation.
Puryear's legal resume includes significant political work — serving as counsel
to former Senate Majority Leader Bill Frist and junior counsel during the U.S.
Senate Governmental Affairs Committee investigation of campaign finance abuse
led by former Sen. Fred Thompson. He also was a debate adviser for Dick Cheney
in 2000. Stefanie Lindquist, an associate professor of political science and law
at Vanderbilt University, said courtroom experience is good but not essential
for federal judge nominees. She sees more significance in the American Bar
Association rating of Puryear as "qualified," instead of "well qualified" to be
a judge. "A 'qualified' rating is relatively weak. That's going to hurt him,"
Lindquist said. Lindquist said Friedmann's efforts are unusual for even
temporarily disrupting what should be a routine confirmation. There are about
180 Bush nominations pending as the administration and Democratic-controlled
Senate tangle over some sharply contested nominees. Of the Puryear nomination,
Lindquist said: "If there are other, more controversial nominees, this might
slide through as a compromise."
February 20, 2008 Mother Jones
In October 2000, Dick Cheney faced off for a debate with Connecticut Sen. Joseph
Lieberman. The 60-year-old Cheney appeared comfortable discussing the ins and
outs of policy and made good-natured jokes about Lieberman's singing abilities,
or lack thereof. Cheney's smooth performance reflected his many years in public
service. But the aspiring vice president also had a strong debate-preparation
team made up of longtime friends and GOP loyalists. Among them was Gustavus
Adolphus Puryear IV, a legislative director for Tennessee senator Bill Frist,
who was on contract with the Bush/Cheney campaign. Puryear apparently did such a
good job prepping Cheney that he was called in again in 2004 to help him gear up
for his debate with Democratic vice-presidential candidate John Edwards.
Puryear's efforts on behalf of the Bush administration paid off last June when
the president nominated him to be a federal trial court judge for the Middle
District of Tennessee. Puryear certainly isn't the first judicial nominee
selected primarily for his political service, but still, his resume is
remarkably thin on the practice of law, a basic prerequisite even for the
best-connected political hacks. Puryear got his start in politics in the
mid-1990s working as counsel to the Senate Committee on Governmental Affairs,
then chaired by Fred Thompson, as it investigated the Clinton fundraising
scandals. From there he went to work for Frist. Beyond a brief stint in private
practice for a corporate law firm when he was fresh out of law school, Puryear
has spent more time inside an executive suite than a courtroom. And it's that
corporate work that makes him an especially questionable candidate for the
federal bench. Puryear was in Washington last week for his confirmation hearing
before the Senate Judiciary Committee, where Senators Arlen Specter (D.-Pa,) and
Dianne Feinstein (D.-Ca.) both put his resume under a microscope, noting his
conspicuous lack of trial experience. At one point Specter asked him point
blank, "How many cases have you actually tried?" To which Puryear answered: Two.
Indeed, according to his written questionnaire for the committee, of the two
cases he has tried in the entirety of his legal career, he was lead counsel on
one of them. The last time he litigated a case in federal court was more than a
decade ago. Puryear has spent the bulk of his legal career at the
Tennessee-based Corrections Corporation of America, the nation's largest private
prison company. As its general counsel since 2001, Puryear has made millions of
dollars working for a company that profits from the country's incarceration
boom, particularly through his recent sale of more than $3 million worth of the
company's stock. (His financial disclosure form shows a net worth of more than
$13 million.) His employer creates enormous conflicts for Puryear as a potential
federal judge, as the CCA gets sued all the time, often in the very district
where he hopes to preside as judge. Since 2000, roughly 260 cases have been
filed in that court against the CCA, its officers, and subsidiaries. In
addition, Puryear's current job involves overseeing the CCA's defense against
inmate litigation, a prison staple that he has publicly dismissed as a nuisance,
even though such litigation has led to significant verdicts and settlements
against the company. For instance, in 2000, a South Carolina jury hit the CCA
with a $3 million verdict for abusing juveniles. Other successful suits have
alleged that the company's employees abused inmates and provided negligent
medical care. Yet in a quote he no doubt now regrets, in 2004 Puryear said that,
"Litigation is an outlet for inmates. It's something they can do in their spare
time." Inmate lawsuits typically account for more than 10 percent of the docket
in Tennessee's Middle District, meaning that Puryear will see his share of them
if he gets confirmed. During his confirmation hearing last week, Puryear told
the committee that he would recuse himself from any cases involving the CCA—at
least, he said, for some time after he's divested all of his stock in the
company. He dismissed concerns about his conflict of interest by noting that the
CCA cases make up a small part of the court's workload and that his recusals
would not create problems for the other judges. But his promises to recuse still
don't get to the heart of a fundamental conflict: To the CCA, inmates are a
revenue stream warehoused at the cheapest price. This not exactly the view of
the criminal justice system you want from a judge if you are a defendant. A
trial court judge in Tennessee's Middle District can expect to handle more than
60 criminal cases a year. Every person Puryear sends to prison is a potential
money-maker for his former employer, which contracts with the federal government
to manage 15 detention facilities, and also holds federal prisoners in other CCA
institutions that house state and local prisoners when the need arises,
according to Steve Owen, the company's director of marketing and communications.
The number of inmates coming from Tennessee may be relatively small, but still,
it seems fair to ask whether Puryear's conflict of interest runs so deep that he
might have to recuse himself from criminal cases entirely. Thus far, Puryear has
largely escaped media scrutiny, as the activist groups that monitor the federal
courts tend to focus mostly on appellate courts and the occasional Supreme Court
battle rather than on trial court nominees. Puryear's CV also doesn't signal
fights on many of the hot-button social issues that usually set off a
confirmation battle. He doesn't sound—or look—like Robert Bork. He's young,
patrician, a model member of the exclusive Belle Meade Country Club, and
director of the Antiques & Garden Show of Nashville. But for his deep voice he
could be Niles on "Frasier." Nonetheless, Puryear might be in for an unexpected
fight, due in part to his decision to publicly dis jailhouse lawyers. Alex
Friedmann was one of those jailhouse lawyers. He spent six years inside one of
the CCA's prisons in Tennessee for attempted murder and armed robbery. Friedmann
actually sued the CCA while incarcerated for retaliating against him for his
comments to a reporter for The Nation. Representing himself, he took another
case all the way to a jury trial, where he mostly lost, though he won a default
judgment against a former unit manager. He also appealed a different case
against the state, over censorship, that went all the way to the Sixth Circuit
court of appeals where he won. "In that regard, I'm more qualified than [Puryear]
is," he observes, noting that Puryear isn't even admitted to practice in the
Sixth Circuit. Now out of prison nine years, Friedmann is an editor for Prison
Legal News, which is how he first learned about Puryear's nomination. After
doing a little checking on him, Friedmann ran across Puryear's quote about
inmate litigation, which didn't sit too well with him, and he set out to torpedo
Puryear's nomination. As a former CCA inmate and a board member of a Florida
nonprofit group that opposes prison privatization, Friedmann readily admits that
he's not a disinterested party in the nomination battle. Nonetheless, his
political instincts are sound. He is cobbling together a coalition to oppose
Puryear's nomination, including the American Federal State and Municipal
Employees Union, which opposes private prisons for their anti-labor positions.
Friedmann's currently at work trying to enlist the real powerhouse of liberal
judicial activists to join the coalition: women's groups. Friedmann has compiled
stats from the federal court docket on the CCA's lawsuit history in order to
highlight the potential conflicts of interest Puryear might face, and he picked
apart Puryear's resume and his responses to the Senate Judiciary Committee's
questions last week. For instance, when pressed on his view of criminal
defendants and prison inmates, Puryear pointed to his service as a commissioner
on the National Prison Rape Elimination Commission. Skeptical, Friedmann checked
out Puryear's attendance record with the commission. He says the commission held
eight public hearings between 2005 and 2007—and Puryear missed at least four of
them. "If the gentleman does have a genuine concern about inmates, why did he
miss half the meetings?" he asks. Friedmann is also raising significant
questions about Puryear's response to questions about the death of a female
inmate at the CCA's facility in Nashville. The medical examiner ruled that
34-year-old Estelle Richardson was beaten to death while in the company's
custody. She suffered a skull fracture, broken ribs, and liver damage.
Prosecutors indicted four CCA guards in 2005, but later dropped the charges
after being unable to determine the time of death. So far, no one has been held
responsible for Richardson's death, although the CCA settled a private lawsuit
filed by her family. When Sen. Feinstein asked Puryear about the case, Puryear
disputed the medical examiner's findings and claimed that Richardson's death
might not have been a homicide at all. He suggested that the broken ribs and
liver injury may have been caused by CPR. It's "common" for people to suffer
such injuries from CPR, Puryear said, to which a dumbfounded Feinstein
exclaimed, "Common?" Apparently not satisfied with Puryear's answers, Feinstein
asked him to provide the committee with further written information about the
case. Meanwhile, after the hearing, Friedmann called the Tennessee medical
examiner who worked the case, who he says reaffirmed the original finding that
Robinson's death was a homicide and that there was nothing to suggest her
injuries were caused by resuscitation efforts. Friedmann also spoke with the
lawyers who represented Richardson's family and he says that they told him that
the CCA never raised CPR injuries as a defense in the litigation. Puryear's
comments to the committee, says Freidmann, are "not supported by the medical
record," which makes him skeptical about Puryear's judgment as a lawyer—and his
credibility. Friedmann seems to recognize that prison inmates are not the stuff
of judicial confirmation fights, so he has also homed in on another issue that
might provide more traction, not to mention the interest of powerful women's
groups: Puryear's country club. The tony Belle Meade Country Club in Nashville
is so exclusive that you have to be a member just to access its website. It
didn’t admit a single black member until 1994, a racist history so potent that
even Puryear's mentor, former Senate Majority Leader Bill Frist, quit the club
in 1993 when he first ran for office. While Belle Meade admits women, Friedmann
has heard that it still won't give "lady members" voting rights. (Troy
Cunningham, the controller of the club for the past 17 years, wouldn’t respond
to questions about women's voting rights, saying that "all questions flow
through the members," meaning that someone will have to put the question to
Puryear himself.) But if Friedmann can stir up controversy over Puryear's
country club membership, he might actually have a shot at scuttling his
nomination.
February 20, 2008 AP
Corrections Corp. of America spent almost $2.5 million in 2007 to lobby on
legislation and regulations related to the private prison industry. The prison
management company spent more than $1.1 million in the second half of 2007 to
lobby the federal government, according to a disclosure form posted online
Thursday by the Senate's public records office. The company lobbied on the
privatization of Bureau of Indian Affairs prisons and on the Public Safety Act,
which would outlaw private prisons, as well as the Private Prison Information
Act, which would force private prisons to make public the same information
government jails must provide. Corrections Corp. spent more than $1.3 million in
the first six months of 2007 to lobby on similar issues. In addition to lobbying
Congress, the company also lobbied the Bureau of Indian Affairs, Department of
Homeland Security, Department of Justice, Department of Labor and Office of
Management and Budget. Corrections Corp. lobbyists included Bart VerHulst,
previously chief of staff for former Senate Majority Leader Bill Frist, R-Tenn.;
Mike Quinlan, former director of the Federal Bureau of Prisons; and Gus Puryear,
previously counsel to Frist and an adviser to Vice President Dick Cheney.
Lobbyists are required to disclose activities that could influence members of
the executive and legislative branches, under a federal law enacted in 1995.
February 13, 2008 Market-Wire
Corrections Corporation of America (NYSE:CXW - News), the nation's largest
provider of corrections management services to government agencies, announced
today that Dennis DeConcini, the former U.S. Senator from Arizona, has been
elected as an independent member of CCA's Board of Directors. "Senator Dennis
DeConcini has a distinguished career serving the state of Arizona and the U.S.
government," said William F. Andrews, chairman of CCA's Board of Directors. "We
are extremely pleased to bring Dennis onto our Board. His extensive knowledge
and understanding of government, coupled with his experience with other
directorship positions, make him ideally suited to help lead management's
initiatives to enhance government's utilization of public/private partnership in
corrections." Senator DeConcini served three terms, from January 1977 through
January 1995, representing the State of Arizona in the United States Senate. As
Senator, he served on the Senate Appropriations Committee, where he chaired the
Subcommittee on Treasury, Postal Service and General Government. He also served
on the Subcommittees of Defense, Foreign Operations, Energy and Water
Development, and Interior and Related Agencies. Prior to his service as a U.S.
Senator, DeConcini served one elected term as the County Attorney for Pima
County, Arizona. Senator DeConcini, age 70, is a partner in the law firm of
DeConcini McDonald Yetwin and Lacy in Tucson, Arizona, which he co-founded in
1968. DeConcini also is a Principal in the lobbyist consulting firm Parry,
Romani, DeConcini & Lacy P.C. in Washington, D.C.
February 13, 2008 The Tennessean
The expected smooth confirmation of Gustavus "Gus" Puryear IV to be a
federal judge in Nashville hit some bumps Tuesday during a sometimes-tense
congressional hearing that raised questions about his role as chief lawyer for
Corrections Corporation of America. Sen. Dianne Feinstein, D-Calif., and Sen.
Arlen Specter, R-Pa., quoted letters from civil rights and other groups opposing
Puryear's nomination. Despite Tuesday's tough questioning, the Senate Judiciary
Committee hearing could suggest Puryear is on track to win confirmation at a
time when Senate Democrats and President Bush are feuding over judicial
nominations. Many nominees have never been granted a hearing before the panel.
The groups say Puryear is biased against inmates' rights and was more interested
in protecting CCA in 2004 than in finding out why a woman died in a Nashville
jail run by the company. They also say Puryear would have to recuse himself from
cases involving CCA, which they contend would clog up the court system. Puryear
carefully rebutted each claim and said he has already started to sell off his
stock in the Nashville-based company. He promised to sell off all his stock and
said he would avoid hearing cases involving the company even after completely
divesting. He did not say how long he would wait before he would begin hearing
cases involving CCA. The committee's chairman, Sen. Patrick Leahy, D-Vt., could
not attend the hearing but submitted a written statement saying it shows he's
trying to fill vacant judgeships. Tennessee Republican Sens. Bob Corker and
Lamar Alexander support Puryear's nomination to U.S. District Court for the
Middle District of Tennessee. They introduced him at the hearing. Various groups
opposed -- The campaign against Puryear is being led by the Alliance for
Justice, a Washington-based umbrella group representing dozens of national civil
rights and other groups ranging from Planned Parenthood Federation of America to
The Sierra Club Foundation. The American Federation of State, County and
Municipal Employees, which represents workers at CCA prisons, also sent a letter
opposing Puryear's nomination. The Alliance for Justice letter says Puryear
"cavalierly dismissed" the legitimacy of civil rights lawsuits filed by
prisoners when he said in 2004 that "litigation is an outlet for inmates. ...
It's something they can do in their spare time." "The courts should be open to
civil rights lawsuits of all types," Puryear said when Specter asked him about
the comment. Puryear said he was referring to "frivolous" lawsuits filed by
prisoners, prompting Specter to demand what he meant by frivolous. Jail death is
an issue -- Feinstein asked about allegations on an anti-Puryear Web site
claiming Puryear was more concerned in 2004 with protecting CCA than with
finding out who killed Estelle Richardson in the Metro Detention Facility in
Nashville in 2004. Richardson, 34, had a fractured skull, broken ribs and liver
damage. Four CCA guards were charged, but the charges were dropped and
Richardson's family ultimately settled a lawsuit against the company. Puryear
said Tuesday that "four innocent correctional officers were exonerated" and that
the cause of Richardson's death could not be determined. He suggested her broken
ribs and liver damage could have been caused by CPR, which he said is a "common"
occurrence during such resuscitation. "Common?" Feinstein responded, sounding
incredulous. Puryear's opponents say 400 cases involving CCA have been filed in
Tennessee's Middle District since 2000. That volume would place a significant
burden on other judges if Puryear had to recuse himself from such cases, they
said. Puryear disputed the allegation, saying the correct number is 181 cases.
An electronic search of the Middle District's docket since 2000 lists 165 cases
with Corrections Corporation of America or CCA named as a party. Few are still
active. Feinstein asked Puryear to respond to some claims in writing. The
committee could then hold another hearing and question Puryear more, or the
panel could move ahead with a vote on whether to send the nomination to the full
Senate with a recommendation for approval or disapproval, or with no
recommendation at all.
February 6, 2008 Pueblo Chieftain
A private prison company is threatening to move all Colorado inmates out of
one of its facilities if it doesn't get an increase in what the state pays to
house them. Corrections Corporation of America, which operates four of the
state's five private prisons, including three in Southern Colorado, is demanding
that the Colorado Legislature give it a 5 percent hike in the per diem it
receives to house about 4,000 state inmates, Rep. Bernie Buescher, D-Grand
Junction, said Tuesday. Buescher, chairman of the Legislature's Joint Budget
Committee, said the Tennessee-based company is using its weight to try to force
more money out of the state. "We've got a negotiating disadvantage," he said.
"The choice we've got to make is to give them a provider rate increase that is
three times what we're giving to all other providers, or to build hundreds of
millions of dollars in additional prisons. We don't have that hundreds of
millions of dollars, and they know it. The decisions that have been made over
the last 12 years (in using private prisons) have put us in a very difficult
negotiating position." Steve Owen, spokesman for the Nashville company, said CCA
is simply trying to do what's best for its business. He said the company agreed
to a lower per diem rate in 2001 when the state was suffering from a major
budget shortfall. Since then, however, the state hasn't made up the difference.
"We were basically asked to help with the burden of trying to ease some of those
(budget) constraints, which we did," Owen said. "So, there's nothing Draconian
at work here in terms at what has been presented to the state. We're just
honestly trying to put options out there to help preserve this partnership with
Colorado so we can continue to provide the services to the state and keep our
folks employed out there." In 2001, the state had been paying CCA a $53.33 per
diem. That amount was lowered to less than $50 and has since risen to $52.69,
still far less than what it would be receiving after seven years of inflation
and cost increases. Now the company is asking for $55.32 per inmate a day.
"We've actually had a real dollar decrease," Owen said. "That's compounded with
another issue that the state has underutilized beds that we've made available.
Between those two things, it makes for a difficult situation on a financially
viable business operation." Currently, the company - which operates private
prisons in Bent, Huerfano, Crowley and Kit Carson counties - has about 460 open
beds, and that doesn't count the 1,440 more that are expected to become
available later this year because of expansions of the Bent and Kit Carson
facilities, Owen said. Owen said that if the state can't pony up more money, his
company would consider consolidating all Colorado prisoners in three of its
facilities. The fourth facility, which has not been determined, would be used
for inmates from the federal prison system or other states, some of which pay
anywhere from $10 to $15 a day more than Colorado. Still, some lawmakers said
they didn't like the idea of the company demanding a 5 percent hike at a time
when the state can only afford to give other private providers, from health care
to human services, less than 1 percent. Rep. Buffie McFadyen, D-Pueblo West and
a longtime critic of private prisons, said the state should call CCA's bluff and
give them no increase. "I don't like doing business when we're being held
hostage, and that's exactly what this is," McFadyen said. "We saw it coming. We
had a past governor (Bill Owens) who brought us private prisons without a bid
process, now we're dealing with it. If they don't want to work with us, we don't
have to play ball with them."
January 28, 2008 Colorado Confidential
In just two months, two executives of the nation's largest prison business
gave $2,400 to various campaigns in Colorado, nearly triple the total amount
contributed a year before. According to records from the Secretary of State's
office, high- ranking officials with Tennessee-based Corrections Corporation of
America went on a spending spree during the last two months of 2007,
contributing money to the candidate committees of seven state legislators,
usually in $400 increments, the highest legal amount. State campaign finance
records show that Marsha Wedell, wife of CCA board member Henri Wedell and a
listed vice president at the company, gave $1,400 to the campaigns of Reps.
Betty Boyd, D-Lakewood; Mary Hodge, D-Brighton; Shawn Mitchell, R-Broomfield;
and House Minority Leader Mike May, R-Parker. May's committee received $200,
while the rest were given $400 contributions -- the maximum allowed by law. Josh
Brown, a senior director at CCA who handles business relations in Colorado, gave
a total of $1000 to the committees of Reps. David Balmer, R-Centennial; Michael
Garcia, D-Aurora; and Nancy Spence, R- Centennial, according to SOS documents.
What makes the spending surge unique is not the monetary amounts given to state
lawmakers, but the sheer increase in spending from last year by CCA. State
records show that CCA board member Henri Wedell gave $400 in November 2006 to
the campaign of House Speaker Andrew Romanoff, D- Denver, while CCA gave a
business contribution of $500 to the Colorado Leadership Fund, a Republican
political committee, during the same month. The company didn't contribute again
until the end of 2007, when executives gave nearly triple the $900 amount
contributed at the same time in 2006. CCA operates four detention facilities in
Colorado. Earlier in the month, the company demanded a 5 percent increase in the
daily rate the state pays to hold inmates and threatened to stop housing
prisoners.
November 12, 2007 AP
Private prison operator Corrections Corp. of America paid Sisco Consulting
Inc. $140,000 in the first half of 2007 to lobby the federal government,
according to a disclosure form. The form, which was posted online Nov. 7 by the
Senate's public records office, did not indicate any specific initiatives the
lobbying firm worked on. The Nashville, Tenn.-based company, which designs,
builds and manages prisons, jails and detention facilities, previously indicated
it spent $1.3 million lobbying so far this year on issues related to prison
privatization. The company owns 40 facilities, but also operates in another 25
facilities across the nation. Lobbyists are required to disclose activities that
could influence members of the executive and legislative branches, under a
federal law enacted in 1995. They must register with Congress within 45 days of
being hired or engaging in lobbying.
November 11, 2007 Tennessean
They are some of the most powerful people in the state, but you rarely hear
about them. They make decisions that address hot-button topics ranging from
abortion and political corruption to religious freedom and the death penalty.
They can put you in prison or they can vindicate your civil rights. Who am I
talking about? Federal judges. The legal decisions rendered by U.S. district
court judges seldom make the news unless they deal with issues of public
importance, such as Judge Aleta Trauger's ruling last month that suspended
executions in Tennessee. Federal judges, who are appointed for life, wield an
enormous amount of power. Thus, it stands to reason that only highly qualified
candidates would be nominated for federal judicial positions. Considering the
nomination of Gustavus A. Puryear IV for the district court in Middle Tennessee,
however, that apparently isn't the case. You've probably never heard of Mr.
Puryear, but you may know his employer, Corrections Corporation of America — the
nation's largest private-prison company. Mr. Puryear serves as CCA's general
counsel. He received a salary of $237,308 plus $602,957 in other compensation
last year, and since November 2006 has cashed in $2.64 million in CCA stock.
This presumably means he would have a conflict of interest should he preside
over cases involving CCA ... and more than 400 federal cases naming CCA or CCA
employees have been filed in Middle Tennessee. While Mr. Puryear may be wealthy
in terms of cash and stock, whether he is equally rich in legal experience is
debatable. He spent just three years at a Nashville law firm. He has been named
as counsel in 130 federal cases in Tennessee, mostly after hiring on with CCA in
2001. However, 85 of those cases were dismissed by the court, with no action
taken by Mr. Puryear. In 39 of the cases, other attorneys handled the actual
litigation. Mr. Puryear sent a letter to the court in one case and was actively
involved in five others — most recently in 1998. According to court records,
only one case in which he was personally involved went to trial, and he has
never litigated a case on his own. So what makes Mr. Puryear qualified for
appointment as a federal judge? He has strong political connections. He worked
under former Sens. Bill Frist and Fred Thompson, and served as an adviser to
Dick Cheney during the 2000 debates. He has donated more than $13,000 to
Republican candidates since 2001 — including to Sens. Lamar Alexander and Bob
Corker, who have endorsed his nomination. But lifetime federal judicial
appointments should not be based on political payback; only the most experienced
and qualified candidates should be appointed to the federal bench. Sadly, this
does not seem to be the case in regard to Mr. Puryear's nomination, which
ill-serves all Middle Tennessee residents. Last week, the Alliance for Justice
submitted a formal letter to the Senate Committee on the Judiciary, opposing Mr.
Puryear's nomination. For more information on Mr. Puryear's judicial nomination,
please visit: www.privateci.org/puryear2.htm. By ALEX FRIEDMANN
November 8, 2007 The Tennessean
On Oct. 31, John Ferguson, CEO of Corrections Corp. of America, wrote that his
private prison company saves the state money despite charging higher rates than
those paid to county jails that house state prisoners. Most studies that have
been conducted on private prison costs have found uncertain or minimal savings —
including a study by the Tennessee Legislative Fiscal Review Committee that
compared expenses at two state prisons, and the CCA-run South Central
Correctional Center. Regardless, I don’t doubt Ferguson’s statement that CCA has
lower per-diem rates than state prisons. But he didn’t explain why, so I will.
CCA doesn’t operate any maximum-security prisons in Tennessee, does not house
death-row prisoners and doesn’t operate women’s facilities. All of those prison
populations have much higher incarceration costs that CCA doesn’t have to pay.
The state must also cover all medical costs for prisoners. CCA’s medical
expenses are capped at a certain amount ($5,000 the last time I checked); after
that, the state has to pick up the tab. Further, CCA has cherry-picked prisoners
at South Central, such as transferring prisoners who are HIV-positive — and more
expensive to house — to state facilities. So, yes, CCA might have lower per-diem
costs than state prisons, but only if you compare public apples with
privately-managed oranges. Alex Friedmann, Antioch 37013
October 22, 2007 Times Free Press
Tennessee's payments to facilities run by the privately owned Corrections
Corporation of America for housing felons increased substantially since 1998, a
time when state reimbursements to local jails was frozen, figures show. Money
the state paid per day to house a felon at the CCA-run South Central
Correctional Facility increased 22.8 percent from fiscal 1998 to the fiscal year
that began July 1, the state Department of Correction reported. Payments to the
Hardeman County Correctional Facility, owned by a Hardeman County entity but
managed by CCA, increased 29.1 percent during the same period, state figures
show. But state payments for housing convicted felons at the Hamilton County
Jail and many other local jails across Tennessee have been stuck at $35 per day
since 1994. "I don't know if it's fair or not," Hamilton County Sheriff Billy
Long recently said of state increases to CCA. "It's just we need to be paid
whatever our jail cost is." The Hamilton County Jail's daily cost per prisoner
as of June 30 was $59.24, said Bill McGriff, county auditor. He estimates county
taxpayers in fiscal 2007, which ended June 30, lost $692,596 because of the
state's cap. Hamilton County Commissioner John Allen Brooks said it is hard for
the county "to make up what the state isn't paying us." Gov. Phil Bredesen and
state Correction Commissioner George Little recently said they are willing to
re-examine jail payments but contend a number of local jails make money housing
state felons. According to a Department of Correction list of local jail costs
provided by Mr. McGriff, 65 city or county jails in Tennessee have costs that
are above the $35 cap, while 38 have costs below or at the $35 cap. Facilities
below the cap are reimbursed at their costs. Mr. Little said the privately
operated facilities have annual reimbursement increases written into their
contracts. "I'm not suggesting for a moment that county jail costs are not going
up or that it's not a real issue," Mr. Little said. "I'm merely suggesting that
as the state looks at raising the rate of reimbursement, we need to be prudent
and take a broad look, not just pop more dollars into that pot." David Connor,
executive director of the Tennessee County Commissioners Association, said, "The
private providers are getting a better contractual deal than counties are right
now." "I would hope we would treat our local government partners at least
equally as well as we're treating the private sector," Mr. Connor said.
October 13, 2007 Billings Gazette
Forty percent of the money raised this year by Democratic Gov. Brian Schweitzer
for his 2008 re-election campaign came from non-Montanans, including slightly
more than half of the $175,700 he raised in the past three months, an analysis
by the state Republican Party shows. Schweitzer's sizeable chunk of cash from
out-of-state donors this year - $281,000 of the approximately $684,000 he has
received from all contributors - prompted criticism from the GOP on Friday. "The
governor has spent the last three years courting wealthy Democrat elites from
all around the country," said Erik Iverson, chairman of the state Republican
Party. "We've got a governor who puts self-promotion and campaign fundraising
ahead of doing what's right for Montana." A spokesman for the state Democratic
Party said the GOP analysis conveniently omitted some key facts: That Schweitzer
had 1,333 in-state donors the past three months, or more than in any other
quarter this year, and that he has taken no money from political-action
committees. "These are small-dollar donors from all across the state who
recognize that Montana is on the move," said Harper Lawson. "They want to make
sure it stays that way. Their backing is a sign of enormous grass-roots support
for Governor Schweitzer." Lawson noted that 84 percent of the donors to the
governor's campaign are Montanans. Schweitzer, who's running for a second
four-year term as governor next year, has no opponent so far, from any political
party. He has been raising money for his re-election campaign since last year.
Nonresidents contributing to statewide campaigns in Montana is not unusual,
particularly when it involves candidates for Congress. Relatively large amounts
of out-of-state money going to gubernatorial candidates, however, is not as
common. Schweitzer has traveled out of state many times during his nearly three
years as governor, to attend political events, fundraisers, conferences and
speaking engagements. He's also the finance chairman of the Democratic Governors
Association, a job that has taken him out of state for fundraising and political
strategizing events. He went to the Kentucky Derby in Louisville, Ky., this
spring for a Democratic Governors Association meeting. Here's a summary of
information from the GOP analysis of Schweitzer's fundraising: • Of Schweitzer's
$684,000 raised this year, about 59 percent came from Montanans, while the
remainder came from nonresidents. • Nonresident donors tended to give larger
amounts, averaging $420 per donation. The maximum allowed gift from any one
donor is $500 per election cycle. Money from Montana residents averaged $118 per
donation. • About one of every six donations, or 16 percent, came from a
nonresident. • In the past three months, Schweitzer had donors from 26 states
other than Montana. Behind Montana, the states providing the most money for his
campaign were California, Washington, Colorado, Tennessee and Texas. The
Republican Party also provided a list of the more than 200 nonresident
individuals who donated to Schweitzer in the past three months, culled from
campaign finance records. They include utility executives, health insurance
executives, radio personality Casey Kasem of Los Angeles, college professors,
executives from Qwest and Verizon telephone companies, physicians, numerous
attorneys and several executives from Corrections Corp. of America, the
Tennessee private-prison firm that owns a facility near Shelby.
October 5, 2007 AP
Gov. Brian Schweitzer, so far unopposed for re-election, continues to sock away
campaign money in case a challenger steps forward. Schweitzer reported raising
$175,000 this quarter, for a total of more than $750,000 this election cycle.
The Democrat reported having just over $452,000 in the bank. A Republican who
stepped into the race would start in a big campaign fundraising hole. The GOP
remains undaunted, however, saying a Republican candidate could catch up. The
governor says 84% of the campaign's more than 5,000 contributions came from
Montanans. The average donation was just over $140. A number of the largest
donations came from out-of-state donors in states ranging from New York to
California. Executives with companies such as Corrections Corporation of
America, which runs a private prison in Montana, and United Healthcare were
among the donors giving the maximum $500 allowed by Montana campaign finance
law. Schweitzer, a Democrat, has vowed he will not take money from political
action committees.
September 17, 2007 Forbes
Corrections Corp. of America, which builds and manages prisons, spent $1.3
million to lobby the federal government in the first half of 2007, according to
a disclosure form. The company lobbied Congress on legislation and regulations
related to the privately owned prison industry, according to the disclosure form
posted online Aug. 10 by the Senate's public records office. In addition to
lawmakers, the company lobbied the Bureau of Indian Affairs, plus the
departments of Homeland Security, Justice, Labor, the White House budget office.
Under a federal law enacted in 1995, lobbyists are required to disclose
activities that could influence members of the executive and legislative
branches. They must register with Congress within 45 days of being hired or
engaging in lobbying.
September 12, 2007 Boise Weekly
There's little to no distinction in the world of private prisons, a place where
capitalism meets public service. It's an industry based on keeping people locked
up, and doing it as efficiently as possible. It's also an industry that
generates lots of controversy. While some argue that privately owned and
operated prisons allow government agencies to deal with increasingly overcrowded
prison systems and dwindling budgets, others say that introducing the element of
profit into the management of incarcerated people leads to corruption,
mismanagement and mistreatment of prisoners. "You shouldn't introduce a profit
margin and a profit motive into a prison," said Christie Donner, executive
director of the Colorado Criminal Justice Reform Coalition. "The industry as a
whole shouldn't exist." But it's an industry that may be expanding into Idaho if
some state leaders get their way. Gov. C.L. "Butch" Otter has asked lawmakers to
begin drafting legislation that would allow privately owned and operated prisons
to go to work in Idaho. There are currently no private facilities in the state,
although the Idaho Correctional Center in Kuna is managed by the Correction
Corporation of America of Tennessee. CCA is the largest private prison business
in the country, ranking just behind the federal prison system. The company owns
41 prisons nationwide, and manages another 24 facilities in 19 states and
Washington, D.C., for a combined total of roughly 75,000 beds. To pave the way
for their Idaho entry, a work group made up of lawmakers, Idaho Department of
Corrections officials and industry representatives are in the early stages of
drafting legislation that will be introduced in the next legislative session.
"[It would] set the stage for a private firm to come into the state of Idaho and
create a facility that the firm would own and operate," said Brent Reinke,
director of the Idaho Department of Corrections. "Truly, Gov. Otter is very
insistent in this area and has been very, very outspoken and there's no doubt at
all the way he wants to proceed," Reinke said. "We have a critical need right
now to do something immediately to address the [prison] population crisis that
we're seeing," said Jon Hanian, Otter's press secretary. "When you're talking
about a private prison vs. a state-run one, building one, you're talking about
up to four years on the state-run side vs. 18 to 24 months. The private side is
going to be a more immediate impact." Hanian said Otter's priority was to get
prisoners now housed in out-of-state facilities back in the state. Until Idaho
has more room, Hanian said, "our hands are tied on that." Otter has vowed that
any agreement reached with a private company would include stipulations that the
state has a first right of refusal on any beds, and could bump any out-of-state
inmates if the space is needed. It's not so cut and dried for opponents of the
industry, though. "The bottom line for the private prison industry is to make a
profit," said Ken Kopczynski, executive director of the Private Corrections
Institute, a Florida-based group that opposes the private prison industry. "They
give you a snow job about rules and training. They have to provide a profit, and
they actually turn quite a profit for quite a few years. "They do a very good
P.R. job," he said. A key part of that public relations campaign is to make
inroads with politicians in states targeted by the industry as likely locations
for expansion. Opponents of private prisons are full of stories of corrupt
officials and lobbyists serving as advisers for the state, including a college
professor in Florida who served as a state adviser on the private prison
industry while that industry funded his professional research. There's also
Manny Aragon, former president of the New Mexico Senate, who was indicted by a
jury in April for an alleged kickback scheme. "There's going to be more of it
when it's [in Idaho]," said Kopczynski. "They're not stupid. Most of these folks
[private corrections company leaders] come out of government anyways." The
industry has already made its first foray into the wallets of Idaho politicians.
According to campaign finance reports filed with the state, both CCA and GEO
Group, the two largest private prison operators, donated $5,000 to Otter's 2006
campaign for governor. But Hanian said there is no impropriety in Otter's
interest in private prisons. "There is no quid pro quo when it comes to any
campaign contribution the governor has received and the establishment of state
policy. None," Hanian said. "He bases every decision solely on its merits."
Reinke said he doesn't feel there's any undue influence within the state
government. "It's very important that we have the system in place so that it is
competitive, and everything is done in the light of day. That's a challenge
we're faced with," he said. The Texas Connection -- Idaho has already had
experience with the industry. Some 750 of Idaho's roughly 7,300 inmates are
housed in private prisons in Texas and Oklahoma, and plans call for another 240
to be moved by the end of the year, according to Reinke. Another 500 are being
housed in county facilities. "Our needs are very significant," Reinke said.
Idaho's prison population has been growing by roughly 6.5 percent annually, and
Reinke estimates it will take an additional 2,000 to 3,000 beds to meet the
state's short-term needs. "What I'm concerned with right now is bed capacity,"
Reinke said. "This is not a new need." If the prison population continues to
increase at the same rate, Reinke said the state will need several new
facilities within the next 10 years. "We need to do what we can to meet the need
of Idahoans within the state of Idaho," he said. "The longer we wait on this,
the longer the inmates are going to be out of state." Currently, Idaho has eight
prisons, four community work centers and 22 probation and parole district
satellite offices. The state corrections agency employs roughly 1,500 people.
While moving inmates to out-of-state facilities with extra room seems to offer
some relief for Idaho prison managers, the practice hasn't been without its
problems. Idaho's troubles with private prisons began when they shipped 302
prisoners to a private prison in Minnesota in October 2005. After space ran out
at the Minnesota prison in August 2006, the Idaho inmates were sent to two
facilities in Texas, one of which was the Dickens County Correctional Facility
in Spur, Texas, a private prison owned by GEO Group. In March, according to news
reports, Idaho inmate Scot Noble Payne committed suicide. In letters to family,
he placed the blame for his depression on the unsanitary conditions at the
prison and the poor treatment by staff. While Idaho officials plan to move the
56 inmates remaining at the Dickens County facility by the end of the year, they
will be transferred to another Texas facility owned by the same company. It's
just the latest of the state's problems stemming from housing prisoners out of
state—a list that includes riots and escapes at a private prison in Louisiana in
1997. Those who oppose private prisons say these sort of problems are indicative
of the industry as a whole. "Why does your governor think having a private
prison in Idaho is going to be any different than the mess they had in Texas?"
Kopczynski said. Among his and Donner's chief concerns is the hiring of
untrained correctional officers, who they say are paid wages below that of their
public sector counterparts. This, coupled with poor training, leads to prisoner
abuses, poor conditions, high employee turnover and an unwillingness to respond
in the face of a dangerous situation, they believe. "The problems we have had in
Colorado are around some of the tactics of private prisons use to make money:
smaller staff, fewer programs, lower pay," said Donner. "If you want a riot,
that's a great strategy." "There's no institutional knowledge," said Kopczynski.
"You don't know your elbow from a hole in the ground when it comes to
correctional work." Industry representatives vehemently disagree. "That's
completely baseless," said Steven Owen, director of marketing for CCA. "It's
absolutely, categorically false." Owen argues that all employees of CCA meet the
training standards of the American Correctional Association, the largest
correctional trade association in the world, and because of contractual
agreements with the states they serve, must have as much training as
correctional officers in public facilities. When it comes to wages, Owen said
it's a philosophical difference. "Generally, in a state correctional system,
it's a one-size-fits-all starting salary for a correctional officer," he said. "CCA
prices salary and wages by the facility. We compete with the labor pool in the
area around the facility. "Critics like to focus in on wages," Owen said. "We
are competitive in the locations where we operate." He added that wages for
mid-management positions are typically much higher than in the public sector. A
2003 report published by Corporate Research Project of Good Jobs First and
Prison Privatization Report International—both corporate watchdog groups—stated
that CCA has managed to stem the tide of negative publicity. But the report
didn't have a favorable overview of the company. "CCA has built a reputation
marred by numerous instances of scandal, mismanagement, alleged mistreatment of
prisoners and its own employees, attempted manipulation of public policy and a
proliferation of questionable research. Its record is a clear example of how the
pursuit of profit stands in the way of carrying out a core public function such
as corrections. CCA has succeeded in staying in business for two decades, but it
has not succeeded in demonstrating that prison privatization makes sense," the
report reads. From CCA's perspective though, the advantages are clear and
numerous. "We try to operate as well as, or better than, our public
counterparts," Owen said. "We don't have some of the bureaucracy that can
sometimes get in the way of government processes." It's the company's size that
Owen said gives it an advantage, not only with purchasing power for goods, but
with the ability to get a new facility up and running quickly. "It takes three
to five years for the state to have to go through the legislative process," Owen
said. "We can bring a new facility on line in 12 to 18 months." He said a
privately owned prison also saves taxpayers the cost of the capital investment.
Typically, the states pay CCA on a per-prisoner, per-day basis depending on the
level of programs required by the state contract, as well as the level of
security needed. "It's the capacity that we bring on line that relieves
overcrowded systems," he said. "It helps existing systems to become safer and
more efficient." Since the company typically hires much of its workforce from
the local community, Owen said there's a strong economic impact. "We want to do
business in places where we're wanted," he said. Apparently, Idaho ranks among
those places. Owen said CCA has had a good partnership with the state since the
Idaho Correctional Center opened in 2000. He said if the law should change, the
company would be interested in building a facility in the state. Problems Behind
the Bars -- One of the biggest issues for critics of the private prison system
is the practice of moving prisoners out of state. For many, separating inmates
from their families and familiar environments only leads to more problems and
creates an unending cycle of prisoners returning to jail. "They're doomed to
re-offend," said Frank Smith, national field coordinator for the Private
Corrections Institute. "They're estranged from their families and support
systems. It's a futile effort. It's life on the installment plan. It drains tax
money, and they're never rehabilitated." If prisoners from other states are
involved in conflicts, there are jurisdictional issues, Donner said. "If
prisoners from other states have problems, it's in your jurisdiction," she said.
"Now they have to be under your cost." Owen said CCA does extensive work
assimilating prisoners brought from out of state. Including sending staff to
their home state to learn about the habits and cultural practices of the
inmates. "It's worked well for us," he said. But that doesn't always seem to be
enough. In 2004, one of the largest prison riots in recent Colorado history took
place at the Crowley County Correctional Facility, a prison owned by CCA.
Apparently, the incident was touched off by tensions between a group of inmates
from Washington state and prison staff. A general feeling of unrest spread
through the prison, and more than 1,000 inmates rioted. In the end, 13 prisoners
were injured. Following the incident, a state investigation placed the blame on
staff shortages and inexperience. Additionally, the final report stated that the
prison's emergency plan was not effective and that basic security measures
weren't followed. CCA also took flak because the company's incident commander
refused an order from state officials to use gas to quell the riot, until he had
approval from the parent company. CCA was recently fined by the state of
Colorado for continued understaffing. Fines totaled $23,000 for leaving 157
shifts unfilled at the Crowley facility, $103,743 for 701 unfilled shifts at the
Kit Carson Correctional Center and $2,651 for 18 shifts at the Bent County
Correctional Facility. Corrections Corporation of America -- "This is a broader
issue," Owen said. "It is a reality in both public and private facilities around
this country that disturbances do occur. It's just an unfortunate reality." Owen
said the company is proud of its security record. The proof, he said, is in the
amount of repeat business. "[We've had a] 95 percent contract renewal rate in
our 25-year history," he said. "For all critics to be right about some of the
things they lob out there, means that all three federal agencies that contract
for facilities would all collectively have to be wrong about us. "It doesn't
make any sense," Owen said. "The fact is that we do have a very good reputation
and customers trust us. "There's a lot of emotional rhetoric that is out there,"
he said. "You can't just look at isolated incidents." Owen says the key to
success is the oversight by states contracting with CCA. "We're one of the most
transparent industries out there," he said. Several state and federal agencies
routinely monitor the health and welfare of inmates, he added. "At the end of
the day, you have to remember the employees that work in these facilities are
citizens in these communities as well," he said. "They have as much vested
interest in making sure the facility is safe and secure." But the issue of
oversight is exactly what critics of the private system say is lacking. "The
biggest issue is oversight, or lack of oversight," Kopczynski said. "Public
prisons have problems, but not as much as private." Smith, who began studying
private prisons in Alaska 11 years ago, said he's seen the same trend across the
industry. "What I see is almost 100 percent failure to monitor," he said. Smith
said that's exactly what happened in Texas earlier this year, when Idaho inmates
found themselves in unacceptable conditions. "Idaho is claiming they had no
idea," he said. "That's B.S. They knew exactly what was going on. What they
didn't know was what they didn't want to know." Reinke admits that monitoring
was a large factor in what happened in Texas. "It plays into the problems from
out of state," he said. Reinke said the department has recently created a
position that is basically a virtual prison warden in a new Contract Operations
division. The virtual warden is responsible for monitoring all of the inmates
who are sent out of state and will continue to do so as they are brought back to
Idaho. Reinke said opening a private, for-profit facility in the state has some
distinct issues. "We need to monitor it very closely," he said. "When we sit
down and look at a facility of this nature, it comes down to management and how
we monitor it. It's important that the staff and facility goes through the same
amount of training as state employees do until it acts, walks and talks like an
Idaho facility. "We're not going to wait for an incident," Reinke said. "We're
going to be proactive in that area." Why Idaho Wants Them -- For Reinke, it
comes down to bringing Idaho prisoners back to the state that locked them up in
the first place. "We can do a better job monitoring in-state than out of state,"
he said. "We would like to keep Idaho inmates in Idaho. We would like to have
Idaho jobs here if we're going to be paying." Reinke said the state would also
have to approve any inmate brought from out of state as part of any contract
agreement with a private operator. If a private prison is built in Idaho, Reinke
said he expects the state would pay between $40 and $50 per prisoner per day, a
price comparable to what is currently being paid for prisoners being housed out
of state. Instead of planning for even more prison facilities in Idaho, Reinke
said he would prefer to focus on stemming the tide of future inmates before they
ever become part of the prison system. "We're looking at what we can do upstream
to slow the growth," he said. "We have to deal with the growth, and why they're
coming in the first place." The state's growing prison population is not only a
result of a growing overall population, but with increased substance abuse
problems, Reinke said. By creating more programs within the state to provide
services for substance abuse and even mental illness, officials can better deal
with the issue of overcrowded prisons. Reinke said Idaho is working with Boise
State to look at what would be the most effective methods for addressing the
issues. The first part of Boise State's report is due out in late November. The
private corrections industry critics say Idaho will face the same problems other
states have if they allow the businesses to enter into the Gem State. It's a
scenario they've seen played out again and again. "If you think private
companies can do better, you should privatize the legislature," Kopczynski said.
"There are certain things that government should be doing." "This is not a
no-brainer," Donner said. "People have to really look at the consequences." But
Reinke said no one is going into this blindly. "I'm sure there are strengths and
weaknesses and unforeseen challenges," he said. "We'll apply our own
experiences."
August 24, 2007 AP
Corrections Corp. of America, a company that designs, builds and manages
prisons, paid Akin Gump Strauss Hauer & Feld LLC $120,000 in the first half of
2007 to lobby the federal government, according to a disclosure form. The firm
lobbied on issues related to the management of private prisons and detention
centers, immigration reform, as well as the fiscal 2008 spending authorization
bills for the Homeland Security and Commerce departments, according to the form
posted Aug. 13 by the Senate's public records office. Besides Congress, the firm
also lobbied the Labor Department and the Office of Management and Budget. Under
a federal law enacted in 1995, lobbyists are required to disclose activities
that could influence members of the executive and legislative branches. They
must register with Congress within 45 days of being hired or engaging in
lobbying.
May 15, 2007 Tennessean
Corrections Corporation of America won't have to reveal how much money it gives
politicians and political causes after an overwhelming majority of shareholders
voted down a proposal Thursday calling for twice-yearly disclosures. A group of
faith-based activist shareholders sought the disclosures, which would have
included information on CCA's policies and procedures, saying it would improve
accountability and transparency. "We just feel that all of the shareholders
should be aware of that, so it should be easily available," said Gwen M. Farry
of the Sisters of Charity of the Blessed Virgin Mary, which owns 100 shares in
CCA and is part of the Interfaith Center on Corporate Responsibility. But at the
Nashville-based prison operator's annual meeting Thursday, two-thirds of shares
voted were against the proposal. CCA officials had recommended a vote against
the proposal, saying the time and expenses required to implement the proposal
would have resulted in little or no corresponding benefit to shareholders. The
holders of roughly 26.2 million of about 40 million voting shares agreed.
Currently, the board's nominating and governance committee oversees procedures
and policies regarding CCA's political activities, General Counsel Gus Puryear
said. The activists cited published reports showing that CCA contributed at
least $403,000 to political candidates and parties during the 2006 election
cycle — money that was not subject to federal regulations. They also said
payments by CCA to trade groups that use money for political activities weren't
disclosed and sought to make those public as well. One-third voted in favor --
Farry said after the meeting she was pleased that one-third of shares voted were
in favor of the groups' proposal.
March 16, 2007 Vermont Guardian
Gov. Jim Douglas’ third inaugural celebration raised $47,000 from some of
the state’s top contractors, and corporations. The money raised will benefit the
Vermont Military Family Emergency Assistance Fund, and the collected several
hundred pounds of food for the Vermont Foodbank. The events top two sponsors,
who donated $5,000 apiece, were Electronic Data Systems, which handles Medicaid
payments for the state, and Pike Industries, Inc., a paving contractor.
“Choosing a charity to receive the proceeds of the ball is always a challenge.
There are many capable organizations and worthy causes in Vermont,” Douglas
said. “Dorothy and I decided the proceeds should again go to military families
in Vermont who are struggling to make ends meet. These families are making
extraordinary sacrifices on our behalf and this is another way for us to show
them that Vermont will always stand by them.” Douglas’ first inaugural ball
raised thousands of dollars for alcohol and drug rehabilitation and prevention
programs of the United Ways of Vermont and collected non-perishable food for the
Vermont Foodbank. The second inaugural celebration, in January of 2005, raised
$27,000 for the family assistance fund and, like this year, collected more than
700 pounds of food for the Vermont Foodbank. The Vermont Military Family
Emergency Assistance Fund, Inc. non-profit group created solely to provide
emergency financial assistance to service members and their families. It is for
the benefit of any Vermont service member and their families that live in
Vermont as well as service members who live outside the state but belong to a
Vermont unit. Sponsors at the $2,500 level were: AT&T; Barr Laboratories; Blue
Cross Blue Shield; Casella Waste Systems; CIGNA; Corrections Corporation of
America; Goodrich Corporation; Green Mountain Power; and, Kimbell, Sherman,
Ellis.
March 14, 2007 Tennessean
Owners of stock in Corrections Corp. of America will vote in May on whether
the company must start revealing more about funding it provides for political
causes. A shareholder group has placed the proposal on CCA's 2007 proxy
statement, a first draft of which was filed with the Securities and Exchange
Commission yesterday. The measure, if passed, will require the Burton
Hills-based operator of privately run prisons to report twice a year on "soft
money" contributions it has made to organizations that support political causes
and candidates. It would also have to identify the people within the company who
made the decisions to give. The shareholders behind the push are the Sisters of
Charity of the Blessed Virgin Mary, based in Chicago; the Mercy Investment
Program, of New York; and The Province of St. Joseph of the Capuchin Order, of
Milwaukee. Between them, the three groups own some 400 shares of CCA stock. The
proponents claim that CCA spread around nearly $1 million in soft money during
the election cycles of 2002, 2004 and 2006. They say that "publicly available
data does not provide a complete picture of the company’s political
expenditures" that would allow shareholders "to fully evaluate the political use
of corporate assets." CCA recommends in the proxy that shareholders vote against
the proposal. The company calls it "unnecessary" and contrary to CCA's best
interests. "The Board believes that participating in the political process is an
important means to enhance stockholder value and promote good corporate
citizenship," the statement in opposition says. "From our perspective, it is
important that federal, state and local governments have an understanding of how
their actions impact the Company’s business, customers and employees as well as
an understanding of the benefits of public-private partnerships and the
Company’s ability to assist them in meeting their corrections needs." The
company says its political activities are "important efforts that should not be
burdened by special disclosures in addition to those required by federal, state
and local regulatory authorities."
March 14, 2007 Tennessean
Corrections Corporation of America said its outgoing chief financial officer
would continue to receive his annual base salary of $353,550 for another year.
Two weeks ago, the Nashville-based prison operator said that Irving Lingo Jr.
planned to retire as CFO on this Friday but stay with CCA for a year to help
with the transition. In a regulatory filing Tuesday, the company said in
addition to his salary Lingo should continue to receive life and health
insurance benefits. He won't get a bonus for 2007.
February 23, 2007 The Arizona Republic
The parent company of the Central Arizona Detention Center in Florence has
agreed to pay more than $400,000 to settle findings of hiring discrimination.
U.S. Department of Labor investigators said the privately run prison's selection
process disproportionately rejected non-Hispanic job applicants who applied to
be correctional officers during a two-year period that ended in March 2005. The
prison has agreed to pay 464 former applicants an equal share of $438,626, or
$945.32 each, which includes back pay and interest. The prison will also hire 16
previously rejected applicants. The Corrections Corporation of America, which
manages the prison, said the settlement doesn't mean it violated federal
affirmative action law. "Although we continue to disagree with the position
taken by (the Labor Department), we have agreed to take certain steps to resolve
this matter," a company statement said. The investigation was the result of
routine audits that the Labor Department conducts with companies contracting
with the federal government. "We'll go in and we'll look at the job applicant
pool for more than one position, and we look at who applied for the jobs and who
was hired," spokeswoman Deanne Amaden said. "In this case, what we found was a
high disproportionate number of Hispanics were being hired. The result was that
the non-Hispanics were not getting that job opportunity." Corrections
Corporation of America has also agreed to immediately stop discriminatory
practices and undergo self-monitoring measures to ensure legal hiring practices,
according to the Labor Department.
February 21, 2007 AP
Private prison operator Corrections Corp. of America shares dropped
Wednesday morning after a judge ruled California could not transfer thousands of
prisoners out of state. In October, Gov. Arnold Schwarzenegger declared a state
of emergency because of prison overcrowding and ordered that as many as 5,000
prisoners be sent to private prisons around the country. But the prison guard
union sued, and Tuesday Superior Court Judge Gail Ohanesian said the situation
was not an emergency, and the order violated the state Constitution, which bans
jobs normally done by state workers from being done by a private company. She
gave the state until June to reduce overcrowding in its prisons - rather than
work with CCA. Banc of America Securities analyst T.C. Robillard said the ruling
was not unexpected and would be appealed, though it does create a brief
psychological barrier for CCA and, thus, an opportunity for investors. "We
continue to be buyers of the stock and would use any near-term weakness as a
buying opportunity," he said. Corrections Corp. shares gave up $1.02, or 1.9
percent, to $52.35 on the New York Stock Exchange.
January 31, 2007 AP
Gov. Charlie Crist ordered the Florida Department of Law Enforcement on
Wednesday to conduct a preliminary investigation into more than $4.5 million in
alleged overpayments to two companies that operate private prisons for the
state. The contracts with GEO Group of Boca Raton and Nashville,Tenn.-based
Corrections Corporation of America were signed by the now-defunct Correctional
Privatization Commission. Crist sent a letter to FDLE Commissioner Gerald M.
Bailey directing him to "conduct a preliminary investigation to determine
whether any criminal violations have occurred." The Department of Management
Services, which inherited the contracts, recently reached a $402,501 settlement
with GEO but is still negotiating with CCA. Management Services Secretary Linda
South, in a statement Friday, blamed the excessive payments on concessions the
commission had included in the contracts. The commission was abolished by the
Legislature in 2004. Florida Chief Financial Officer Alex Sink said Wednesday
that she asked her staff what went wrong and received the same answer. "The
contract was so poorly written and so poorly conceived that we were only able to
verify $400,000 in overpayments even though we know there were huge abuses
through the auditing procedures," Sink said. "We had virtually no legal standing
to go back and get back from the taxpayers the dollars that we deserved." Audits
concluded the state paid for vacant jobs and other questionable expenses.
Telephone messages left at the offices of the two companies after hours
Wednesday were not immediately returned. GEO runs the Moore Haven and Southbay
correctional facilities and has a contract to run a new one at Graceville. CCA
operates correctional facilities in Lake City, Panama City and Quincy. State
Sen. Victor Crist, R-Tampa, who is not related to the governor, last week urged
FDLE to investigate the relationship between the commission and contractors.
January 27, 2007 Tallahassee Democrat
The first definition of "oversight" involves supervision, as in the
oversight of a contract by a state agency; the second involves a careless
mistake or omission, as in, "Sorry for my oversight. I'll straighten it out
right away." The problem with a settlement between the state and a private
prison contractor that was one of two firms that were overpaid $4.5 million is
that it's not at all clear which kind of oversight was in play. But if it's the
first, the Department of Management Services' agreement with a Boca Raton
company called GEO Group was highly questionable and very possibly a lousy deal
for Florida taxpayers. DMS' agreement with the company calls for the collection
by the state of $402,501 to settle previous claims. That comes to about 10 cents
on your dollar that the state decided was a sensible arrangement - although the
state is still negotiating with a second contractor, Corrections Corporation of
America, which also received overpayments. It's no wonder that Sen. Victor Crist,
R-Temple Terrace, was taken aback this week, saying the settlement "almost seems
criminal." He asked the Florida Department of Law Enforcement to investigate.
That's a reasonable request. If there's more here than meets the eye, taxpayers
would love to know. If the rest of the story smells just as fishy, taxpayers
should know that, too. There's little question that politics and past
mismanagement are helping to cloud the picture. The original contract was
handled by the now-defunct Correctional Privatization Commission, an agency
created to oversee prisons in the state that are run by private companies. That
board was legislated out of existence in 2004 and the commission's oversight
responsibilities transferred to DMS. Given the performance of the Correctional
Privatization Commission, that was a smart move. But the news about the DMS
agreement with GEO now raises real questions about that agency's ability to
effectively manage contracts with private prison companies. "It was not an
honest mistake," Ken Kopczynski, a lobbyist for the Police Benevolent
Association who's been tracking private prison contracts for more than 10 years,
said of GEO. "I don't think it takes a rocket scientist to know that if a bank
teller gives you $100 more than you are legally liable to receive, you need to
give the money back." The politically influential PBA, which represents state
corrections officers, has been the most consistent opponent of prison
privatization. It maintained for years that the defunct commission had
inappropriately cozy ties to the industry it was supposed to regulate - a charge
that Mr. Crist, the Senate justice appropriations chairman, echoed last week.
Mr. Kopczynski said he asked FDLE to investigate last year, but without success.
But an investigation is still appropriate - before any more bad deals are cut
on taxpayers' behalf.
January 26, 2007 St Petersburg Times
Alarmed by millions of dollars in overpayments the state made to a private
prison contractor, a state senator called for a criminal investigation Thursday.
The payments have been known since 2005, but a settlement was reported this week
in which the contractor will pay a fraction of what it received. Sen. Victor
Crist, R-Tampa, said he read a story about the settlement, and "it just didn't
rest well with me." Crist asked the Florida Department of Law Enforcement to
look at the contract between GEO Group of Boca Raton and the state Correctional
Privatization Commission, which was disbanded in 2004 amid allegations of
mismanagement and cronyism. A spokeswoman for the FDLE declined to say whether
the agency would investigate. A 2005 state audit revealed that over an
eight-year period GEO Group and Corrections Corporation of America, another
private contractor, were overpaid $4.5-million. The Correctional Privatization
Commission also gave GEO $5-million in cost-of-living salary adjustments that,
auditors said, were not fully passed on to employees. At the Quincy facility,
Corrections Corp., of Nashville, got $2.9-million more for facility maintenance
than it spent. This month, GEO agreed to pay $402,501 under a deal reached with
the Department of Management Services, which took over oversight of the
contracts. Crist called the payback "unacceptable," but said his main focus was
on what seems a too cozy relationship between the former Correctional
Privatization Commission and the contractors. A GEO spokesman did not return a
call Thursday. Corrections Corp. has not reached a deal with the state.
January 25, 2007 Tallahassee Democrat
The head of a Senate budget committee today called for a criminal
investigation of overpayments to two companies running private prisons for the
state. Sen. Victor Crist, R-Temple Terrace, said he is not satisfied with a
$402,501 settlement negotiated by the Department of Management Services this
month with GEO Group, a Boca Raton-based company that runs prisons for the state
in South Bay and Moore Haven. The state is still negotiating reimbursement of
overpayments with Corrections Corp. of America, the Nashville company that runs
prisons at Quincy, Lake City and Panama City. "This almost seems criminal,"
Crist told his Senate Justice Appropriations Committee. He said the Florida
Department of Law Enforcement should investigate how the overpayments occurred.
After DMS assumed oversight from the old Correctional Privatization Commission,
the department's inspector general did an audit that questioned some $13 million
in payments to the two private prison operators. The audit said the companies
were overpaid $4.5 million for unfilled positions. Crist said he was not blaming
DMS because the overpayments occurred under the defunct commission, but that
"we'd like an extra set of eyes to take a closer look at" the settlement with
GEO and past payments to both companies. "If it was an honest mistake and $4.5
million was overpaid, they ought to write a check and clear it up," he said
after the meeting of his committee. "They (CCA and GEO) took more than $4
million for positions that didn't exist and it just sticks in my craw that we
would be getting $400,000 for it." The settlement includes $111,000 for partial
reimbursement of legal fees incurred by the state in court challenges to the
property-tax exemption of the state-owned, privately operated prisons. Those
fees were unrelated to the overpayment. Roz Ingram, director of specialized
services for DMS, said almost $5 million in overpayments occurred under
"competitive area differential" provisions carried forward from the old
contracts between the CPC and the companies. She said the differentials were
killed by DMS when renegotiating contracts. "We used this a as a tool to go in
and try to revamp the system and we've put a lot of different things in place,"
Ingram said of the audit. Ken Kopczynski, a lobbyist for the Police Benevolent
Association, cheered Crist's action. The PBA, which represents correctional
officers in state prisons, has been a vocal critic of privatization. "God bless
'em. It's about time," said Kopczynski.
January 24, 2007 Tallahassee Democrat
The state has reached a $402,000 agreement with one of the two companies that
run private prisons in Florida. Department of Management Services Secretary
Linda South said Tuesday night she was satisfied with the settlement with The
GEO Group Inc., which operates prisons in South Bay and Moore Haven. GEO also
has a contract for the Graceville prison opening in September. South said DMS is
negotiating terms with Corrections Corporation of America, the company that runs
three other privatized prisons. She declined to discuss those talks. After the
Correctional Privatization Commission was abolished and oversight of the five
private prisons was shifted to DMS in 2004, the DMS inspector general did an
audit that cited numerous discrepancies. The GEO Group settlement involved
$357,520.94 in overpayments. Under the agreement, signed by previous DMS
Secretary Tom Lewis, GEO agreed to pay $290,952.43. The company separately
agreed to pay $111,549.27 of the state's legal fees in a court fight over
disputed property-tax bills for the prison facilities. The agreement said DMS
has paid $446,197.08 defending the sovereign immunity of the state-owned
prisons. Ken Kopczynski, a lobbyist for the Florida Police Benevolent
Association, said the state "let them off easy." The PBA, which represents
correctional officers in state-run institutions, has been highly critical of
privatization. South said "this is good news for DMS" and that the audits ended
"some really critical lack of internal controls" under the defunct Correctional
Privatization Commission. She added, "The $400,000 is a lot higher than zero."
January 24, 2007 St Petersburg Times
A private prison contractor that was one of two companies the state overpaid by
nearly $13-million has agreed to pay back a small amount. The GEO Group of Boca
Raton will pay $402,501 under a deal settled this month by the state Department
of Management Services. The company also will cover half of the legal fees to
defend local governments' challenges to its tax-exempt status. A state audit in
2005 found that over an eight-year period, Florida overpaid GEO Group and
Corrections Corporation of America, based in Nashville, $4.5-million for
unfilled jobs. The now-defunct Correctional Privatization Commission, which was
supposed to oversee the private prisons, also authorized $5-million in
cost-of-living salary adjustments at GEO's South Bay Correctional facility. At a
facility in Quincy, Corrections Corporation got $2.9-million more for facility
maintenance than it spent. The state is still working on a settlement with
Corrections Corporation. A GEO spokesman was not working Tuesday and a woman who
answered the phone said no one else was available. DMS Secretary Linda H. South,
asked about the large disparity in what GEO Group was overpaid and what it will
pay back, said if the agency had not done its "due diligence there would be no
money to recover."
January 9, 2007 AP
The president and chief executive officer of Corrections Corp. of America,
which operates prisons and detention facilities, exercised options for 22,500
shares of common stock under a prearranged trading plan, according to a
Securities and Exchange Commission filing Monday. In a Form 4 filed with the
SEC, John D. Ferguson reported he exercised the shares last Wednesday for $5.83
and then sold them the same day for $45.20 apiece.
November 14, 2006 Tennessean
Doc Crants had big plans for Homeland Security Corp. when he founded the
security management and training company five years ago, including a possible
listing on the New York Stock Exchange. Then Crants, co-founder of Nashville
prison operator Corrections Corporation of America, recently sold his 60 percent
stake in the security firm to a group that includes his Illinois co-owner, who
said he plans to be more aggressive in seeking contracts with the United
Nations, U.S. State Department and Department of Defense to provide personnel in
political hot spots around the globe. Bruce K. Siddle, who merged his
Belleville, Ill.-based PPCT Management Systems Inc. into Homeland Security in
2002, bought out Crants' stake with backing from investors including businessman
Joseph F. Johnson, who was a director. Terms of the transaction weren't
disclosed. Crants declined to comment. On Monday, Homeland Security's Vice
President Valerie Van Eaton said that the future remains bullish for the
company, adding that Crants "was just ready to move on to something else."
Homeland Security, with annual revenues between $10 million and $12 million, has
handled such chores as training more than 80,000 airport passenger screeners for
the Transportation Security Administration. It also pro vides police,
corrections and judicial officers to serve as peacekeepers around the globe. The
company already works in countries such as Sudan, Liberia, Haiti, Iraq,
Afghanistan and East Timor. Siddle said Homeland Security, which employs about
256 people, plans to maintain its staff of eight in Nashville. The corporate
headquarters will be in Illinois. Brian Ruttenbur, an analyst at Morgan Keegan
in Nashville, said demand remains strong nationwide and worldwide for security
services and training.
November 13, 2006 Nashville Business Journal
An executive at Corrections Corp. of America last week completed a stock
transaction worth $929,475. G.A. Puryear IV, executive vice president and
general counsel at Nashville-based CCA (NYSE: CXW), on Thursday exercised an
option to buy 22,500 shares of CCA stock at $5.83 and sold the same number of
shares for $47.14 each. Several executives at CCA - a private prison operator
that has some 69,000 beds under management in 19 states and Washington, D.C. -
have made stock sales in recent weeks.
October 2, 2006 Nashville Business Journal
John Ferguson, president and CEO of the Nashville company (NYSE :CXW), exercised
options to buy 22,500 shares at $5.83 each, then sold the same number of shares
at a price of $42.97. The transaction netted Ferguson $835,650. Shares of
Corrections Corp., which owns and operates prisons across the country, have been
on a tear - rising from about $30 to $45 since May - prompting several stock
sales by company officials. At about 12:35 p.m., the company's shares were down
0.4 percent to $43.51. The stock's 52-week range is $24.34 to $45.26.
September 14, 2006 Nashville City Paper
Corrections Corporation of America (CCA) General Counsel Gus Puryear said
Wednesday he is not a candidate to replace outgoing U.S. Attorney Jim Vines, who
is stepping down at the end of the month. Puryear was mentioned Tuesday by a
number of prominent Nashville politicians as a potential top candidate for the
U.S. attorney for the Middle District of Tennessee position.
September 13, 2006 Nashville City
Paper
With little fanfare and without a formal announcement, Jim Vines has confirmed
he will step down from his post as the U.S. Attorney for the Middle District of
Tennessee, effective Oct. 1. The news came as a shock to many in Nashville’s
court and law enforcement community, as a slew of state and local officials said
they had no idea Vines would be retiring. Many of those same officials said they
did not understand why — with just over a year of his appointment remaining —
Vines would chose to leave now. Whoever succeeds Vines will have to be appointed
by President Bush and confirmed by the U.S. Senate — a process that could be
complicated by the fact that Congress has only days left before it adjourns for
the November elections. In the absence of a formal appointment, though, U.S.
Attorney General Alberto Gonzales may appoint a temporary successor. Names of a
potential successor mentioned by prominent political officials in Nashville
include Gary Brown, a partner with Baker Donelson Bearman Caldwell and
Berkowitz, and Gus Puryear, general counsel for the Corrections Corporation of
America.
August 29, 2006 Yahoo.com
CSX Corporation (NYSE: CSX - News) today announced that Donna M. Alvarado
and Steven T. Halverson have been elected to the company's board of directors
effective September 1, 2006. Alvarado was appointed to serve on the company's
audit and finance committees and Halverson on the finance and governance
committees. Alvarado is founder and president of Aguila International, a
Columbus, Ohio-based business consulting firm specializing in human resources
and leadership development. Previously, she held senior positions in federal
government, including deputy assistant secretary of defense, counsel for the
Senate Committee on the Judiciary Subcommittee on Immigration and Refugee
Policy, and staff member of the House of Representatives Select Committee on
Narcotics Abuse and Control. She was appointed by President Ronald Reagan as
director of ACTION, the domestic volunteer agency. Alvarado currently serves on
the board of directors of Corrections Corporation of America, a public company
listed on the New York Stock Exchange. She also serves on the Ohio Board of
Regents and as chair of the Ohio Governor's Workforce Policy Board.
August 25, 2006 AP
Gov. Jim Douglas has nearly three times as big a war chest as challenger
Scudder Parker as they head into the fall campaign, campaign finance reports
filed Friday show. Douglas' donors included a range of business people -- some
who do business with the state -- and longtime Republican stalwarts. They
include former GOP U.S. Senate candidate Jack McMullen, who gave $200; and
Corrections Corporation of America, owner of a private Kentucky prison where
Vermont inmates rioted two years ago. The company gave $2,000.
August 14, 2006 In These Times
While New Mexico’s landscape may make the state the Land of Enchantment, its
rapidly growing rates of incarceration have been utterly disenchanting. What’s
worse, New Mexico is at the top of the nation’s list for privatizing prisons;
nearly one-half of the state’s prisons and jails are run by corporations.
Supposedly, states turn to private companies to cope better with chronic
overcrowding and for low-cost management. However, a closer look suggests a
different rationale. A recent report from the Montana-based Institute on Money
in State Politics reveals that during the 2002 and 2004 election cycles, private
prison companies, directors, executives and lobbyists gave $3.3 million to
candidates and state political parties across 44 states. According to Edwin
Bender, executive director of the Institute on Money in State Politics, private
prison companies strongly favor giving to states with the toughest sentencing
laws—in essence, the ones that are more likely to come up with the bodies to
fill prison beds. Those states, adds Bender, are also the ones most likely to
have passed “three-strikes” laws. Those laws, first passed by Washington state
voters in 1993 and then California voters in 1994, quickly swept the nation.
They were largely based on “cookie-cutter legislation” pushed by the American
Legislative Exchange Council (ALEC), some of whose members come from the ranks
of private prison companies. Florida leads the pack in terms of private prison
dollars, with its candidates and political parties receiving almost 20 percent
of their total contributions from private prison companies and their affiliates.
Florida already has five privately owned and operated prisons, with a sixth on
the way. It’s also privatized the bulk of its juvenile detention system. Texas
and New Jersey are close behind. But in Florida, some of the influence peddling
finally seems to be backfiring. Florida State Corrections Secretary James
McDonough alarmed private prison companies with a comment during an Aug. 2
morning call-in radio show. “I actually think the state is better at running the
prisons,” McDonough told an interviewer. His comments followed an internal audit
last year by the state’s Department of Management Services, which demonstrated
that Florida overpaid private prison operators by $1.3 million. Things may no
longer be quite as sunny as they once were in Florida for the likes of
Nashville, Tenn.-based Corrections Corporation of America (CCA) and the former
Wackenhut, now known as the GEO Group of Boca Raton, Fla. But with a little bit
of spiel-tinkering—and a shift of attention to other states—the prison
privatizers are likely to keep going. The key shift, Bender explains, is that
“the prison industry has gone from a we-can-save-you-money pitch to an
economic-development model pitch.” In other words, says Bender, “you need
[their] prisons for jobs.” If political donations are any measure, economically
challenged and poverty-stricken states like New Mexico are a great target. In
this campaign cycle, Democratic Gov. Bill Richardson has already received more
contributions from a private prison company than any other politician
campaigning for state office in the United States. The Institute of Money in
State Politics, which traced the donations, reported that GEO has contributed
$42,750 to Richardson since 2005—and another $8,000 to his running mate, Lt.
Gov. Diane Denish. Another $30,000 went from GEO to the Richardson-headed
Democratic Governors Association this past March. Richardson’s PAC, Moving
America Forward, was another prominent recipient of GEO donations. Now, its
former head, prominent state capitol lobbyist Joe Velasquez, is a registered
lobbyist for GEO Care Inc., a healthcare subsidiary that runs a hospital in New
Mexico. But don’t get the idea that GEO has any particular love for Democrats:
$95,000 from the corporation went to the Republican Governors Association last
year alone. What companies like GEO do love are the millions of dollars rolling
in from lucrative New Mexico contracts to run the Lea County Correctional
Facility (operating budget: $25 million/year), and the Guadalupe County
Correctional Facility ($13 million/year), among others. CCA also owns and
operates the state’s only women’s facility in Grants ($11 million per year). To
make sure that those dollars keep flowing, GEO and CCA have perfected the art of
the “very tight revolving door,” says Bender, which involves snapping up former
corrections administrators, PAC lobbyists and state officials to serve as
consultants to private prison companies. In fact, the current New Mexico
Corrections Department Secretary Joe Williams was once on GEO’s payroll as their
warden of the Lea County Correctional Facility. Earlier this year, Williams was
placed on unpaid administrative leave after accusations surfaced that he spent
state travel and phone funds to pursue a very close relationship with Ann Casey.
Casey is a registered lobbyist in New Mexico for Wexford Health Sources, which
provides health care for prisoners at Grants, and Aramark, which provides most
of the state’s inmate meals. In her non-lobbying hours, it turns out that Casey
is also an assistant warden at a state prison in Centralia, Ill. It appears that
even for a prison industry enchanted by public-private partnership, Williams and
Casey may have gone too far.
August 14, 2006 Nashville Business
Journal
Three more executives and a director at Corrections Corp. of America have
sold stock in recent days, in transactions that resulted in a total profit of
more than $3.3 million. The sales came just days after two other execs at the
company unloaded shares. With stock in the Nashville-based company -- which owns
and operates prisons -- trading near its 52-week high, the transactions were the
latest by officials at CCA, and included three officers at the executive vice
president level who sold shares on Friday. General Counsel G.A. Puryear
exercised options to buy 15,000 shares at $8.75, then sold them for $60.22,
netting a $772,050 profit. CFO Irving Lingo bought 15,000 shares at $8.75, then
sold them at $60.23, for a $772,200 profit. Chief Development Officer Kenneth
Bouldin bought 20,000 shares at $16.74 and sold them at $60.17, for an $868,600
profit. Meanwhile, CCA director Henri Wedell sold 15,000 shares on Monday at
$61, for a profit of $914,963. Earlier this month, CCA Treasurer Todd Mullenger
and CEO John Ferguson sold shares for a combined net profit of more than $1.5
million.
August 11, 2006 Nashville Business
Journal
With Corrections Corp. of America stock flying high, a pair of executives at
the company cashed in shares this month. On Aug. 1, President and CEO John
Ferguson exercised an option to buy 10,000 shares at $8.75, then sold them for
$54.52, netting a profit of $457,700. Meanwhile, Vice President and Treasurer
Todd Mullenger on Tuesday sold 18,057 shares at a price of $60.55, netting him
$1.1 million. Nashville-based CCA owns and operates prisons across the country,
and has seen its stock price climb from the mid-$30s to more than $60 in the
past year. At about 10:50 a.m. Friday, the shares were trading at $61.07, up 0.4
percent from their Thursday close.
August 1, 2006 Tallahassee Democrat
The head of Florida's prison system, who has been cleaning up contracting
scandals for six months, today expressed skepticism about prison privatization.
Secretary Jim McDonough said private companies are good at financing and
building prisons but that the Department of Corrections is better at running
them. The state has five privately operated prisons and a sixth under
construction, but McDonough said he doesn't see it as a growth industry. "In
some areas, we've saved the state a lot of money by out-sourcing," McDonough
said on a radio call-in program. "The inmates in that system are still mine. I
still have the obligation to make sure that they're properly taken care of - and
even more important, that they're secure." McDonough took over the prison system
last February after former Secretary Jim Crosby was fired by Gov. Jeb Bush.
Crosby and a top aide, former Panhandle regional chief Allen Clark, last month
pleaded guilty in a Jacksonville federal court to taking kickbacks from a
company that sold snacks and other items to visitors at a prison canteen. The
state separately charged several other prison employees with theft of prison
property and misuse of inmate labor. The two companies that run privatized
prisons, Corrections Corp. of America and GEO Group, were not involved in the
scandals but an internal audit by the Department of Management Services last
year said the defunct Correctional Privatization Commission allowed the
companies to overbill the state by $13 million. "Whether or not we'll do more,
I'm not so sure," McDonough said of privatization. "They're very good at bonding
out and building prisons and providing services within the prisons. I actually
think the state is better at running the prisons." McDonough was interviewed for
a half-hour on The Morning Show with Preston Scott, on WFLA radio (100.7 FM).
State Rep. Curtis Richardson, D-Tallahassee, called in to commend McDonough on
"rooting out the rot in DOC" management. Richardson also praised the new
department chief for emphasizing education and job training in the prisons.
"With younger and younger prisoners, they're going to be coming out eventually,"
said Richardson. "Either they're going to contribute to society when they come
out, or they're going to continue to be a drain on society." McDonough said the
prison system turns out about 30,000 inmates every year but too many get in
trouble again. He said even a 10 percent increase in the success rate would save
the state millions in new prison costs every year. He said the state has nearly
90,000 prisoners and far more than that number under probation supervision.
"We've been in a growth spurt for several years now," said McDonough. "But the
growth rate doesn't have to keep growing."
May 7, 2006 Clarion Ledger
As a direct consequence of "get-tough-on-crime" legislation adopted over a
decade ago, the private-prison industry and related companies have become
increasingly active as campaign contributors in Mississippi politics. A new
study conducted by the Institute for Money in State Politics documents that
Mississippi is one of 10 states where "industry giving is high and the states
had either enacted tough sentencing laws, turned to private prison to help ease
prison overcrowding in recent years or considered significant changes to
corrections policies." The report found that in 2002 and 2003, prison-industry
contributors gave a total of $63,250 to 27 Mississippi candidates and the state
Democratic Party. Democrats got $28,850 of the donations while Republicans got
$31,900 over the two-year period. Major recipients included current Republican
Gov. Haley Barbour at $10,800, Republican Lt. Gov. Amy Tuck at $10,500, state
Rep. Tommy Reynolds, D-Water Valley, at $10,000, and former Democratic Gov.
Ronnie Musgrove at $7,500. A half-dozen state legislators and one state Supreme
Court candidate rounded out the donation recipients, including state Rep. George
Flaggs, D-Vicksburg. Donors listed in the report included private prison
companies Wackenhut Corrections and its lobbyists at $21,250 and Corrections
Corporation of America and its lobbyists at $17,700. Another major donor cited
in the report was Carothers Construction, a Mississippi construction company
that has built or expanded six prison facilities in the state, two of which were
operated by CCA. In 1995, Mississippi lawmakers took an apparent bold step
toward getting tough on crime. But in doing so, the lawmakers also dramatically
increased the state's prison population and therefore the operating costs of the
state prison system. The Legislature adopted the so-called "85 percent rule"
which mandated that all state convicts must serve at least 85 percent of their
sentences before being eligible for parole. Mississippi's law was in sharp
contrast to other states, where the 85 percent rule applied only to violent
offenders.The rapid growth in the state's prison population brought about by the
"85 percent rule" opened the doors for the private prison industry in the state.
By 2002, there were 2,600 empty state-owned prison beds while two private
prisons were being guaranteed an inmate population sufficient to keep them
profitable. In 2001, the Legislature voted near the end of the regular session
to divert $6 million to pay for empty private prison bed space for so-called
"ghost inmates." Then-Gov. Ronnie Musgrove vetoed the measure, but the
Legislature overrode that veto 40-12 in the Senate and 111-9 in the House.
Between 1998 and 2000, prison industry lobbyists spent $228,216 trying to
influence policy at the state Capitol. The report notes that when Barbour
released his Fiscal Year 2005 state budget in 2004, he put a priority on using
private prisons "to save money" in the state's prison system. While the FY 2005
corrections budget was 4 percent less than in 2004, private prison payments
jumped more than 30 percent, the report shows. The first bill Barbour signed
into law after taking office as governor in 2004 was a bill to keep the
private-operated Tallahatchie County Correctional Facility open by allowing it
to house maximum security inmates.
May 2, 2006 Progressive State Network
The Institute on Money in State Politics, a tireless group of people who
compile campaign finance data for all fifty states and regularly report national
trends, have a new report "Policy Lock-Down: Prison Interests Court Political
Players" looking at the $3.3 million private prison companies have donated to
state-level actors in the last two election cycles. The report specifically
notes: Analysis of campaign contributions made to state-level candidates and
political parties also reveals that private-prison interests: Concentrated their
giving on legislative candidates who, if elected, act on state budgets and
sentencing laws. These candidates received almost half of the money given to
candidates — slightly more than $1 million. So the priority is budgets and
people who determine sentencing? This will come as no shock to anyone who has
studied the origin of strict sentencing laws in America. As Nathan Newman noted
in "Governing the Nation From the Statehouses: ": For two decades, ALEC has been
a driving force in lobbying for legislation to hand over prisons to corporate
management, with 95,000 inmates in at least 31 states or 6.5% of all prisoners
in private prisons, two-thirds of them in prisons run by Corrections Corporation
of America (CCA), one of ALEC's leading corporate sponsors. Seven states place
more than one-fifth of their prison population in corporate-run prisons. A 2000
report by the Western States Center, "The Prison Payoff: The Role of Politics
and Private Prisons in the Incarceration Boom," traced the rise of private
prisons to "tough on crime" legislation sponsored by ALEC and its allies that
extended sentences and pushed prison populations beyond the capacities of
existing state facilities. And conservatives who pushed budget-busting
sentencing laws then turned around and blamed guard salaries for the resulting
funding crisis. With tight fiscal budgets, privatization was sold as the
solution. State prison guards, who had often supported many of the tougher
sentencing laws, have found their jobs disappearing to privatization through
this two-step process. In Wisconsin, for example, more than 3000 inmates are
sent out of state to CCA facilities, leaving the remaining state guards in
overcrowded prisons subject to riots and other threats. CCA isn't just one of
ALEC's leading sponsors. For a time, they chaired the task force that authors
model legislation on sentencing issues for ALEC. Humorously, when Wyoming's
Casper Star-Tribune reported on this fact, they drew a quick response from CCA,
claiming that CCA does not believe that mandatory sentencing laws help their
business. No word yet on how private prison companies are responding to the new
Institute report.
February 6, 2006 Tennessean
Big businesses in Tennessee have made the largest donations to help restore
the state's Executive Residence over the past three years. Citizens and
businesses gave almost $4.3 million toward the dilapidated mansion, on South
Curtiswood Lane in the Oak Hill community of Nashville, which Gov. Phil Bredesen
and his wife decided to renovate because they already had a home in nearby
Forest Hills and didn't need to move into the residence. Corrections Corporation
of America, the nation's largest for-profit prison operator, gave $125,000,
Nissan North America Inc. donated $100,000, and a combined $125,000 came from
Pilot Travel Centers LLC and the Haslam family, who founded Pilot. Donated money
for restoration of the governor's mansion means taxpayers have to spend less,
but it also can be a way for businesses to gain favor with the governor, said
Dick Williams, state chairman of Common Cause, a nonprofit advocacy group. He
said the state should consider capping the size of donations to public projects
to avoid the appearance that businesses are trying to influence political
decisions.
January 5, 2006 The Prospect
Representative Hal Rogers, the Kentucky Republican who chairs the Appropriations
Subcommittee of the House Homeland Security Committee -- that is, the politician
who controls the purse strings -- has filled his fund-raising coffers with
contributions from companies that do business with the Department of Homeland
Security. Through Rogers' campaign and his leadership PAC, which can be used to
buy influence with colleagues, interested donors have more than one way to give,
and they do. In the 2004 election cycle, Rogers' PAC, Help America's Leaders, or
HALPAC, pulled in nearly $1.3 million -- about twice as much as his campaign
fund. In turn, HALPAC doled out more than $650,000 to the campaigns of fellow
Republicans in 2004, making it one of the eight biggest-spending leadership
PACs. Many of its contributors were the PACs of lobbyists and DHS contractors
who later scored major DHS contracts. Several corporations that ranked among the
top 10 DHS contractors last year also gave money to HALPAC, including
third-ranked Boeing ($5,000); fourth-ranked InVision Technologies, which
manufactures explosive-detection equipment ($7,000); sixth-ranked Lockheed
Martin ($5,000); and Northrop Grumman ($10,000), which, with partner Lockheed
Martin, is the department's top contractor. Its Integrated Coast Guard Systems
joint venture netted more than $500 million from DHS in 2004. Other big
contributors included the PACs of the Corrections Corporation of America
($5,000); L-3 Communications ($10,000), which is the prime contractor on a $500
million border surveillance contract currently under investigation by the
General Services Administration; and Science Applications International
Corporation ($10,000), which won a $20 million contract from DHS this year for
disaster preparedness.
September 18, 2005 Leavenworth Times
CCA chief executive John Ferguson has had a busy week. The head of
Nashville-based Corrections Corporation of America visited six of his company's
facilities during that time. The last one was the Leavenworth Detention Center,
where he spoke to employees and several elected officials Friday morning before
touring the institution. Ferguson said he made a commitment to the wardens of
the company's facilities when he took over in August 2000 that he would visit
all of them. At that time, there were 70; now there are 63, with the emphasis on
adult corrections in the United States. At one point, the country's first and
largest private corrections corporation had international contracts. But
Ferguson said he's more interested in providing the best service possible to
government customers in the United States.
August 8, 2005 Forbes
The
best 100 stock pickers at Marketocracy are moving big money into two Asian
country funds as they sell off some of their materials stocks and cash out of
the largest operator of private prisons in the United States. On the sell
side, the gurus got out of jail, selling their entire position in Corrections
Corporation of America (nyse: CXW - news - people ). On Aug. 4, the company
reported its inmate population was declining along with its second-quarter
results of operations. The company reported a drop in its net income profit,
Thursday, and reported second-quarter net income of 37 cents a share, down from
38 cents per share a year before. The Nashville, Tenn.-based company is the
largest operator of private prisons in the U.S., with 41 detention facilities in
19 states, for a total of 70,000 beds. The company produced $117 million in cash
flow on sales of $1.16 billion.
July
4, 2005 The Tennessean
From a distance, the
home in tree-lined Oak Hill seems powerful and proud. But
up close, the mansion built in 1929 is showing its age: The paint is peeling,
the walls are water-stained and old furniture from years ago has left shadows on
the walls — the sun never bleached the wallpaper behind pieces, leaving the
area a different shade than the rest of the room. This
is the official governor's residence of Tennessee. But
the state's first lady, Andrea Conte, is on a mission to turn the executive home
elegant. Conte,
so far, has avoided the public relations pitfalls that have befuddled leaders in
other states who have tried to raise money for mansion renovations. The
only questions that have been raised stem from donations made by corporations
that have contracts with Tennessee state government. A handful of such companies
are donating hundreds of thousands of dollars to the rehab, a pet project of
Conte and Gov. Phil Bredesen. Some
people say it's ethically questionable for the first family and the Tennessee
Executive Residence Foundation, the organization created to collect money from
donors, to accept large sums of money from companies, as it could appear to be
another way to buy access to or curry favor with the governor. Such
donations are not capped as campaign contributions to candidates are, which
means companies doing business with the state — or that want to — can write
eye-popping checks to the Bredesen family's important cause. BlueCross
BlueShield of Tennessee, for example, which provides health insurance for state
employees, donated $150,000. Corrections Corporation of America, which runs
several prisons for the state, donated $50,000. Businesses
said they had no problem cutting a check for an effort such as this one. "We've
been pleased to be able to support the state of Tennessee," said Louise
Chickering of Nashville-based Corrections Corp. of America. "We see it as
the civic responsibility of a major corporation."
May 25, 2005 Nashville City Paper
After 20 years in business, Corrections Corporation of
America still finds itself having to defend the very nature of its existence.
Being the largest private prison operator in the country has thrust CCA into the
spotlight of the ongoing debate over whether the nation's prisons should be
privately owned and run. The issue hit home for CCA in May when a union of
jailers picketed in front of their Nashville headquarters on Burton Hills
Boulevard. Their beef: Don't replace the government-run county jail in Shelby
County with a private prison. Opponents claim privately-run jails are
understaffed and suffer from high turnover and inadequate training - claims that
CCA insists have no basis in fact. Critics, led by the Private Corrections
Institute Inc. in Florida, strongly disagree with CCA's assessment, saying that
many of the studies that CCA relies upon have been financed by the industry.
"What I found with the industry is they don't save money. It's always an
apples to oranges comparison," said Ken Kopczynski, the institute's
executive director and lobbyist for the Florida Police Benevolent Association.
His institute has been leading the charge on behalf of unionized corrections
officers, taking their cause to battlegrounds around the country, including
Dickson and Shelby counties. He said per-diem cost comparisons done by CCA don't
take into account the health care and pension tabs picked up by state
governments after employee benefits exceed the caps placed by private operators.
Florida absorbed $1.8 million in cost shifts last year, he said. Labor officials
argue that although private operators pay jailers an average of $3,000 less a
year in wages than public prisons, the issue is not one of union jobs erosion.
"This is more of a public safety issue. When you start cutting corners in
prisons, you start having riots, you start having inmates burn the place
down," Kopczynski said. In fact, 2004 proved to be a challenge for CCA,
which saw disturbances and riots break out in its facilities in Arizona, Florida
and Kentucky. A riot that lasted several hours last July at the Crowley County
Correctional Facility in Colorado prompted a review by the state Department of
Corrections. State officials found flaws in the prison staff's level of
emergency preparedness.
May 6, 2005 Jackson Sun
A U.S. Supreme Court ruling affecting federal
sentencing guidelines could hinder long-term prospects for private prison
operator Corrections Corporation of America, which reported a first-quarter loss
Thursday. In addition to declining inmate populations at CCA facilities in the
first quarter, the nation's largest private prison operator also said in an SEC
filing Wednesday that business may take a hit after the Supreme Court declared
in January that federal sentencing guidelines - previously considered mandatory
- are unconstitutional. ''Although it is too early to predict the impact, if
any, on our business, the ruling could lead to federal sentences becoming more
varied which could lead to a reduction in the length of sentences at
correctional facilities,'' the SEC filing stated. On
Thursday, Nashville-based CCA said it had a net loss of $8.9 million, or 24
cents a share, compared to a profit of $14.4 million, or 37 cents per share, in
the same period last year.
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.
April 1, 2005 Washington Post
President Bush has nominated Vice President Cheney's
son-in-law, a prominent Washington lawyer who represents companies in the
homeland security field, to be the general counsel of the Department of Homeland
Security. Philip J. Perry, who is married to Cheney daughter Elizabeth Cheney
Perry, is a partner at the Washington law office of Latham & Watkins, and
has represented Bethesda-based Lockheed Martin Corp. in dealing with the
department. In Bush's first term in office, Perry was general counsel to the
White House Office of Management and Budget, where he helped draft the 2002
legislation that created the Department of Homeland Security. Earlier, Perry, of
Virginia, was acting associate attorney general. Among Perry's other clients in
the last two years were private prison firm Corrections Corp. of America and
hospital proprietor HCA Corp., but he did not represent them on any work with
Homeland Security, the congressional filings said.
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.
January 17, 2005 USA
Today
This week's presidential inauguration
marks more than the start of a new term. It's also the kickoff for a new
lobbying season, a chance for the capital's permanent influence class to cement
its status with money and entertainment. To that end, corporate America has
showered the inaugural organizing committee with money. It has given $25.5
million so far to help pay the costs of a week of parties, balls, receptions and
other official functions. The money has come mostly in six-figure chunks from
companies and their executives - nearly all of them with business before the
government that affects their industries. Heavily regulated sectors such as
finance, energy, tobacco, pharmaceuticals and telecommunications are as
prominent on the list as they are in the capital's lobbying circles. Other
sponsors include MCI, Pfizer, Corrections Corporation of America, R.J. Reynolds,
Hospital Corporation of America, the Generic Pharmaceutical Association and the
Managed Funds Association.
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 25, 2004 AP
Tennessee's largest corporations favor Republicans with
their political donations, but none more so than Cracker Barrel and Corrections
Corporation of America. Federal
campaign filings show the state's Fortune 500 companies gave anywhere from 62
percent to 75 percent of their donations from their political action committees
to Republicans - with the rest mostly going to Democrats.
The
nation's largest private prison company, Corrections Corporation of America, and
most of its senior officers, give nearly all their political money to
Republicans, according to federal election filings through August. CCA's
political action committee has given 96 percent of its money to Republicans so
far this election cycle. ''We
are supportive, regardless of party lines, of those individuals that believe in
the private sector playing a role in delivering government services,'' said
Louise Chickering, a CCA vice president. CCA, the
nation's largest private prison company, has credited the Bush administration's
expansion of federal police for creating new business for the firm. Three times,
the Corrections Corporation of America Political Action Committee made $15,000
donations to the National Republican Senatorial Committee. A number of $5,000
donations went to the Bush-Cheney campaign, the New Republican Majority Fund,
and other GOP money groups. Of
the $149,500 doled out by the company's PAC in the 2004 election cycle, 96
percent went to Republicans around the country. Money
was also doled out to candidates from states where CCA has deals to run prisons,
such as Colorado, Georgia and Florida. Dick Williams, state chairman for Common
Cause of Tennessee, a Nashville-based government watchdog group, said it's
obvious that CCA is trying to buy influence. CCA wins when politicians from the
local to federal level decide to send prisoners to its private jails, he said.
''We have a concern any time you have large campaign contribution from an
interest that has a direct interest in the actions of politicians they are
supporting,'' said Williams. One
notable exception at CCA is Thurgood Marshall Jr., the son of the first black
Supreme Court justice. Marshall sits on the company's board of directors. His
money focused on Democrats, including John Kerry, one-time presidential hopeful
Wesley Clark, Ford, and other congressional candidates.
October 13, 2004 Chattanooga Times
Free Press
Tennessee companies have contributed almost $1.47 million to independent
campaign groups since January 2003, according to federal
disclosure records. In
all, Tennessee residents and companies have contributed more than $1.7 million
to so-called 527 committees, independent campaign organizations that can accept
unlimited contributions. The 527 committees are named for the section of the
federal tax code that authorizes them. In
Tennessee, the largest contributors to 527 committees since January 2003 are
two corporations: Nissan North America Inc., which has given $436,000, and
Corrections Corp. of America Inc., which has given $370,055.
The two companies together have contributed almost 47 percent of
Tennessee's donations
to 527 committees. Louise Chickering, a spokeswoman
for CCA, said she is proud of her company's record on
campaign giving. "We
support organizations that want to further public-private partnerships and
efficient government use of taxpayer money," she said.
Ms. Chickering said company executives attended the governors'
associations
events to help those organizations learn about CCA.
August 11,
2004
James A. Seaton has resigned as executive vice president and chief operating
officer of Corrections Corporation of America. The Nashville-based prison
operator gave no reason for the move, which was effective yesterday. In a
statement, Chief Executive John Ferguson said the company wished Seaton well in
his future endeavors. CCA has faced a string of operational troubles in
recent weeks, including the death of a 34-year-old prisoner in Nashville that
has led to a homicide investigation, the suspension of four guards employed by
the company at the Metro Detention Facility at Harding Place and a lawsuit
against CCA. Seaton's departure comes as CCA over the weekend dealt with the
escape and subsequent recapture of an inmate from the Hardeman County
Correctional Facility in Whiteville, Tenn. Last month, CCA also faced
riots at two company-owned prisons as well as a lawsuit seeking $60 million in
damages filed on behalf of the family of inmate Estelle Richardson, whose death
after an incident with guards at a CCA–run prison in Nashville was ruled a
homicide. Seaton oversaw operational management of the company's 65
prisons. Before joining CCA, he had run his own consulting company after
spending 28 years in management positions with the Marriott hotel chain.
(The Tennessean)
July 23, 2004
Troubles seem to keep mounting this month for the nation's largest operator of
private prisons. Corrections Corporation of America suffered through two prison
riots this week _ one in Colorado and another in Mississippi. The uprisings
follow a July 7 homicide at a Nashville facility, which is still being
investigated, and a smaller uprising in Oklahoma. The spate of bad news is
providing fodder for critics of privately run prisons and prompting a slight
drop in CCA's stock price. In the prison industry, no news is often good
news. "I think the idea of privately operated prisons is one that is
still controversial," said Richard Crane, a consultant in the industry and
former CCA attorney. "(Bad incidents) give those who are opposed to
privatization something to beat their drum about." Critics said the
string of problems shows that privately run prisons are a bad idea, and that
grouping prisoners from multiple states under the care of low-paid, often
inexperienced guards will lead to trouble. "Almost half of the
employees in the facility have no experience whatsoever," said Ken
Kopczynski, with the Private Corrections Institute Inc., an advocacy group
opposing private prisons. "I just hope enough people will wake up to the
bad idea of private prisons. It just goes against all the principles of
democracy." (Henry Herald)
January 8, 2004
Families of inmates at prisons run by a Tennessee company have asked the federal
government to investigate whether they are being overcharged for long-distance
calls. When Laurie Nelson's husband was in prison in Arizona, she felt as
if they were both paying for his crime. Darrell Nelson called her often,
but charges for his collect calls added up quickly. A 15-minute collect
call from the Central Arizona Detention Center, in Florence, Ariz., to Mrs.
Nelson in Youngstown, Ohio, cost $9.20. The detention center, containing 55,000
inmates, is one of 59 prisons operated by Corrections Corporation of America,
based in Nashville. "But we had no other options. There was nothing
we could do," Mrs. Nelson said. Now that her husband is at a
federally run prison in Atlanta, a 15-minute call costs $3. Attorneys for
prisoners and their families argued in a petition filed with the Federal
Communications Commission last week that phone calls from Corrections
Corporation facilities cost inmates too much because of restrictions that force
them to make collect calls. They also assert that the Tennessee company has
entered into a series of exclusive licensing deals that give telephone carriers
a monopoly on phone service. (The Washington Times)
January 7, 2004
County Mayor Claude Ramsey has directed a review of the contract with a private
firm to operate the workhouse after the workhouse costs exceeded those at the
county jail for the first time in 19 years. Scott Schoolfield,
administrator of human services, said staff is in the midst of the review of the
contract with Nashville-based Corrections Corporation of America. He said
the county is trying to determine "if we can do it cheaper another
way." County Auditor Bill McGriff said the county jail is a maximum
security facility and the workhouse is a minimum to medium security facility so
costs at the jail are expected to be higher. He said the situation may be
explained by the fact that an automatic escalator clause was built into the CCA
contract several years ago rather than having periodic negotiations. He
said the CCA fee has been going up by about 2 percent each year. When
Hamilton County contracted with CCA for private operation of the Silverdale
workhouse, it was the first such privatization in the country. Assessor
Bill Bennett said this week that the switch to CCA was made after former County
Executive Dalton Roberts sought to have the state take over the workhouse, which
was a continual headache for the Roberts administration. Mr. Bennett, who
was the lone Republican on the County Commission at the time, said he went with
Mr. Roberts to Nashville to meet with Republican Gov. Lamar Alexander. He
said Gov. Alexander did not want to take the workhouse, but suggested they check
with Tom Beasley, a former state Republican Party chairman who started CCA. Mr.
Beasley came to Hamilton County, made a pitch for CCA, and the County Commission
approved it. (Chattanooga)
A Tri-Cities
man being transported to the Tri-Cities for an alleged bomb threat at an area
college is on the run tonight. Officers are unsure if he will try to
make it back to the Tri-Cities region. Sullivan County Sheriff's
officials say Robert Larry South escaped from a private prisoner transport
service in Lewisburg, West Virginia last night. He was in route to the
Sullivan County jail. He's accused of making a bomb threat at Northeast
State Community College on Halloween. (TriCities.com)
May 23, 2003
Corrections Corporation of America yesterday said it has completed the final
procedures needed to settle the last of various shareholder lawsuits filed
against the Nashville-based company. In the lawsuits, the shareholders
accused CCA's former management of failing to disclose information about a
corporate restructuring that caused the firm's stock to plunge 93%. (The
Tennessean)
May 20, 2003
Corrections Corporation of America announced today that the settlement claims
process has been completed in connection with the final settlement of previously
outstanding state court stockholder litigation against CCA and certain of its
current and former directors and executive officers. As a result of the
completion of the state court claims process, CCA has issued approximately
310,000 shares of its common stock to the eligible claimants under the terms of
the settlement. In addition, pursuant to the terms of the settlement, CCA
has issued a $2.9 million subordinated promissory note payable to the eligible
claimants in the event CCA's common stock does not achieve certain trading
prices prior to the maturity of the note on January 2, 2009. The settlement
claims administrator, Gilardi & Co. LLC, is also in the process of
distributing approximately $3 million in cash insurance proceeds to the eligible
claimants as part of the settlement. (Yahoo Finance)
February 7,
2003
The end of the Don Sundquist administration saw many of the former governor’s
appointees departing for jobs all over
Tennessee
, but several have hit the jackpot by landing at Corrections Corporation of
America (CCA). In three of these
instances, the Nashville-based prison management company even invented positions
for them. Among the highest profile
hires were John Tighe, former
deputy to the governor for Health Policy; Natasha Metcalf, former
Tennessee
commissioner of Human Services; and Tony Grande, former
Tennessee
commissioner of Economic and Community Development.
“Almost all of these newly created positions are at the vice president
level of the company,” said Louise Green, the company’s vice president of
marketing and communications. “We are in a very good position today to
capitalize on new opportunities to strengthen relationships with our federal,
state and local government partners.” But
watchdog groups are leery about “prison industrial complex,” as some call
it, and government. “Anytime you
mix the government with a private sector, you’re muddying the lines,” said
Nadia Khastagir, spokesperson at San Francisco-based Corpwatch, a non-profit
organization that counters corporate-led globalization. “We don’t even
believe that corporations and prisons should be joined together.”
Ed Bender, research director at The National Institute on Money in State
Politics, said CCA’s hiring public officials is nothing new.
“This is the way CCA operates,” he said. “They are getting
people who know how to work the system.”
Bender said interest in private prisons at the state level is shrinking,
while the federal sector is seeing the growth in prison privatization.
This month, CCA celebrated the twentieth anniversary of its founding in
1983.
Nashville
businessmen Thomas Beasley and Doctor Crants along with Don Hutto, who was then
president-elect of the American Correctional Association, launched what became
CCA. The company currently has a market capitalization of $478.64 million.
(Nashville City Paper)
January 6, 2003
CCA has named Tennessee's Commissioner of Economic and Community Development (ECD),
Tony Grande, to a newly created role of Vice President of State Customer
Relations. In his capacity, Grande will manage the national prison
operator's business development efforts to forge new partnerships with state
Department sof Corrections. Grande will begin his career at CCA on January
21, 2003. (Yahoo Finance)
November 19,
2002
CCA of Human Services, Natasha Metcalf, to the newly created role of Vice
President of Local Government Customer Relations. Metcalf will be in
charge of managing the company's existing relationships with county commissions
and sheriffs, through CCA's operation of nine jails and detention centers.
Metcalf was appointed Commissioner of the Tennessee Department of Human Services
in December 1998.In 19996 she served as Deputy Legal Counsel to Tennessee
Governor Don Sundquist. (Yahoo Finance)
October 31,
2002
CCA will pay $54 million to settle a dispute with the IRS over a 1997 tax audit
of its predecessor. The IRS had raised issues with validity of a tax
deduction taken by the former Prison Realty Trust, said Irving Lingo, chief
financial officer with Nashville prison operator CCA. (Tennessean.com)
October 26,
2002
The Sundquist administration has scaled back the size of a new prison it had
proposed for rural West Tennessee. Officials have now proposed adding beds
either through expansion or construction of a new facility in Bledsoe County in
East Tennessee. (AP)
October 28,
2002
Prison operator CCA on Monday said it agreed to pay $54 million in cash to
settle an audit of its predecessor's 1997 federal income tax return.
Nashville, Tennessee-based Corrections Corp. said the settlement with the IRS,
which satisfies federal and state tax obligations along with interest, will
primarily be paid during the fourth quarter of 2002. It said it is still
appealing the IRS's findings regarding audits of its predecessor's 1998 and 2000
tax returns. Representatives of the company were not available for further
comment. (Yahoo Finance)
July 31, 2002
Republican Ed Bryant told party activists Tuesday that Democrats will attack
Lamar
Alexander's personal "financial dealings" if he wins the GOP
nomination for the U.S. Senate, leaving the seat vulnerable to a loss. In
a campaign stop at the Rutherford County GOP headquarters, Bryant and a
prominent campaign supporter, retired TBI director Arzo Carson, cited
Alexander's personal finances to bolster Bryant's argument he is more capable of
holding the Senate seat for the GOP in the general election. Only Carson
cited any specific financial "dealing": Honey Alexander's
investment in a private prison company while her husband was governor.
Carson, appointed by Alexander to head the Tennessee Bureau of Investigation
after becoming governor in 1979, spoke of Alexander's "personal
enrichment" as a campaign weakness. He said a "family member
invested $5,2000" in a private prisons company while Alexander was governor
"and two years later sold it for $140,000 to $145,000."
Alexander's wife was one of the original investors in the private Corrections
Corporation of America, founded in Nashville in the early 1980s. Alexander
said CCA never did business with the state during his tenure and when it tried
to contract with the state his wife exchanged her stock in the company for an
investment in an insurance company she sold for a profit years later.
Records show she sold the shares for $142,000. (GoMemphis)
June 23, 2002
William Andrews has had his share or corporate board duties in 30 years of being
a director. Still, the collapse nationally of Enron Corp., Adelphia
Communications and other public firms following questions related to their
financial statements has brought the whole concept of "corporate
governance" into national focus, said the chairman of Nashville-based
Corrections Corporation of America. "It's a healthy thing as long as
they don't go too far," Andrews said of federal and market
regulators. "Boards have to have flexibility, and they have to use
judgment." Earlier this month, the New York Stock Exchange weighed
in, proposing a 17-point program that could dramatically alter the structure of
boards, the responsibilities of directors, how they are paid and how they
interact with their management teams and their employees. Because of their
own financial and litigation problems in the past few years, several
prominent Nashville-area companies, such as HCA Inc., Gaylord Entertainment Co.
and Andrews' CCA have been moving in the direction the NYSE has proposed.
With CCA on the brink of bankruptcy and with its stock price depressed, Chairman
Andrews presided in 2000 over a major reshuffling at the prison operator.
The company ousted Chief Executive Officer Doc Grants and brought on new board
directors. (Tennessean.com)
May 23, 2002
Can Doc Crant's stock rise again? Two years after leaving Corrections
Corporation of America, the man considered a pioneer of the private prisons
industry has his eye on a new mark. Doctor R. Crants is chief executive of
Homeland Security Corp., a Nashville company he founded last year to offer
security management and training to government and commercial clients.
Last month, Homeland was part of a team chosen by a federal agency to train more
than 30,000 passenger screeners at 429 airports nationwide. In February, a
company affiliate called PPCT Management Systems was hired by Delta Air Lines to
provide voluntary self-defense training to its more than 19,000 flight
attendants. "Unfortunately it will be (his legacy)," Bob
Buchanan, a CCA shareholder who lives in Overland Park, Kan. "Most
people that weren't with him during the middle-to-early CCA are going to
remember CCA went from one of the the top companies on Wall Street to a company
that traded at one time at 20 cents a share." Crants wouldn't discuss
his CCA missteps but said Homeland is based on a similar model of providing a
service at a reasonable price to government agencies. After leaving CCA in
August2000, he started a vehicle known as Entrepreneurial Ventures to explore
business ideas. An initial emphasis on technology-related ideas gave birth
to ConnectGov Inc., a company also led by Crants that offers math and science
content to urban school districts such as the District of Colombia's. The
idea for Homeland was born from a similar brainstorming process as Crants
considered a start-up in the guard or security services area. Crants
values the security services market at $35 billion. Andrew L. Vita, a
one-time assistant director of field operations for the ATF, is chief operating
officer of Homeland. Locally and nationwide, many who lost money remain
upset about how he sold Wall Street on CCA as a growth story but later oversaw
its fall to near bankruptcy. (Tennessean.com)
May 30, 2002
Corrections Corporation of America (NYSE: CXW - News)
announced today that it has been awarded a contract with the Federal Bureau of
Prisons (BOP) to house approximately 1,500 federal detainees at the Company's
McRae Correctional Facility located in McRae, georgia. The three-year
contact, awarded as part of the Criminal Alien Requirement Phase II Solicitation
("CAR II"), also provides for seven one-year renewal options and
includes contact provision that are materially comparable to the Company's other
contacts with the BOP. Revenues for the contact are expected to commence
last in the fourth quarter of 2002. Under the provisions of the award, the
company could earn revenues of up to approximately $109 million in the first
three years of the contact. "We are delighted that the Federal Bureau
of Prisons has chose our company in awarding this contact, " stated John
Ferguson, President and utilize the private sector to allow the agency the
flexibility in managing their bed-space needs in a resonable and cost effective
manner. We believe our commitment to providing quality service and our
ability to immediately provide a facility capable of meeting the capacity
requirements of the BOP were important factors in obtaining this
award." (YAHOO! Finance)
May 3, 2002
Corrections
Corporation of America
yesterday reported a first-quarter net loss
of $46.3 million, or $1.23 a share, largely
because of an accounting charge.
The first-quarter loss compares with a loss of $10.1
million, or 43
cents a share, a year earlier. It was due largely to an
$80.3 million
non-cash charge to write-down the value of prisons. The
charge was
offset in part by a $32.2 million tax refund.
During the quarter, the company also agreed to settle
for $5 million a
lawsuit brought by two female detainees who claimed they
were
sexually assaulted in 1999 by two male employees of its
TransCor
America unit while being transported. Insurance will
cover about $4
million; CCA is expected to pay about $1 million. The
company said Puerto Rico plans tomorrow to take over
management of two prisons CCA manages for the
commonwealth.
The
prisons had generated $2.2 million in after-tax
earnings before
interest, taxes, depreciation and amortization. (Tennessean.com)
May 2, 2002
Corrections
Corporation of America
(CCA) has been recognized as the first annual winner of the Tennessee
American Business Ethics Award (TABEA), presented by the state Society of
Financial Services Professionals. The award recognizes Tennessee companies
that exemplify high standards of ethical behavior in their everyday business
conduct and in response to specific crises or challenges. (PRNewswire)
April 16, 2002
Saturday morning
would not be complete without listening to Scott Simon
on
National Public Radio -- even while on vacation. Last Saturday he dealt
with
the
prison industrial complex, and Wisconsin had a star role. Simon exposed
those
behind the "tough on crime" policies that have filled our
prisons. It
turns out that legislators and governors have been receiving lots of
help,
research, and campaign contributions from profit-oriented corporations in
defining how we should deal with those who break the law, and, indeed,
which
laws to enact.
Prison was a means to an end, not an end in itself. And profit was not in
the
equation.
What was fascinating about the Simon radio program were the public
confessions of Tommy Thompson and Scott Walker, the latter holding the
chairmanship of the Assembly committee with jurisdiction over our prisons.
They
made his point. Thompson, speaking to a thousand people at a dinner
for
a lobbying group, began with his familiar cheerleading roar: "Isn't it
great
to
be a conservative." It was not a question. The crowd of corporate
representatives who profit from prisons and prisoners loved it. Phone
companies,
health care delivery and drug companies, those hawking the latest laser
weapon
and, of course, Corrections Corporation of America, the private prison
company
that takes most of Wisconsin's prisoners sent out of state at an annual
cost
of
$50 million. They love long sentences, overcrowded prisons, and the
Thompson
decision to effectively end parole. Each prisoner is a profit center for
these
corporations.
But never mind the usurpation; the ideas that the profiteers push is what
we
should focus on: truth in sentencing, three strikes and you're out, and
privatization of our prisons.
Sound
familiar? The more prisoners there are, the more phone calls they
make,
the more food they devour, the more profit for those corporations that have
figured out the game. (Capital Times)
February 15,
2002
J. Michael Quinlan,
who headed the Federal Bureau of
Prisons from
1987 to 1992, is stepping down as the operations chief
at Corrections
Corp. of America.
After stepping down as
COO, he plans to return to the Washington, D.C., area,
where his
family lives, but will continue to help CCA with
business
development, CCA said. (The Tennessean)
January 25,
2002
AutoZone,
Corrections Corp. of America, TBC Corp.
Prisoners,
auto parts, and tires as the cornerstones of a great
stock portfolio? Who'd
have thought it? But each was the source of some great gains in
2001.
To be sure, Corrections Corp. of America is one very tangled
web. With two major
restructurings in three years, the company ran through the whole
corporate playbook -
acquisitions, reverse stock splits, special dividends, two
classes of stock, name
changes, executive turnover, severance payments, lawsuits. It
even paid $15 million in
cash to settle a lawsuit by the investment bankers who
reorganized the company.
Who
better, then, to untangle such a skein than a CEO, John
Ferguson, who used to be
the commissioner of finance for the state of Tennessee and,
before that, CEO of
Community Bancshares of Germantown.
In
his last year as a state employee, Ferguson made less than
$150,000. In his first
year as a CEO, he made over $1 million including stock options.
When
you get down to it, prisons are sort of like hotels, with
the locks on the other side
of the door, of course. From an investment point of view, both
come down to beds and
occupancy.
"Our
sales team," says Ferguson, "is focused on increasing
occupancy rates and
maximizing opportunities to provide new services to our
customers."
CCA
calculates average available beds (61,408) and average
compensated
occupancy (89.1 percent) plus revenue per compensated man-day
($48.03) and
operating margin per compensated man-day ($10.89) to get
operating margin (22.7
percent). In the dry view of the auditor, it's all numbers.
To
make a long story short, the turmoil left investors in a fog
as to the value of the stock,
and the bottom nearly fell out of Corrections Corp. last year
when the stock declined 93
percent. By year end it was selling for pennies a share. That's
when two directors of the
company, Memphian Henri Wedell and Nashvillian Lucius Burch III
(nephew of the late
Memphis lawyer), each bought approximately one million shares at
34 cents a share.
Within
weeks, the stock turned around. In May, the company did a
reverse one-for-ten
split to boost its share price and keep from being delisted by
the Nasdaq. Adjusting for
the split, Waddell, Burch, and Ferguson have quadrupled their
money at the recent
share price of $14. (Memphis Magazine)
December 23,
2001
One of Gov. Don Sundquist's longest-serving aides is leaving government to lobby
for Corrections Corporation of America. Brian Ferrell, 35, who has served
the governor since the 1994 election $ 82,788-a-year post as assistant to the
governor for legislation effective Jan. 7, Sundquist Administration officials
announced. He will serve as CCA's vice president of government relations,
CCA officials confirmed. Mr. Ferrell is the latest member of the Sundquist
administration to leave for Corrections Corporation of America, the nation's
largest operator of private prisons. Former Finance Commissioner John
Ferguson left the state last year to serve as chief executive officer at CCA,
and Mr. Ferguson's assistant, Leslie Higinbotham, joined CCA this fall.
(Chattanooga Times/Chattanooga Free Press)
December 9,
2001
GOV. Don Sundquist's administration estimates Tennessee will need another 500
prison beds as early as next spring and 2,700 by 2005. Given the state's
unresolved budget crisis, the first substantial expansion of its prison system
since the mid-1990s will need to balance taxpayers' legitimate concerns for
personal security and government efficiency. Greater reliance on private
prisons is one - but only one - credible option for easing the capacity crunch.
If it is invoked, though, it must be accompanied by more effective regulation
than the state has provided so far. Critics contend CCA exerts undue
political muscle in its home state. The Commercial Appeal reported last
year that state officials do not require reports from CCA-owned facilities about
their inmate populations, and do not license, monitor or inspect them. Efforts
to enable Tennessee to exert greater control over the kinds of inmates CCA
imported from other states failed. CCA prisons in Tennessee have had
several well-publicized escapes and uprisings. In 1998, a group of Wisconsin
inmates that included three convicted murderers attacked, nearly killed and
permanently disabled a guard trainee at Whiteville. If Tennessee is to
make greater use of private facilities as part of its prison expansion plan, it
needs tougher regulations to govern their operations, including such issues as
staffing, employee training and security. The fact that CCA's chief executive,
John Ferguson, served as state finance commissioner under Sundquist might offer
encouragement for such regulation. TennCare and state-subsidized child
care offer two glaring examples of government services the state has privatized
without providing adequate oversight. A similar failure in the matter of private
prisons could have dangerous, even deadly, consequences. (The Commercial
Appeal)
August 16,
2001
Dozens of Texas
prisoners in the 1990s were given a drug so
researchers could test a theory: Could the drug _ typically used for epileptic
seizures _ make inmates less violent?
The
study found that phenytoin, sold under the name Dilantin, can make "a
dramatic impact" in controlling violent prisoners. It showed success in
reducing
impulsive aggression, such as attacking another inmate or guard without
planning
it, for instance.
Against
that backdrop, Oklahoma Gov. Frank Keating in 1997 wrote the first
of
his letters to the chairman of Nashville, Tenn.-based Corrections Corporation
of
America, the nation's largest private prison company. Dilantin, Keating wrote,
could be an effective tool for prisons.
In
October 1999, Oklahoma prison officials and CCA executives gathered to
hear a presentation on Dilantin by retired Wall Street financier Jack Dreyfus,
records show.
However,
"we as a company don't go out and push any particular drug or
treatment per se," CCA spokesman Steve Owen said.
Keating's
relationship with Dreyfus is now the subject of a complaint filed
with the Oklahoma Ethics Commission. Dreyfus has promoted Dilantin for years.
His
Dreyfus Health Foundation funded the Texas prison study.
Keating
has said he and Dreyfus are old friends and acknowledged receiving
gifts from Dreyfus totaling $250,000 from 1990 to 1997. The governor later
repaid the money and maintains that he has done nothing improper.
Keating's first letter to CCA was dated April 14, 1997 _ 17 days after
the
Texas study was accepted for publication.
Two years later, in late 1999,
Oklahoma and CCA officials were talking
about
using Dilantin to manage inmate behavior in prisons far beyond Texas.
A month after Oklahoma Department
of Corrections officials and CCA's chief
executive officer heard Dreyfus' presentation, CCA officials had plans to meet
with corrections medical officers "from across the country" and
recommend a
new
way of using Dilantin, according to a Nov. 16, 1999, memo written to
Keating. (Tulsa World)
August 15,
2001
Corrections Corp. of America, the largest private owner of prisons, is paying
Merrill Lynch & Co. a $3 million fee related to the company's merger with an
affiliate, $5.1 million less than the securities firm sought. (The
Commercial Appeal)
August 9, 2001
The company said it agreed to pay $15 million in fees to the Blackstone Group
and the Fortress Investment Group to settle a lawsuit that was filed after
Corrections canceled a proposed restructuring that would have been led by
Blackstone and Fortress. (Yahoo! Finance)
May 19, 2001
A former controller at Corrections Corporation of America and his wife have
agreed to pay more than $90,000 to settle charges related to 1997 insider
trading of options and stocks in CCA. The payments due from W. Blake
Brock, 44, and Kathy O. Brock, 42, of Nashville are part of an overall $250,000
in settlements in the insider trading case, the U.S. Securities and Exchange
Commission said Wednesday. Kenneth L. Unker of Atlanta, a friend and
associate of Kathy Brock who the SEC said tipped she tipped off, will pay more
than $158,000. After learning in October 1997 that CCA's third-quarter
earnings would fall short of analysts' expectations, Brock tipped off his wife
and directed her to buy put options in CCA in advance of the negative earnings
release, the SEC said. The couple then tipped Blake Brock's father and
Unker, who also tipped off two of his friends and personally sold all of his CCA
stock and bought the options. Put options generally grant the owner of the
bonds or securities the right to sell at a specified price a specified number of
shares by a certain date. (Tennessean)
May 5, 2001
CCA said the Federal Bureau of Prisons will award the company $520,000 above
what it is due under contracts to house inmates at two prisons. It follows
a semi-annual performance review by the Bureau of Prisons. Its shares rose
7 cents to 71 cents. (Tennessean)
May 4, 2001
Corrections Corporation of America has received notification from the Federal
Bureau of Prisons that an award in the amount of $520,000 will be given to the
Company, over and above its standard contracted fees from the Federal Bureau of
Prisons (BOP), for "optimum performance" of two CCA facilities above
contracted goals. The Eloy Detention Center in Eloy, Arizona will be
awarded $285,000; the California City Correctional Center in California City,
California will receive $235,000. (Business Wire)
April 18, 2001
Corrections Corporation of America of Nashville yesterday said it is contesting
an $8.1 million request for payment from Merrill Lynch & Co. related to its
hiring of the investment firm in late 1999 for advice on a company
restructuring. In a filing with the Securities and Exchange Commission,
CCA also said its insurers have refused to cover damages from lawsuits by
employees and prisoners that seek more than $50 million. The suits include
one brought by CCA employees in 1998 seeking more than $30 million related to a
stock ownership plan and another by a woman demanding $20 million. She
claims she was assaulted by two former employees of CCA's TransCor unit. A
third deals with a more than $3 million jury verdict stemming from charges of
mistreatment against juveniles at a South Carolina prison. (Bloomberg
News)
Davidson
County Criminal Justice Center
Davidson, Tennessee
CMS
September 4, 2004
A state prison inmate who contends that he had to wait months for surgery to
repair his fractured wrist has filed suit against the private firm that provides
health care for Tennessee's penitentiaries. Michael W. Mallory, 45,
slipped and fell in the Davidson County Criminal Justice Center immediately
before his transfer to the state prison system in 2003. The fall fractured his
hand and wrist, according to his federal lawsuit against St. Louis-based
Correctional Medical Services Inc. Although initially treated with a
fiberglass splint at Meharry Medical Center, the Aug. 31 injury failed to heal
properly. It was not until March 26, 2004, that he received the surgical repairs
he claims he needed all along. CMS officials said yesterday that medical
privacy laws prevent them from discussing the particulars of Mallory's medical
case. But Mallory ''was seen and treated by health-care professionals and
specialists on numerous occasions,'' according to company spokesman Ken Fields.
''We will defend against these allegations,'' Fields said. The suit echoes
the complaints of other inmates who have filed suit in recent months contending
that painful and sometimes life-threatening conditions have been ignored —
including that of Terry Crouch, whose headaches and precipitous weight loss were
treated with antacids administered by prison doctors. In fact, Crouch had
a brain tumor and was transferred, partially blind and unable to walk, to a
local nursing home after long-delayed surgery. (The Tennessean)
Dickson
County
Charlotte, Tennessee
CCA
March 8, 2006 Dickson Herald
A motion by Dickson County Commissioner Danny Tidwell to let voters decide
in the August general election if the county jail should be privatized was shot
down Monday night. “I know this is a hot issue, but I think we should let the
voters have a say on it,” said Tidwell, who represents District 11. The
commission voted down the measure 7-4. The county was in negotiations with
Nashville-based Corrections Corporation of America in 2004 for the company to
build and operate the county jail. The commission rejected the proposal in
January 2005. If the commission voted on the measure, Dickson County Attorney
Larry Ramsey said it would have taken a private act by the General Assembly to
get the matter on the ballot. Jeri Duggan, a concerned citizen, spoke in favor
of the jail referendum. Duggan believes outsiders helped sway the county’s vote.
“The jail issue was turned into a political issue by people and money from
outside the county with a lot of help from a few of our own taxpayers,” Duggan
said.
December 30, 2004 Dickson Herald
A special called meeting scheduled for last night in which
the Dickson County Commission was expected to make a decision on a contract to
privatize the county jail and consider a possible site for the new facility was
suddenly cancelled after residents in the Highway 48 South area raised an uproar
with officials. The county and Nashville-based Corrections Corporation of
America are considering an abandoned truck stop near Interstate 40 off Highway
48 South to build a 624-bed jail. “On the surface, I’m opposed to a jail out
there, but it’s the way they (commissioners) tried to proceed with this that
has me concerned,” said Steve Haley, who lives near the Highway 48 South site.
Haley said he and others in the area first learned of Thursday’s county
commission meeting when they read it in The Dickson Herald on Wednesday. “The
first I heard of this was in the newspaper. What upsets me and others is the
fact that they held several meetings for the Charlotte residents, but were just
trying to fly this over on us,” said Jimmy Stokes, who lives in the area.
Department
of Economic and Community Development
January 22, 2004
The state Department of Economic and Community Development under former Gov. Don
Sundquist repeatedly violated state laws and policies regarding expenditures and
contracts, an audit released Wednesday by the state comptroller's office
shows. The department also "concealed questionable transactions"
including the purchase of $17,523 worth of sport shirts and $2,300 worth of
luggage; awarded two no-bid contracts for the same service at the same time;
circumvented state law in the way it awarded $2.8 million worth of
infrastructure-improvement contracts to the city of Smyrna for an expansion of
the Nissan plant; and awarded job-skills grants without receiving proper
applications. The audit covers the period of July
1, 2000, through March 31, 2003. Gov. Phil Bredesen took office on Jan. 18,
2003. In its response, the department
concurred in all the findings and said it had taken steps to correct lax
accounting procedures. "We worked very
closely with the comptroller's office not only to address the internal and
external accounting control issues, but also very aggressively have tried to
ferret out the problem areas and deal with them," said Assistant ECD
Commissioner Mike Kopp. "When we came on board there were few if any
internal accounting controls." Kopp
said that "within a very short time of getting here," the new
administration "started putting those processes into place because they
didn't exist, and we felt they needed to. We feel very good about where we are
today versus where we were when we came into office a year ago."
During the period of the audit, except the last two
months when the Bredesen administration was in place, the commissioners of ECD
were Knoxville businessman Bill Baxter, now one of three TVA directors; Alex
Fischer, now director of technology transfer at Oak Ridge National Laboratory;
and Tony Grande, now with Corrections Corporation of America. Comptroller
John Morgan said the findings would be referred to the state Attorney General
and the Davidson County district attorney for their determination of whether any
charges should be brought, which he said is doubtful. Morgan said it is rare for
such audit findings to lead to criminal prosecution, even though it appears some
laws were broken. "As we have just
recently seen with the University of Tennessee, it's difficult to prove
intent," Morgan said, referring to prosecutors declining to pursue charges
against former UT President John Shumaker. The
audit points out that in awarding the $2.8 million worth of TIIPS grants to
Smyrna, the purpose may have been legitimate. However, the contract was broken
into four smaller amounts so that it did not have to go through the State
Building Commission. Neither Baxter, Fischer
nor Grande could be reached for comment. (AP)
Federal
Extradition Agency Inc.
Nashville, Tennessee
March 1, 2001
A federal jury awarded 49.5 million yesterday to the daughter of a man who
perished when a private extradition van burned on Interstate 40 with its six
caged and shackled inmates pleading for their lives. The jury leveled 100% of
the fault at Federal Extradition Agency, the Memphis prisoner-transport firm,
while finding that co-defendant Oakley-Keesee Ford shouldered none of the blame
for James Catalano's April 3, 1997, death. FEA began the trail by admitting it
was negligent in Catalano's death and had violated his civil rights. The jury
found that 10-year-old Kathryn Catalano was entitled to 3.5 million in
compensatory damages and, for the civil rights violation alone, $6 million ion
punitive damages FEA faces for its admitted negligence. Also pending are the
resolutions of five other lawsuits against FEA, one for each of the men who died
in the back of a Ford cargo van. "We don't know what's going to happen with
that," said Rosemary Bonifacio, mother of David Speakmen, who also died in
the van. An energetic critic of the private extradition services, the Michigan
women said that she hoped yesterday's verdict would get the attention of other
companies transporting prisoners on behalf of government agencies. The van had
been vibrating severely throughout a FEA trip that went from Memphis and on to
Iowa, Wisconsin, Michigan, Ohio, Pennsylvania and back to Memphis -- before
leaving for Mississippi and Arkansas. FEA officials overruled their drivers'
wishes to have the problems checked before leaving with Catalano agreed with
Oakley-Keesee's defense. (Tennessean)
February 20,
2001
Almost four years ago, a customized van loaded with prisoners for Florida jails
rattled apart and exploded as it cruised along a Tennessee interstate,
incinerating the six men who had been shackled inside a padlocked cage. U.S.
District Court trail promises to shed light on the long-haul operations of a
private prisoner-transport firm whose vans, laden with wanted men, parole
violators and convicted felons, crisscrossed the country on behalf of public
law-enforcement agencies. According to court documents, the 1995 E-150 van had
been vibrating severely for several days. A truck stop mechanic crawled under
the van and told the drivers they were going to have a "U-joint
problem" with the van, which had amassed more than 246,000 miles in two
years. When they arrived April 2 in Memphis, court records show, the FEA drivers
told the home office about the troublesome U-joint. They had planned to stop for
service but instead pressed on. They drove virtually nonstop for 24 hours,
through Arkansas. Mississippi, and Tennessee. (Tennessean
Hamilton County Workhouse
Hamilton County, Tennessee
CCA
April 24, 2009 Chattanoogan
A correctional officer at the Hamilton County Workhouse has been indicted by the
Hamilton County Grand Jury for having sex with a female prisoner. Kenon Dontae
Arnold, an employee of the Corrections Corporation of America, is charged with
having sexual contact with an inmate. The indictment says on Dec. 9 he "did
unlawfully engage in sexual contact or sexual penetration" with the female
prisoner.
Hardeman
County Correctional Center
Whiteville, Tennessee
CCA
August 9, 2004
A convicted murderer remained on the loose from the Hardeman County Correctional
Facility on Sunday night, and the family of the elderly McKenzie woman whom he
killed is furious. They want to know why Tracy Lynn Harris was not serving his
life sentence without the possibility of parole at a maximum security
facility. ''We were shocked to find out he wasn't,'' said Susan Reid, the
daughter of Madelyn Ruth Bomar, whom Harris killed and raped six years ago.
''That doesn't make sense.'' As law enforcement officials expanded their
search to a 22-mile radius mostly south and west of the prison in Whiteville in
far western Hardeman County, assistant warden Joe Patterson explained the
reasons why Harris was doing time at the medium security prison. He also said
prison officials are looking into why three guards failed to spot Harris' escape
on Saturday morning. Patterson also said the prison is wondering how three
guards failed to spot Harris' escape. He was missing from the prison on Saturday
morning after guards found a hole cut in a chain-link fence in one of the
facility's four recreational areas. (Jackson Sun)
August 9, 2004
More than 70 law enforcement officers throughout West Tennessee continued
searching Sunday for a convicted murderer and rapist who escaped from a
Whiteville, Tenn., prison Saturday. The search included an airplane,
helicopter, men on horseback and a team of dogs from Louisiana. Tracy Lynn
Harris, 26, walked away from the Hardeman County Correctional Facility about 60
miles east of Memphis sometime before 9:30 a.m. Saturday. Prison officials
found a hole in a fence on the south side of the facility, run by Corrections
Corporation of America. After placing the facility on lockdown and taking a head
count, they determined Harris had escaped. Harris may have blood on his clothing
from razor wire cuts. (Commercial Appeal)
August 8, 2004
Harris doing life for raping, killing 81-year-old woman A 26-year-old
convicted murderer who was serving a life sentence without the possibility of
parole remained at large Saturday night after he escaped from the Hardeman
County Correctional Facility in Whiteville. Tracy Lynn Harris is believed
to be heading south of Whiteville after he escaped about 9:30 a.m. Saturday,
said Joe Patterson, the assistant warden of the correctional facility.
Meanwhile, the McKenzie family of the late Madelyn Ruth Bomar, the 81-year-old
woman whom Harris was convicted of murdering and raping in 1998, wondered
Saturday whether Harris instead would head back to Carroll County. Harris is
from McKenzie. 'The whole family is flabbergasted,'' said Susan Reid, the
youngest daughter of Harris' victim. A hole was found in the facility's
fence on Saturday, but what tools were used to cut the fence and whether any
guards would be disciplined over the situation remained under investigation,
Patterson said. The fence was cut from within and was t |