A lesson in why privatized prison health care is the wrong answer

by David M. Reutter

On Friday, January 18, 2022, three days before sentencing in a pay-to-play bribery and corruption scandal involving health care at the city jail in Norfolk, Virginia, attorneys for disgraced former sheriff Bob McCabe filed ...

by Kevin Bliss

On January 6, 2022, Ryan Shapiro, the 44-year-old founder of prison financial services firm JPay, was charged in federal court in Boston with conspiracy to commit securities fraud. Also named in the criminal complaint was Shapiro’s friend and neighbor in Florida, hedge fund manager Kris Bortnovsky, 40.

JPay was acquired in April 2015 by prison communications giant Securus Technologies, Inc. Both are now subsidiaries of Dallas-based Aventiv Technologies.

A third defendant, referred to in the probable cause affidavit as ‘Cooperating Witness 1’ (CW-1), provided incriminating evidence against the other two in return for leniency. The charging complaint lists a third defendant, David Schottenstein, 38, identified by the Miami Herald as a “member of one of America’s richest families.”

In a signed affidavit, CW-1 swore that he supplied insider information that Shapiro and Bortnovsky used to profit from the stock market on three separate occasions:

• just before a strong earnings report issued on August 22, 2017, by DSW, whose board includes two of Schottenstein’s cousins;

• just before a merger was announced on February 20, 2018, between Albertson’s and Rite-Aid, of which the same cousins had insider knowledge; and

• just before a hostile—and ultimately unsuccessful—takeover of ...

Plans to de-privatize prisoner healthcare

by Ashleigh Dye

On December 11, 2021, the Virginia Department of Corrections (DOC) announced that the state Supreme Court had denied an Emergency Motion to Stay and Petition for Review filed by Armor Correctional Health, the private contractor whose termination DOC announced the previous July. ...

In an opinion reached on December 1, 2021, Florida’s Third District Court of Appeal ruled in favor of the Human Rights Defense Center (HRDC) in its suit seeking records from Armor Correctional Health Services, the contracted healthcare provider at the Palm Beach County jail.

HRDC, the nonprofit that publishes PLN, made its request to Armor under § 119.07(1)(a) Fla. Stat. (2021). The healthcare company responded that it was unable to comply. HRDC then filed suit in Miami-Dade Circuit Court, where Armor is headquartered, seeking to compel production of the records. But Judge Beatrice Butchko denied the petition, accepting Armor’s contention. HRDC filed an appeal.

The Third District Court, observing that the right to access public records is one of constitutional magnitude, said disclosure is not a discretionary act. Even if the request could not be met for some reason outside of Armor’s control, the Court continued, an evidentiary hearing was still necessary to ensure that the refusal was factual and lawful, citing Clay Cnty. Educ. Ass’n v. Clay Cnty. Sch. Bd., 144 So. 3d 708, 710 (Fla. 1st DCA 2014), as well as Grace v. Jenne, 855 So. 2d 262, 263 (Fla. 4th DCA 2003).

The physical loss ...

We looked at all fifty state departments of corrections to figure out which companies hold the contracts to provide money-transfer services and what the fees are to use these services.

by Stephen Raher and Tiana Herring, Prison Policy Initiative

As people in prison are increasingly expected to pay for everyday costs (food, hygiene items, correspondence, etc.), the mechanics of how people send money to incarcerated people assumes heightened importance. Family members used to mail a money order to a PO box, and a day or two later, the money would be in the recipient’s trust account. [The term “trust account” is a term of art in the correctional sector, referring to a pooled bank account that holds funds for incarcerated people whose individual balances are sometimes treated as subaccounts. The term “trust” is used because the correctional facility typically holds the account as trustee, for the benefit of the individual beneficiaries (or subaccount holders).]

In those days, the most common complaint from family members and incarcerated recipients used to be about delays in processing money orders. Quick to use consumer psychology to turn a buck, a whole industry arose to provide faster—but vastly more expensive—electronic money transfers to incarcerated people. ...

On October 19, 2021, auditors for Dallas County, Texas, reported to commissioners that lax oversight allowed an employee in the county Sheriff’s Department (DCSD) to use hundreds of damaged debit-release cards to draw almost $700,000 from a trust fund for prisoners at the county jail—leaving the account $85,000 in the red.

Prisoners and detainees have their cash confiscated at booking and placed in trust fund accounts, which they can then add to and use for commissary purchases. When leaving the jail, they are given a debit card with the balance of their trust account on it.

After the county received notice that the prisoner trust fund was $85,000 overdrawn, an investigation uncovered the scheme and traced it to an employee, DCSD clerk Umeka Myers. She had worked for the agency 26 years when she was arrested and fired in April 2021. She was charged with property theft and is awaiting trial.

She had apparently discovered that damaged cards, thought to be unusable, were actually functional. Using 306 of them, she created duplicates of cards given to released prisoners, double-billing the county for almost $700,000 before she was caught. There was no policy or procedure to dispose of damaged cards then. ...

Corizon Employee Charged with Falsifying Records

by Jayson Hawkins and Keith Sanders

On February 1, 2022, a 41-year-old Black man being held on a trespassing charge was found unresponsive in his cell at the jail in Arlington County, Virginia. His death later that day, which is still under investigation, came shortly after Virginia-based MEDIKO took over healthcare provision at the Arlington County Jail (ACJ) on November 15, 2021, when the county fired long-time contractor Corizon Health.

Corizon Health, a Tennessee-based firm with an estimated $800 million in 2020 revenues, had held the ACJ contract since 2006. It was awarded a five-year extension in late 2020, just before the in-custody death of Darryl Becton, 46, a pre-trial detainee being held on an alleged probation violation stemming from a 2019 felony conviction for “unauthorized use of a motor vehicle.” After finding Becton unresponsive in his cell, an Arlington Department of Human Services caseworker and a deputy sheriff tried for thirty minutes to resuscitate him before he died on October 1, 2020.

Exactly one year later, Antoine Smith was charged with falsifying records in the case on October 1, 2021. A local news outlet discovered a person by the name of Antoine Smith ...

by Jo Ellen Nott 

On January 21, 2022, Colorado lawmakers advanced plans to funnel $5.41 million in additional funds over the next two years to address staffing crises at the state’s only two private prisons, both operated for the state Department of Corrections (DOC) by private prison giant CoreCivic, whose revenues in 2021 reached $1.89 billion.

The two prisons in rural southeastern Colorado have been grappling with sky-high staff turnover rates: 107% at the Bent County Correctional Facility and 126% at the Crowley County Correctional Facility. The scratch-one’s-head moment: Even after the increase, DOC will still manage to pay its own staff $2 per hour more than CoreCivic’s staff earns at the prisons, yet the state agency maintains a significantly higher rate of employee retention, 77% to CoreCivic’s (less than) 0%.

“[M] ore people are starting and quitting than are employed there,” explained a memo to lawmakers on the state Joint Budget Committee (JBC) considering the request.

Apparently throwing money at the problem is what JBC wants to do, though, sending the request to the full General Assembly with a 5-0 vote. Rep. Leslie Herod (D-Denver), a vocal opponent of private prisons in the state, was excused. The measure is ...

Marshals Service Also Eyeing Work-around

by Keith Sanders

On September 21, 2021, a little over a week before the federal government contract was set to expire at the Western Region Detention Facility (WRDF) in San Diego, the facility’s private operator, Florida-based GEO Group, announced it had secured a six-month extension with the federal Department of Justice (DOJ) to hold detainees for the U.S. Marshals Service (USMS).

The announcement comes less than a year after incoming President Joseph R. Biden, Jr. (D) signed an executive order in January 2021 prohibiting DOJ from renewing contracts for detention facilities with private prison operators. That order is being challenged in court by both Democratic and Republican officials in several states, including California. Plus a federal employee union, representing about 300 workers at WRDF, also lobbied to keep it open.

WRDF is the only unionized private prison in the country. Randy Erwin, national president of the National Federation of Federal Employees, teamed up with the International Association of Machinists and Aerospace Workers, part of the AFL-CIO, to pressure the Biden Administration to renew the USMS contract there.

“These workers provide an invaluable public service to the community,” Erwin said in an August 2021 press conference. ...

On March 23, 2021, an agreement was executed paying $7,500 to settle three complaints a former pretrial detainee had brought pursuant to 42 U.S.C. § 1983 in U.S. District Court for the Eastern District of Pennsylvania, alleging guards at Chester County Prison twice physically assaulted him when he was held there in 2018 and on three occasions also neglected to provide medical attention.

The former detainee, Mark Anthony Clark, filed his first suit pro se on March 25, 2019, alleging he was denied medical attention for chest pains he suffered on April 14, 2018, despite multiple evaluations for a heart condition since his incarceration at the prison the previous August. On the date in question, after informing guards Nicholas Thorburn and Sgt. Ricardo Ramos of chest pain, Clark was told to “stand by.” Two days later, having still not seen medical staff, he was found unresponsive in his cell. While in the medical department, he experienced dizziness and began to hear voices, yet staff gave him Motrin and released him. He then learned from another prisoner that the guard who found him, Dennis Feliciano, waited to finish serving lunch before calling for help.

Clark filed his second suit on May 22, ...