private prisons and investment risks · part 2 of this series focuses on the companies and asset...
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PRIVATE PRISONS and INVESTMENT RISKS How Private Prison Companies Fuel Mass Incarceration—and How Public Pension Funds Are at Risk
RANKING ASSET MANAGERS REPORT
PART TWO
Copyright © American Federation of Teachers, AFL-CIO (AFT 2019). Permission is hereby granted to AFT state and local affiliates to reproduce and distribute copies of the work for nonprofit educational purposes, provided that copies are distributed at or below cost, and that the author, source, and copyright notice are included on each copy. Any distribution of such materials to third parties who are outside of the AFT or its affiliates is prohibited without first receiving the express written permission of the AFT.
Randi Weingartenpresident
Lorretta Johnsonsecretary-treasurer
Mary Cathryn Rickerexecutive vice president
AFT Executive Council
Our Mission
The American Federation of Teachers is a union of professionals that champions fairness; democracy; economic opportunity; and high-quality public education, healthcare and public services for our students, their families and our communities. We are committed to advancing these principles through community engagement, organizing, collective bargaining and political activism, and especially through the work our members do.
J. Philippe AbrahamShelvy Y. AbramsBarbara BowenVicky Rae ByrdChristine CampbellZeph CapoAlex Caputo-PearlDonald CarlistoLarry J. Carter, Jr.Kathy A. ChavezMelissa CropperEvelyn DeJesusAida Diaz RiveraJolene T. DiBrangoMarietta A. EnglishEric FeaverFrancis J. FlynnDavid GrayAnthony M. HarmonDavid HeckerJan HochadelFedrick C. IngramJerry T. JordanTed KirschFrederick E. Kowal
Louis MalfaroTerrence MartinJoanne M. McCallJohn McDonaldDaniel J. MontgomeryMichael MulgrewCandice OwleyAndrew PallottaJoshua PechthaltPaul PecoraleDavid J. QuolkeJesse SharkeyDenise SpechtWayne SpenceTim StoelbJessica J. TangAnn TwomeyAdam Urbanski
J. Philippe AbrahamShelvy Y. AbramsBarbara BowenVicky Rae ByrdChristine CampbellZeph CapoAlex Caputo-PearlDonald CarlistoLarry J. Carter, Jr.Kathy A. ChavezMelissa CropperEvelyn DeJesusAida Diaz RiveraJolene T. DiBrangoMarietta A. EnglishEric FeaverFrancis J. FlynnDavid GrayAnthony M. HarmonDavid HeckerJan HochadelFedrick C. Ingram
Jerry T. JordanTed KirschFrederick E. KowalLouis MalfaroTerrence MartinJoanne M. McCallJohn McDonaldDaniel J. MontgomeryMichael MulgrewCandice OwleyAndrew PallottaJoshua PechthaltPaul PecoraleDavid J. QuolkeJesse SharkeyDenise SpechtWayne SpenceTim StoelbJessica J. TangAnn TwomeyAdam Urbanski
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Private Prisons and Investment Risks, Part Two How Private Prison Companies Fuel Mass Incarceration—and How Public Pension Funds Are at Risk Since2013,theAmericanFederationofTeachershasperiodicallyreleased“RankingAssetManagers”reports.Thesereportshaveprovidedinformation,forthepurposeoftransparency,riskanalysisandeducation,forpensionfundtrusteesandmanagers.ThisistheAFT’ssecondreportinatwo-partserieshighlightingtheinvestmentriskstopensionfundsandotherinvestorswhoseportfolioscontaininvestmentsintheprivateprisonindustryorcontractorswhoprovideservicestoimmigrantdetentioncenters.Part1ofthisseries,“PrivatePrisons,ImmigrantDetentionandInvestmentRisks,”releasedinAugust2018,identifiesinvestmentmanagers,namelyhedgefundmanagers,whoinvestmillionsofdollarsincompaniesthatprofitfromdetentionfacilitiesthathouseseparatedimmigrantfamiliesandtherisksthoseinvestmentsposetoourmembers’retirementsecurity.Part2ofthisseriesfocusesonthecompaniesandassetmanagers,namelyprivateequityfirms,thatprofitfromandfuelthemassincarcerationofblackandbrownpeopleintheUnitedStates.TheUnitedStatesincarceratesmorepeoplethananyothercountryintheworld,bothintermsofthenumberofindividualsincarceratedandbypercentageofpopulation.iIn2016,therewereroughly2.2millionpeopleinthecountry’sprisonsandjails,and1inevery116adultsintheUnitedStateswasincarceratedii—aratefarhigherthancountrieswithmoreauthoritarianregimes,suchasRussia,thePhilippinesandIran.iiiIfthenumberofimprisonedindividualsintheUnitedStatesmadeupacity,itwouldbethefifth-largestinthecountry.ivThispracticeofshuntingasignificantportionofthepopulationintothecriminaljusticesystemisknownasmassincarceration,anditoverwhelminglyanddiscriminatorilyimpactscommunitiesofcolor.Althoughpeopleofcolormakeuponly30percentofthepopulation,theymakeup60percentoftheU.S.incarceratedpopulation.vTheAmericanCivilLibertiesUnionestimatesthat1outofevery3blackboysand1outofevery6Latinoboyscanexpecttogotoprisonintheirlifetimes—comparedwith1outofevery17whiteboys.viAccordingtotheNAACP,“IfAfricanAmericansandHispanicswereincarceratedatthesameratesaswhites,prisonandjailpopulationswoulddeclinebyalmost40%.”viiThisracialdivideinincarcerationratesisexacerbatedbypoverty.A2015reportbythePrisonPolicyInitiativestatesthat“theAmericanprisonsystemisburstingattheseamswithpeoplewhohavebeenshutoutoftheeconomyandwhohadneitheraqualityeducationnoraccesstogoodjobs,”notingthatthemedianannualincomeofU.S.inmatespriortoincarcerationisonlyabout$19,000.viiiSocio-economicstatusplaysasignificantroleindeterminingwhethersomeonewillexperienceincarceration,ixyetracialdisparitiesinincarcerationratesandsentencingpersist,withadisproportionatelynegativeimpactonAfrican-Americanmeninparticular.xTheAFTbelievesthatcombatingmassincarcerationisavitalcivilrightsandhumanitarianissue—andasthisreportdemonstrates,itisalsoaninvestmentissue.That’swhytheissueofprivateprisonsisnowsubjecttoariskanalysis,somethingtheAFThasdoneperiodicallysince2013,toprovideinformation,forthepurposeoftransparencyandeducation,topensionfundtrustees.In2015,theAFT’sRacialEquityTaskForcereleasedareport,“ReclaimingthePromiseofRacial
This report aims to address one of the factors that lead to mass incarceration: the growth of the private prison industry.
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Equity,”thatcalledfortheunionandalliesto“worktocombatfactorsthatleadtothemassincarcerationofyoungblackmales.”This“RankingAssetManagers”reportaimstocombatoneofthosefactors:thegrowthoftheprivateprisonindustry,whosebusinessmodeldependsonincreasingthenumberofpeopleindetention,oftenunderconditionsthatviolatetheirhumanrights.Asnearlytwo-thirdsofprisonersareblackandLatino,xithepushtoincarceratelargernumberswillundoubtedlyleadtofurtherdisproportionateincarcerationofpeopleofcolor.ThemassincarcerationcrisisisfeltdeeplybyAFTmembers.TheNationalResourceCenteronChildrenandFamiliesoftheIncarceratedatRutgersUniversityestimatesthatmorethan2.7millionchildrenintheUnitedStateshaveanincarceratedparent,orabout1in28children;44-55percentoffathersinprisonand64-84percentofmothersinprisonhadatleastoneminorchildlivingwiththembeforeincarceration.xiiBecausemorethanhalfofallincarceratedparentswerethebreadwinnersfortheirfamilies,childrenwithincarceratedparentsaremorelikelytoexperiencepovertyandhousinginstability,xiiibothofwhichcandisruptlearning.AccordingtotheEconomicPolicyInstitute,childrenofincarceratedparentsaremorelikelytodropoutofschool,developlearningdisabilitiesandsufferfromailmentssuchasasthma,anxiety,post-traumaticstressdisorder,migrainesanddepression,leadingEPItoconcludethat“criminaljusticepolicyiseducationpolicy.”xivFurthermore,the“zerotolerance”disciplinepoliciesthatschoolspreviouslyadoptedhadtheeffectofcriminalizingstudents,withadisproportionateeffectonstudentsofcolor,whofacegreaterratesofsuspension,expulsionandbeingbroughtuponcriminalcharges.Theeffecthasbeenstudentsleavingpublicschools,whichprovidethesupportandresourcestheyneed.xvClearly,themassincarcerationcrisisimpactseducatorsandthestudentstheyteach—andthecrisisisfueledinpartbycompaniesthatprofitfromtheincarcerationofcommunitiesofcolor.Large,for-profitprisonoperatorslikeCoreCivicandtheGEOGroup,alongwithanumberofsmallercompaniesownedbyprivateequityfirmsthatprovidecorrections-relatedsupportservices,togethermakebillionsofdollarsannuallywhendisproportionatenumbersofblackandLatinopeoplearesenttoprison.That’swhymassincarcerationisnotonlyaracialjusticeandcivilrightsissue—itisalsoaninvestmentissue.Alargenumberofpublicpensionfunds,alongwithotherinstitutionalinvestors,havetensofmillionsofdollars’worthofexposuretotheprivateprisonindustrythroughtheirinvestmentportfolios,whetherthroughdirectlyownedsharesofpubliclytradedprivateprisoncompanies,indirectexposurethroughhedgefundsorindexfunds,orinvestmentsinprivateequityfirmsthatowncompaniesprovidingcorrections-relatedservices.Privateprisoncompaniesandcompaniesthatprovideoutsourcedservicestocorrectionalfacilitieshavenoincentivetoaddresstheproblemofmassincarceration,becausetheystandtomakemoremoneywhenmoreindividualsareincarcerated.Infact,privateprisoncompaniesactivelycontributetothecurrentsystemofmassincarcerationthroughpoliticalexpenditures,policydevelopmentandlobbying.Thesecompaniesdo,however,haveanincentivetocutcostsinordertomaximizetheirprofits,and,asthisreportwilldemonstrate,manyachievethisbyloweringwagesforworkers,understaffing,skimpingontrainingandprovidingaslittleservicesaspossibletoinmates—attimesbreakingthelawandattheexpenseofinmates’health,safetyandlives.Thelitigation,regulatoryandheadlinerisksthatresultfromtheabusesoftheprivateprisonandcorrectionsservicesindustries,therefore,aresignificant.Anumberofpublicpensionfundshavealreadytakenstepstomitigatemassincarcerationrisks,withthreeofthefourlargestpublicpensionfundsintheUnitedStates—theCaliforniaStateTeachers’RetirementSystem,theNewYorkCityEmployees’RetirementSystemandtheNewYorkStateCommonRetirementFund—divestingfromdirectholdingsinprivate
The investment risks that result from the abuses of the private prison and corrections services industries are significant.
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prisoncompaniesoverthelasttwoyears.TwootherfundsinwhichAFTmembersparticipate—theChicagoTeachers’PensionFundandtheNewJerseyStateInvestmentCouncil—alsovotedtodivestfromprivateprisoncompaniesinrecentmonths,indicatingagrowingrecognitionamongpensionfundsthatprivateprisoninvestmentsposeseriousinvestmentriskstoworkers’retirementsavings.Accordingly,thisreportwill:
1. Identifytheprincipalcompanies,bothpubliclytradedandprivateequityowned,thatprofitfrommassincarceration;
2. Outlinetheriskstoinvestorsposedbythesecompanies;
3. Providea“watchlist”ofprivateequityfirmsthatowncompaniesthatprovideservicestoprisons,jailsanddetentionfacilities;
4. Callonpublicpensionfundstoassesstheirdirectandindirectexposuretothesecompaniesandasset
managersandassesstheriskstheyposetothefund;and
5. Provideactionstepsforpensionfundtrusteestomitigatetheseinvestmentrisks.
Steps Pension Funds Have Taken to Address Mass Incarceration Investment Risk
Severalpensionfundshavedivestedfromtheprivateprisonindustryoverthelastseveralyears,includingtheNewYorkCityEmployees’RetirementSystem,theNewYorkStateCommonRetirementSystemandthePhiladelphiaBoardofPensionsandRetirements.xviSincethereleaseofPart1ofthisreportinAugust2018,thefollowingadditionalpensionfundshavetakenstepstodivestfromprivateprisons:
• OnAug.17,2018,theChicagoTeachers’PensionFundaddedimmigrantdetentioncentersandotherprivateprisonoperatorstoitslistofprohibitedinvestments.SaidfundPresidentJayC.Rehak:“Weknowtheseinstitutionsdisproportionatelyincarceratepeopleofcolorandthosewholivebelowthepovertyline,houseimmigrantchildrenandperpetuatetheseparationofimmigrantfamilies.[Furthermore,thesecompanies]takeadvantageofandputatriskunprotected,low-wageemployees,whilelackingfiscalandoperationaltransparency.”xviiAddedChicagoTeachersUnionPresidentJesseSharkey:“Ourunionmembersservetensofthousandsofimmigrantstudentsinourschools,andwe’recommittedtotakinganyandallstepstoprotecttheirfamiliesfromdisruptionorrepression.Thatincludesourrefusaltosupportcorporationsthatseektoprofitfromthenationalattackonimmigrants—thesamecorporationsthatcontinuetoprofitfromthemassincarcerationofblackpeopleandtheharmthatcontinuestovisitthefamiliesofourblackstudents.”xviii
“I am a grandmother of 17, and all my children and grandchildren have been or are in Chicago Public Schools. I fully supported the Chicago Teachers’ Pension Fund’s decision to take their money out of private prison companies that are harming our communities. These companies see people as dollar signs, nothing more.”
—Irene Robinson, Journey for Justice member, Chicago
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• OnAug.31,2018,theNewJerseyPensionFunddivesteditsstakeintheGEOGrouptotaling$1.3million,stating
“Ourdivisionofinvestmentreviewedtheinvestmentmerits,includingconsiderationofenvironmental,socialandgovernanceissues,andconsistentwithitsfiduciaryresponsibilityelectedtosellthesecurity.”xix
• OnNov.8,2018,theCaliforniaStateTeachers’RetirementSysteminvestmentcommitteevotedtodivestalldirectlyheldsharesoftheGEOGroupandCoreCivicwithinsixmonths.ThedecisiontodivestfollowedmonthsofCalSTRS’heightenedengagementwiththeGEOGroupandCoreCivicregardingtheirbusinesspractices,whichincluded“visitstovariousdetentionfacilitiesandface-to-facemeetingswithseniormanagementconcerningoperationalprocessesandriskmanagementefforts,”accordingtothepensionfund,whichcitedrisksrelatedtohumanrightsviolationsofimmigrantsandchildrenofimmigrantsdetainedatthecompanies’facilities.xx
• InDecember2018,theCaliforniaPublicEmployees’RetirementSystem,thelargestpublicpensionfundinthecountry,announcedthatitwasengagingindialoguewithmanagementofCoreCivicandtheGEOGroup,aswellasdefensecontractorGeneralDynamics,aroundconcernsrelatedtothecompanies’involvementinimmigrantdetention.AccordingtoCalPERS’investmentpolicy,thepensionfundmustengagewithcompaniesontheirpoliciesbeforeholdingaformalvoteondivestment.xxi
Notably,mostpensionfundsthathavedivestedfromtheprivateprisonindustryhavedivestedtheirdirectstockholdings,withtheexceptionoftheNewYorkStateCommonRetirementFund,whoseprivateprisondivestmentpolicyappliestoallassetclassesprospectively,meaningthatthefundscreensanynewassetmanager,includingprivateequityfunds,forexposuretotheprivateprisonindustry.Who Profits from Mass Incarceration? TheUnitedStateshasn’talwaysbeentheworld’slargestjailer.Mostoftheexplosioninthenumberofpeopleincarceratedhasoccurredonlyoverthelastseveraldecades,andcanbeattributedinparttothewarondrugs,whichofficiallycommencedintheearly1980s.Infact,accordingtotheSentencingProject,between1980and2016,thenumberofpeopleincarceratedfordrugoffensesincreasedmorethantenfold;in2016,thereweremorepeopleincarceratedfordrugoffensesthantherewereincarceratedforanycrimein1980.xxiiInDecember2018,theFirstStepAct—bipartisanlegislationmakingchangestosentencinglaws—wassignedintolaw,anditisexpectedtoresultinthousandsoffederalinmatesbecomingeligibleforsentencereductionsandearlyrelease;xxiiihowever,thislegislationdoesnotapplytothestateandlocalprisonsandjailsthatmakeupthebulkoftheU.S.criminaljusticesystem.xxivThus,whilethelegislationmaybeaninitialstepinloweringtheU.S.prisonpopulation,itdoesnothingtoaddresstheover-incarcerationof2millionnonfederalinmates,asignificantportionofwhomareservingsentencesfornonviolentdrugoffenses.xxvWhilethemassincarcerationofpeopleofcolorhashadadevastatingimpactonentirecommunities,thereareanumberofcompanies,bothpubliclyandprivatelyheld,thatseektoprofitfromtheimprisonmentofpeopleofcolor.Thesecompaniesrelylargelyoncontractswithlocal,stateandfederalgovernmentstobuild,manageandoperateprisons,orprovideancillary
“As a public school parent, I know teachers work hard to educate our children. We don’t want to see any of our children end up in prison, and it’s heinous that there are companies out there that think prisons are a good way to make billions of dollars. It’s time to rethink how our money is being invested. Our children are our future.”
—Maulana Tolbert, Journey for Justice member, Detroit
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services,suchashealthcareandcommunicationsservices,toprisons,andtheirgrowthdependsuponthegrowthoftheprisonpopulationintheUnitedStates.TheprivateprisonindustryintheUnitedStatesisdominatedbytwopubliclytraded,for-profitcompanies,whichtogetheraccountfornearly85percentoftheprivateprisonmarket:xxvi
• CoreCivic(formerlyCorrectionsCorporationofAmerica),thelargestprivateprisoncompanyintheUnitedStates,whichownsandmanagescorrectional,detentionandresidentialre-entryfacilitiesintheUnitedStates,totalingapproximately78,000bedsin19states.xxvii
• TheGEOGroup,whichownsandmanagescorrectionalanddetentionfacilitiesintheUnitedStates,Australia,SouthAfricaandtheUnitedKingdom,totalingapproximately75,000bedsin71facilities;xxviiiitisalsothelargestproviderofelectronicmonitoringservicesintheUnitedStates.xxix
About9percentofincarceratedpeopleintheUnitedStates—andnearly75percentofpeopleinimmigrantdetentionfacilities—arehousedinprivateprisons,xxxandthisnumberhasgrownsignificantlyoverthelasttwodecades.Between2000and2016,thenumberofpeopleincarceratedinprivateprisonsgrewfivetimesfasterthanthetotalprisonpopulation,andthenumberofpeopleinprivateimmigrantdetentioncentersincreasedbymorethan440percent.xxxiIn2017,CoreCivicearnedmorethan$22,000perinmate,xxxiiandtheGEOGroupearnedmorethan$24,000perinmate.xxxiiiWhilepublicandinvestordebatearoundtheprivatizationofprisons,jailsanddetentionfacilitieshaslargelyfocusedonpubliclytradedcompaniessuchasCoreCivicandtheGEOGroup,thefirmsthatprovidephoneservices,commissaryservices,medicalservices,bailbondsandothercorrections-relatedservicesareperhapsmoreubiquitous,servingthousandsofprison,jailanddetentionfacilitiesaroundthecountry.Thesefirmsarelargelyownedbyprivateequityfirms,whoseownersstandtoprofitfrommassincarceration—especiallyrecently,astheTrumpadministrationhasrampedupimmigrantdetention.MoredetailsonthesefirmsandthecompaniestheyownareprovidedinTable1.
Private Equity and Mass Incarceration Ahandfulofprivateequityfirms,drawingoncapitalfrompensionfunds,foundations,endowments,insurancecompaniesandotherinstitutionalinvestors,haveinvestedheavilyincompaniesprovidingservicestoprisons,jailsanddetentionfacilitiesaroundtheUnitedStatesandthemorethan2millionpeoplehousedatthosefacilities.Overthelastseveraldecades,local,stateandfederalgovernments,facingincreasingbudgetconstraints,haveoutsourcedanincreasingshareofprison-relatedservices,suchasmedicalcare,foodservices,telecommunicationsandparole/probationservices,toprivatecompaniesthatpromisetodelivertheseservicesinamorecost-effectivemanner.Unfortunately,whilethesecompaniesturnaprofitbypayingworkerslessandprovidingfewerandlowerqualityservicesthanpublicinstitutions,researchhasshownthattheseprivatizedservicescancostmorethangovernment-providedservices,evenconsideringthefactthatprivateprisonssometimesservehealthierandlesscostlyinmates.xxxivThisreportincludesawatchlistofsevenprivateequityfirmsthatowncorrectionscompaniesthatprofitfrommassincarceration(seeTable2below).Althoughprivateequityfirmsacquirecorrectionscompaniesinanattempttomakemoneyfortheirprincipalsandinvestors,thecost-cuttinginvolvedhasledtoallegationsthatsomeofthesecompaniesneglect,mistreatorabuseprisonersandtakeadvantageofthefamiliesoftheincarcerated,whichinturnposeslitigation,regulatoryandheadlineriskstoinvestors.
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Theproblemsthatcanresultfromprivatizedprisonserviceshavebeenwell-documented;belowarecasestudiesofthreeprivateequity-ownedcorrectionscompaniesandrelatedinvestmentrisks.Company:Wellpath(formerlyCorrectCareSolutionsandCorrectionalMedicalGroupCompanies)
Privateequityowner:H.I.G.Capital
• UntilOctober2018,CorrectCareSolutionswasownedbyatrioofprivateequityfirms,includingGTCR,theprivateequityfirmfoundedbyformerIllinoisGov.BruceRauner;whileRaunernolongerrunstheprivateequityfirm,hismostrecentfinancialdisclosuresindicatethathestillearnsmoneyfromhisinvestmentsinGTCR.xxxvOnOct.1,2018,H.I.G.CapitalannouncedthatithadacquiredCorrectCareSolutionsandwouldbemergingitwithanothercorrectionalhealthcarecompanyinitsportfolio,CorrectionalMedicalGroupCompanies.xxxviPriortothismerger,CorrectCareSolutionsprovidedmedicalandbehavioralhealthservicestolocal,stateandfederalcorrectionalfacilitiesin38states,reachingnearly250,000patients.xxxvii
• AccordingtotheDailyBeast,thereweremorethan140lawsuitsagainstCorrectCareSolutionsfiledbetween2005and2017.xxxviiiIn2017,FultonCounty,Ga.,terminateditscontractwiththecompanyafterfiveinmatesdiedwithinaspanof75days,withthecountyconcludingthattheonlyconnectionbetweenthedeathswasthefactthatalloftheinmateswerebeingtreatedbyCorrectCareSolutions.xxxix
• AlawsuitfiledinMay2018allegedthatmorethanadozeninmatesunderthecareofCorrectCareSolutionsweredeniedmedicaltreatmentforseriousailments,includingastroke,abrokenhipandlungcancer.Accordingtothelawsuit,thecompany’scontractwiththecountydetentioncentercreated“perverseincentives”becauseCorrectCareSolutions“makesmoremoneyunderthecontractwhentheyrefusetoprovideinmateswithnecessarymedicalcare.”xl
• AndinAugust2018,avideowasreleasedaspartofawrongfuldeathlawsuitagainstCorrectCareSolutionsthatshowedaninmateinaWestchester,N.Y.,countyjailcollapsingonthegroundandbeingwheeledbacktohiscellinawheelchairbyCorrectCareSolutionsstaff.Theinmatediedsoonafterfromaheartattack,andastatelegislatorconcludedthat“lookingatthisvideo,itwouldtakemorepersuasiontogetmetogoalongwiththepointofviewthatweshouldhaveCCSoranotherfor-profitentityrunningthemedicaldepartment[insidethejail].”xli
Company:CorizonHealthPrivateequityowner:BlueMountainCapitalManagement
• CorizonHealth,thenation’slargestcorrectionalhealthcarecompany,ownedbyprivateequityfirmBlueMountain
CapitalManagement,provideshealthcareservicesto220,000prisonersat301correctionalinstitutionsin22states.xliiAccordingtotheAmericanCivilLibertiesUnion,CorizonHealthhasbeennamedasadefendantinmorethan600malpracticelawsuitssince2011,includingallegationsofmedicalneglect.xliiiThecompanyhaspaidoutmillionsofdollarsinsettlementsovertheyears,includingarecord$8.3millionsettlementin2015foradetaineewhodiedafternotreceivinganintakeassessmentbyaregisterednurseasrequiredbystatelaw.xliv
• Inonerecentcase,aprisonerunderthecareofCorizonHealthdiedin2017fromararefungalinfectionafterreportingtroublingsymptomsformorethaneightmonths;accordingtothelawsuit,theinmatesuffereda“staggeringlyslow,physicallyandmentallyexcruciatingdeath.”xlvStatedoneexpertwitnessaboutCorizon,“They’reprivate,theirgoalistomakemoney,sotheyputpoliciesinplacethataren’tnecessarily[intended]tobenefitthepatient.”xlvi
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Company:Securus/JPay
Privateequityowner:PlatinumEquity
• Securusprovidestelecommunicationsservicestomorethan3,400correctionalfacilitiesintheUnitedStatesandCanada;xlviiin2015,thecompanyacquiredJPay,whichprovidesmoneytransfer,emailandvideovisitationservicestoinmatesin36statesandWashington,D.C.xlviii
• Thecompany’shighratesandfeeschargedtoinmatesandtheirfamilieshavebeenreportedintheNewYorkerxlixandtheGuardian.lIn2015,theFederalCommunicationsCommissionestablishedratecapsoninmatephonecalls,withonecommissionerpointingtoanexampleofafamilyofoneinmatethathadspent$28,000over10yearstocommunicatewithhim.liHowever,Securus,alongwithotherprisontelecommunicationscompanies,challengedtherule,liiandtheTrumpadministrationannouncedin2017thatitwouldnolongerdefendtheFCC’sruling,liiigivingprisontelecommunicationscompaniesanopeningtochargeexorbitantratesgoingforward.
• Inadditiontoallegationsofoverchargingitscaptiveconsumerbase,Securushasalsomadeheadlinesforallegedillegalactivity.Earlierthisyear,alawsuitwasfiledallegingthatthecompany’sagreementwithBristolCountyinMassachusettsinvolvedanillegalkickbackarrangementthatresultedinthecostofphonecallsfromthecountyjailsnearlydoubling.livIn2016,Securussettledalawsuitallegingthatthecompanyillegallyrecordedprivilegedandconfidentialconversationsbetweeninmatesandattorneysandthenprovidedtheserecordingstoprosecutors.lvAndinJanuary2018,aformerinmatefiledaproposedclass-actionlawsuitagainstJPay,allegingthatthecompany’spolicies,includingchargingamonthly$3maintenancefeeanda$1ATMdeclinefeeforinmatesandformerinmatestoaccesstheirmoney,aremonopolisticandillegal.lvi
• Securus,alongwithothercorrectionaltelecommunicationsproviders,hasalsopushedonlinevideovisitationasanalternativetoin-personvisitationofinmates,includingwritingbansofin-personvisitsintoitscontractswithfacilities.lviiWhilethiscertainlyhastheeffectofdrivingmorebusinesstovideovisitation,whichcancostusers$1perminute,comparedwithfreein-personvisits,lviiiitalsohasanegativeimpactonprisoners:Researchhasshownthatin-personvisitsreducesubsequentcrimeandrecidivism.lixPerhapsduetogrowingpublicoutcryoverthispractice,in2015Securusstatedthatgoingforwarditwilldefertoitsclients’policyonvisitation.lx
Asthesecasesillustrate,theprivatizationofpublicservicesintroducesaprofitincentivethatcanresultincompaniestakingextrememeasurestocutcosts—puttingemployeesandinmatesatriskintheprocess.SomeAFTmembershavewitnessedfirsthandthedangersthatcanoccurwhentheirjobsareprivatized.In2013,theMilwaukeeCountyJailinWisconsinhiredaprivatecompany,ArmorCorrectionalHealthServices,toprovidehealthservicesatthejail,replacingtheunionizedregisterednurses,membersoftheWisconsinFederationofNursesandHealthProfessionals.
“As a public school parent who works closely with teachers who serve black and brown children, I know the devastating impact that mass incarceration has on classrooms and on families. Private prison companies make headlines all the time for the way they cut corners and put workers and inmates at risk—and it’s hurtful to think that they profit by putting people behind bars.”
—Angel Gober, Journey for Justice member, Pittsburgh
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Upon taking over healthcare services at the jail, Armor began slashingstaffinglevels,withaformerWFNHPmemberdescribingArmor’sapproachas“anaccidentwaitingtohappen.”In2016,fourinmatesdiedinthejailoverthecourseofjustafewmonths,includingthechildofaninmatewhohadgivenbirthinjaillxiandaninmatewhodiedofdehydrationafterbeingdeniedwateraspunishment.lxii
AsreportedintheMilwaukeeJournalSentinel,“TheprivatecontractorresponsibleformedicalcareatMilwaukeeCounty’sjailshasfailedtomeetbasicstandardsofcareandstaffingmandates,”withArmorfailingtofill30percentofallmedicalpositionsatthejail.lxiiiIn2018,MilwaukeeCountyprosecutorsbroughtcriminalchargesagainstArmorforfalsifyinghealthrecords.lxiv
The AFT represents public employees who work in a variety of professions, including corrections officers and parole and probation officers who work in prisons and with the formerly incarcerated every day. As a result, these workers understand the criminal justice system and are strong advocates for fair and equal treatment for prison workers and the incarcerated. AFT public employees recognize that private prison companies put both public safety and public employee pensions at risk, and believe that privatizing our justice system threatens our democracy.
Fiduciary Arguments for Divestment
Itiswellwithinthescopeofapensionfundtrustee’sfiduciaryresponsibilitytoconsiderthelegitimaterisksassociatedwithinvestmentsintheprivateprisonindustry,andtoconsiderwhethertodivestentirely.CoreCivicandtheGEOGrouprelyonincarceratingpeopletoturnaprofitand,therefore,haveanincentivetoforgospendingtoensurethehealthandsafetyofthoseincarceratedinordertoincreasepayoutstoshareholdersandexecutives.Thereareclearfinancial,headlineandregulatoryrisksassociatedwithinvestinginthesecompanies:
• A2016reportfromtheJusticeDepartment’sinspectorgeneralrevealedthatprivatelyoperatedfederalprisonsaremoredangerousthanfederallymanagedprisons,withhigherratesofassaults.lxvThisisevidentinthenumerouslawsuitsagainstCoreCivicandtheGEOGroup,includingalawsuitallegingthatunderstaffingataCoreCivicfacilityinIdaholedtoinmatesbeingbeatenandstabbedbymembersofaprisongang,lxviandalawsuitinwhichafederaljudgeruledin2012thataGEOGroupfacilityinMississippifailedtoprotectinmatesfromgangviolence.lxvii
• BecauseprivateprisoncompaniesdonothavetorespondtorequestsforinformationundertheFreedomofInformationAct,itisdifficultforinvestorsandthepublictoaccessclearinformationregardingconditionsandpossibleabuses.lxviiiThiscanresultinheadlineriskstoinvestorswhentheseissuesbecomepublic—forexample,theGuardianreportsthatoverthelastyear,fourdifferentlawsuitshavebeenfiledallegingthatthecompanies“violatedthefederalTraffickingVictimsProtectionActbythreateningsolitaryconfinementorwithholdingbasicnecessities,suchasfood,toiletpaperandsoap,ifdetaineesrefusedtowork”atfiveCoreCivicfacilitiesandoneGEOGroupfacility.lxix
• Privateprisoncompaniesfacevulnerabilitytopoliticalchangesbecauseofthehumanitarianissuesassociatedwiththeirbusiness.Forexample,in2016theObamaadministrationannounceditwouldphaseouttheuseofprivateprisonsforfederaldetainees,andin2017theTrumpadministrationreversedthedecision.lxxAndinDecember2018,theFirstStepActwassignedintolaw,lxxiwhichisexpectedtoleadtothousandsoffederalnonviolentdrugoffendersqualifyingforearlyreleaseorreducedsentences.lxxiiInanotherexampleofhowprivateprisonsaresubjecttopoliticalevents,inJanuary2019,afederaljailinBrooklyn,N.Y.,experiencedanelectricalfailure,leavingmorethan1,000inmateswithminimalheatandnolightsintheircellsforatleastaweek.Thepowerfailurehappenedduringthefederalgovernmentshutdown,whichimpededlawyers’abilitytomeetwiththeirclientsatthejailandmonitorthesituation.lxxiii
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• Similarly,changestofederalpoliciescanimpactcorrectionscompanies’bottomlines.Forexample,theFCC’sdecisiontocapprisonphonecallratesin2015,anditssubsequentreversalin2017,illustratesjusthowvulnerableprisontelecommunicationscompaniesaretopoliticalwindshifts.
• Harmfulpracticesonthepartofcorrectionscompanies—particularlythosethatgeneratelawsuitsand/ormediaattention—canleadstatestoterminatetheircontracts,compoundingfinancialriskstoinvestors.AtleastfivestateshavecanceledcontractswithCorizonHealthoverthelastseveralyears,includingIndiana,whichterminateditscontractnotlongaftertheSouthBendTribunereportedthatthecompanyfaceddozensoflawsuitsinthestate,includingallegationsofwrongfuldeath.lxxv
• Asoutlinedabove,prisonhealthcarecompaniesfaceanumberoflawsuitsallegingmistreatmentofprisoners,withholdingofcareandwrongfuldeath.Theselawsuitscanresultinsettlementsorjudgementscompellingthecompanytopaymillionsofdollars,posingafinancialrisktoinvestorsinadditiontoheadlinerisks.
Private Equity Watch List
TobeincludedinourwatchlistinTable2,aprivateequityfirmmusthavereportedownershipofacompanyforwhichasignificantportionofbusinessisderivedfromprovidingservicestocorrectionalfacilities.Thislistisnotacomprehensiveoverviewofallprivateequityownershipofcorrectionscompanies,andprivateequityportfoliosaresubjecttochange.
InadditiontoreviewingtheirportfoliosfordirectholdingsofCoreCivicandtheGEOGroup,weencouragepensionfundtrusteestoreviewtheirportfoliosforexposuretoprivateequityfirmsincludedinthisreportandtoconsultourwatchlistwhenmakingassetallocationdecisions.
Furthermore,pensionfundtrusteesshouldraiseconcernswithanyprivateequitymanageronthiswatchlistwithwhichtheirpensionfundiscurrentlyinvestedorconsideringinvesting,includingaskingthemtotakemeaningfulstepstoaddresstherisksassociatedwiththecorrectionscompaniesintheirportfolios,toremovecorrectionscompaniesfromtheirportfoliosandtocommitpubliclytonotinvestinginprivateprison-relatedholdings.Pensionfundtrusteesshouldalsoconsiderdivestingfromcompaniesthatfailtotakestepstoensuretheirbusinesspracticesdonotcontributetotheproblemofmassincarcerationandthatputprisoners,theirfamiliesandcommunitiesatrisk.
WealsourgepensionfundstoconsideradoptingcomprehensivepoliciessimilartothatoftheNewYorkStateCommonRetirementFundthatprohibitnewexposuretoprivateprisonsinanyassetclass,and/orpoliciesthatrestrictinvestmentsinprivateequityfirmsorothercompaniesthatprivatizepublicjobs.Forfurtherrecommendationsforpensionsandemployeebenefitplans,see“WhatCanPensionFundTrusteesDo?”below.
“I find it immoral that a company could make money off of something that affects people’s lives so deeply.”
—Eric Olson, Colorado WINS (Workers for Innovative
and New Solutions) member
Privateequity-ownedcompaniesthatprivatizecorrectionsservicespresentmanyofthesesameinvestmentrisks—includingregulatory,litigationandheadlinerisks:
• Changestostatelawscanimpactthesecompanies’abilitytooperate;forexample,Californiarecentlypassedlegislationoutlawingcashbail,lxxivwhichcouldhaveasignificantimpactoncompaniessuchasAladdinBailBonds,particularlyifotherstatesfollowsuit.
10
What Can Pension Fund Trustees Do? Weurgepensionfundtrusteeswishingtoconsiderexposuretotheprivateprisonindustryaspartoftheirinvestmentdecision-makingprocesstoconsidertakinganyorallofthefollowingmeasures:
1. Consultourwatchlistwhenmakingassetallocationdecisions.
2. Reviewyourpensionfund’sinvestmentportfoliosforexposuretoprivateprisonandcorrectionscompaniesinpublicandprivatemarketsacrossallassetclasses.
3. Directyourpensionfundstafftoevaluatetheimpacttothefundofdivestingfromtheprivateprison
industry,andconsiderdivestingfromdirectlyownedshares.Similarly,askyourindexfundproviderandconsultanttoundertakeananalysisoftherisk-and-returnprofileofindexfundsthatdonotholdcompaniesintheprivateprisons/correctionsindustries,andconsiderinvestinginindexfundsthatdonothavethisexposure.
4. EngagewithCoreCivicandtheGEOGrouptodemandthattheyadoptpoliciestoensurejustandhumane
treatmentofdetaineesandproperoversightoverthecorrectionscompaniesprovidingservicestoinmateswhoareincarceratedintheirfacilities.Considerfilingorsupportingshareholderproposalsthatemphasizethesedemands.
5. Engagewithprivateequitycompaniesinyourportfoliothatowncorrectionscompaniesandaskwhatsteps
theyaretakingtoaddresstheinvestmentrisksassociatedwiththesecompanies.Mandatesimilarengagementwithprivateequityfirmsthataresolicitingneworadditionalinvestmentsfromyourpensionfund.Fornewprivateequityagreements,includeprovisionssimilartothoseadoptedbyCalSTRSregardingfirearmsmanufacturersthatexcludeinvestmentsincorrectionscompanies,andprotectyourfundwithopt-outoptionsshouldsuchinvestmentsoccur.
6. Developandadoptinvestmentbeliefsorotherpoliciesthatrestrictinvestmentsintheprivate
prisons/correctionsindustryspecificallyandincompaniesinvolvedinhumanrightsabusesmorebroadly.Aspartofthisprocess,reachouttopublicpensionfundsthathavealreadytakenactiontodivestfromprivateprisonstolearnabouttheirdecision-makingprocessandtoaccesspolicylanguagethatmayserveasaguideforyourownfund.
7. Developandadoptpoliciesprohibitinginvestmentsinfirmsthatprivatizepublicsectorjobs;considerusing
theCalPERSinvestmentpolicyonrestrictingprivateequityinvestmentsinpublicsectoroutsourcersasamodelpolicyforyourownpensionfund.
8. Investigatethecompaniesandprivateequitymanagersnamedinthisreportandtheircompliancewith
yourfund’sbeliefsifyourpensionfundhasalreadyadoptedinvestmentbeliefsthatapplyacrossassetclasses,andrequestthatstaffproduceandsharecompliancereportsonthesubject.
9. Supportstate-levellegislationrequiringgreatertransparencyanddisclosurefromcompaniesthatprofit
frommassincarceration,and/orlegislationbanningtheprivatizationofcorrectionalservices.
11
Conclusion Asthisreportclearlydemonstrates,companiesthatprofitfrommassincarceration—includingpubliclytradedprivateprisoncompaniesandprivateequity-ownedcorrectionsservicescompanies—makemillionsoffofthecriminalizationandincarcerationofcommunitiesofcolor.However,thesemillionscomewithsignificantregulatory,litigationandheadlineriskstoinvestors.MassincarcerationofblackandbrownpeopleintheUnitedStatesisacivilrightsandhumanitarianissuethatimpactscommunitiesacrossthecountry,includingplaceswhereAFTmembersliveandwork.TheAFTiscommittedtoworkingtogetherwithouralliestoputanendtomassincarcerationsothatnochildorfamilyweservehastoenduretheinjusticeofthispractice,andsothatfor-profitcorporationscannolongerenrichthemselvesoffoflockingupcommunitiesofcolor.
Specialnotetoprivateequitymanagers:Ifyoufeelthatyourfundhasbeenplacedintheincorrectcategory,pleaseletusknow.ContacttheAFT’sCenterforWorkers’BenefitsandCapitalStrategiesateither202-585-5817oraftresearch@aft.org.
12
Table 1: Private equity-owned firms providing services to prisons, jails and detention facilities DatacompiledbythePrivateEquityStakeholderProject.
Company Industry/Service Scope PrivateEquityOwnerSecurus/JPay Telephone/
CommunicationsSecurus,whichownsJPay,servesmorethan3,400publicsafety,lawenforcementandcorrectionsagenciesandmorethan1.2millioninmatesacrossNorthAmerica.lxxvi
PlatinumEquitylxxvii
GlobalTelLink Telephone/Communications
GlobalTelLinkservesapproximately2,300facilitiesand1.8millioninmatesin50states,theDistrictofColumbiaandPuertoRico.lxxviii
AmericanSecuritieslxxix
KeefeGroup/TrinityServicesGroup/SwansonServices/ICSolutions
Commissary/Food/Telephone/Communications
KeefeCommissaryNetworkservesmorethanhalfamillioninmatesweeklyand12outof14outsourcedstatedepartmentsofcorrections.lxxx
TelecommunicationsproviderICSolutionsserves180,000inmateshousedinmorethan200correctionalfacilitiesnationwide.lxxxi
H.I.G.Capitallxxxii
AladdinBailBonds/SeaviewSurety
Bail Aladdinisthelargestretailpre-trialreleaseserviceproviderintheUnitedStates.lxxxiii
EndeavourCapitallxxxiv
CorizonHealth Healthcare CorizonHealthprovideshealthcareservicestomorethan220,000prisonersat301correctionalinstitutionsin22states.lxxxv
BlueMountainCapitalManagementlxxxvi
Wellpath
(FormerlyCorrectCareSolutions/CorrectionalMedicalGroupCompanies)
Healthcare/Probation
Wellpathprovidesmedicalandbehavioralhealthservicesformorethan275,000patientslocatedinlocal,stateandfederalcorrectionalfacilities,aswellasstatehospitalsandotherfacilities.ItacquiredcompetitorCorrectionalMedicalGroupCompaniesinOctober.lxxxvii
H.I.G.Capital
Attenti ElectronicMonitoring
Attentiisaglobalproviderofelectronicmonitoringtechnologies,servinghundredsofnational,federal,stateandlocalcorrectionalandlawenforcementagenciesaroundtheworld.lxxxviii
ApaxPartners
SentinelOffenderServices
Probation SentinelOffenderServicesisaprivateprobationcompanythatpartnerswithcommunitycorrections,courtsandlawenforcement.lxxxix
BisonCapitalAssetManagementxc
Theinformationcontainedintheabovetableattemptstoidentifymajorprivateequityfirmsthatowncompaniesinthecorrectionsindustryandmaynotbecomprehensive.TheCorrectionsAccountabilityProjectmaintainsadatabaseofprivateownershipofcorrectionscompaniesthatmayprovideadditionalinformation.
13
Table 2: Asset manager watch list
PrivateEquityFirm CorrectionalCompaniesOwned
AmericanSecurities GlobalTelLink
ApaxPartners Attenti
BisonCapitalAssetManagement SentinelOffenderServices
BlueMountainCapitalManagement CorizonHealth
EndeavourCapital AladdinBailBonds/SeaviewSurety
H.I.G.Capital KeefeGroup/TrinityServicesGroup/SwansonServices/ICSolutionsWellpath
PlatinumEquity Securus/JPay
14
Table 3: Public pension fund ownership of CoreCivic and the GEO Group, as of
Jan. 21, 2020*
This data comes from the most recent available Form 13F filings made with the Securities and Exchange Commission.
Pension Fund CoreCivic Shares
Owned (1,000s)
GEO Group Shares
Owned (1,000s)
Alaska Retirement Management Board 53 54
Arizona State Retirement System 74 76
Colorado Public Employees’ Retirement Association 20 21
Louisiana State Employees’ Retirement System 29 29
Michigan Department of Treasury (Investment Management) 35 35
Municipal Employees’ Retirement System of Michigan 22 22
New Mexico Educational Retirement Board 21 21
New York State Teachers’ Retirement System 198 146
Ohio Public Employees Retirement System 192 104
Oregon Investment Council 49 50
Pennsylvania Public School Employees’ Retirement System 21 21
Retirement Systems of Alabama 155 158
State Board of Administration of Florida Retirement System 83 99
State Teachers Retirement System of Ohio 138 137
Teachers’ Retirement System of the State of Kentucky 19 22
Tennessee Consolidated Retirement System 78 86
Utah Retirement Systems 34 20
* Share ownership subject to change. This table was updated in January, 2020, to remove California Public Employees’ Retirement System,
California State Teachers’ Retirement System, Employees’ Retirement System of Texas, Illinois State Board of Investment, New Jersey
Division of Investment and South Dakota Investment Council, which as of January 21, 2020 did not report owning shares of CoreCivic and
GEO Group.
15
ihttp://www.prisonstudies.org/highest-to-lowest/prison_population_rate?field_region_taxonomy_tid=Alliihttps://www.bjs.gov/content/pub/pdf/cpus16.pdfiiihttp://www.prisonstudies.org/highest-to-lowest/prison_population_rate?field_region_taxonomy_tid=Allivhttps://www.cnn.com/2018/06/28/us/mass-incarceration-five-key-facts/index.htmlvhttps://www.americanprogress.org/issues/race/news/2012/03/13/11351/the-top-10-most-startling-facts-about-people-of-color-and-criminal-justice-in-the-united-statesvihttps://www.aclu.org/issues/smart-justice/mass-incarcerationviihttps://www.naacp.org/criminal-justice-fact-sheetviiihttps://www.prisonpolicy.org/reports/income.htmlixhttps://www.peoplespolicyproject.org/2018/01/30/mass-incarceration-new-jim-crow-class-war-or-bothxhttps://www.npr.org/2017/11/25/566438860/research-finds-racial-disparities-in-prison-sentencesxihttps://www.americanprogress.org/issues/race/news/2012/03/13/11351/the-top-10-most-startling-facts-about-people-of-color-and-criminal-justice-in-the-united-statesxiihttps://nrccfi.camden.rutgers.edu/files/nrccfi-fact-sheet-2014.pdfxiiihttps://prospect.org/article/mass-incarceration-and-achievement-gapxivhttps://www.epi.org/publication/mass-incarceration-and-childrens-outcomesxvhttps://www.aclu.org/issues/juvenile-justice/school-prison-pipelinexvihttps://www.aft.org/sites/default/files/invest-risks-prisons-detention-2018.pdfxviihttps://www.usnews.com/news/top-news/articles/2018-08-17/chicago-teachers-pension-fund-divesting-from-private-prisonsxviiihttps://www.aft.org/press-release/afts-weingarten-and-ctus-sharkey-chicago-teachers-pension-funds-divestmentxixhttp://www.pionline.com/article/20180831/ONLINE/180839963/new-jersey-pension-fund-divests-13-million-stake-in-private-prison-companyxxhttps://www.pionline.com/article/20181108/ONLINE/181109890/calstrs-to-divest-from-private-prison-companies-corecivic-geo-groupxxihttps://www.ai-cio.com/news/calpers-engages-private-prison-companiesxxiihttps://www.sentencingproject.org/criminal-justice-factsxxiiihttps://www.nytimes.com/2018/12/18/us/politics/senate-criminal-justice-bill.html?login=email&auth=login-emailxxivhttps://www.vox.com/future-perfect/2018/12/19/18148413/first-step-act-senate-criminal-justice-reform-sweeping-overhaulxxvhttp://nymag.com/intelligencer/2018/12/first-step-act-skepticism.htmlxxvihttps://www.houstonchronicle.com/business/article/Companies-earn-billions-to-shelter-immigrant-13044968.phpxxviihttp://ir.corecivic.com/static-files/f242d017-6ce3-4bb5-ae33-f6888059dc9bxxviiihttp://www.snl.com/Interactive/newlookandfeel/4144107/2017-GEO-Annual-Report.pdfxxixhttps://www.geogroup.com/Electronic_Monitoringxxxhttps://www.sentencingproject.org/publications/private-prisons-united-statesxxxihttps://www.sentencingproject.org/wp-content/uploads/2018/07/Capitalizing-on-Mass-Incarceration.pdfxxxiiBasedonCoreCivic’s2017revenue-per-bedcount:http://ir.corecivic.com/financial-information/annual-reportsxxxiiiBasedontheGEOGroup’s2017revenue-per-bedcount:http://www.snl.com/Interactive/newlookandfeel/4144107/2017-GEO-Annual-Report.pdfxxxivhttps://www.nytimes.com/2011/05/19/us/19prisons.htmlxxxvhttps://www.politico.com/story/2018/07/09/illinois-governor-detention-centers-702293xxxvihttps://higcapital.com/news/release/1128xxxviihttp://www.correctcaresolutions.com(accessedSept.8,2018)xxxviiihttps://www.thedailybeast.com/prison-health-care-provider-sued-140-times-now-blamed-for-at-least-six-deathsxxxixhttps://www.myajc.com/news/local/county-end-morehouse-contract-for-inmate-care-after-die/Yl9HFCFVleAu8RT98wSjdLxlhttps://www.apnews.com/48a70553a2b54df3a75892a7b2819182xlihttps://www.nbcnewyork.com/news/local/I-Team--Westchester-Looks-for-New-Jail-Healthcare-after-Video-shows-Inmate-Denied-during-Heart-Attack-492044891.htmlxliihttp://www.corizonhealth.com/About-Corizon/Locationsxliiihttps://www.newyorker.com/business/currency/making-profits-on-the-captive-prison-marketxlivhttps://www.mercurynews.com/2015/02/10/alameda-county-8-3-million-jail-death-settlement-mandates-jail-health-care-reformsxlvhttps://www.washingtonpost.com/news/post-nation/wp/2017/10/27/something-is-eating-my-brain-an-inmate-said-a-lawsuit-says-he-was-left-to-die/?noredirect=on&utm_term=.f87c7bd23eb7xlvihttps://www.kansascity.com/news/politics-government/article195673934.htmlxlviihttps://securustech.net/facilities-we-servexlviiihttps://www.jpay.com/PAvail.aspxxlixhttps://www.newyorker.com/business/currency/making-profits-on-the-captive-prison-marketl https://www.theguardian.com/commentisfree/cifamerica/2012/may/23/scandal-phone-call-price-gouging-prisonslihttps://www.theguardian.com/us-news/2015/oct/22/regulators-slash-price-prison-calls-fcc
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liihttps://docs.fcc.gov/public/attachments/DOC-341762A1.pdfliiihttps://qz.com/904925/donald-trumps-fcc-will-stop-fighting-exorbitant-prison-phone-call-rateslivhttps://www.bostonglobe.com/metro/2018/05/03/lawsuit-challenges-high-cost-calling-from-jail/q17v1CL0bZBhxOXd9qOBRP/story.htmllvhttps://theintercept.com/2016/03/16/securus-settles-lawsuit-alleging-improper-recording-of-privileged-inmate-callslvihttps://thinkprogress.org/prison-technology-companies-inmates-9d4242805363lviihttps://www.theatlantic.com/business/archive/2017/08/remote-video-visitation/535095lviiihttps://www.nytimes.com/roomfordebate/2014/02/23/does-video-visitation-help-prisons-and-families/video-visitation-could-exploit-prisoners-or-help-families-2lixhttps://www.vox.com/2015/10/22/9589052/prison-visits-recidivismlxhttps://www.prnewswire.com/news-releases/securus-technologies-revises-video-visitation-policy--defers-to-prisonjail-officials-on-rules-for-onsite-visits-300077180.htmllxihttp://archive.jsonline.com/news/baby-born-to-inmate-at-milwaukee-county-jail-does-not-survive-b99762131z1-386869111.htmllxiihttp://archive.jsonline.com/news/milwaukee/more-than-two-months-later-family-of-inmate-who-died-in-milwaukee-county-jail-has-no-answers-b997530-385486621.htmllxiiihttps://www.jsonline.com/story/news/investigations/2016/10/29/shortage-medical-staff-plagues-milwaukee-jails/92775782lxivhttps://www.jsonline.com/story/news/crime/2018/02/21/milwaukee-county-jails-health-care-contractor-charged-falsifying-inmate-records/359481002lxvhttps://www.aft.org/sites/default/files/invest-risks-prisons-detention-2018.pdflxvihttps://www.apnews.com/959feeb7469b473cbd08d9f60360be4flxviihttps://www.nytimes.com/2018/04/10/us/private-prisons-escapes-riots.htmllxviiihttps://www.aft.org/sites/default/files/invest-risks-prisons-detention-2018.pdflxixhttp://inthesetimes.com/features/ice_immigrant_detention_centers_forced_prison_labor_investigation.htmllxxhttps://www.npr.org/sections/thetwo-way/2017/02/23/516916688/private-prisons-back-in-mix-for-federal-inmates-as-sessions-rescinds-orderlxxihttps://www.theguardian.com/us-news/2018/dec/21/trump-prison-reform-first-step-act-signed-lawlxxiihttps://www.nytimes.com/2018/12/18/us/politics/senate-criminal-justice-bill.html?login=email&auth=login-emaillxxiiihttps://www.nytimes.com/2019/02/01/nyregion/mdc-brooklyn-jail-heat.htmllxxivhttps://www.politico.com/magazine/story/2018/08/29/california-abolish-cash-bail-reformers-unhappy-219618lxxvhttp://wfhb.org/news/indiana-dept-of-corrections-cancels-contract-with-healthcare-providerlxxvihttps://securustechnologies.tech/about(accessedSept.2,2018)lxxviihttps://www.platinumequity.com/our-portfolio/portfolio/2017/securus(accessedSept.3,2018)lxxviiihttp://www.gtl.net/about-us(accessedSept.2,2018)lxxixhttps://www.american-securities.com/en/companies/GTL(accessedSept.3,2018)lxxxhttps://www.keefegroup.com/companies/keefe-commissary-network-112(accessedSept.2,2018)lxxxihttps://www.keefegroup.com/companies/icsolutions-115(accessedSept.2,2018)lxxxiihttps://ecfsapi.fcc.gov/file/106121307119696/2018-06-12%20-%20Joint%20Application.pdf lxxxiii https://endeavourcapital.com/ec/the-aladdin-group(accessedSept.2,2018)lxxxivhttps://endeavourcapital.com/ec/the-aladdin-group(accessedSept.2,2018)lxxxvhttp://www.corizonhealth.com/About-Corizon/Locations(accessedSept.2,2018)lxxxvi“CorizonHealthcompletesrecapitalization”(mediarelease,April17,2017)lxxxviihttp://www.correctcaresolutions.com(accessedSept.2,2018);https://higcapital.com/news/release/1128 (mediarelease,Oct.1,2018)lxxxviiihttps://www.apax.com/investments/tech-telco/our-investments/attenti(accessedDec.19,2018)lxxxixhttps://www.businesswire.com/news/home/20180727005059/en/Sentinel-GTL-Form-Partnership-Provide-Offender-Tracking(mediarelease,July27,2018)xchttp://www.bisoncapital.com/portfolio(accessedSept.3,2018)
JOURNEY FOR JUSTICE ALLIANCE
The American Federation of Teachers would like to thank the Journey for Justice Alliance for
its continuing advocacy and organizing on education and racial justice issues. We would also
like to acknowledge the Private Equity Stakeholder Project’s work in engaging investors and
empowering communities, working families and others impacted by private equity investments.
We would like to thank the following organizations for supporting this report: