Crime
The end of the for-profit prison era?
A nationwide campaign to stem investments in private corrections companies is gathering steam
A protester displays a placard reading "Stop corporate greed. Close private prisons" as he takes part in an Occupy Phoenix demonstration on Oct. 17, 2011 (Credit: Reuters/Eric Thayer) Early this year, the United Methodist Church Board of Pension and Health Benefits voted to withdraw nearly $1 million in stocks from two private prison companies, the GEO Group and Corrections Corporation of America (CCA).
The decision by the largest faith-based pension fund in the United States came in response to concerns expressed last May by the church’s immigration task force and a group of national activists.
“Our board simply felt that it did not want to profit from the business of incarcerating others,” said Colette Nies, managing director of communications for the board.
“Our concern was not with how the companies manage or operate their business, but with the service that the companies offer,” Nies added. “We believe that profiting from incarceration is contrary to church values.”
It was an important success for a slew of activists across the country who are pushing investors and institutions to divest from the private prison industry.
The National Prison Divestment Campaign, launched last spring, includes a broad coalition of immigrant rights, criminal justice and other organizations targeting private prison companies like CCA and the GEO Group, the two largest private prison corporations in the United States.
Affecting companies’ bottom lines is just one of the campaigners’ aims. Their larger goal is to raise public awareness about an industry they claim not only profits from incarceration, but also drives local and national immigration and criminal justice policy.
“Divestment is a way to engage people where they are,” said Bob Libal, an organizer with Grassroots Leadership, a team of community organizers based in North Carolina and a member of the campaign. “You might not have a private prison in your community, but I bet you have a Wells Fargo, or another institution that is invested in and buying stock in these corporations.”
“These are publicly traded corporations,” he added. “And they should be held accountable.”
16 Cities Targeted
On Jan. 24, the campaign launched events in 16 cities—including Salt Lake City and Boston—during a coordinated national day of action. Activists, including some with Occupy Miami, were arrested in Boca Raton, Fla., for protesting investors’ ties to prison companies and immigration detention centers at the GAIM hedge fund conference.
In the past year activists have staged protests at financial firms, including “occupations” of branches of Wells Fargo, which holds stock in the GEO Group. The campaign has claimed some noteworthy successes in addition to the Methodist Church decision.
Last February, Pershing Square Capital Management, a powerful hedge fund run by investor Bill Ackman, unloaded about 3.4 million shares of its stock, despite having called it an “attractive investment” in a letter to investors only two months prior.
Pershing Square had been the campaign’s first target. Pershing bought into CCA in 2009, and at one time owned 10 percent of the company, the largest share of any single investor. But the partial sell-off spurred protesters to push the company even further.
On May 12, activists protested outside Ackman’s Manhattan apartment building during a day of action that saw other protests targeting Wells Fargo, Fidelity and other firms throughout the country. Days after the protest, Ackman had sold the rest of his shares — over 4 million.
All told, Pershing divested about $200 million from the company.
Pershing did not respond to requests from the Crime Report for comment
The Pershing divestment “was shocking to us,” said Peter Cervantes-Gautschi, executive director of Enlace, a coalition of labor and community organizations in Mexico and the United States. “Not that they divested, but that they divested so quickly.”
Profit Windfall
For decades, private prison companies have been seen as solid investments by banks and hedge funds like Pershing Square.
Founded in the 1980s and fueled by the increase in mass incarceration, companies such as CCA and the GEO Group saw explosive growth through the early 1990s. As tough-on-crime measures such as mandatory minimum sentencing, truth-in-sentencing and three-strikes laws helped to pack American prisons, corrections companies saw a windfall in profits.
In the early 1980s, there were hardly any private adult prisons in the U.S. By 1990, there were 67 privately run detention facilities, with an average population of 7,000 inmates.
Proponents of private prisons argue that they provide better services for lower cost. But critics counter that privatizing detention services — in addition to being morally questionable — leads to cost-cutting measures that hurt both employees and the incarcerated.
“There’s been a lot of research that shows that private prisons haven’t delivered on their promises to provide a better product,” said Prof. Michele Deitch, a prison expert at the University of Texas.
“They have higher levels of inmate assaults on staff, inmate assaults on other inmates, higher rates of escape, and employee turnover rates are higher in private facilities,” said Deitch. “Some studies have compared recidivism rates for those coming out of private and public facilities, and have found that there’s no real difference between them.”
CCA and the GEO Group declined to comment for this story.
Prison privatization profits hit a bump in the road during the 1990s.
While incarceration rates continued to rise through the decade, many states began exploring early-release initiatives and sentencing reform to reduce incarcerated populations, leaving companies like CCA, which had built “speculative” facilities in anticipation of growing demand, saddled with debt.
They were saved, in effect, by 9/11.
In the aftermath of the terror attacks, private prisons landed profitable contracts with the U.S. Marshals, the federal Bureau of Prisons, and Immigration and Customs Enforcement, which began to expand its detention of immigrants.
“It was because of [concerns about] immigration and the uptick in federal detention contracts that they were able to survive,” said Emily Tucker, advocacy policy director of Detention Watch. “Between about 2001 and 2011, it’s been a pretty solid investment.”
And a profitable one: By 2010, GEO Group and CCA combined were posting annual revenues of nearly $3 billion.
Although financial analysts still rate the GEO Group and CCA as solid investments, they note that budget constraints and trends toward decarceration will slow growth, unless states hard push for privatization.
In 2010, according to a report by the Bureau of Justice Statistics, the U.S. prison population — both state and federal — declined for the first time since 1972, to slightly over 1.6 million prisoners. About 16 percent of federal prisoners, and 7 percent of state prisoners, were housed in private facilities in 2010.
“There was a time when people could bank on legislators wanting to toughen the laws and lock everyone up for a long period of time,” said Prof. Deitch. “But we’ve come to a point where we’re looking for more cost-effective approaches to dealing with our offender population. A lot of legislatures have realized that they can’t keep growing our prisons.”
Private prison companies, however, have started to explore new approaches. In an unprecedented move to gain more control of state prison systems, CCA sent letters to 48 states in February offering to purchase state prisons outright in exchange for a 20-year management contract and the assurance the prison would remain at least 90 percent full.
CCA framed its offer as a remedy for “challenging corrections budgets.”
In investor statements and annual reports, private prison companies note that immigration detention is essential to their growth. Today, private prisons — including CCA, ICE’s largest contractor — hold about 50 percent of the 30,000 people detained for immigration offenses on a given day.
Does Profit Drive Policy?
While past divestment movements tended to frame privatization as a moral issue — that privatization is wrong, in and of itself — the current campaign focuses heavily on the growth of the immigration detention industry, and how private prison companies have fueled that growth.
“It’s not necessarily that privatization is bad,” Tucker said. “It’s about the way that the profit motive influences policy.”
The passage of SB1070, Arizona’s hardline immigration bill, three years ago was the real impetus for the campaign, added Cervantes-Gautschi. Companies like CCA and GEO are prominent members of the American Legislative Exchange Council, a nonprofit that connects lawmakers and heads of industry to collaborate on state and federal legislation. Reports by NPR and In These Times exposed CCA’s involvement in the controversial law, which allows Arizona law enforcement to stop and detain anyone suspected of being an undocumented immigrant.
Similar laws have been proposed across the country and implemented, most recently, in states such as Georgia and Alabama.
“It looked to us that one piece was missing,” Cervantes-Gautschi said. “If we weren’t able to raise public interest in the role of the financial industry and those giant players in developing this private prison industry, essentially creating a market by going after immigrants, that we were never really going to win any of these fights to get justice for immigrant communities and workers.”
A number of organizations have coalesced around the divestment campaign, including branches of the Occupy movement and unions representing prison guards and employees. Cervantes-Gautschi notes that the campaign is supported by the American Federation of State, County and Municipal Employees.
He concedes that prison guards don’t necessarily share some of the larger prison reform goals of the campaigners.
“We don’t have precisely the same strategy, you might say, or the same solution to the problem,” he said. “But the reason there’s a growing number of people behind bars is because of these profiteering companies. On this point we’re in agreement, and we’re able to pull together.”
Organizers say one of the key factors in the campaign’s success is the participation of immigrant rights groups.
“There’s an increasing awareness of the role that private prisons are playing in immigration detention,” said Libal of Grassroots Leadership. “Legislation like SB1070 has firmly put private prisons on the map of the immigrant rights movement.”
Limitations of the Campaign
Globally, activists have used divestment campaigns as a way to raise public awareness, perhaps most notably during the struggle to end apartheid in the 1980s.
But the tactic, some point out, has limitations.
“When you sell something, you have somebody buying it,” said Alex Friedman, associate editor of Prison Legal News, a monthly magazine focusing on prison and human rights. Prison Legal News is also a partner in the campaign.
“You’re simply doing a lateral transfer of stock from one owner to another,” said Friedman. “From an activist standpoint, that’s a limited utility.”
Private prisons, Friedman added, are also a difficult industry to protest.
“Nobody can really boycott private prisons,” he said. “You don’t go to a grocery store and buy private prison beds.”
But targeting “brick and mortar” institutions, such as Wells Fargo, can be effective, he said — not only in making private prison stock be unattractive to companies, but also in raising public awareness.
There have been other divestment campaigns against the prison industry. In the late 1990s, the student-led “Not With Our Money” campaign targeted the Paris-based food service company, Sodexho Alliance.
Sodexho, which provided food service for CCA, was also once its largest shareholder.
Students and other activists, citing record incarceration numbers and the rise of the American prison-industrial complex, protested Sodexho on university campuses where the company held contracts. Students held campus sit-ins and dining hall boycotts at universities across the country, garnering media attention in major outlets such as The New York Times.
In 2001, Sodexho divested from CCA.
“’Not With Our Money’ was very successful because it provided people with a highly recognizable target that they could see and interact with,” Friedman recalled. “Students could see it every day when they went to the dining hall for breakfast, lunch and dinner.”
“Wells Fargo has branches people can protest in front of,” he added. “They are susceptible to bad publicity. If you have one of two banks you want to put your money into, and one has a bunch of protesters outside waving signs, you’re more liable to put your money somewhere else.”
It’s the raising of awareness, according to Cervantes-Gautschi, that may be most important.
“We took a chance on the strategy during the anti-apartheid movement,” he said. “But part of what the divestment strategy accomplished was educating a lot of people about apartheid, and how much our own government and our own institutions were invested in it.”
“The more that became public, the more people said no,” he added. “It’s not about divesting money; it’s about divesting our relationships.”
Hannah Rappleye is a freelance reporter based in Brooklyn, NY. Her work has appeared on MSNBC.com, The New York Post, the Wall Street Journal, and the Mail & Guardian. She welcomes comments from readers. More Hannah Rappleye.
Alleged gunman’s GOP pal
Updated: The neo-Nazi who allegedly killed five people was once praised as a "true patriot" by Russell Pearce
A police officer walks with a man who said he had a child inside of the home where five people were shot Wednesday, May 2, 2012 in Gilbert, Ariz. (Credit: AP Photo/Matt York) [UPDATE BELOW]
Less than a month after Russell Pearce crowed at a Gilbert, Ariz., Tea Party meeting that Republican presidential candidate Mitt Romney’s “immigration policy is identical to mine” — a brash claim that Republican operatives scrambled to explain — the self-proclaimed Tea Party president and architect of Arizona’s punitive immigration law might now be scrambling himself. Pearce has previously praised J.T. Ready, the alleged gunman in Wednesday’s tragic killing of five people in the same Phoenix suburb.
Continue Reading CloseJeff Biggers, the author most recently of "Reckoning at Eagle Creek: The Secret Legacy of Coal in the Heartland," is currently at work on a new book on Arizona politics and history. More Jeff Biggers.
Is this man a terrorist?
Francis Grady is accused of trying to burn down an abortion clinic, but the feds haven't charged him with terrorism
Francis Grady (Credit: Outagamie County Sheriff's Dept.) On Tuesday, 50-year-old Francis Grady pleaded not guilty to trying to burn down a Planned Parenthood in Grand Chute, Wis., on April 1. Earlier this month, however, during his first court appearance, Grady sang a different tune, telling the U.S. district judge he did it because “they’re killing babies there.”
An open and shut case of domestic terrorism for the state, it would seem. But curiously Grady is not facing any domestic terrorism charges, once again raising the question of whether the FBI and U.S. Attorneys’ Offices apply terrorism laws equally when prosecuting ideologically motivated crimes. While Islamists and animal rights and environmental activists regularly spend years behind bars under terrorism sentences, antiabortion criminals are seldom punished as severely. Grady, it would seem, is the latest antiabortion activist accused of a crime that would be harshly punished if, say, he had done it in the name of Allah or Mother Earth.
Continue Reading CloseMatthew Harwood is a journalist based in Alexandria, Va. His work has appeared in the Columbia Journalism Review, the Guardian, Reason, Truthout, and the Washington Monthly. Follow him on Twitter @mharwood31 More Matthew Harwood.
21st century chain gangs
The rebirth of prison labor foretells a disturbing future for America's "free market" capitalism
(Credit: AP/Matt York) Sweatshop labor is back with a vengeance. It can be found across broad stretches of the American economy and around the world. Penitentiaries have become a niche market for such work. The privatization of prisons in recent years has meant the creation of a small army of workers too coerced and right-less to complain.
Prisoners, whose ranks increasingly consist of those for whom the legitimate economy has found no use, now make up a virtual brigade within the reserve army of the unemployed whose ranks have ballooned along with the U.S. incarceration rate. The Corrections Corporation of America and G4S (formerly Wackenhut), two prison privatizers, sell inmate labor at subminimum wages to Fortune 500 corporations like Chevron, Bank of America, AT&T and IBM.
Continue Reading CloseSteve Fraser is working on a book about the two gilded ages. He is the author of, among other works, the just published "Wall Street: America's Dream Palace." He is Editor-at-Large of New Labor Forum magazine. More Steve Fraser.
Joshua B. Freeman teaches history at Queens College and the Graduate Center of the City University of New York and is affiliated with its Joseph S. Murphy Labor Institute. His forthcoming book, "American Empire," will be the final volume of the Penguin History of the United States. More Joshua B. Freeman.
America’s expensive sex offenders
Ballooning costs are making states rethink laws that would keep these criminals in civil detention for life
The 300-bed Virginia Center for Behavioral Rehabilitation in Burkeville, Va., Tuesday June 29, 2010. Virginia's program for indefinitely containing those considered sexually violent predators is facing a more than $26 million budget shortfall over the next two years (Credit: AP/Dena Potter) In February, a Minnesota judicial panel ordered the release of 64-year-old Clarence Opheim, a convicted child molester who had served nearly 20 years in the Minnesota Security Hospital in St. Peter.
Before being committed to St. Peter, Opheim had served a five-year prison sentence for molesting an 11-year-old boy. (He also has admitted to molesting nearly 30 other children.) He is currently the only sex offender to ever be successfully released from the state’s Sex Offender Program.
The historic significance of the moment, however, was lost on many residents of Golden Valley, Minn.
Continue Reading CloseHannah Rappleye is a freelance reporter based in Brooklyn, NY. Her work has appeared on MSNBC.com, The New York Post, the Wall Street Journal, and the Mail & Guardian. She welcomes comments from readers. More Hannah Rappleye.
When “stand your ground” fails
John McNeil killed a white man who assaulted him on his property. But, unlike George Zimmerman, he's serving life
George Zimmerman and John McNeil (Credit: AP) As the shooting death of Trayvon Martin and the failure of authorities to arrest his killer, George Zimmerman, continues to grab headlines, many conservatives and gun rights advocates insist that race has nothing to do with it. Some have also rallied to the defense of Florida’s “stand your ground” law, the self-defense legislation under which Zimmerman was able to avoid arrest. Yet not all stand your ground claims are so successful. Not too far from Sanford, Fla., a black man named John McNeil is serving a life sentence for shooting Brian Epp, a white man who trespassed and attacked him at his home in Georgia, another stand your ground state.
It all began in early 2005, when McNeil and his wife, Anita, hired Brian Epp’s construction company to build a new house in Cobb County, Ga. The McNeils testified that Epp was difficult to work with, which led to heated confrontations. They eventually decided to close on the house early to rid their lives of Epp, whom they found increasingly threatening. At the closing, both parties agreed that Epp would have 10 days to complete the work, after which he would stay away from the property, but he failed to keep up his end of the bargain.
Page 1 of 93 in Crime