This story can be found here.
Crants, 19 others sued in theft claim
By Wendy Lee • THE TENNESSEAN • May 21, 2009
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 federal lawsuit filed in the Southern District of Illinois that apparently 19 defendants 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 and individuals 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. The company also trained air marshals for Delta Air Lines.
Embezzlement alleged
Siddle sued Crants last year, alleging in part that Crants bilked Homeland Security Corp. of more than $41 million through self-dealings and embezzlement.
Siddle also listed others as defendants — including Crants' son, D. Robert Crants III, as allegedly defrauding Homeland Security Corp. and others who allegedly assisted the racketeering activity. That case is still pending in federal court in Nashville.
Bill Brewer, the attorney for Crants' son, said the claims against his client "lack any merit at all."
"It's one of these filings where fiction seems to have overtaken an investigation of the facts," Brewer said.
An attorney representing Crants did not immediately return a call for comment.
Wendy Lee can be reached at 615-259-8092 or wlee@tennessean.com.
Shining a light on Corrections Corporation of America's (CCA) Stewart Detention Center
Tuesday, May 26, 2009
Monday, May 25, 2009
Does Hall County Know Something That Stewart County Does Not?
Recently I was asked how the story I posted last week on Hall County could apply to Stewart County. In order to understand that you have to look at many different factors. Will also look at some other factors that could influence emergency situations at the Stewart Detention Center that are not addressed by the Hall County specific article.
First off you have to look at the actual correctional officers CCA employees at SDC. CCA Detention Officers at SDC are not certified by the State of Georgia or the Federal Government. In my opinion there is a huge divide in corrections between certified and non-certified detention/corrections officers. I like to think of state or federally certified corrections officers as being professionals who have received better training and usually been screened better prior to employment. Certified correctional officers are professionals whose training and standards are close to those of police officers and other law enforcement professionals. The non-certified ones to me are more like mall cops who just took a brief course to enter into a new "profession" in private corrections. While individual state certification results vary, in most cases certified officers are given more authority and power in conducting actual correctional duties. Sometimes this can be reflected in arrest powers or in legal/financial coverage in cases of serious incidents.
If an escape was to happen at SDC then would CCA staff members be able to actually go out and legally "capture" the escapee? Keep in mind that the detainees at SDC are not being held as criminals. They are instead "civilly" committed. That however does not mean that some detainees did not come to SDC immediately after completing long prison sentences for prior crimes. I imagine that the vast majority of the detainees at SDC are of very good morale standing, However just like in the free world a certain percentage of them could be "bad apples" at any time.
It might seem odd that I would even wonder whether CCA employees could actually legally detain a captured escapee. But please keep in mind that it was not against the law for private detention staff members to have sexual relations with detainees until after CCA staff at the T. Don Hutto Detention Center forced a very quick law through because of a CCA employed Detention Officers own sexual activity with a female detainee.
If an escape happened then how many staff members are available to actually search for an escapee? Even if SDC could somehow immediately come up with 5-10 staff members to go hunt for an escapee it would most likely be at least an hour before they could get more CCA staff members to arrive and be organized into a search. It seems to me like the vast majority of CCA officers live outside of Stewart County. If they were needed then time could be easily wasted while they were contacted, travelled to the facility and then received instructions. In the case of a hostage or riot this wasted time could be even more crucial. Sure ICE staff might be found at the facility but how well do they know the area around Stewart County? In my opinion CCA has shortchanged the safety of Stewart County by not hiring a greater percentages of locals who might be more familiar with the area.
Stewart County and the rural towns located in it have very small city police agencies and a very small sheriff's office. The small numbers of individuals employed by these organizations could also be a significant factor. That statement is not meant as a slight to those organizations. It is just a natural consequence of CCA placing such a large facility in such a small rural area. Sure officers from other counties and towns might be made available but they would also have significant travel times and delays in arriving.
I wonder if CCA has actually conducted any significant escape drills with local law enforcement? I personally can't think of ever hearing of any. How ready is SDC/CCA to actually deal with these types of situations? Has anyone in Stewart County actually seen any CCA staff conducting any escape drills in the areas around the facility? It might even be a good idea for Stewart County to conduct a no notice escape drill with CCA and observe the possible results for themselves. From what I understand it is Stewart County that has a contract with CCA and not the other way around.
What Hall County seems to be saying is that if CCA wishes to run a prison then they can run it without response or help from any Hall County law enforcement. Some people might consider this childish behavior. But others might say they are just being prudent and protecting the citizens of Hall County from possibly catastrophic financial repercussions. By citing legal liability they seem to be very upfront about saying that Hall County does not wish to become financially liable for CCA's problems or mistakes. This is an issue that Stewart County might wish to examine very closely before an incident happens and it becomes financially tied into potential CCA/Stewart County liability. By acting as the middle man in an ICE/CCA contract they could very well be opening the door to future financial hardships for all of the taxpayers of Stewart County.
First off you have to look at the actual correctional officers CCA employees at SDC. CCA Detention Officers at SDC are not certified by the State of Georgia or the Federal Government. In my opinion there is a huge divide in corrections between certified and non-certified detention/corrections officers. I like to think of state or federally certified corrections officers as being professionals who have received better training and usually been screened better prior to employment. Certified correctional officers are professionals whose training and standards are close to those of police officers and other law enforcement professionals. The non-certified ones to me are more like mall cops who just took a brief course to enter into a new "profession" in private corrections. While individual state certification results vary, in most cases certified officers are given more authority and power in conducting actual correctional duties. Sometimes this can be reflected in arrest powers or in legal/financial coverage in cases of serious incidents.
If an escape was to happen at SDC then would CCA staff members be able to actually go out and legally "capture" the escapee? Keep in mind that the detainees at SDC are not being held as criminals. They are instead "civilly" committed. That however does not mean that some detainees did not come to SDC immediately after completing long prison sentences for prior crimes. I imagine that the vast majority of the detainees at SDC are of very good morale standing, However just like in the free world a certain percentage of them could be "bad apples" at any time.
It might seem odd that I would even wonder whether CCA employees could actually legally detain a captured escapee. But please keep in mind that it was not against the law for private detention staff members to have sexual relations with detainees until after CCA staff at the T. Don Hutto Detention Center forced a very quick law through because of a CCA employed Detention Officers own sexual activity with a female detainee.
If an escape happened then how many staff members are available to actually search for an escapee? Even if SDC could somehow immediately come up with 5-10 staff members to go hunt for an escapee it would most likely be at least an hour before they could get more CCA staff members to arrive and be organized into a search. It seems to me like the vast majority of CCA officers live outside of Stewart County. If they were needed then time could be easily wasted while they were contacted, travelled to the facility and then received instructions. In the case of a hostage or riot this wasted time could be even more crucial. Sure ICE staff might be found at the facility but how well do they know the area around Stewart County? In my opinion CCA has shortchanged the safety of Stewart County by not hiring a greater percentages of locals who might be more familiar with the area.
Stewart County and the rural towns located in it have very small city police agencies and a very small sheriff's office. The small numbers of individuals employed by these organizations could also be a significant factor. That statement is not meant as a slight to those organizations. It is just a natural consequence of CCA placing such a large facility in such a small rural area. Sure officers from other counties and towns might be made available but they would also have significant travel times and delays in arriving.
I wonder if CCA has actually conducted any significant escape drills with local law enforcement? I personally can't think of ever hearing of any. How ready is SDC/CCA to actually deal with these types of situations? Has anyone in Stewart County actually seen any CCA staff conducting any escape drills in the areas around the facility? It might even be a good idea for Stewart County to conduct a no notice escape drill with CCA and observe the possible results for themselves. From what I understand it is Stewart County that has a contract with CCA and not the other way around.
What Hall County seems to be saying is that if CCA wishes to run a prison then they can run it without response or help from any Hall County law enforcement. Some people might consider this childish behavior. But others might say they are just being prudent and protecting the citizens of Hall County from possibly catastrophic financial repercussions. By citing legal liability they seem to be very upfront about saying that Hall County does not wish to become financially liable for CCA's problems or mistakes. This is an issue that Stewart County might wish to examine very closely before an incident happens and it becomes financially tied into potential CCA/Stewart County liability. By acting as the middle man in an ICE/CCA contract they could very well be opening the door to future financial hardships for all of the taxpayers of Stewart County.
Friday, May 15, 2009
North Georgia Law Enforcement Agency Refuses to Help CCA
This article was found on the Gainsville Times website here.
Gainesville says its police won’t assist private jail
City, Hall County still at odds
By Ashley Fielding
afielding@gainesvilletimes.com
POSTED May 14, 2009 10:28 p.m.
The private entity that soon will run the North Georgia Detention Center in Midtown Gainesville has asked the Gainesville Police Department to provide police assistance when the facility opens this summer.
It doesn’t appear that city officials have any intentions of doing so.
Police Chief Frank Hooper told the City Council Thursday that Corrections Corporation of America sent him a memorandum of understanding that requests assistance from the police department. The agreement would call for the police department’s assistance in quelling riots and other criminal activity at the immigration detention center, he said.
City Council members opposed the idea. City Attorney James E. "Bubba" Palmour also advised them against entering into the agreement, which offered the city police department indemnification from any wrongdoing, Hooper said.
Palmour said no amount of indemnification would protect the city if a "full-blown problem" arose at the facility, which will be housed in the old Hall County Jail on Main Street.
"Once you have a death or a serious injury in a jail, it will take you five or six years to get through the litigation," Palmour said.
Hooper said the city police department is not equipped with the training or equipment to deal with jail riots.
"We shouldn’t be, because we’re a municipal police department," City Manager Kip Padgett said.
Most council members said that any police protection should be the responsibility of the Hall County government, which is leasing the facility to CCA.
"It sounds like the county commission needs to step up and accept full responsibility for that facility," said Councilman George Wangemann.
Councilman Danny Dunagan also said any security responsibilities at the facility should fall on the Hall County Sheriff’s Office.
He said the county should use the $2 million in annual revenue it receives from leasing the facility to CCA on providing police assistance.
But sheriff’s Col. Jeff Strickland said the county agency this week signed a similar agreement with CCA and a separate agreement to house the North Georgia Detention Facility’s inmates in an emergency if there is room at the Hall County Jail.
The agreement the county signed states that the Gainesville Police Department will be the agency that is primarily responsible to respond to incidents at the facility, Strickland said.
"These (memorandums of understanding) are basically for emergency situations, which of course, the Gainesville Police Department does have the primary responsibility for," Strickland said. "However, if the Gainesville Police Department requested our assistance, then, of course, we would respond accordingly."
Steve Owen, director of marketing and communications for the private jail operator, said if the city does not sign the agreement, it will not cause any problems for the North Georgia Detention Center. He said the memorandum of understanding sent to Gainesville officials was an effort to "get a working relationship" with local law enforcement agencies.
Although Owen would not comment on specific concerns city officials cited Thursday, he said CCA officials were "more than happy to continue to have dialogue" with the city.
"We want to be good neighbors," Owen said.
The road to a working relationship between the city and CCA has been a rough one thus far. CCA’s plans to start operating the detention facility on Main Street conflict with the city’s dreams of a redevelopment in Midtown chock full of high-rise hotels, office buildings and walking trails — dreams that don’t include razor wire.
Many of the problems between the city and CCA spring from a conflict the city has with the county over the future of the jail property. City officials announced their intentions to buy the property in late 2007. The deal never went through and both the city and county disagree on why the contract allowing the city to purchase the property was never signed.
In the last round, city officials halted inspections and refused to issue building permit for renovations on the Main Street Jail, but later reneged "in the spirit of moving forward."
However, Thursday, there still seemed to be some kinks in the relationship between city, county and CCA officials as Dunagan commented that the corporation taking over the Main Street jail is "notorious for mistreatment" of inmates — an allegation to which Owen responded that the fact that CCA operates in nearly half the states in the country, many of which have increased their utilization of CCA services, should speak for the company’s track record, he said.
"I hope the county commission is real happy with what they’ve done," Dunagan said.
Gainesville says its police won’t assist private jail
City, Hall County still at odds
By Ashley Fielding
afielding@gainesvilletimes.com
POSTED May 14, 2009 10:28 p.m.
The private entity that soon will run the North Georgia Detention Center in Midtown Gainesville has asked the Gainesville Police Department to provide police assistance when the facility opens this summer.
It doesn’t appear that city officials have any intentions of doing so.
Police Chief Frank Hooper told the City Council Thursday that Corrections Corporation of America sent him a memorandum of understanding that requests assistance from the police department. The agreement would call for the police department’s assistance in quelling riots and other criminal activity at the immigration detention center, he said.
City Council members opposed the idea. City Attorney James E. "Bubba" Palmour also advised them against entering into the agreement, which offered the city police department indemnification from any wrongdoing, Hooper said.
Palmour said no amount of indemnification would protect the city if a "full-blown problem" arose at the facility, which will be housed in the old Hall County Jail on Main Street.
"Once you have a death or a serious injury in a jail, it will take you five or six years to get through the litigation," Palmour said.
Hooper said the city police department is not equipped with the training or equipment to deal with jail riots.
"We shouldn’t be, because we’re a municipal police department," City Manager Kip Padgett said.
Most council members said that any police protection should be the responsibility of the Hall County government, which is leasing the facility to CCA.
"It sounds like the county commission needs to step up and accept full responsibility for that facility," said Councilman George Wangemann.
Councilman Danny Dunagan also said any security responsibilities at the facility should fall on the Hall County Sheriff’s Office.
He said the county should use the $2 million in annual revenue it receives from leasing the facility to CCA on providing police assistance.
But sheriff’s Col. Jeff Strickland said the county agency this week signed a similar agreement with CCA and a separate agreement to house the North Georgia Detention Facility’s inmates in an emergency if there is room at the Hall County Jail.
The agreement the county signed states that the Gainesville Police Department will be the agency that is primarily responsible to respond to incidents at the facility, Strickland said.
"These (memorandums of understanding) are basically for emergency situations, which of course, the Gainesville Police Department does have the primary responsibility for," Strickland said. "However, if the Gainesville Police Department requested our assistance, then, of course, we would respond accordingly."
Steve Owen, director of marketing and communications for the private jail operator, said if the city does not sign the agreement, it will not cause any problems for the North Georgia Detention Center. He said the memorandum of understanding sent to Gainesville officials was an effort to "get a working relationship" with local law enforcement agencies.
Although Owen would not comment on specific concerns city officials cited Thursday, he said CCA officials were "more than happy to continue to have dialogue" with the city.
"We want to be good neighbors," Owen said.
The road to a working relationship between the city and CCA has been a rough one thus far. CCA’s plans to start operating the detention facility on Main Street conflict with the city’s dreams of a redevelopment in Midtown chock full of high-rise hotels, office buildings and walking trails — dreams that don’t include razor wire.
Many of the problems between the city and CCA spring from a conflict the city has with the county over the future of the jail property. City officials announced their intentions to buy the property in late 2007. The deal never went through and both the city and county disagree on why the contract allowing the city to purchase the property was never signed.
In the last round, city officials halted inspections and refused to issue building permit for renovations on the Main Street Jail, but later reneged "in the spirit of moving forward."
However, Thursday, there still seemed to be some kinks in the relationship between city, county and CCA officials as Dunagan commented that the corporation taking over the Main Street jail is "notorious for mistreatment" of inmates — an allegation to which Owen responded that the fact that CCA operates in nearly half the states in the country, many of which have increased their utilization of CCA services, should speak for the company’s track record, he said.
"I hope the county commission is real happy with what they’ve done," Dunagan said.
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