May 9, 2007

CASE NO. EI-14-0084

Florida Department of Law Enforcement
OFFICE OF EXECUTIVE INVESTIGATIONS

Correctional Privatization Commission
INVESTIGATIVE SUMMARY
INVESTIGATIVE PREDICATE
On January 31, 2007, Florida Department of Law Enforcement (FDLE) Commissioner Gerald
M. Bailey received correspondence from Governor Charlie Crist. In the correspondence,
Governor Crist advised that he had been made aware of allegations of improper overpayment by
the now defunct Correctional Privatization Commission (CPC) and two corporations that were
contracted to operate private prisons in Florida.
Governor Crist directed FDLE to conduct a preliminary investigation to determine whether any
criminal violations occurred regarding the alleged overpayments. Inspectors Mark Mitchell and
Alexandra Gaskins conducted the investigation between January 31, 2007 and May 8, 2007.

INVESTIGATIVE NARRATIVE
The allegations of improper overpayments originated in a June 30, 2005 report issued by the
Florida Department of Management Services (DMS), Office of Inspector General (OIG)
regarding the CPC’s contract management of the private prisons. The DMS OIG Internal Audit
Report Number 2005-61 (hereafter referred to as the DMS OIG report) stated that the CPC had
failed to adequately administer the privately operated prison contracts. Additionally, the DMS
OIG report stated that the failure to adequately administer the contracts resulted in $12.7 million
in questionable or excessive costs to two private prison operators, The Corrections Corporation
of America (CCA), and The GEO Group, Inc. (GEO). The report identified ten “findings” which
detailed the alleged excessive or questionable payments.
A portion of the alleged questionable or excessive payments was to GEO in the amount of $6.7
million. On January 2, 2007, DMS and GEO reached a settlement agreement regarding
payments alleged in the DMS OIG report. In the settlement, GEO agreed to repay the State of
Florida $290,952.43, far less than the original $6.7 million indicated in the DMS OIG report.
The remaining $6 million in questionable or excessive payments documented in the DMS OIG
report were purportedly made to CCA. To date, settlement negotiations have not resulted in an
agreement between DMS and CCA. Therefore, the State of Florida has not recuperated any
money.
Page 1 of 22

May 9, 2007

CASE NO. EI-14-0084

At the direction of Governor Crist, FDLE conducted a preliminary investigation to determine
whether any criminal violations occurred regarding the alleged overpayments. In furtherance of
the preliminary investigation, FDLE conducted sworn interviews of sixteen individuals,
including former CPC Commissioners, former CPC staff members, vendor representatives, DMS
staff and legislative personnel. FDLE also analyzed the DMS OIG report and vendor responses,
legislative documents, contracts, and other documents related to the contract management and
settlement negotiations.
Correctional Privatization Commission (CPC) History
In 1993, the Florida Legislature created the five member volunteer commission for the purpose
of administering contracts between the State of Florida and private prison operators. The CPC
was tasked with entering into contracts with vendors for the design, financing, acquiring, leasing,
construction and operation of private correctional facilities.
The vendors received their funding for the operation of the private prisons through a
contractually determined per diem formula. Each of the facility’s contracts established the per
diem rate the vendors would receive based upon the number of inmates housed in the facilities.
The vendors submitted monthly invoices that indicated the current inmate and staffing levels.
The CPC would then submit a transmittal letter to the Department of Corrections (DOC)
authorizing payment from the DOC budget for the approved invoice amount. Per the facility’s
contracts, the vendor had to be in compliance with certain contract provisions or the CPC had the
authority to deduct funds from the established per diem rate.
In addition to the volunteer commissioners, the CPC employed an Executive Director, staff
members and contract monitors who were assigned to each of the private prison facilities. The
contract monitors were tasked with ensuring that the provisions of the contracts were enforced
and reported to the CPC Executive Director.
During the nine years in operation, the CPC employed two Executive Directors, both of whom
left the CPC under controversy. Clayton Mark Hodges served as the Executive Director from
July 1993 through July 2002. Hodges resigned from the CPC amid a Florida Commission on
Ethics investigation that resulted in Hodges being fined $10,000. The investigation involved
Hodges’ involvement in business relationships with private prison operators outside of his
position of CPC Executive Director.
Alan Duffee served as the CPC Executive Director from July 2002 until July 2004. Subsequent
to Duffee’s separation from the CPC, FDLE conducted a criminal investigation which resulted
in Duffee’s federal conviction of Wire Fraud & Money Laundering. The investigation revealed
Duffee embezzled over $224,000 from the CPC. In July 2004, the Legislature transferred the
responsibility of the CPC to DMS and abolished the CPC effective July 2005.
After assuming the responsibilities of the CPC, DMS created the Bureau of Correctional
Privatization which became accountable for contract management of the private prison vendors.
Subsequently, DMS Secretary Tom Lewis directed the DMS OIG to evaluate the status of the
privately operated prisons and the existing contracts. Following the release of the DMS OIG
report alleging excessive and questionable payments to the vendors, GEO and CCA provided
written responses to the allegations made in the report. The responses provided detailed
Page 2 of 22

May 9, 2007

CASE NO. EI-14-0084

documentation and explanations as to why the vendors felt the DMS OIG findings were without
merit.
The DMS OIG and the vendors began a negotiation process regarding the alleged questionable
and excessive payments. On June 16, 2006, DMS Deputy General Counsel, Matthew F. Minno,
sent demand letters to both vendors. The demand letter to GEO stated that DMS found no
indication of improper conduct by GEO, but a number of accounting discrepancies needed to be
addressed.
The GEO demand letter identified four issues, totaling approximately $357,520, that required
further explanation. The DMS OIG and GEO subsequently began negotiations regarding the
unresolved issues. At the conclusion of the negotiations, a settlement amount of $290,952.32
was reached.
The demand letter to CCA stated that DMS understood CCA’s written and verbal responses to
the OIG report, but had concluded that money was still due to the State of Florida. The CCA
demand letter identified five issues, totaling approximately $3,637,023.38 in questionable
payments, which required further documentation from CCA. Negotiations between CCA and
DMS continue and a settlement agreement has not been reached to date.
FDLE Interviews
The following individuals provided statements regarding the CPC to FDLE during the course of
this inquiry.
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•

Steve Rumph, DMS Inspector General
Sue Herring, Former CPC employee
Kimberly Mims, Former CPC employee
Latara Lampkin, Former CPC employee
Stephanie Sanford, Former CPC employee, Current DMS Bureau of Corrections
Privatization employee
Jeanette Wilk, Former CPC employee
Clayton Mark Hodges, Former CPC Executive Director
Mike Barry, DMS Deputy General Counsel
Matt Minno, DMS Deputy General Counsel
John Davis, DMS, Office of Inspector General Audit Director
Laura Bedard, Former CPC Commissioner, Current Deputy Secretary, Florida
Department of Corrections
Steve Ferst, former DMS General Counsel
James Debeaurgrine, Staff Director of the Florida House of Representatives, Safety and
Security Council
Samuel A. Block, Former CPC Commissioner
Amber Martin, GEO Vice President of Contracts

As previously stated, the former CPC Executive Director Alan Duffee is currently serving a
federal prison term in Forrest City, Arkansas for embezzling approximately $224,000 from the
CPC. No attempt was made to interview Duffee.
Page 3 of 22

May 9, 2007

Investigative Findings

CASE NO. EI-14-0084

DMS OIG REPORT

The DMS OIG report identified ten “findings” that detailed the alleged $12.7 million in
excessive or questionable payments. The following outlines the DMS OIG allegations and the
related FDLE investigative findings.
DMS OIG Finding 1:
CPC’s Failure to Enforce Contract Provisions Regarding Vacant Staff Positions Cost the
State Over $4.4 Million
The DMS OIG report indicated that the CPC failed to enforce monetary deductions from vendor
per diem for staff vacancies that extended beyond an established time frame. The report
indicated that the CPC did not enforce the deductions until 2001, and when the deductions
began, the CPC consistently miscalculated the deductions.
Finding 1 included the following two facets:
I.

The DMS OIG estimated that the CPC failed to make vacancy deductions in the amount
of $1.3 million to GEO and $2.3 million to CCA prior to 2001.

GEO responded by stating that the initial three year contracts (1995-1998) for the South Bay and
Moore Haven Correctional Facilities stated that “an amount equal to the salary for the position
pro-rated for the number of days vacant in excess of the specified times, will be deducted from
the monthly per diem paid by the commission.” Subsequent GEO contract terms were revised to
state “may be deducted from the monthly per diem”
GEO further demonstrated that Section 957.03(1), Florida State Statutes stated that the CPC’s
authority included the authority to exercise discretion with respect to the enforcement of the
contract provisions.
Based upon the information provided in GEO’s response, DMS’s June 16, 2006 demand letter to
GEO did not attempt to recoup any of the $1.3 million estimated for vacancy deductions prior to
2001. Therefore, the settlement between DMS and GEO did not result in any money being
returned to the State of Florida for this finding.
DMS Inspector General Steve Rumph advised FDLE that no attempt was made to recoup the
funds from GEO because the CPC had the authority to not make deductions that resulted in the
questionable or excessive payments. Inspector General Rumph advised FDLE that $1.3 million
was “an estimated number” based on the average GEO vacancy deductions from 2001 to the
time of the DMS OIG report. Additionally, Inspector General Rumph stated that because of a
lack of documentation regarding vacancies during the time frame, it was impossible to reach an
exact dollar amount that should have been deducted from GEO’s per diem. Inspector General
Rumph stated that $1.3 million was a “worst case scenario” of what the State of Florida could
have potentially saved if the CPC had enforced deductions to the vendor’s per diem for staff
vacancies.
Page 4 of 22

May 9, 2007

CASE NO. EI-14-0084

GEO Vice President of Contracts, Amber Martin, advised FDLE that GEO was able to
demonstrate that the DMS OIG had miscalculated the number of vacancies during the time
frame. Martin stated that GEO provided documentation showing that positions the DMS OIG
had indicated were vacant, had actually been filled. Additionally, Martin stated that GEO was
able to demonstrate that the contract language stated that the CPC had the discretion to enforce,
or not enforce, the deductions.
Former CPC Executive Director Mark Hodges advised FDLE that the issue of position vacancies
was addressed in numerous CPC commission meetings. Hodges also stated that representatives
of the Florida House, Senate, Department of Corrections (DOC), DMS, and Governor’s staff
were present for the meetings where position vacancies were discussed.
Hodges advised that the commission did not want to “ding the vendor” for not having permanent
employees at a time when the DOC was facing the same staffing difficulties. Hodges again
stated that these conversations were documented in recorded commission meetings.
In CCA’s response to the DMS OIG report regarding this issue, they purported that the Gadsden,
Lake City and Bay Correctional contracts did not stipulate mandatory deductions for position
vacancies. Therefore, the CPC had the authority to not make deductions to the per diem. CCA
also stated that at all times CCA maintained “security, control, custody, and supervision of
inmates in the facility using a variety of methods including costly overtime and employment
agencies.”
Based upon the information provided in CCA’s response, DMS’s June 16, 2006 demand letter to
CCA did not attempt to recoup any of the estimated $2.3 million for vacancy deductions prior to
2001.
II

The DMS OIG report also alleged that once the CPC began making deductions for
position vacancies after 2001, they made miscalculations totaling $750,000 in funds not
deducted. The DMS OIG report stated that the alleged miscalculations were the result of
the “CPC not always deducting the correct number of days vacant.” DMS OIG
identified $138,726.80 in miscalculated deductions from GEO and $610,823 from CCA.

Former CPC Senior Management Analyst Sue Herring advised FDLE that she believed the
allegation that CPC overpaid vendors $750,000 by miscalculating the vacancy deductions was
incorrect. Herring stated that the CPC started the deductions when the 30 or 45 day grace period
expired for the vendor’s position. Herring stated that, while the DMS audit did not explain how
the $3.7 million was reached, it appeared that the DMS began the deductions from the first day
the position was vacant; not at the end of the grace period.
In GEO’s response to the DMS OIG report, GEO indicated that if documentation confirmed that
the CPC erred in calculating the vacancy deductions, GEO would be prepared to return the
amount indicated in the report: $138,726.80. According to GEO Vice President Martin,
subsequent to the DMS OIG report, the reputation of GEO was being questioned. Martin
advised that GEO wanted to resolve the dispute as quickly as possible and thought the
$138,726.29 was a reasonable amount to return regarding the alleged miscalculations.

Page 5 of 22

May 9, 2007

CASE NO. EI-14-0084

DMS’s June 16, 2006 demand letter to GEO attempted to recoup the $138,726.80 for vacancy
deduction miscalculations. The final settlement agreement between DMS and GEO resulted in
GEO returning the full $138,726.80 for alleged miscalculations.
CCA responded to the DMS OIG report that it had provided vacancy information to the CPC and
was not aware of the calculation methodology used by the CPC. The June 16, 2006 demand
letter to CCA identified $610,823 in additional funds that should have been deducted from
CCA’s per diem. However, to date a settlement agreement has not been reached with CCA.
DMS OIG Finding 2:
CPC Waived Required Staffing Patterns resulting in $290,000 in additional costs to the
State
The DMS OIG report indicated that in April and August 2003, the CPC granted blanket waivers
regarding contract staffing requirements. The DMS OIG report stated that by granting the
waivers to the vendors, the CPC cost the State of Florida a minimum of $290,994. The DMS
OIG report indicated that the waivers only applied if the vendor outsourced the position to fill the
required vacancies. The DMS OIG reported that the CPC waived deductions in the amount of
$114,794 for GEO and $176,200 for CCA for positions that were not outsourced.
The GEO response to the DMS OIG report stated that on March 5, 2003, GEO submitted written
requests for waivers regarding teachers and instructors due to a statewide shortage. GEO also
responded that the request was approved at the April 25, 2003 CPC commission meeting.
The June 16, 2006 demand letter to GEO maintained the DMS position that GEO owed the State
of Florida $114,794 for the non-outsourced positions. The final settlement agreement with DMS
resulted in GEO returning $117,552 to the State of Florida. According to GEO Vice President
Martin, the reimbursement was increased because GEO conducted an internal inquiry regarding
each of the DMS OIG findings. Martin stated that the inquiry into this finding identified an
additional $3,000 that the CPC could have deducted for non-outsourced positions. GEO agreed
to repay the State of Florida the additional amount.
It should be noted that Martin advised FDLE that GEO disagreed with the DMS OIG
interpretation of the waiver, but conceded to return the full amount owed to the State. Martin
stated that GEO disputed that the waivers constituted excessive payments since the CPC had
approved the waivers during the Commission meetings. Martin also stated that GEO was able to
demonstrate that GEO facilities met American Correctional Association (ACA) standards at all
times, regardless of the waived positions.
The June 16, 2006 demand letter to CCA maintained that CCA owed the State of Florida
$176,200 in deductions for waived positions that were not outsourced. In the CCA response to
the DMS OIG report, CCA stated that it consistently met ACA standards and complied with
contractual obligations. CCA further noted that they requested the waivers and the CPC
approved them during Commission meetings. No settlement agreement has been reached
between DMS and CCA regarding this finding.

Page 6 of 22

May 9, 2007

CASE NO. EI-14-0084

DMS OIG Finding 3:
Vendor (GEO) Received $3.4 Million in Excessive Competitive Area Differential (CAD)
Payments and Per Diem in Lieu of CAD.
This finding only pertains to GEO.
The DMS OIG report indicated that GEO received $3.4 million in excessive CAD payments
from January 1999 through December 2004. The South Bay Correctional Facility (South Bay)
Correctional Officers began receiving a $6,300 CAD when the facility became operational in
February 1997. The $6,300 was the same amount that the Florida Department of Corrections
(DOC) Correctional Officers received annually for CAD in 1997.
In January 1999, the CAD for DOC Correctional Officers was reduced to $4,400 and in January
2000 it was reduced to $2,500. During this time frame, South Bay Correctional Officers
continued to receive the full amount of $6,300 for CAD.
The DMS OIG report also indicated that in February 2005, the South Bay contract was
renegotiated. The following language was included in the new contract regarding the increase in
per diem.
“In the event the CAD is no longer available to the facility employees, the per
diem shall be adjusted to compensate affected employees through payments to
contractor in the same amount as was available through CAD, provided the
legislature appropriates such funds”.
The DMS OIG report indicated that by not reducing the CAD along with the DOC, and by
increasing per diem in lieu of CAD, the CPC paid GEO a total of $3.4 million in excessive CAD
payments.
The GEO response to DMS OIG report stated that at no time did GEO improperly bill or receive
excessive CAD payments or per diem payments in lieu of CAD. The response stated that on
January 11, 1999, during the time when the state CAD was being reduced, the CPC directed
GEO to continue billing the CAD at the $6,300 rate. The response stated that GEO had no
requirement to pay its correctional officers the same CAD as the DOC officers. Additionally, the
response noted that each time the State of Florida reduced CAD for DOC Correctional Officers,
the State increased their base salary to offset the reduction.
GEO advised that on July 1, 2002, the CPC agreed to lower the South Bay Commission
approved CAD to $2,500 and increase the per diem rate by an offsetting amount. This
essentially mirrored what the State of Florida had done for their Correctional Officers when they
increased Correctional Officer salaries after reducing the CAD.
In the June 16, 2006 demand letter, DMS did not attempt to recoup any of the money identified
in Finding 2. GEO Vice President Martin stated that during the settlement negotiation process
with the DMS OIG, GEO was able to demonstrate that the contract allowed for the CAD
payments and per diem in lieu of CAD. Martin stated that the DMS OIG agreed that the
documentation justified the CAD payments and agreed that no money should be returned to the
State of Florida.
Page 7 of 22

May 9, 2007

CASE NO. EI-14-0084

DMS Inspector General Rumph acknowledged that no attempt was made by DMS to recover the
funds because the South Bay contract clearly stated that their Correctional Officers would
receive the CAD.
DMS OIG Finding 4:
Vendor (GEO) Billed State for Additional Burden on CAD Payments
This finding only pertains to GEO.
The DMS OIG report indicated that the CPC allowed GEO to charge the State of Florida a
burden of 20.77% of the CAD to compensate for the state and federal taxes that accompanied the
CAD payments. By authorizing the burden, the State of Florida paid $1.57 million to GEO from
February 1997 to December 2004.
GEO responded to the DMS OIG report by stating that the CPC had the authority to negotiate the
contract terms and therefore had the authority to authorize the additional burden. The GEO
response stated that the burden was “fully negotiated and reviewed by the DMS staff attorney
assigned to the CPC, and was fully funded by the Legislature.”
In the June 16, 2006 demand letter to GEO, DMS did not attempt to recoup any of the money
identified in Finding 4. DMS Inspector General Rumph advised FDLE that the DMS
Management Staff made the decision not to attempt to recover the money because the CPC had
authorized the burden. Inspector General Rumph stated that while the CAD was specifically
outlined in the contract, the overhead or burden associated with the CAD was not. Inspector
General Rumph advised that the burden would not have been paid to the vendor if DMS had
originally written the contract.
Former CPC Commissioner, Sam Block, advised FDLE that he recalled the vote during a
Commission meeting that allowed the additional burden to be paid to the vendor. Block stated
that he voted to allow the burden to be paid because he thought it was a reasonable request from
the vendor.
GEO Vice President Martin stated that during the settlement negotiation process, GEO
demonstrated to the DMS OIG that the request for proposal and original contract outlined that
the CAD payment burden would be billed to the state. Martin stated that at the conclusion of the
settlement negotiation, the DMS OIG agreed that GEO was entitled to the additional burden and
no money was owed to the State of Florida.
DMS OIG Finding 5:
Vendor (GEO) Received CAD Payments for Terminated Employees
This finding only pertains to GEO.
The DMS OIG report indicated that GEO received CAD payments for terminated employees.
The DMS OIG report stated that GEO had submitted monthly invoices to the CPC totaling
$104,000 for CAD payments for employees who were no longer employed by GEO.
Page 8 of 22

May 9, 2007

CASE NO. EI-14-0084

GEO’s response to the DMS OIG report acknowledged that inadvertent errors had been made
related to the billing of CAD payments for terminated employees. GEO Vice President Martin
advised FDLE that the internal GEO audit found that the $104,000 in CAD payments for
terminated employees reported in the DMS OIG report was correct. Martin further stated that
GEO’s internal audit also found that GEO had “under billed” the CPC for newly hired
employees in the amount of $185,000. Martin advised that an error in GEO’s internal
accounting system resulted in the incorrect CAD billing and has subsequently been corrected.
Martin stated that GEO agreed to “zero out” the under payment resulting in no money being
returned to GEO or the State of Florida.
DMS Inspector General Rumph acknowledged to FDLE that during the settlement negotiations,
GEO presented clear documentation regarding the ‘under billings” and agreed that no money
would be returned regarding the CAD payments for terminated employees. DMS’s June 16,
2006 demand letter to GEO did not request any funds be returned to DMS regarding the payment
of CAD for terminated employees.
DMS OIG Finding 6:
CAD Payments Not Used To Enhance Employee Salaries
This finding only pertains to GEO.
The DMS OIG report indicated that GEO used CAD payments to offset correctional officer
salary costs rather than to enhance employees’ salaries at the South Bay Correctional Facility
(South Bay). The DMS OIG report stated that the starting salary for a correctional officer at
South Bay was $28,371, which included a CAD additive of $6,300. The DMS OIG report
further noted that the Moore Haven Correctional Facility (Moore Haven), also operated by GEO,
had a starting salary of $27,000, with no available CAD.
According to the DMS OIG report, because GEO received an additional $6,300 for CAD but
only paid South Bay Correctional Officers $1,371 more than Moore Haven Correctional
Officers, GEO was not enhancing the South Bay officer salaries with the full CAD.
The GEO response to the DMS OIG stated that, “The IG Report has absolutely no basis for its
conclusion ‘that the CAD is being used to supplement below-market starting salaries paid to
South Bay employees.’” GEO Vice President Martin advised FDLE that GEO was able to
demonstrate to the DMS OIG that GEO had paid correctional staff $2,000 higher than other
correctional facilities in the geographic area.
In DMS’s June 16, 2006 demand letter to GEO, DMS did not attempt to recoup any money
regarding finding 6 and no money was returned to the State of Florida regarding this issue. DMS
Inspector General Rumph advised FDLE that the DMS did not attempt to recoup any money
related to this issue because GEO had the authority to set the Correctional Officers’ salaries.

Page 9 of 22

May 9, 2007

CASE NO. EI-14-0084

DMS OIG Finding 7:
Excessive Per Diem Paid For Maintenance and Repair At Gadsden Correctional Facility.
This finding only pertains to CCA.
The DMS OIG report stated that the Gadsden Correctional Facility (Gadsden), which is operated
by CCA, had received an additional per diem payment of $2.30 for the facility’s major
maintenance and repair. The increased per diem was included in the first contract with CCA
which was originally written and maintained by the Florida DOC. When the CPC assumed
control of Gadsden, the additional per diem was continued. Since the dissolution of the CPC, the
DMS Bureau of Corrections Privatization has not changed Gadsden’s maintenance and repair
funding method.
The DMS OIG report stated that the base per diem rate at the other private prison facilities
included funding for maintenance and repair. According to other facility contracts, the vendors
were required to pay for all maintenance up to $5,000 and the CPC would reimburse the vendors
for expenses in excess of $5,000. The Gadsden contract allowed for this additional $2.30 over
the base per diem. However, the contract maintained that Gadsden was required to pay for all
repairs to the facility regardless of cost to the vendor. The DMS OIG report indicated that the
increased per diem at Gadsden amounted to $645,000 to CCA annually, while the average annual
repair cost for the facility was $140,000.
In CCA’s response to the DMS OIG report, CCA stated that based upon the Gadsden contract,
CCA has assumed all risk regarding maintenance and repair of the facility. The CCA responded
that, “This flat amount is an insurance payment by the State against future anticipated major
maintenance and repair costs.” The CCA response further stated that CCA had invested in the
latest technology to ensure that maintenance was anticipated and dealt with proactively.
DMS’s June 16, 2006 demand letter to CCA, identified $2,850,000 in maintenance funds that
have been received by CCA and not expended. No settlement agreement has been reached
between DMS and CCA regarding the Gadsden Correctional Facility maintenance and repair
facility.
DMS Inspector General Rumph advised FDLE that CCA could provide no explanation regarding
what was done with the surplus funds.
DMS OIG Finding 8:
Trust Fund Used to Supplement The Cost of Contractually Required Programs and
Services
The DMS OIG report indicated that the Privately Operated Institutions Inmate Welfare Trust
Fund (POIIWTF) was used to supplement the cost of contractually required programs and
services such as education, vocation and chaplaincy. According to the DMS OIG report, the
CCA and GEO contracts provided that the POIIWTF would be used for the “benefit and welfare
of inmates and may not include items included in the contractors’ proposals.” The DMS OIG
report concluded that the use of POIIWTF to supplement contractually required programs
Page 10 of 22

May 9, 2007

CASE NO. EI-14-0084

understated the actual per diem costs.
DMS’s June 16, 2006 demand letter to GEO did not request a specific amount of money to be
returned to DMS. However, the demand letter did request that GEO provide documentation that
would demonstrate the POIIWTF money was not used to pay for contractually required
programs.
Inspector General Rumph advised FDLE that the DMS Bureau of Correctional Privatization had
compiled a spreadsheet that identified programs that should not have been paid for using the
POIIWTF because they were contractually required programs.
The GEO response to the DMS OIG report stated that GEO had used POIIWTF money to fund
positions “in addition” to positions required under the terms of their contract. GEO also
responded that the POIIWTF had been used to fund new inmate programs not included in the
contracts and to enhance programs beyond the contractual requirements.
GEO Vice President Martin advised FDLE that DMS OIG Finding 8 involved a philosophical
difference in opinion regarding how the POIIWTF should be used. Martin stated that GEO
enhanced the contractually required programs and used the POIIWTF to pay for the
enhancements. Martin added that every annual budget was reviewed and approved by the CPC.
Martin acknowledged that the DMS OIG demonstrated some instances where GEO inadvertently
used the POIIWTF to pay for contractually required programs without CPC approval. Martin
stated that the DMS OIG indicated the amount of POIIWTF money that had been used to
supplement the contractually required programs was $34,672.91. GEO agreed to pay the full
amount.
In the CCA response to the OIG DMS report, CCA stated that all POIIWTF expenditures were
approved by the CPC and budget proposals outlined the staff positions and program expenses.
CCA also stated that the CPC Contract Monitor approved all program related expenditures prior
to purchase. No settlement has been reached between DMS and CCA regarding this issue.
DMS OIG Finding 9:
Welfare Trust Fund Incurred Loss
This finding only pertains to CCA.
The DMS OIG report indicated that in January 2002, the Gadsden Correctional Facility
(Gadsden) changed the commissary operations from bulk distribution to bag distribution at the
request of CCA management. According to the DMS OIG report, the change resulted in the cost
of goods increasing dramatically in calendar years 2002 and 2003. The DMS OIG audit of the
commissary indicated that the average net income from the commissary operations from 19992004 was approximately $203,000. The change of food distribution resulted in the commissary
operation averaging a loss of $53,000 during the subsequent two years.
Former CPC Administrative Assistant Kimberly Mims advised FDLE that she began handling
the vendor invoices after Gadsden switched from bulk food distribution to bag food distribution
on January 20, 2002. Mims stated that the vendor was required to submit monthly revenue
Page 11 of 22

May 9, 2007

CASE NO. EI-14-0084

reports which indicated what funds were taken from or deposited into the POIIWTF. The CPC
provided a report to the legislature on September 1st of every year which identified revenues and
expenditures from the POIIWTF. Mims stated that she did not recall the CPC addressing the
loss of POIIWTF revenue and was unaware of why the vendor changed from bulk food
distribution to bag food distribution.
Other former CPC staff members, including former Executive Director Mark Hodges and former
CPC Commissioners, advised FDLE that they did not recall Gadsden changing the food
distribution method.
In CCA’s response to the DMS OIG report, CCA agreed that switching from bulk food
distribution to bag food distribution resulted in a decrease in revenue. However, CCA stated that
administrative and security concerns led CCA to convert to the bagged commissary method.
CCA stated that the conversion to bagged distribution resulted in “positive and quantifiable
security and administrative outcomes.” Additionally, during negotiations between DMS and
CCA, CCA claimed that due to commissary vendor rebates, no loss actually occurred.
In the June 16, 2006 demand letter to CCA, the DMS OIG stated that it could not “allow a loss
due to business decisions by CCA to create a reduction in Trust Fund balances.” DMS further
stated that absent CCA providing clear proof that no Trust Fund money was lost, CCA still owes
money to the State of Florida. No settlement has been reached between DMS and CCA
regarding this issue.
DMS OIG Finding 10:
Vendors’ Per Diem Rates Increased to Pay for CPC Salaries and Expenses
The DMS OIG report stated that in a November 2001 Special Legislative Session, the
Legislature zero-budgeted the remaining funds from the CPC’s 2001-2002 General Revenue
Appropriation. The CPC’s General Revenue Appropriation had previously paid for staff salaries
and operational expenses for the CPC. The DMS OIG report indicated that the CPC
subsequently increased each vendor’s contract per diem rate $0.40 to make up for the funds
removed from the General Revenue. While this finding did not include a dollar amount, it was
listed as a finding in the report.
The DMS OIG report further indicated that it was unknown if the Legislature intended to
eliminate the CPC by zero-budgeting its General Revenue Funding. According to the DMS OIG
report, by increasing the per diem to pay for the CPC operating costs, the appearance was created
that the vendors were funding those charged with enforcing the vendor’s contract provisions.
In the GEO response to the DMS OIG report, GEO stated that the per diem was increased to
allow deductions from the facilities payments to cover the CPC expenses. However, there was
no net increase in funding to the GEO’s facilities. The response also stated that the decision to
increase the per diem was made by the CPC and was not suggested or requested by GEO.
The CCA response to the DMS OIG report indicated that the CPC made the decision to increase
the per diem without the knowledge or input of CCA. CCA also responded that they had no
input regarding how the increased per diem was applied by the CPC.
Page 12 of 22

May 9, 2007

CASE NO. EI-14-0084

Regarding the “Legislative Intent” of the zero budget, FDLE conducted analysis of House Bill
797, dated March 7, 2001. While the bill did not become law, the following language regarding
the CPC indicated that the Legislature was aware that the per diem would be increased to fund
the CPC operating costs:
“During Special Session 2001-C the Legislature fund shifted the General Revenue
portion of the operating expenses of CPC to the Grants and Donations Trust
Fund. As a result, all ten FTEs and operating expenditures are funded through
the Grants and Donations Trust Fund.”
Additionally, when the Legislature removed the remaining funds from the General Revenue, the
Legislature did not reassign the duties of the CPC to another entity. This also implies that the
Legislature intended for the CPC to continue operating.
Former CPC Legislative Director, Jeanette Wilk, advised FDLE that when the CPC was zerobudgeted, she was told by legislators that the operating funds would be shifted, not eliminated,
and that the CPC would not be abolished. Wilk also stated that the legislators were making a
political statement that they did not support prison privatization by voting to zero budget the
CPC. Wilk also stated that if the legislature’s intent was to eliminate the CPC, the operating
funds would have been eliminated completely and the CPC could not have continued operating.

DMS/GEO Settlement Agreement
On January 1, 2007, a settlement agreement was reached between DMS and GEO. The
settlement concluded negotiations that began with the June 2005 DMS OIG report which
indicated GEO received $6,709,478.83 in questionable or excessive payments. The negotiation
process included an official response from GEO and face to face negotiations between DMS and
GEO representatives. In the final settlement agreement, GEO agreed to pay the State of Florida
$290,952.43.
In interviews conducted by FDLE, representatives of GEO and DMS described the negotiation
process as civilized and professional. Inspector General Rumph and GEO Vice President Martin
each stated that the settlement adequately served the interests of GEO and DMS.
FDLE interviewed DMS Deputy General Counsel Matt Minno. Minno advised that he had
twenty-two years experience in civil law and has experience in determining when a settlement or
litigation is appropriate. Minno stated that based upon his experience, his review of the DMS
OIG Report and the vendor responses, he felt that litigation was not appropriate in this case.
Specifically, Minno stated that the fact that all the money referred to in the DMS OIG report was
distributed by the CPC and approved by the Legislature led him to the opinion that litigation was
not appropriate.
Minno stated that the DMS OIG report was not an indication of money that was owed to DMS
from the vendors. Rather, it was money that could have been saved if the contract provisions
were more strictly enforced. Minno stated that he attended several meetings with the DMS and
Page 13 of 22

May 9, 2007

CASE NO. EI-14-0084

GEO. Minno stated that GEO acknowledged that they wanted to cooperate fully with DMS and
if they were found to have received money they were not entitled to, the money would be
returned.
Inspector General Rumph also indicated that the $12.7 million amount indicated in the DMS
OIG report did not represent money that was “owed to DMS.” Inspector General Rumph did not
agree with the term “overpayments” as it referred to the money identified in the DMS OIG
report. According to Inspector General Rumph, the amount represented costs that “could have
been avoided” if the contracts were operated in a more efficient manner. Inspector General
Rumph advised that when the DMS OIG report was released, he made it clear that the $12.7
million represented money that could have been saved if the CPC had done its job.
GEO Vice President Martin stated that at the conclusion of the settlement negotiation process,
DMS and GEO were satisfied that each party’s best interest was been served. Martin stated that
GEO acknowledged that some errors were made which resulted in the settlement amount of
$290,952. Martin stated that the negotiation process with members of DMS was very cordial
and agreeable. Martin stated that representatives of DMS were “humble and embarrassed” after
GEO demonstrated that the alleged “excessive payment” amount was incorrect.
Martin stated that in response to the DMS OIG report, GEO conducted a thorough internal audit
to ensure that GEO was correct in their documentation. Martin stated that if the DMS OIG had
obtained the documentation prior to writing the report, the report would have been written
differently.

INVESTIGATIVE ANALYSIS
During the course of FDLE’s inquiry, numerous historical audits/investigations were discovered
regarding the CPC and the monitoring/management of private prisons in Florida.
FDLE compiled the following summary of these audits/investigations that took place from April
1998 through November 2002, specifically noting findings related to FDLE’s inquiry.
It should be noted that many of the findings expressed in the DMS OIG report were previously
documented in these audits/investigations. These were public record and available to concerned
entities.
Office of Program Policy Analysis and Government Accountability Report # 97-68
Review of Bay Correctional Facility and Moore Haven Correctional Facility
April 1998
FINDINGS:
• The CPC “did not structure the contracts to ensure that the projected level of operating
cost savings was achieved.” The contract with Bay Correctional Facility (Bay) limited
the savings achieved by the state due to excessive payments to CCA for each additional
inmate in excess of 90% of prison capacity (marginal per diem rate was set at $41.60,
94% of its guaranteed rate) Wackenhut’s marginal rate was $8.87.
Page 14 of 22

May 9, 2007

CASE NO. EI-14-0084

RECOMMENDATIONS: Renew Contracts with vendors, with the following modifications:
• Canteen profits and telephone commissions be deposited with the state
• Performance-based program budgeting measures be included
•

Renegotiate Bay contract to reduce inmate per diem rate for inmates in excess of 90%
capacity

Office of Program Policy Analysis and Government Accountability Report # 99-33
Private Prison Review
Lake City Correctional Facility Experienced Start-Up Problems, But It Has Improved
February 2000
PREVIOUS FINDINGS:
• During first year, Lake City Correctional Facility (Lake City) experienced numerous staff
vacancies (lasting more than contractually allowed) and noncompliance with state and
federal regulations.
• The CPC’s Lake City contract had inadequate sanctions for program noncompliance. The
CPC has no provisions for authorizing deductions in per diem for poor performance.
RECOMMENDATIONS:
• CPC should renew the CCA contract for Lake City. However, the CPC “could save over
$560,000 annually by lowering the marginal per diem rate paid to CCA for inmates in
excess of 90% capacity.”
• The CPC “should add contract provisions to allow it to sanction the vendor for
noncompliance with state and federal regulations and contract requirements.”
Office of Program Policy Analysis and Government Accountability Report # 99-39
Private Prison Review
South Bay Correctional Facility Provides Savings and Success; Room for Improvement
March 2000
RECOMMENDATIONS:
• The CPC should increase savings by improving its cost control efforts. The vendors
should not be reimbursed for corporate income and sales tax expenses without
documentation.
Office of Program Policy Analysis and Government Accountability Report # 99-46
Progress Report
Bay and Moore Haven Private Prison Contracts Renewed; Bay Costs Increase
April 2000
FINDINGS:
• “We question the CPC’s contract modification that resulted in a $785,936 additional
payment to CCA to operate Bay in Fiscal Year (FY) 1998-99.” CPC renewed Bay’s
contract with a lower marginal per diem rate, however CPC offset savings from the
decrease by increasing the guaranteed rate by 6.7% ($785,936) for the 1998-99 contract
year.

Page 15 of 22

May 9, 2007

CASE NO. EI-14-0084

Executive Office of the Governor, Office of the Chief Inspector General
Executive Summary Case #: 200004030001
September 8, 2000
This documented an investigation into a complaint by the PBA alleging that the Executive
Director of the CPC, C. Mark Hodges, and CPC Employee Ronald Jones violated provisions of
Florida Statutes (F.S.).
FINDINGS:
• C. Mark Hodges did NOT violate F.S. by accepting an honorarium from the Management
& Training Corporation, a registered lobbyist corporation within the State of Florida who
had bid on several contracts initiated by the CPC.
• C. Mark Hodges DID violate F.S. by failing to report the receipt of the honorarium
related expenses within the prescribed time.
• Ronald Jones DID VIOLATE F.S. by accepting employment with the CCA within 2
years after leaving the CPC.
RECOMMENDATIONS:
• DMS should have oversight over CPC’s areas of travel authorization and procurement.
• DMS should dedicate legal support to CPC.
• DMS Inspector General should review procurement and travel practices of CPC.
Florida Corrections Commission 2000 ANNUAL REPORT
Monitoring Contracted Private Correctional Facilities
SUMMARY:
“The Corrections Commission found serious deficiencies in the contracted monitoring of
private correctional facilities.”
“The Commission recommends that the Florida Correctional Privatization Commission,
created in Chapter 957, Florida Statutes, be abolished, and its functions transferred to the
Department of Corrections via a ‘Type Two Transfer’ as outlined in Section 20.06, Florida
Statutes.”
FINDINGS:
The Florida Corrections Commission (FCC) reviewed monthly monitoring reports from the CPC
for each facility for FY 1998-1999 and 1999-2000. Their findings revealed:
•
•
•

Some facilities were found in partial or non-compliance for consecutive quarters in areas
where monthly payments were based upon compliance with the contract.
Numerous errors/discrepancies in monthly monitoring reports and in data carried forward
and reported in subsequent reports.
In FY 1999-2000, CPC reported no payment deductions to 3 facilities for vacant
positions; although each facility’s monthly monitoring reports identified vacancies that
exceeded the contractually allowed time.

Page 16 of 22

May 9, 2007

CASE NO. EI-14-0084

House Bill (HB) No. 727 March 29, 2001 (NOT PASSED)
Correctional Privatization Commission
SUMMARY:
“HB 727 abolishes the CPC, and transfers all its powers, duties, functions, rules, records,
personnel, property, and unexpended balances of appropriations, allocations or other funds
of the CPC to the DOC utilizing a type two transfer.”
“The bill repeals Chapter 957, F.S., known as the Correctional Privatization Commission
Act.”
FINDINGS:
• Governor’s Recommended Budget for FY 2000-2001 stated the CPC should be
transferred to the DOC.
• Documented the findings of a 1998 OPPAGA report concluding that “the CPC did not
structure the contracts to ensure that the projected level of cost savings was achieved.”
Recommended: contracts be renewed with improvements to the cost-effectiveness of the
prisons operations.
• Documented OPPAGA’s Lake City CF recommendations: “CPC must add contract
provisions which would allow the CPC to sanction the private vendor for any
noncompliance with state and federal regulations, and there must be a restructuring of
the marginal per diem rate.”
• OPPAGA criticized the CPC for paying Wackenhut (GEO Group, Inc.) $263.499 for
Florida corporate income tax and $94,107 for state sales tax, without the CPC requiring
documentation of Wackenhut’s actual tax payments.
• Documented the findings of the FCC'
s 2000 Annual Report that recommended
abolishment.
• Florida PBA claimed “Gross overpayments” by CPC to venders and pointed out a
“number of serious ethical problems” within the CPC
• The PBA filed an ethics complaint against the CPC director C. Mark Hodges for
operating a consulting business out of his state office and for not filling out the required
paperwork disclosing his extra sources of income.
• The Florida Commission on Ethics took final action against Dr. Charles Thomas, who
was hired by the CPC to be an evaluator of the private corrections industry. Thomas was
fined $20,000 (largest fine in Ethics history) due to contractual relationships he had with
4 companies related to the private corrections industry. These relationships conflicted
with his duty to objectively evaluate the corrections industry.
• Documented the findings of The Office of the Chief Inspector General’s Investigation
regarding Hodges, Jones and the CPC.
Auditor General Report No. 02-010 July 2001
Florida Correctional Privatization Commission July 1999 through March 2001
SUMMARY
“We found that the Commission had not established the management controls
necessary to ensure the safeguarding of its resources and compliance with
applicable legal requirements or had not established adequate record systems to
demonstrate compliance with such requirements. As a result, the Commission
Page 17 of 22

May 9, 2007

CASE NO. EI-14-0084

could not always be assured that State resources were prudently expended for an
authorized public purpose and adequately safeguarded. The instances of
noncompliance or lack of controls described in this report may have been the
result, at least in part, of the absence of written policies or procedures. In
addition, sometimes actual practices were not consistent with established
policies.”
FINDINGS:
The Auditor General’s audit focused on the CPC’s procedures and records pertaining to
various administrative areas. Their findings included:
•

The CPC “has not adopted written policies and procedures requiring the disclosure of
all personal, business, Florida Department of Corrections, or Florida Department of
Juvenile Justice associations or relationships that could potentially result in an actual or
perceived conflict of interest.”

Florida Corrections Commission 2002 ANNUAL REPORT
Update on Monitoring of Private Prisons in Florida
SUMMARY:
In the FCC’s 2000 Annual Report, the FCC documented that they felt the CPC was not properly
monitoring private facilities, nor was the information in the monthly monitoring reports being
utilized. Based on these findings the FCC recommended that the CPC should be abolished and
functions should be transferred to the Department of Corrections.
“Although there were bills filed in the House and Senate during the 2001 and the
2002 Legislative Sessions to implement the Commission’s (FCC’s)
recommendation regarding the CPC and save the State nearly $1 million
annually, the Legislature did not enact the proposed legislation. However,
during Special Session C in 2002, the Legislature provided that the operating
costs of the CPC shall be derived from the per diem paid to the private
correctional firms.”
FINDINGS:
After the initial review in 2000, the FCC staff was subsequently directed to update this issue for
the 2002 Annual Report in order to identify what changes had been incorporated by the CPC
since the review. The FCC reviewed monthly monitoring reports from the CPC for each facility
for FY 2001-2002. Their findings included:
•

Facilities were still found to be in partial or non-compliance over several quarters in areas
where the facilities receive monthly payments based on compliance with the contract.
CPC reported no deductions in FY 2001-2002 associated with these findings.

Page 18 of 22

May 9, 2007

CASE NO. EI-14-0084

House Bill No. 797 March 7, 2002 (NOT PASSED)
Correctional Privatization Commission
SUMMARY:
“HB 727 abolishes the CPC, and transfers all its powers, duties, functions, rules, records,
personnel, property, and unexpended balances of appropriations, allocations or other funds
of the CPC to the DOC utilizing a type two transfer.”
“The bill repeals Chapter 957, F.S., known as the Correctional Privatization Commission
Act.”
FINDINGS:
HB 797 documented the same findings reported in 2001’s HB 727. However, noted the
following information:
•

“During Special Session 2001-C the Legislature fund shifted the General Revenue
portion of the operating expenses of CPC to the Grants and Donations Trust Fund.
As a result, all ten FTEs and operating expenditures are funded through the Grants
and Donations Trust Fund.”

Office of Program Policy Analysis and Government Accountability Report # 02-27
Progress Report
Correctional Privatization Commission Improved Management of South Bay Contract;
More Savings Possible
May 2002
RECOMMENDATIONS:
• CPC should stop reimbursing vendors for tax payments without documentation.
• CPC should specify performance measures and standards in vendor contracts.
• CPC should further address Wackenhut’s failure to meet contract requirements for
rehabilitative programs. I.e. Provide sanctions for noncompliance with contract.
Office of Program Policy Analysis and Government Accountability Report # 02-56
Progress Report
Lake City Correctional Facility Added Programs and Saved 6.5%; Intermediate Sanctions
Still Needed
November 2002
RECOMMENDATIONS:
• The CPC “could achieve additional savings by restructuring Lake City’s contract’s
marginal rate to reflect actual costs of housing inmates in excess of the contract
guarantees.”
• The CPC should revise its contract for Lake City CF to include intermediate sanctions for
noncompliance and non-delivery of contracted level services.

Page 19 of 22

May 9, 2007

CASE NO. EI-14-0084

Commission on Ethics Complaint # 00-015, 00-075, 00-163 & 00294 (Consolidated)
Joint Stipulation of Fact, Law And Recommended Order
November 8, 2002
Investigation into the Executive Director of the CPC, C. Mark Hodges:
FINDINGS:
Hodges Violated Florida Statutes by:
• “Using State paid long distance telephone services or other State resources for personal
gain in his private consulting business in a manner that was inconsistent with his public
duties.”
• “Improperly selling a State owned prison monitoring manual for the special benefit of
himself and/or another.”
• “Having a conflicting contractual relationship with Dr. Charles Thomas.”
• “Having contractual relationships with CPC employees and private consulting clients
that created frequently recurring conflicts between Respondent’s private interests and his
public duties, and impeded Respondent’s full and faithful discharge of his public duties.”
• Failing to disclose sources on income related to his private consulting for calendar years
1996 and 1997.
RECOMMENDATION:
• Public censure and reprimand
• A civil penalty of $10,000

Page 20 of 22

May 9, 2007

CASE NO. EI-14-0084

INVESTIGATIVE FINDINGS
On June 30, 2005, the Florida Department of Management Services (DMS), Office of Inspector
General (OIG) released a report regarding the contract management of private correctional
facilities in Florida. The report was written at the request of DMS Secretary Tom Lewis to
evaluate the status of the privately operated correctional facilities and whether the contracts
adequately safeguarded the State of Florida’s interest. The report scrutinized contracts between
the State of Florida and two private prison vendors, The GEO Group, Inc. (GEO) and the
Corrections Corporation of America (CCA).
The report concluded that the Correctional Privatization Commission had failed to adequately
safeguard the State of Florida’s interest and consistently made questionable contract concessions
to the vendors. This resulted in $12.7 million in additional costs to the State. The report alleged
excessive payments of $6.7 million to GEO and $6 million to CCA.
Subsequent to the DMS OIG report, the DMS Inspector General entered into negotiations with
GEO in attempt to recoup the excessive payments. GEO responded to the DMS OIG report and
concurred that some excessive payments had occurred. However, GEO disputed several other
findings in the report.
DMS reviewed GEO’s response and on June 16, 2006 sent a “Demand Letter” to GEO. The
letter called for the return of $357,520 to the State of Florida, significantly less than the $6.7
million in questionable payments originally identified in the DMS OIG report. The negotiation
process continued and a settlement agreement was finalized on January 1, 2007. This
negotiation resulted in GEO returning $290,952.32 to the State of Florida.
CCA provided a written response to the DMS OIG report on August 23, 2005. This response
strongly disputed that CCA had received questionable or excessive payments. DMS also sent a
“Demand Letter” to CCA on June 16, 2006, which indicated after review of the CCA response,
DMS believed CCA had been excessively paid over $3.6 million. To date, there has been no
settlement agreement reached with CCA.
James Debeaugrine, Staff Director of the Florida House of Representatives, Safety and Security
Council, advised FDLE that he disagreed with the DMS OIG report. Debeaugrine did not
believe the vendors were excessively paid $12.7 million because the payments were permitted by
the contracts. Debeaugrine stated that he felt the DMS OIG report was not completely objective
or professional. Debeaugrine stated that the Legislature would not have appropriated funds to
the CPC for items that were not called for in the contracts.
Debeaugrine advised FDLE that he never observed any inappropriate relationships between the
CPC staff or commissioners and the private prison vendors. Debeaugrine also stated that he
never suspected that the contracts were serving the interest of the vendors more than that of the
State of Florida. Debeaugrine stated that he was never approached by any vendors or legislative
personnel to make decisions that would benefit the vendors.
GEO Vice President Martin advised FDLE that at no time had she ever observed or suspected
any CPC staff members or commissioners to be involved in unethical activity. Martin also stated
that GEO requested that DMS write a letter to indicate that GEO had done nothing inappropriate
Page 21 of 22

May 9, 2007

CASE NO. EI-14-0084

regarding the issues identified in the DMS OIG report. Martin stated that former DMS Secretary
Tom Lewis complied with the request and wrote a letter (dated September 20, 2005) which
stated DMS did not “find any indication of improper conduct by GEO.”
DMS Inspector General Steve Rumph advised FDLE that the DMS review of the CPC did not
reveal any allegations of criminal activity. Additionally, Inspector General Rumph advised
FDLE that he did not suspect that there was any “evil intent” by members of the CPC, but rather
an attempt to make the private prisons successful. Inspector General Rumph stated that he found
no evidence or suspicion that anyone involved in the CPC received any benefit from the prison
operators in exchange for “favors.”
Witness interviews conducted by FDLE identified no evidence or allegations that any group or
individual associated with the CPC, Florida Legislature or vendors ever solicited or received any
benefits or financial compensation in return for decisions affecting the vendors. However,
witness statements indicated that GEO and CCA representatives paid for CPC staff and
commissioners meals on several occasions.
Through the review of historical investigations, legislative documents and witness interviews,
FDLE’s inquiry revealed the following:
•

The Florida Legislature reviewed CPC contracts and approved the CPC annual budget.

•

There was no evidence that the budget requests were fraudulent or incomplete.

•

There was no evidence that any group or individual ever solicited or accepted any
compensation in return for decisions that were favorable to the vendors.

Page 22 of 22