PRIVATE CORRECTIONS INDUSTRY

NEWS BULLETIN
Vol. ) - No.6

Reporting 011 Prisoll Privatization and Related Issues

November 1998

Follow-Up on Quadruple Escape from CCA Facility
PCINB reported last month
that four prisoners escaped from the
CCA-operated South Central Corr.
Center in Wa'yne Co., Tennessee on
October 12. All of the escapees have
since been captured.
Inmate Donald Wallace, 56,
was caught the same day of the
break-out near the prison perimeter.
Escapees Benjamin D. Underwood
and Charles Hayes waylaid Wa)l1e
Co. farmer Bemis Hardin, 86, and
stole his truck. Despite being duCltaped and hog-tied, Hardin said his
assailants were "nice" to him and
"aren't as mean as people with the
prison say they arc." Underwood
and Hayes were apprehended in
Nashville on October 19 and 20, respectively.
William T. Caldbeck, serving
a life sentence for aggravated rape
and armed robbery, stole a truck
the day after the escape; the vehicle
was found abandoned in Thornton,
Colorado. Caldbcck was caught on
Oct. 29 in San Fernando, California
and is awaiting extradition.
According to Tennessee Dept.

of Correction spokeswoman Pam
Hobbins the escape occurred during
an afternoon recreation period when
the inmates cut through two fences
and slipped into the surrounding
woods. Motion alarms and sensors
that should have detected the security breach did not immediately
alert prison officials of the escape,
nor did guards in perimeter patrol
vehicles immediately notice the cut
fences.
Officers from the Tennessee
Highway Patrol, Clifton Police Dept.,
Wayne Counly Sheriffs Dept. and
two slate prisons assisted in an intensive search for the escapees that
involved three canine teams and two
helicopters. The FBI also participated in the multi-state manhunt. No
law requires CCA to reimburse law
enforcement authorities for the cost
of the search.
Dwight Walker, a supervisor at
the South Central facility, was fired
in connection with the break-out.
Said CCA Warden Kevin Myers,
"1 wouldn't say he facilitated the
escape, but he may have done some-

thing that allowed the escape to
occur." Prisoners at South Central
said they weren't closely watched
on the yard; Myers acknowledged
that only one officer was on duty in
the outside recreation area instead
of the usual two. The escape is being
investigated by the Tenn. Bureau of
Investigation.
The October 12 break-out came
less than a month after a previous
attempted escape at the facility. On
Sept. 14 CCA officers prevented
inmate Timothy Hickman, who had
hidden on the prison grounds before
the evening count, from escaping over
the perimeter fence. At that time
Warden Myers had stated, "I think
our staff are well-trained to handle
incidents like this .... I believe the
staff at South Central does that as
well as any prison staff elsewhere." 0
Sources: The Tennessean, Oct. 17,
20-22, 1998; CommerCial Appeal,
Oct. 20, 1998; The Jackson SlIn, Oct.
30, 1998~ Knoxville News-Sentinel,
Ocl. 23, 1998; Wayne Co. News,
Sept. 23, Oct. 14,21,28, 1998.

© 1998 - P.C.I. News Bulletin, 3193-A Parthenon Avenue, Nashville, TN 37203

p.e.I. News Bulletin

ADMINISTRIVIA
The p.e.!. News Billie/in (PCINE) is
a monthly publication that reports on
prison privatization and related issues,
primarily within the United States.

Copyright
PCINB is copyright © 1998. Non-profit
organizations and individuals acting on
their behalf arc granted permi!;Sion to
reprint or copy any materials included
in PC/NB provided that source credit is
givc:n and that such copies arc for noncommercial purposes only - all other
persons are rcquired to obtain written
permission from PCINB before any reprints or copics legally can be made.
PCINB will happily and enthusiastically
pursue legal action against COP}Tighl
violators, and will provide a reward 10
persons who report copyright violations
that result in successful litigation or
settlements, as determined by Pc/ND.

Address
P.C.I. News Bullelill, 3193-A Parthenon
Avenue, Nashville, Tennessee 37203.

Legal Stuff
The information presented in this publication is not intended to supplant the
services I advice of legal or correctionsrelated professionals. The editors of and
contributors to PCINB disclaim any Iiability, loss or risk, personal or otherwise,
incurred as a direct or indirect consequence of the use and application of any or
the contents of this newsletter. So there.

WANTED
Articles, clippings and news reports
regarding the private corrections industry - please include the source
and date of all materials submitted.

2

Prison Companies
Court Nebraska
Three private corrections companies have expressed an interest in
building and operating facilities in
two Nebraska communities.
Officials in Kimball are talking
with CCA about placing a privatelyrun prison in the Panhandle city.
According to Mayor Darlene Kiefer
the discussions arc still in the preliminal}' stages; Wackenhut also has
contacted Kimball officials.
Gov. Ben Nelson endorsed the
idea. "I'm very supportive of their
efforts to try and attract a prison industry to their city," he stated. While
he could not guarantee the state
would send prisoners to a private
prison, no law prevents inmates from
being brought in from elsewhere.
The state corrections department
was less enthused. "Quite frankly the
only difference that I see with these
[private prison] operators is that ~hey
can build faster" than state agencies,
remarked Harold Clarke, director of
the Nebraska Dept. of Correctional
Services. Clarke stated his department would neither support nor oppose privatization.
The Florida-based Correctional
Services Corporation has presented
a private prison proposal to officials
in Hall County; the county's 100-bed
jail is 50% over capacity, which the
company says it can help alleviate.
"We're definitely going to look into
this private thing," stated Richard
Hartman, chair of the County Board.
However, he noted that many questions would have to be answered
before deciding whether a new jail
should be privately operated. 0
Sources: The Omaha World-Herald,
Sept. 10, 1998; The Lincoln Journal
Star, August 21, 1998.

November 1998

CCA Cancels Contract
Over Fiscal Dispute
CCA has notified Texas Dept.
of Criminal Justice officials that
the company will no longer operate
the Cleveland Pre-Release Center in
Liberty County after Dec. 31.
According to CCA spokesperson
Lauric Shanblum the company's decision was due to "a difference of opinion between CCA and the Cleveland Independent School District
regarding the annual amount of
money to be paid in lieu of taxes
to the school district."
Three years ago the school district filed suit against CCA after
the company reduced its $180,000
tax payment by $100,000 without
prior permission. "We were trying to
be very competitive and keep costs
as low as possible so as not to lose
the bid to another company," said
Shanblum. "We thought we had an
understanding with evel)'one - including the school district. But then
the board membership changed and
they were not "illing to go with it."
The school district settled its
suit against CCA last August and the
company agreed to pay an outstanding debt of $300,000 with interest.
However, CCA was unwilling to retain the contract. "Our facility could
not continue to operate at a loss,"
said Robert Lacy, warden at the
pre-release center. CCA has received
a 50% tax abatement from city and
county authorities since 1995.
School board president Walter
Sto\'all said he was simply enforcing
the company' s tax obligation and
was willing to negotiate - CCA is
one of the county's largest private
employers. 0
Source: The HOllston Chronicle,
September 3, 1998.

P.C.I. News Bulletin

3

November 1998

"Questionable" Medical Deaths at Youngstown Prison
Other Private Corrections
Industry Resources
Corrections and Criminal Justice
Coalition (CCJC), Routc 2, Box
1144, Harpers Ferry, WV 25425
(888) 315-8784; ww\V.ccjc.com.
A consortium of anti-privatization
correctional cmployces unions.
Corrections USA (CUSA), P.O.
Box 394, Newton, NH 03858
(603) 382-9707; ww\V.cusa.org.
A non-profit association affiliated
with correctional officers' unions;
opposes prison privatization.
Prison Reform Trust, ] 5 Northburgh Strect, 2nd Floor, London,
ECIV OJR England; phone: 01144-171-251-5070~ e-mail: prt@,
prisonre form. demon. co. uk.
Publishes the Prison Privatisat;ol1
Report Int '[ (PPRl), which covcrs
news about the private corrections
indust!)· in the U.S. and abroad.
Private Corrcctions Project, Center
for Studies in Criminology and
Law, Univ. of Florida, Gainesville,
FL 32611 (352) 392-1025; web
site: wcb.crim.ufl.cdlpcp. Conducts
research into prison privatization.
Note: the Project receives funding
from the private corrections industry; Prof. Charles W. Thomas,
director of the Project, is a board
member of Prison Rcalty Trust.
Reason Foundation, 3415 S. Sepulveda BI\'d. #400, Los Angeles,
CA 90034 (310) 391-2245: www.
reason.org. A libertarian thinktank that favors prison privatization; publishes the Priva/ization
Watch newsletter, which includes
ad\'ertising for prison companies.

Most of the attention focused on
CCNs Northeast Ohio Corr. Center
in YoungstO\\n relates to stabbings,
murders, and the cscape of six inmatcs from the troubled prison last
summer. But a report by the Ohio
Correctional Institution Inspection
Committee released on Oct. 7 (sec
p. 9) also mentions "questionablc"
medical-related deaths at the CCA
prison, which houses prisoners from
the District of Columbia.
Stanley R. Rice, 42, an inmatc
at YoungstO\\ll, died on June 4. The
causc of death was reportedly multiorgan failure, systemic blood infection and ketoacidosis. "We ruled
this a death of natural causes," said
Dr. Jesse C. Giles, a pathologist with
the Mahoning Co. coroner's office,
"but whether he would have died
if he had gotten medical attention
earlier I can't say."
Rice was taken to St. Elizabeth's Hospital June 2. His family
said they weren't notified by prison
officials until more than 24 hours
later, and by the time they arrived at
Youngsto\\n he had already died.
Dr. Giles said Rice exhibited S)111Ptoms of new onset diabetes; however,
his mother and sister stated he had
never been diagnosed with or treated
for that disease, and family members
said he seemed to be in good health
when they spoke ,,;th him less than
a week before he died.
"It's awfully suspicious," observed Annette Speakes, Rice's sister.
"How can an individual just die like
that overnight?" Speakes said she
examined her brother" s body at the
hospital and found bleeding from
the back of his head. She also stated
that CCA had refused to release her
brother's medical records.

Rice's family requested an
autopsy, but two months later the
hospital told them it still was not
complete. "They did something to
him up there," said Elizabeth Rice.
Stanley'S mother. "I didn't hardly
recognize him. His face was all
swollen. The blood vessels in his
eyes were all burst. That is a terrible
thing for a mother to see."
Among Rice's possessions returned to his family was a letter
addressed to D.C. Mayor Marion
Barry that described difficulties in
obtaining medical treatment at the
CCA facility. The letter, dated two
days prior to Rice's death, had not
been mailed.
Youngsto\\n inmate Perry Clay,
25, died on March 21. Although
Ohio records attribute his death to
respiratory problems and pneumonia
another report indicates he died due
to complications from AIDS.
A third prisoner at the CCA
facility, Michael Cephus, 42, died
Dec. 31, 1997. He had been admitted
to a local hospital with a sore throat,
evaluated and returned to the prison,
and later succumbed to fatal septic
shock. The coroner's office determined his death was natural; Dr.
Giles described it as "a weird chest
infection."
Rice, Clay and Cephus were all
D.C. inmates, and their deaths arc
being investigated as part of a classaction suit filed against CCA and the
District of Colwnbia. Among other
issues the suit alleges CCA failed to
provide adequate medical care at the
YoungstO\\n facility. 0
Sources: The Washington Post, Oct.
8, 1998; The Common Denominator
(DC), August 10, 1998.

November 1998

4

P.C,l. News Bulletin

Ex-CCA Officer Accuses Company
A fonner correctional officer at
the CCA-operated South Central
Correctional Center in Wayne Co.,
TeMessee has accused the company
of \\Tongdoing at the facility. The
officer's name was withheld while
he attempts to altain immunity from
prosecution for perfornling potentially criminal acts upon the orders
of his supervisors.
An affidavit from the fonner
CCA officer was made available by
Citizens Against Political Corruption
in Tennessee, a watchdog group. In
his affidavit the fonner officer made
the following allegations:
" He was ordered to destroy incoming mail addressed to inmates so
prison staff would not have to work
overtime to sort it.

" He and another officer cooked
at a fund-raising event for Gov. Don
Sundquist in 1994 or 1995, which
was paid for by CCA. The fundraiser allegedly was held at the Aqua
Yacht Harbor in Mississippi.
" In 1992 and 1993, officers from
CCA's Winn Correctional Center in
Louisiana visited South Central to
deal \\;th "problem inmates." These
officers reportedly beal and abused
prisoners at South Central.
" Two inmates who escaped from
South Central and were later caught
were severely beaten. [Note: Larry
Garrison, a correctional officer at
South Central, was fired in August
1992 follo\\ing accusations that he
beat two captured escapees].

,. In 1993 CCA built a house for
then-warden John Rees (who is now
a corporate vice president), and inmates routinely were used to mow
the grass at his residence. Another
inmate with electrician's training was
taken from the prison to perform
electrical work on the house.
Readers should note that no
fonnal charges have been brought
against CCA or officials at South
Central in reference to the fonner
officer's accusations. He is expected
to name six other fonner CCA employees who have first-hand knowledge of events at South Central and
who can verify his claims. 0
Source: The Buffalo River Review
(Linden, TN), October 7, 1998.

Candidate Challenges Private Prison Law
John Jay Hooker, unsuccessful
Democratic candidate for governor
in Tennessee, has filed a lawsuit
challenging the legality of a 1986
statute that allows the state to contract \\;th private prison companies.
The suit, filed October 27, claims
the Private Prison Contracting Act
is unconstitutional.
"I don't think they have any
more right to privatize prisons than
they do to privatize the highway
patrol or mental hospitals or the
school system," said Hooker. "These
arc functions of government and arc
created for the conmlon benefit under the Constitution, and can"t be
sold for the benefit of profiteers."

Named as defendants in the
lawsuit arc Gov. Don Sundquist,
Hooker's Republican gubernatorial
opponent; Attorney General John K.
Walkup; Department of Correction
Commissioner Donal Campbell; and
Comptroller William Snodgrass. The
lawsuit was filed in Davidson Co.
Chancery Court.
Hooker has criticized Governor
Sundquist for accepting campaign
contributions from CCA.
Article I, Section 32 of the
Tennessee Constitution states, "That
the erection of safe prisons, the inspection of prisons, and the humane
treatment of prisoners, shall be provided for." Hooker contends in his

suit that contracting the care and
custody of prisoners to private forprofit companies violates the Constitutional delegation of such authority to the slate.
Presently only one state prison
is privately operated pursuant to
the 1986 statute: the South Central
Correctional Centcr in Wa)ne Co.,
which is managed by CCA. If the
Private Prison Contracting Act is
deternlined by the courts to be unconstitutional the company's contract
to operate South Central would be
declared null and void. 0
Source: The Tennessean, October
28, 1998.

p.e.I. News Bulletin

5

November 1998

Wackenhut Prison a "Work in Progress"
Inmates at WackenhuCs newly- problems at the facility - including
opened Lea Co. Correctional Facility stabbings, lockdo\'tns and an incident
in Hobbs, New Mexico say condiinvolving misuse of force (see p. 6).
tions at the privately-operated prison "With any startup prison, whether
are harsher than in the state system.
it's public or private, there are inmateSeveral hundred New Mexico pris- adjustment issues," slated Al Parke,
oners were returned from a private warden at the facility.
facility in Arizona when the Hobbs
Prisoners aren't the only ones
prison opcned last May.
complaining, however. Inmate advoInmates at the Wackenhut-run cates claim the facility does not profacility are not pennitted to watch vide sufficient vocational training
.T.V. in their cells, must walk single and industr), programs. Only one
file within a three-foot space between . vocational course is presently availthe wall and a yellow stripe on the able. Although the prison has been
floor in the hallways, and cannot praised by state officials for its
talk while moving about the prison. advanced computer class, the class
Overhead fluorescent lights in the has just 17 computers. There are 574
two-man cells stay on at night. ""They inmates at the Hobbs facility, which
treat us like kids," gripped inmate will hold 1,200 after construction is
Lorenzo Martinez.
completed in mid-December. "It's a
Beyond complaints aboul living work in progress," said New Mexico
conditions there have been teething Corrections Department spokesman

Michael Toms.
Wackenhut plans to add additional vocational and educational
programs; the company also intends
to start a prison industry in which
100-200 inmates will assemble computer components, including motherboards. The industry is expected to
begin March 31, 1999.
Wackenhut is building another
prison in Santa Rosa - the 600-bed
Guadalupe Co. Correctional Facility
- which will open by the end of
the year. The Hobbs prison will be
expandable to 2,200 beds and the
Santa Rosa facility expandable to
1,200 beds. 0
Sources: The Hobbs News-Sun (NM),
November 8, 1998; The Denver Post,
October 3, 1998; Wackenhut press
release. September 9, 1998.

Opposition to CCA's D.C. Prison Grows
CCA is a leading contender for
a Federal Bureau of Prisons contract
to house 2,200 District of Columbia
inmates at a privately-run facility. The
company has acquired 42 acres of
District land in Ward 8 on which it
plans to build the prison (sec PCINB,
Sept. 1998, p.5); however, some local
residents and public officials object
to the proposed facility.
""CCA is trying to buy the good
will of the people of Ward 8," said
Eugene D. Kinlow, leader of a coalition that opposes the prison. "It isn't
going to work."
Ward 8 Councilwoman Sandra
Allen agrees: "I \\ill be speaking out
at the zoning hearing, to Congress if
necessary and, if it gets that far,

lobbying my colleagues in council to
vote against the facility." Allen said
eight of ten neighborhood commissioners voiced opposition to the
prison plan. She previously had endorsed the CCA facility.
Other community members expressed support for the proposed
prison, noting that it would be bettcr
to incarcerate D.C. inmates close to
their families than to send them to
facilities in othcr states.
At least one outspoken advocate
for the CCA prison, Rahim Jenkins,
is being paid by the company - he
has a contract to recruit and train
employees for the CCA-operated
Corr. Treatment Facility. Jenkins said
he initially opposed the Ward 8 prison

but changed his mind after speaking
with Joseph Johnson, a CCA board
member who later helped him obtain
the contract.
The D.C. Zoning Commission
will hold a public hearing Nov. 12
on CCA's request to zone its Ward 8
property for a prison. Maryland Gov.
Parris N. Glendening has announced
his opposition to the planned facility,
which would be located just over the
border from Prince George's County.
County officials previously had rejected an offer by CCA to build a
private prison in their community. 0
Sources: The Washington Post, Oct.
8, 1998; The Common Denominator
(DC), August 10, 1998.

P.C.I. News Bulletin

Peaceful Protest
Quelled by Force
On Aug. 30 Alaskan prisoners
housed at the CCA-operated Central
Arizona Detention Center (CADC) in
Florence staged a peaceful sit-do\\11
demonstration to address grievances
allegedly ignored by the prison administration.
According to an inmate present
at the facility during the incident, 50
Alaskan prisoners refused to leave
the exercise yard until the warden
responded to their complaints. Approximately half returned to their cells
after Assistant Warden Luna issued
an order to disperse.
The remaining inmates reportedly were rushed by CCA officers in
riot gear who used tear gas, batons
and stun shields to subdue them even
though they offered no resistance.
Alaska Corrections Commissioner
Margaret Pugh was quoted as saying
"It does look like an isolated, spontaneous incident." It was not clear
whether she referred to the prisoners'
peaceful protest or the violent response by CCA staff.
The sit-do\\n demonstration reportedly concerned issues related to
quality of food, recreation, medical
care, and educational programs at the
facility. The prisoners were seeking
the establishment of an inmate council or another representative process
where they could meet with prison
officials to discuss their problems
and concerns.
Alaska has been sending inmates
to privately-operated rent-a-jails since
1995 due to overcrowding in the state
corrections system. 0
Sources: The Anchorage Daily News,
Sept. 2, 1998; Prison Legal News,
Dec. 1998 (inmate correspondence).

November 1998

6

Wackenhut Officers Lose Jobs
at New Mexico Facility
Three officers at the Wackenhutoperated Lea Co. Correctional Facility
in Hobbs, New Mexico have lost their
jobs amid allegations of misuse of
force. Two lieutenants resigned rather
than face discipline, the associate
warden of security was removed (but
not fired) and four other officers received reprimands following an internal investigation by the company.
According to a report by Dept. of
Corrections monitor Joe Strunk, the
investigation resulted from an Aug.
13 incident in which a lieutenant
kicked an inmate in the groin. The
prisoner, Tommy McManaway, was
in handcuffs and leg shackles and
lying face do\\n on the floor at the
time. Wackenhut Lt. Paul Runkles,
who was nol involved in the incident,
said that he heard Assistant Warden
O'Roarke tell other prison employees
he "wanted to hear a thump" when
they took McManaway down, and to
"stick to their stories and he would
back them up."
The DOC report contained de-

tails that Wackenhut did not make
pUblic. Wackenhut spokesperson Pat
Canaan staled last September that
McManaway had been struck once
in the groin; he didn't disclose the
inmate was subdued and restrained
when kicked. The company also refused to identify the staff members
involved, and did not reveal the attempted cover-up.
Canaan said he had no comme~t
on the 'report and nothing more to
say about the August 13 incident.
Stnmk, the DOC contract monitor at
the Hobbs prison, has been hired by
Wackenhut as a deputy warden at the
company's Santa Rosa facility.
The Hobbs Police Department
investigated the misuse of force allegations but the district attorney's
office declined to press charges. Dept.
of Corrections spokesman Michael
Toms commended Wackenhut for its
quick response to the incident. 0
Sources: The New Mexican, Nov. 24,
1998; 1he Hobbs News-Slln, undated.

Inmate Shot, Killed at Cornell Prison
A grand jury in Howard Co.,
Texas has declined to indict a Cornell
guard following an investigation into
the shooting death of a prisoner who
tried to escape from the company's
Interstate Unit in Big Springs.
On August 8 inmate Lesario
AI\'arcz-Cubillos, a Mexican national,
was spotted climbing over the fence
at the prison. He reportedly failed to
comply \\;th orders to stop, both in
Spanish and English, and ignored a
warning shot. Cornell officer Vincente

Bustamante then fatally shot him in
the back as he attempted to flee.
AI\,arel-Cubillos was serving a
se\'en-month sentence for illegal entry
into the counay and violating terms of
supervised release. "We feel real confident that our staff did exactly what
they were supposed to do," stated
Cornell regional director Dale Bro\\ll.
"It was an unfortunate situation." 0
Sources: Abilene Reporler News, Oct.
3, 1998; Odessa American, undated.

P .C.I. News Bulletin

7

November 1998

CCA Launches Ad Campaign
In' late October the Nashvillebased Corrections Corp. of America
began placing full-page promotional
advertisements in Tennessee newspapers. The ads appeared in The
Tennessean, the Commercial Appeal
(Memphis) and The Jackson Sun,
among other in-state publications. In
November CCA started airing commercials on a local T.V. station.
The company's advertisements
tout CCA as being equivalent to
the nation's si.....th largest corrections
system, with 78 prisons, jails and
detention centers under contract in
26 states and three countries. The ads
also profess:
c>
That CCA has a lower rate of
violence at its facilities. Comparable
rates are not provided. However,
according to Tennessee officials the
rate of serious incidents at the CCAoperated South Central Corr. Center,
ranging from assaults to drug possession, was 28% higher than the
rate at state facilities in 1997.

That CCA has a lower staff
turnover rate than in state prison
systems. Comparable rates are not
provided. But a 1997 study by the
Tenn. Dept. of Correction found the
turnover rate at CCA's South Central
Corr. Center was 77% - more than
twice the rate at state facilitics. CCA
disputed the study's methodology.
c>

c>
That on average it costs approximately $ I 1.00 per inmate per
diem less to house prisoners in CCA
facilities than in publicly-operated
prisons. This ignores the fact that
unlike state and federal corrections
systems, CCA manages very few
maximum-security prisons, women's

facilities and prison medical centers,
whieh have the highest operating
costs. Also, CCA can reject inmates
who are expensive to incarcerate,
such as those with HIVIAIDS.
Co
That CCA prison officers meet
American Correctional Association
(ACA) training standards. Not mentioned is that the ACA requires only
40 hours of training. According to
the 1997 Corrections Yearbook, the
national average for public correctional officers is 229 hours of preemplo)1l1ent training.

Co
That more than 12 independent
studies indicate prison privatization
can save up to 28% over publiclyrun facilities. No information is provided regarding when, where and
by whom the studies were conducted.
But according to a report released
earlier this year by the Council of
State Governments, "60% [of the
Departments of Correction reporting]
saved less than 5% through privatization .... none saved more than
15%." This reflects an analysis of
all areas of prison privatization, including transportation, medical and
food services, and facility operation.

CCA's media blitz began just
before the November 3 elections;
several state la\\makers, including
Sen. Pete Springer, strongly opposed
prison privatization. Springer's opponent was endorsed by Gov. Don
Sundquist, who has business and
political ties to CCA co-founder
Tom Beasley. CCA C.E.O. Doctor
R. Crants donated $40,000 to the
Republican Party last September,
which was used to fund "issue ads"
against Senator Springer and other

Democratic candidates.
The company's T.V. and print
ads depict stem-looking correctional
officers and adorable children, and
bear the corporate slogan, "Quietly
going about the business of public
safety." There is no mention of the
multiple escapes, beatings, stabbing
deaths, riots and assaults on prison
staff that have occurred at various
CCA facilities over the past several
months. 0
Sources: WPSD Channel 6 News,
Oct. 27, 1998; ads published in The
Tennessean, Commercial Appeal and
The Jackson Sun, Oct. 25 - Nov. 3,
1998; The Knoxville News-Sentinel
(undated).

Third Quarter
Earnings Up
In Oct. CCA announced thirdquarter revenue of $179.1 millionan increase of 41 % from last year's
third quarter - with $21.1 million in
net income, up 54% from 1997.
CCA's stock rose almost 10% following the announcement.
Wackenhut Corrections Corp.,
the nation's second-largest private
prison company, posted third-quarter
revenue of $78.3 million, an increase
of 42% from $55.1 million in 1997.
The company's net profit was $4.46
million, up from $3.19 million the
previous third quarter. 0
Sources: The Tennessean, Oct. 23,
1998; Waekenhut press release, Oct.
23, 1998; PPRl, Nov.lDee. 1998.

November 1998

8

P.C.I. News Bulletin

CCA Officers Injured

Rebound Rebounds?

OK Not O.K. with CCA
Last September the Oklahoma
Corrections Board decided to cancel
a contract "ith CCA to house inmates at the company's North Fork
Corr. Cenler in Sa}Te. The contract
termination foHowed a dispute over
the per diem rale paid by the slale;
the Board felt il had been overcharged by about $858,000 a ycar.
The privately-nm facility holds both
Oklahoma and Wisconsin prisoners
(see PClNB, July 1998, p.5).
Gov. Frank Keating asked the
Corrections Board to reconsider its
decision. Some board members criticized his request, as CCA C.E.O.
Doctor Crants and Patrick McCoy,
the company's liaison ,\'ith the state,
had each donated $5,000 to Gov.
Keating's election campaign.
A CCA spokesman denied that
the company had asked Governor
Keating to intervene on its behalf.
Oklahoma still has contracts with
other CCA prisons in the state, including the Davis Corr. Center and
the Cimarron Corr. Facility. 0

An October 19 incident at the
Last April Colorado officials
closed the Rebound, Inc.-operated CCA-operated South Central Corr.
High Plains juvenile facility in Brush Center in Wa'yne County, Tennessee
after an investigation found abuse, sent three correctional officers to a
sexual misconduct, mismanagement local hospital for treatment of minor
and deficient mental health care. The injuries.
According to Warden Kevin
investigation was initiated after 13year-old Matthew Maloney hWlg Myers, two prisoners started a fisthimself at the prison in Februal)'. fight in the inmate dining. area
Following an appeal, a judge later following an argwnent. After they
upheld the state's decision to sus- left to continue the fight outside three
pend ReboWld' s license.
officers arrived and attempted to
Now a new company, Youth separate them; during a brief strugEducation Corp., has applied to re- gle, which was joined by a third inopen the High Plains facility. Youth mate, the officers suffered abrasions
Education Corp. has the same chief and bruises. One received stitches
operating officer and C.E.O. as for minor cuts.
ReboWld and shares the same adThe facility was put on tempdress; the company intends to use oral)' lockdo\'m -following the althe same treatment program with the tercation, which Warden Myers said
same psychiatrist, psychologist and is being investigated; the prisoners
doctor originally employed at High involved in the fight were placed
Plains by Rebound.
in segregation pending disciplinary
Youth Education Corp: pro- charges. The incident occurred one
posed renaming the facility the Salt week aner four inmates escaped from
Creek School. 0
South Central (see p. 1). 0
Sources: U.S.A. Today, November 9,
1998;PPRl, Nov.lDec. 1998.

Source: PPRI, Nov.lDec. 1998.

Source: Wayne County News (TN),
October 21, 1998.

\Vackenhut Wins Jail Contract
Wackcnhut Corrections has been
awarded a contract by the San Diego
County Board of Supervisors to
renovate and manage an eight-story
former county jail located in dO\\llto\m San Diego. The company will
lease the facility for an initial ternt
of fifteen years.
Said Wackenhut C.E.O. George
C. Zoley, "This project represents
a very important expansion of our
company's presence in the' southern

California market." Wackenhut beat
out CCA, which also was vying for
the contract bid. Both companies
may have the opportunity to do
business with the state: Earlier this
year Governor Pete Wilson signed a
bill that \\ill allow the California
Dept. of Corrections to contract with
private prison operators for up to
2,000 beds.
Following renovations the San
Diego jail is expected to open Jan. I,

2000; it will house 750 to 900 inmates, most likely from federal agencies such as the INS or the U.S.
Marshals Service. Wackenhut anticipates annual revenue of aroWld $20
million from the facility. Zolcy notcd
that the jail "ill provide income to the
county in the form oflease pa}ments,
taxes and utilities. 0
Source: Wackenhut press release,
November 11, 1998.

P.C.I. News Bulletin

In the Ne'ws
Rhode Island correctional officers
oppose prison privatization so
strongly that they rejected a contract
offer with retroacti\'e 13% pay increases because the state also wanted
to privatize medical and food sen'ices at adult facilities. The proposed
collective bargaining agreement also
included the possibility of privatizing other prison functions. A revised
contract is being negotiated with
the Rhode Island Brotherhood of
Correctional Officers. Sources: The
State Gazette (TN), Oct. 17, 1998;
PPRl, Nov.lDec. 1998.
New Mexico inmate Joshua McCann
was found beaten and unconscious
in his cell at the CCA-run Torrance
Co. Detention Center on Sept. 10.
More than a week later he remained
in critical condition. State officials
are investigating a delay of several
hours before McCann was found
by CCA staff, who were alerted to
the beating by a phone caU from a
local radio station. Source: Hobbs
News-Sun (NM), undated.
A Wackenhut-run juvenile facility
in Jena, Louisiana is scheduled to
open in December following a threemonth delay. Last August U.S. District Court Judge Frank Polozola
postponed the opening of the 276bed prison after finding deficiencies
at the facility. The Jena prison has
been mentioned in a federal investigation of former Governor Edwin
Edwards; Edwards' niece, Wanda
Edwards, is a Wackenhut lobbyist.
Sources: U.S.A. Today, November
2, 13, 1998; The Dallas Morning
News, undated.

9

November 1998

Ohio Gets Tough on Private Prisons
On Oct. 7 the Ohio Correctional
Institution Inspection Committee released a 23-page report recommending that additional restrictions be
placed on privately-operated prisons
within the state. "I still do not believe
that private prisons are good for
Ohio," said Senator Rhine McLin,
chairwoman of the committee. "We
need to take these steps to make them
safer."
The report was largely the result
of an investigation into the July 25
escape of six Washington, D.C. inmates from CCA's Northeast Ohio
Corr. Center in Youngstown, which
has been criticized for high levels
of violence and improperly housing
maximum-security prisoners.
The committee recommended
that private prisons not be allowed to
accept out-or-state inmates classified
above medium security, that employees at privately-operated facilities
meet Ohio's minimum training requirements, that state officials be
granted access to inspect privatelyrun prisons and inmate records, that
private prisons pay for annual state

audits, that private corrections companies not receive incentive tax
brcaks from contracting government
agencies, and that all private prison
contracts be reviewed by the Ohio
Attorney General's office.
As a result of the Youngstown
escape the committee further recommended that prisoners at privatelyoperated facilities be required to wear
statc-approved uniforms instead of
street clothes and that escapes from
private prisons be promptly reported
to local law enforcement authorities.
The committee report also sharply
rebuked CCA and D.C. corrections
officials in connection with problems
at the YoungstO\\TI prison.
The recommendations were attached to pending legislation and
submitted to the Senate Judiciary
Committee on Oct. 14. The Judiciary
Committee is expected to approve
the bill and send it to the full Senate
during the next legislative session. 0
Sourccs: The Columbus Dispatch,
Oct. 15, Nov. 14, 1998; The Akron
Beacon Journal, Oct. 8, 1998.

Colorado Convicts to Come Home
Approximately 1,000 Colorado
prisoners incarcerated at a contract
facility in Minnesota are expected
to return to their homc state by
Dccember, where they will be housed
in two privately-operated prisons.
According to the Colorado Dept.
of Corrections the state has contracted for 600 of 1,200 beds at a prison
in Olney Springs and all 760 beds at
a facility in Burlington. The Olney
Springs prison also is expected to

house 600 inmates from Hawaii and
has agreed to hold 97 Wyoming prisoners on a tcmporary basis.
The Burlington facility is being
buill by CCA, which operates two
other prisons in the state - the Bent
Co. Corr. Facility and the Huerfano
Corr. Facility. The Olney Springs
prison is being built by Dominion
Correctional Properties of Edmond,
Oklahoma and \\ill be managed by
the Correctional Services Corp. 0

p.e.I. News Bulletin

10

November 1998

Tennessee to Regulate Prison Privatization

In the Nelvs
An wmamed inmate was stabbed at
the Wackenhut-run Lea Co. Corr.
Facility in Hobbs. New Mexico on
Sept. 13; he was treated at a local
hospital and returned to the prison.
which was put on partial 10ckdo\\11.
According to Warden AI Parke the
facility has been locked down at least
ten times since opening last May.
Source: The Hobbs News-Sun (NM),
September 15,1998.
Immigration detainees at a Wackenhut-operated INS facility in Queens,
New York went on a hunger strike
from Oct. 5 to Oct. 8. At least 35
detainees took part in the protcst
over their lengthy confinement while
awaiting hearings for political asylum. Source: Workers World, Oct.
22, 1998.
A private prison hospital in Richland
County, South Carolina is open for
business, though it's nearly empty.
Backers expect the 326-bed facility
to be at or near capacity by July
1999; the Columbia Care Center.
operated by Alabama-based Just
Care, Inc., presently has just two
imprisoned patients. Source: U.S.A.
Today, November 10, 1998.
CCA announced it has completed
plans to remove 295 "high medium"
security inmates from the company"s
YoungstO\\n, Ohio facility. Sixtythree prisoners were returned to the
Federal Bureau of Prisons by the end
of September, and 80 more were
transferred to other CCA prisons.
Source: The Akron Beacon Journal,
October 8, 1998.

Although Tennessee's General
Assembly passed the Private Prison
Contracting Act to regulate state
facilitics operated by private corrections companies, there is no law that
regulates privately-run prisons that
house out-of-state inmates. According
to lawmakers this may change.
On October 22 a meeting of
the Select Oversight Committee on
Corrections heard recommendations
for keeping a closer rein on private
prison operators, from requiring them
to pay the cost of capturing escapees
to limiting the kinds of inmates they
can bring into the state. "We should
be proactive on this issue," said committee chairman Sen. Jim Kyle, who
expects to introduce a regulatory bill
during the next legislative session.
The committee heard from consultant Don Stoughton and Assistant
Attorney General Andy Bennett, who
described statutory restrictions on the
private corrections industry in other
states. They said Arizona requires
private prison contractors to inform
state officials of the nunlber, names
and security levels of inmates brought
in from other jurisdictions. Oklahoma
docs not accept out-of-state inmates
convicted of sex-related offenses, who
have histories of escape, or who
are classified as maximum-security.
Earlier this year Idaho enacted a law
to regulate the construction and operation of privately-run prisons (sec
PCINR, June 1998. p. 4), "1 think
you"1I see state governments revisit
all that has been thought or as basic
issues on [prison] privatization and
re-evaluate," said Scn. Kyle.
Currently there are three privately-run facilities in Tennessee that
house out-or-state prisoners, all operated by CCA. Assistant Attorney

General Bennett noted that state law
as presently \,TiUen does not apply
to private prisons that house nonTennessce innlates. He said the only
state oversight of such facilities includes zoning approvals, fire marshal
regulations and building codes.
Although some committee members expressed concern about private
corrections companies importing inmates into Tennessee, Governor Don
Sundquist supported the practice. "I
don't have a problem with somebody
being in the prison business and
bringing prisoners in from other
states, as long as prisoners fit the
prisons that is [sic] built for them,"
he said. Governor Sundquist has received at least 533.000 in campaign
donations from CCA-related sources
since 1994. 0
Sources: The Tennessean, Sept. 3,
Oct. 17, 23, 1998.

Recommended Reading
"Should Crime Pay?" A report about
the private prison industry available
from AFSCME Corrections United,
1625 L St. N.W., Washington, DC
20036-5678 (202) 429-1215; web
site: www.afscme.org.
'"The Prison-Industrial Complex." An
article that discusses profit-motivation in the criminal justice system,
including the private corrections industry. Published in the Dee. 1998
issue of The Atlantic Monthly, 745
Boylston Street, Boston, MA 02116
(617) 536-9500; (800) 234-2441.