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Private Prisons Foster Corruption

Contracting increases opportunities for corruption. With so many tax dollars at stake, there are great temptations for politicians to exchange lucrative prison contracts or subsidize private prison financing schemes for campaign contributions. In addition, private corrections firms reward former public officials with highly-paid jobs. For instance, as the commissioner for the Alaska Department of Corrections, Frank Prewitt wrote memos stating that due to "public safety concerns" and the state's "demographics," building private prisons in Alaska was not a good idea. Now, two years later, he is the president of Allvest Inc., a private corrections firm, and has changed his tune.30

East Carroll, La., private prison kickback scheme.

In October 1997, two employees of the private East Carroll Corrections System were found guilty of multiple counts of mail fraud and money laundering for a private corrections kickback scheme. The scheme involved the East Carroll Parish sheriff's office which "overpaid" lease payments to the private prison company, which then funneled $340,000 from these "overpayments" back to the sheriff. The sheriff also had a financial interest in the prison company.31

Jail Official Quits Private Consulting Job.

A 1997 audit by Montana corrections officials identified 29 areas of noncompliance at a West Texas private prison that housed Montana inmates. In addition, the U.S. Justice Department was conducting an investigation for civil rights violations at the prison, including inmates' lack of access to medical care. However, a Texas state regulator gave the prison a clean bill of health in an inspection conducted for the Texas Commission on Jail Standards, which regulates prisons in the state. It was later discovered that the state regulator was being paid $42,000 a year as a consultant for the prison's operator, the Bobby Ross Group. The state regulator was forced to quit his job as a private consultant after Montana corrections officials complained about the obvious conflict of interest.32

30 Natalie Phillips, "Ex-Corrections Chief's View Takes New Turn," Anchorage Daily News, February 16, 1998.

31 "Lawyer, Assistant Convicted In Prison Kickback Scheme," The Baton Rouge Advocate, October 17, 1997.

32 Mary Alice Robbins, "Texas Jail Commission Looks To Prevent Conflicts Of Interest," Morris News Service, December 5, 1997; Ken Herman, "Jails Official Quits Private Consulting Job," Austin American-Statesman, November 13, 1997.

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