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Correctional Services Fraud

This archive displays posts tagged as relevant to fraud in the correctional services industry, also referred to as private prison fraud. You may also be interested in the following pages:

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Immigration Detention Facilities Continue to Pose Fraud Risks

Posted  05/9/19
By Sarah “Poppy” Alexander
Child Behind a Fence
Last summer, we wrote about the fraud risks inherent in the massive increase in government spending for immigration detention. Almost one year later, a child’s tragic death again calls attention to failures at the immigration facilities that maintain ever increasing government contracts. On April 30, 2019, a sixteen-year-old boy died at a Southwest Key facility in Brownsville, TX, two weeks after arriving in the...

January 24, 2019

Mississippi recovered $26.6 million in settlements with private prison and correctional services contractors including for-profit correctional facilities operators Management and Training Corporation ($5.2 million) and Cornell Companies, Inc., now part of GEO Group ($4.6 million), correctional healthcare provider Wexford Health Sources, Inc. ($4 million); commissary management company Keefe Commissary Network, LLC ($3.1 million), and construction company C. N. W. Construction Company ($3.1 million).  The state's lawsuits against the companies alleged that they used "consultants" as conduits to pay bribes and kickbacks to a commissioner of the Mississippi Department of Corrections, Christopher Epps.  MS

May 4, 2018

Cary Hudson, a former financial administrator for the U.S. Bureau of Prisons, agreed to pay $50,000 to resolve allegations he violated the Anti-Kickback Act by accepting improper payments from Texas-based Integrated Medical Solutions Inc. in exchange for his assistance in obtaining BOP contracts. IMS and its former president Jerry Heftler previously agreed to pay more than $2.4 million for their role in the alleged scheme. DOJ

With Legal Loophole, Alabama Sheriff Takes $750k Earmarked for Inmate Food, Spends $740k on Beach House

Posted  03/15/18
By the C|C Whistleblower Lawyer Team Etowah County Sheriff, Todd Entrekin, used a depression-era law that allows sheriffs to “keep and retain” unspent money from accounts provisioned for jail food. Sheriffs across the state are permitted to take the money as personal income, although they are also personally liable for any gap. Entrekin does not dispute using the funds as a personal account, and many sheriffs...

June 5, 2017

Texas-based Integrated Medical Solutions Inc. and the company’s former president Jerry Heftler agreed to pay roughly $2.5 million to settle allegations they violated the False Claims Act and Anti-Kickback Act in connection with the U.S. Bureau of Prisons. DOJ

Fraudster of the Week -- Texas State Senator Carlos Uresti

Posted  05/19/17
By the C|C Whistleblower Lawyer Team On Tuesday, a federal grand jury in San Antonio returned two indictments against state senator Carlos Uresti in connection with two schemes—one involving alleged kickbacks for a medical services contract at a county jail, and a second dealing with an alleged Ponzi scheme that marketed sand used for hydraulic fracking.  He now faces more than a dozen criminal charges and,...

Trump Administration Okays Continued Use of Privately Run Prisons

Posted  02/24/17
By the C|C Whistleblower Lawyer Team The Trump administration announced this week it will allow the federal Bureau of Prisons to continue contracting out prison services to private companies. Attorney General Jeff Sessions issued a memo rescinding an Obama administration memo that had directed the federal government to phase out and ultimately stop relying on private prisons. Sessions’ order says the earlier memo...

October 27, 2016

Theodore E. Suhl, owner of two Arkansas mental health companies that provide inpatient and outpatient mental health services to juveniles, was sentenced to 84 months in prison and to pay a $200,000 fine for engaging in a scheme to bribe a former deputy director of the Arkansas Department of Human Services in exchange for business resulting in more than $1.5 million in profits for Suhl’s juvenile mental health counseling business.  DOJ

The New Federal Rules on Private Prisons Will Not End Private Prisons — But There May Be Another Answer

Posted  11/2/16
By Anne Hayes Hartman and Sarah Poppy Alexander As we recently argued in The Tennessean, the Department of Justice’s (DOJ) decision to end the use of private prisons for select federal facilities is a first step towards reforming the industry.  However, DOJ’s announcement will have only a limited impact.  Only 13 federal Bureau of Prisons facilities are affected, leaving the remaining privately run...

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