politics and piecp

8/14/2019 Politics and PIECP

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Politics and PIECP Violations

The Rest of the Story.


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How Politics From 1999 to Present Have Corrupted The

Prison Industries Enhancement Certification Program

STARTING with the Governorship of two southern states by brothers a sub-culture was developed and put into place. The operation allowed a windfall of

money to be made by supporters and political pals from the use of the

federally run Prison Industries Enhancement Certification Program (PIE

Program). Using the PIE Program in conjunction with both public and

privately run prisons and Industry operations, millions of dollars were flowing

freely. Companies like Wackenhut (now GEO Group) and CCA received

hundreds of millions from Texas and Florida Treasuries for housing prisoners

for both states and others. Not satisfied with those profits, the principals

involved put the prisoners to work and earned even larger profits from their

labors.

This scheme soon involved most state Departments and Agencies in Texas,Florida and in 2000 infected the U.S. Governments Departments and

Agencies from inside.

In 2004 cracks began to appear in the operation and investigations soon led to

indictments, convictions and prison sentences for some. Bankruptcy, business

closure and disgrace to other participants.The followin is that stor .


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Relationships between large corporations, prison industries, the NCIA and others are being used toRelationships between large corporations, prison industries, the NCIA and others are being used to

facilitate an abuse of federal PIECP. The road to such abuses began in 1995 in Texas underfacilitate an abuse of federal PIECP. The road to such abuses began in 1995 in Texas under

Governor George Bush. He supported conservative faith-based community initiative programsGovernor George Bush. He supported conservative faith-based community initiative programs

(FBCI) and those who pandered the program(s) to the Governor. The original concept to use(FBCI) and those who pandered the program(s) to the Governor. The original concept to use

PIECP in conjunction with FBCI programs was suggested to Governor Bush by Bill RobinsonPIECP in conjunction with FBCI programs was suggested to Governor Bush by Bill Robinson

with Corrections Concepts, Inc.and the Born Again Corporation, Inc. Minister James T. Draper, Jr.with Corrections Concepts, Inc.and the Born Again Corporation, Inc. Minister James T. Draper, Jr.

worked with Robinson to plan and promote CCI. Draper is a theologically conservative Baptist andworked with Robinson to plan and promote CCI. Draper is a theologically conservative Baptist and

a prominent figure in the Southern Baptist Convention. Robinson is still working to implement thea prominent figure in the Southern Baptist Convention. Robinson is still working to implement the

Habilitation House concept he first proposed to Bush in 1995. So far eight Texas CommunitiesHabilitation House concept he first proposed to Bush in 1995. So far eight Texas Communities

have fought to deny the placement of the facility in their jurisdiction.have fought to deny the placement of the facility in their jurisdiction.

Some of the Corporations involved have ceased to exist due to indictments and court issued prisonSome of the Corporations involved have ceased to exist due to indictments and court issued prison

sentences. Others remain and continue to manipulate PIECP to their advantage. This presentationsentences. Others remain and continue to manipulate PIECP to their advantage. This presentation

points to relationships between George Bush, Jeb Bush, Wackenhut Corp. (Geo Group), USpoints to relationships between George Bush, Jeb Bush, Wackenhut Corp. (Geo Group), US

Technologies, Inc., Corrections Concepts, Inc. and other corporations involved in faith-basedTechnologies, Inc., Corrections Concepts, Inc. and other corporations involved in faith-based

community initiative programs and PIECP.community initiative programs and PIECP.

Directors of the Corporations named herein include high profile and still well connectedDirectors of the Corporations named herein include high profile and still well connected

individuals who have served within the US Government in one capacity or another and since haveindividuals who have served within the US Government in one capacity or another and since have

become involved in the Corporations involved in manipulation of the PIE Program.become involved in the Corporations involved in manipulation of the PIE Program.

A Complete lack of actual oversight of PIECP is allowing the program to be altered to decreaseA Complete lack of actual oversight of PIECP is allowing the program to be altered to decrease

inmate wages, disadvantage private sector competitors and improperly sell or distribute prisonerinmate wages, disadvantage private sector competitors and improperly sell or distribute prisoner

made products within the state of manufacture without adhering to the mandatory guidelines of 18made products within the state of manufacture without adhering to the mandatory guidelines of 18

USC 1761(C).USC 1761(C).

The next slides will identify the PIECP requirements, demonstrate the violations and name theThe next slides will identify the PIECP requirements, demonstrate the violations and name the

Corporations and individuals involved.Corporations and individuals involved.

OverviewOverview


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PIECP Guideline MandatoryPIECP Guideline Mandatory

RequirementsRequirements Legislative Authority to involve PrivateLegislative Authority to involve Private

SectorSectoradministrative authority to ensureadministrative authority to ensure

that mandatory program criteria will be metthat mandatory program criteria will be met

through internal policies and procedures.through internal policies and procedures.

Legislative authority to pay wages at a rateLegislative authority to pay wages at a rate

not less than that paid for similar work innot less than that paid for similar work in

the same locality's private sectorthe same locality's private sector

Written assurances that the PIEWritten assurances that the PIE

Certification Program will not result in theCertification Program will not result in the

displacement of workers employed beforedisplacement of workers employed before

program implementation.program implementation. Groups beforeGroups before

Start-upStart-up

Authority to provide worker benefits,Authority to provide worker benefits,

including workers' compensation or itsincluding workers' compensation or its

equivalentequivalent

Written assurances that inmate participationWritten assurances that inmate participation

is voluntary.is voluntary.

Legislative or administrative authority to takeLegislative or administrative authority to take

deductions not to exceed 80 percent of grossdeductions not to exceed 80 percent of gross

wages for room and board; taxes (federal,wages for room and board; taxes (federal,

state, local); allocations for support of familystate, local); allocations for support of family

pursuant to state statute, court order, orpursuant to state statute, court order, or

agreement by offender; and contributions ofagreement by offender; and contributions of

not more than 20 percent, but not less than 5not more than 20 percent, but not less than 5

percent of gross wages to any fundpercent of gross wages to any fundestablished by law to compensate the victimsestablished by law to compensate the victims

of crime.of crime. Follow EPA StdsFollow EPA Stds

Written proof of consultation with relatedWritten proof of consultation with related

organized labor before PIE Certificationorganized labor before PIE Certification

Program startup.Program startup.

Written proof of consultation with relatedWritten proof of consultation with related

local private industry before PIE Certificationlocal private industry before PIE CertificationProgram startupProgram startup

Compliance with the National EnvironmentalCompliance with the National Environmental

Policy Act and related federal environmentalPolicy Act and related federal environmental

review requirements.review requirements.


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PIECP Violations

Substitution of minimum wage for

prevailing wage

Drawing PIE orders from

inventory.

Inmates not paid for sub-assembly

parts mfg.

Rm. & bd. deductions being

diverted to use of industry

Illegal spin-off corporations.

Self-dealing

Money Laundering

Mail and wire fraud

Seizure of private sector assets of

PIE partners

Improper loans

Interlocking managers, directors

and staff

Conflict of interest of NCIA

oversight authority

IRS tax violations

Improper use of PIECP Certificates

Government manipulation of PIE

program through faith-based

community initiatives

Embezzlements of private prison

corp. funds Bribes, kickbacks and illegal

schemes of privatized state

contracts


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PRIDE Enterprises & Florida

PIECP ViolationsAll of those violations listed on preceding slide and more particularly:

1999-2005 Formed and operated illegal spin-off Corporations (see Fl. IG Report 2004-4).

Money Laundering-conversion of PRIDE funds to other PRIDE owned Corp.s and receiving personal

salaries and bonuses from those corporate entities through this manner (see Fl. IG Report 2004-4).

2001-2005 Takeovers of private sector businesses, Custom Converter Sales, Value Line, Man-Trans,Fresh Nectars and ATL Industries. Converted these corporations assets to PRIDEs use.

Mail and Wire Fraud-by submitting false demands for money not actually owed to private sector PIECP

Partners, and receiving payments upon those false invoices.

Commingling of for profit and nonprofit funds of all spin-offs with PRIDE financial accounts.

IRS violations involving commingling of funds and illegal or disallowed lobbying of Florida Legislature

and Executive branches of government for enactment or amendments to Florida laws benefiting PRIDEprohibited by IRS 501 (c)(3) exempt status.

Failure to declare the Lobbying Expenditures to the IRS, instead hiding those expenses under legal

expenses 1998-2009

Failure to pay inmate workers the mandatory prevailing wage scale, substituting minimum wage or

standard prison wages in violation of 18 USC 1761(C).

Taking deductions of 40% of inmates earned wages for room and board to offset costs of incarcerationand diverting those funds ($3.1 million) to PRIDE operational expenses use.


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Faith-Based Initiatives In PIECP

1996-Appointment of 16 member TaskForce by Texas Governor George Bushon how faith-based programs couldoperate without GovernmentInterference.

1996-Support of Corrections Concepts,

Inc.(CCI) by George Bush. 1997-Involvement of faith-based

Habilitation House program withPIECP program in Texas. Entry levelwage set at minimum wage.

1997-Tx. Gov. Bush Sponsored SenateConcurrent Resolution #477 to all

Texas agencies, sheriffs and Co.Commissions to permit faith-basedcorrectional programs, facilities andinitiatives to play significant role inrehabilitation.

1999-Governor Bush Letter to BillRobinson, CCI supporting his efforts of

faith-based programs for Texasoffenders and giving personal support.

1999-CCI Supporters: Dan Quayle, Bob

Stearns, Charles Colson, Bill Glass,

John Castellani, Hardy Raugh (ACA),

Colby May, Dick Armey.

Jan. 29, 2000-President Bush issued

Executive Order establishing White

House Office of Faith-basedCommunity Initiatives in 5 US

Departments. This allowed expansion of

the PIECP program under state prison

industries.

Dec. 2004-Executive Order: Equal

Protection of the Laws for Faith-Basedand Community Organizations.

Mar. 9, 2006-Executive Order

Responsibilities of the Department of

Homeland Security With Respect to

Faith-Based and Community Initiatives.


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Fla. Connections to Texas and

Prison Industry Op.s in PIECP 1999-Partnership between Wackenhut

Inc. and US Technologies for 2 PIE

operations at Moore Haven CI and

South Bay CI. Inmates to be paid

minimum wage under training program

(FDOC held PIE Certificate at time)

Wackenhut moved headquarters toMiami, Fl.

1999-Partnership between Wackenhut,

Inc. and US Technologies for 1 PIE

operation at private prison industry in

Lockhart, Tx. Minimum wages paid

instead of prevailing wages 2004-Gov. Jeb Bush opened 1st US

Faith Based Prison facility at Lawtey

CI. LCI has a PRIDE prison industry in

operation

2000-PRIDE partnered with CCS at

South Bay CI to operate private prisonPIE operation

1993-Fla.formed Corrections

Privatization Commission (CPC) to

oversee private prison operations in Fl.

2001-Reinstatement ofSouth BayCorrectional Facilities FinancingCorporation by Hodges

2002-CPC Commissioner, Hodges

resigned after fine of $10,000.00 for

ethics violations. Alan Duffee

appointed as new Commissioner by

Gov. Bush

2003-Duffee took over S.Bay

Correctional Facilities Financing Corp. 2004-Duffee Resigned after indicted

for embezzlement of $224,000. From

CPC maintenance fund

2004-Duffee founded Correctional

Concepts, Inc in Fl.


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U.S. Technologies Board of Directors-2000From the Corporations 2000-2002 SEC 10K filings. U.S. Technologies Inc. describesitself as:

U.S. Technologies Inc (the "Company"), is engaged directly and indirectly

through its wholly owned subsidiaries, Labor-to-Industry Inc. (LTI") andUST, Inc., in the operation of industrial facilities located within both

private and state prisons, which are staffed principally with inmate labor.These prison-based operations are conducted under the guidelines of the1979 Prison Industry Enhancement (PIE) program.

Gregory Earls Co-Chairman of the Board.and Co-Chief-CEO

James V. Warren Co-Chairman of the Board and Co-Chief-CEO

J. L. (Skip) Moore Executive Vice-President and Chief Operating Officer

General Alexander M. Haig, Jr., former Secretary of State and White House Chief ofStaff;

The Honorable George J. Mitchell, former Senator from Maine and Senate MajorityLeader;

The Honorable William H. Webster, former Director of both the FBI and CIA;

Rick Rickersten, partner at Thayer Capital, a leading investment management firmheadquartered in Washington, D.C.;

Hal Wilson and Peter Schiff, Managing Directors of Northwood Ventures LLC andNorthwood Capital Partners LLC, venture capital investment firms headquartered inNew York;

Arthur Maxwell, President of Affordable Interior Systems, Inc., one of the 25 largestcommercial furniture manufacturers in the United States;


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OnShore Resources, Inc.

OnShore Resources is a private for-profit Corporation. They are partnered with the TDJC Industries in a

PIECP operation. This company is listed as employing 28 PIECP inmates in the First quarter of 2009. The

NCIA Assessment Reviews list them as manufacturers of Electronic Circuit Boards and wiring harnesses.

The Companys website is located at: http://www.onshore-resources.com/services.html . There they describe

their services thus:OnShore Resources is a woman-owned, HUBZone-certified business specializing in contract

manufacturing. We are UL Certified and our services include PCB assembly, cable and wiring harness

assembly, mechanical subassemblies, kitting, box build, and other labor-intensive assembly projects.

There's no doubt about it: going offshore can reduce your cost of manufacturing. But here is an equally

true fact: OnShore Resources' unique status as a PIECP participant often allows us to offer our customers

comparable cost savings for their manufacturing projects. In the past some companies have found that whenthey examined the real costs of assembly overseas - including quality issues, transportation expense and

additional logistical considerations - the prices and capabilities offered by OnShore Resources came out on

top.

Smaller companies that don't have the high volumes and stable schedules required for offshore

manufacturing are often left with few options for reducing their costs. So you'll be glad to know that

OnShore Resources specializes in low to mid-volume contracts. We offer cost savings to companies of any

size, whether small or large. Have production schedules that start and stop? Need materials management?You'll find OnShore Resources has all the flexibility and capability you need.

Our diverse client list includes companies that manufacture medical training devices, home networking

systems, commercial lighting, security systems, fast food menu displays, remote monitoring units, and PCs.

Chances are we can help you, too.

Corporate address given as: 1402 Industrial Boulevard Lockhart, Texas 78644.
http://www.onshore-resources.com/services.htmlhttp://www.onshore-resources.com/about.htmlhttp://www.onshore-resources.com/about.htmlhttp://www.onshore-resources.com/services.html


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Lockhart Technologies, Inc. (LTI)

A wholly owned subsidiary of US Technologies, Inc. Corporate address given as: 1402 Industrial

Boulevard Lockhart, Texas 78644.

In 1993 LTI closed its operation in Austin, Texas, laid off private sector workers (150) and moved itsoperations into a private prison industrial complex owned and operated by Wackenhut. As a wholly

owned subsidiary of US Technologies, LTI had interlocking managers, Directors and administrators.

Primary products manufactured by LTI are wiring harnesses, electronics and associated products.

Occupies the same building and address as US Technologies, OnShore Resources and UST.

LTI operated industrial facilities located within both private and state prisons. LTI staffed these facilities

principally with inmate labor under the guidelines of the PIE program. In this outsourcing capacity, U.S.Technologies solicits manufacturing, assembly, repair, kitting, and fulfillment services and other

businesses. Through LTI, U.S. Technologies selects inmates in a competitive process and trains them in

the job skills needed for the contracted work as well as the general job skills required to secure and hold

long-term employment. Up to 80% of the inmates' wages are withheld in order to pay fines, restitution to

victims, alimony, child support and taxes, and to reimburse the government for the costs of their

incarceration. LTI operated an electronics plant at Wackenhut's Lockhart, Texas corrections facility

which manufactured and repaired circuit boards for Dell, Motorola, HDC and Texas Digital, among

others. The Texas facility also performed various mechanical assembly operations on customer productswhich were formerly assembled in Mexico. LTI ha a furniture manufacturing plant in a state correctional

facility located in Blythe, California which presently manufactures office panel blanks for Unisource, Inc.

LTI had completed construction of a motorcycle parts manufacturing operation in a Wackenhut owned

facility in South Bay, Florida.


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Wackenhut (GEO Group)

3. Political Profile

Politicos have traditionally filled the Wackenhut Corrections Corporation Board of Directors, including:

Benjamin R. Civiletti, served from 1979 - 1980 as the Attorney General of the United States

G. Fred Dibona jr., co-recipient of the National Patriots Award from the Congressional Medal of Honor Society

in 1995 with former President George Bush

Anne Forman, former Under Secretary of the United States Air Force, former General Counsel of the Department

of Air Force and member of the Department of Intelligence Oversight Board

Richard Glanton, served from 1979 1983 as Deputy Counsel to Richard L. Thornburgh former Governor of

Pennsylvania.

A number of former government employees are now highly paid executives with Wackenhut Corrections

Corporation, including:

John M. Hurley, Senior Vice President Of North American Operations was employed for 26 years by the

Department of Justice, Federal Bureau of Prisons.

John G. ORourke, Chief Financial Officer, Senior Vice President and Treasurer, most recent position was in theOffice of the Secretary of the Air Force. Prior to joining WCC ORourke was a career officer in the United States

Airforce. http://www.wcc-corrections.com/wcc-corrections/management.asp?id=1

Manny Aragon, the New Mexico State Legislatures Democratic Leader, is a paid lobbyist for Wackenhut and once

used an Aragon company to supply concrete for Wackenhut prison construction. This is illegal activity, as

acknowledged by State Senator Cisco McSorley http://www.corpwatch.org/issues/PID.jsp?articleid=868


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Michael Olguin, former New Mexico state House majority leader, quit his role as vice-chair of the

Democratic party in Mexico to become a paid lobbyist for Wackenhut Corrections. He had previously

been very critical of Wackenhuts activities, including the incidents at the prison in August 1999 (see

below) http://www.psiru.org/justice/ppriarchive/ppri33-01-00.htm .

Wackenhut (GEO Group) Contd
http://www.psiru.org/justice/ppriarchive/ppri33-01-00.htmhttp://www.psiru.org/justice/ppriarchive/ppri33-01-00.htm


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Wackenhut Corrections Corp (now GEO

Group)Political Contributions 1995-2000

Election CyclesFrom 1995 to 2000, the three companies made a total of more than $528,000 in federal campaigncontributions -- much of it in "soft money" given to the political parties, according to theCenter for Responsive Politics, a nonpartisan, nonprofit research group in Washington, D.C.

In 2005 Wackenhut received a contract potentially valued at $500 million to provide guards to theBureau of Customs and Border Protection. Its lobbying firm is Van Scoyoc Associates, whose

vice president, Ray Cole, was a Bush Ranger last year. DHS continues to contract withWackenhut, despite evidence that the company has failed to protect power plants and militarybases. In 2003, the Department of Energys inspector general found that Wackenhut, responsiblefor guarding half of the nations nuclear power plants, had not provided adequate security at theOak Ridge nuclear weapons plant in Tennessee. At the same time, under an unprecedented planpassed by Congress in 2002, the company became one of the first private contractors hired by thePentagon to guard military bases.http://knowmore.org/wiki/index.php?title=The_Department_of_Homeland_Security_has_a_section

.In 2003-2004 George Wackenhut contributed $4,235 to Bush Cheney campaigns and RNC (http://www.campaignmoney.com/political/contributions/george-wackenhut.asp?cycle=04 ) .
http://www.opensecrets.org/http://knowmore.org/wiki/index.php?title=The_Department_of_Homeland_Security_has_a_section_on_its_Web_site_labeled_%E2%80%9COpen_for_Business.%E2%80%9D_It_certainly_ishttp://www.campaignmoney.com/political/contributions/george-wackenhut.asp?cycle=04http://www.campaignmoney.com/political/contributions/george-wackenhut.asp?cycle=04http://knowmore.org/wiki/index.php?title=The_Department_of_Homeland_Security_has_a_section_on_its_Web_site_labeled_%E2%80%9COpen_for_Business.%E2%80%9D_It_certainly_ishttp://www.opensecrets.org/


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Group)Political Contributions 2000

Election CycleWackenhut gave $20,000 towards the cost of President Bushs inauguration (St. Petersburg Times, 17Jan 2001) as well as $5,000 for his 2000 campaign (www.opensecrets.org)

2000 election gave $25,850 in Political Action Committee (PAC) donations and $55,650 in softmoney contributions. (relatively evenly distributed between Democrats and Republicans which is tellinggiven Wackenhut's hardline right wing history). Beyond Bushs $5,000, the top receivers of money were

Florida legislators: House member Mark Foley-R ($2,850) and Senator Bill Nelson-D ($3,500). Nelsonhas since been named as vice-chair of the Democratic Senatorial Campaign Committee (DSCC)

Wackenhut gave $33,325 to candidates in the 1998 election.

Made political donations in New Mexico of $9000 to the Republican Governor and $5000 to the stateRepublican Party. [Above available at www.opensecrets.org]

Florida In Florida, lawmakers considered two bills to abolish the state Correctional PrivatizationCommission and transfer its duties. Both measures arose from concerns over conflict-of-interestallegations involving the staff of this oversight body and the consultants with whom they worked. Bothbills died. Executives and lobbyists for private prisons were active campaign contributors in 2000, giving122 candidates more than $158,400. And more than half of the House and Senate candidates, or avoting majority, received at least $1,000 in contributions from industry sources. Wackenhut Correctionsgave $12,500 of its $65,200 on Nov. 1 and Nov. 2, just hours before the midnight Nov. 2 deadline forcontributions. (Taken directly from the report "PRISON COMPANIES GIVE $1.1 MILLION TOCAMPAIGNS IN SOUTHERN STATES" Campaign Donations Targeted Incumbents, Winners in 2000 The National Institute for Money in State Politics -

http://www.followthemoney.org/press/prisons.phtml)


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Group)Political Contributions 2000-2004

Election CycleAdded note on Florida: Florida created the Correctional Privatization Committee in 1993, whichwas to act as a source of information and to provide backing on state prison privatization. One ofthe strongest supporters was Charles Thomas, who was a consultant for the commission andran the Private Corrections Project at the University of Florida. At the same time he was pushingfor the state to privatize, Thomas had financial interests in prison related companies, including$660,000 in stock which included stock in Wackenhut. Ultimately Thomas was fined $20,000 and

forced to resign from the commission. ("Take Privatizing Public", Palm Beach Post, March 26th,2001).

In 2003 Wackenhut donated $58,000 to Ca. Governor Arnold Schwarzenegger when one ofWackenhuts California prisons was to be shut down (https://caclean.org/problem/latimes_2003-11-26.php) .

In the 2000 and 2004 presidential elections, Bush received $10,000 from

Wackenhuts PAC (the maximum possible contribution), while the two Democraticcandidates, Al Gore and John Kerry did not receive any contributions. In the 2002 and2004 elections 79% and 70% respectively of Wackenhut's PAC campaigncontributions went to Republicans (http://www.southernstudies.org/2005/09/be-afraid.html) .

In 2008 Election Cycle the Committees donated to and individual contributions by Wackenhutemployees/Managers can be found at:

http://www.campaignmoney.com/political/committees/wackenhut-corporation-political-action-com.
https://caclean.org/problem/latimes_2003-11-26.phphttp://www.southernstudies.org/2005/09/be-afraid.htmlhttp://www.campaignmoney.com/political/committees/wackenhut-corporation-political-action-comm-wackenhut-pac.asp?cycle=08http://www.campaignmoney.com/political/committees/wackenhut-corporation-political-action-comm-wackenhut-pac.asp?cycle=08http://www.southernstudies.org/2005/09/be-afraid.htmlhttps://caclean.org/problem/latimes_2003-11-26.php


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Convergence of Principals in

Florida in 2000-2005 South Bay Correctional Facilities Financing Corporation (Fl. Nonprofit Corp)

owned SBCI.

Clayton M. Hodges Dir. of So. Bay Correctional Facilities Financing Corp. thru2003.

Clayton M. Hodges Dir. of Glades County Correctional Facilities FinancingCorporation

Clayton Hodges also Commissioner of Fla. Corrections PrivatizationCommission.

Alan Duffee replaced Hodges as Dir. of So. Bay Correctional Facilities FinancingCorp. in 2003.

Duffee Replaced Hodges as Commissioner of Fla. CPC in 2003.

Wackenhut Corp. Operates SBCI and Moore Haven CI.

US Technologies partnered with Wackenhut in Tex. and Fla. in 2000 for prisonindustries operations.

SBCI used by PRIDE to partner with Custom Converter Sales and Value Lineunder PIE program partnership in 2000.

Duffee Indicted, convicted and serving prison sentence for embezzling$224,000.00 from CPC Maintenance Accounts.

Duffee, Hodges and Samuel A. Block partnered under several Corporations in

Florida.


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Bush - Cheney

C H A R T

V a n g u a r d D O D H a l l i b u r t o n

V P C h e n e y

F B I

G l o b a l I T C D i v M g m n t

P R I D E L T I U S T O n S h o r e P r . I n d

N C I A

P I E C P

B J A

D O J

G o n z a l e s

F S I S

U S D A

S e c . A g

F e d D e t C t r 's

K B R

IN S

P R E S I D E N T B U S H

P r . P r i s o n I n d 's

U S T

P r . P r i s o n I n d ' s

L T I

P v t . S e c t o r C o r p s

O n S h o r e

W a c k e n h u t G E O C C A

P I E C P

T D J C

C C I

President Bush and VP Cheney both had relationships with Wackenhut and various private

prison and industries. This chart highlights those relationships.


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PIECP

P I E C P R e l a t io n s h i p C h a r t1 9 9 9 - 2 0 0 5

B l a c k - C o n t i n u in g O p e r a t io n

R e d - P v t / S e c t o r B u s i n e s s e s S e i z e d

G o v e r n m e n t A g e n c i e s

P i n k - O v e r s i g h t A g e n c y

B l u e - P R I D E S p i n - o f f s

P I E C P P r og r am B u r e a u of Ju s ti c e A s s t.

P r i s o n In d ' s M g m n t

N C I A B o a r d

C o n s u m e r s

C u s t o m C o n v . S a le s

C o n s u m e r s

V a l u e L i n e

G l o b a l O u t s rc i ng A l l o th e r A f fi li a te s

C o n s u m e r s

M a n T r a n s

F r e s h N e c t a r s

C o n su m e rs F e d P r i s o ns

A T L

C o n s u m e r s

C e n t u r y M e a t s

C i r c le A B r a n d s

P R I D E

IT C

C o n s u m e r s

P r i s o n I n d u s t r i e s

A l l o t h e r D O C ' s

N C I A

O f f i c e J u s t ic e P r o g r a m s

D e p t . O f J u s t i c e

A t t o r n e y G e n e r a l

P r e s i d e n t B u s h

This chart displays the chain from the White House through PIECP to US consumers.


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National Correctional Industries

Association

N C I AF e d e r a l a u t h o r i t y

N C I A

P r i s o n I n d u s t r i e s

R e g . A p p t . M i k e H e r r o nP E N P r o d u c ts

D e a n M a s o n , E x . D i r.W a . S t . J a il I n d B d .

S u s a n C u n n i n g h a m - D ir T R I C O R W / F D e v

M i s s . P r i s o n I n d . C o r p

P r e s E l e c tJ o h n M i l le r - C E O

N . E . A p p t . J o e S o m m e r v i l leM d . C o r r . E n t ' s

A n n e M u r r a y , S a l e s & M k t . D i r .G a . C o r r . I n d 's

R o b e r t G r i e s e r - C A OF e d P r i s o n I n d ' s

R o u g h R i d e r I n d .U t a h

V P P r . D e vD e n n y F r a c a s s i - D I R

S . E . A p p t . A n d y F a r q u h a r , D i r.A l a . C o r r I n d ' s

R i c k T h a y l e r - D i r Y D J C

G a y l e L a m b e r t , A d m i n .M o n t a n a C o r r I n d

V a C o r r E n t . s

P r e s i d e n tD o n G u i l lo r y

S . C . A p p t . J . D . C o l b e r t , A d m i nO k . C o r r . I n d 's

A C A R e p M a r k S a u n d e r sW a r d e n S . E . C o r r . I n s t.

J e r r y C a m p b e l l - A d m i nA r k . C o r r . I n d ' s

N e v a d a D O C -S i l v e r S t a t e I n d ' s

V P M k tB r i a n C o n n e t t - D . D i r

W A p p t . M a r ti n T h o m a s , G e n M g r I d C o r r . I n d ' s

M i k e M a s t r i a n i , - D i r Y o r k S t r e e t I n d u s t r i e s

C a r y A d r a g n a - M g r .M i c h S t . I n d ' s

N . C . C o r r . E n t e r p r is e s

T r e a s u r e r K a r e n B r o w n - D i r

E x D i r & C o r p S e c .G i n a H o n e y c u tt

N C I A B o a r d

N a t i o n a l C o r r e c t i o n a l I n d u s t r i e s A s s o c .

P I E C P P r o g r a m

B u r e a u o f J u s t i c e A s s t .

This chart demonstrates the relationships between the BJA, NCIA and participating PIECP

industries. As shown, 19 of the 38 participating prison industries are represented upon theNCIA Board. The industries operated by these Directors are also members of the Association.


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PIE Operations W/O Certificate

N o n - A u t h o r iz e d P I E C P O p e r a t io n s2 0 0 0 - 2 0 0 5

G o l d - P I E C P C e r t i f ic a t e H o l d e r sG r e e n - G o v e r n m e n t A g e n c y

P I E O p e r a t i o n s w i t h o u tC e r t if ic a t e

G r e y - P r iv a t e S e c t o r P I E P a r t n e r s R e d - I ll e g a l P v t . S e c t o r P I E O p e r a t io n s - W / O C e r t if ic a t eP r i v a t e N o n p r o f i t O v e r s ig h t A g e n c y

P r i v a t e P r i s o n I n d ' s

A T L I n d u s t r ie s

C e n t u r y M e a t s

C i r c le A B r a n d s

P R I D E

V a l u e L i n e

C u s t o m C o n v e r t e r

G l o b a l O u t s o u r c in g

F l o r id a C i t ru s P r o d u c e r s

F r e s h N e c t a r s

F lo ri d a F r u it P a r t n e r s M a n - T r a n s

D i v e r s i fi e d S u p p l yM a n a g e m e n t

L a b o r L i n e S v c s

L a b o r L in e I N C

G l o b a l R e m a n

N o r t h e r n O u t f i t te r s

I n d u s t r ie s T r a i n i n g I n c S t a t e P r is o n I n d u s t r ie s

N a t io n a l C I A

B J A

This chart displays the chain from the BJA through to ITC (PRIDE Holding Co.). It further

identifies illegal operations by entities w/o legal authority to operate PIE industries in

Florida. Those corporations in red were the private sector companies taken over by PRIDE.


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Resignations, Indictments, Arrests, Convictions of

Participants in Private Prison and Prison Industry Operations

Dick Cheney Texas inmate abuses in private run prison. Alberto Gonzales Accused of suppressing investigation and prosecution of

the inmate abuses in private run prison in Texas.

UST Chairman, C. Gregory Earls Indicted and convicted of swindling $20

million from investors in U.S. Technologies, Inc. Sentenced to 10 years in

federal prison.

Alan Duffee Florida CPC Commissioner indicted for embezzlement of CPC

funds in Fl. Sentenced to prison.

Pamela Jo Davis Resigned as CEO from PRIDE and ITC after charges of

corruption, money laundering and illegal spin-off corporations.

James Crosby FDOC Secretary and PRIDE Director, resigned both posts due

to corruption and bribery schemes. Indicted and sentenced to 9 years in federalprison.

A.C. Clark Regional Director FDOC. Indicted for bribery, corruption and

kickback scheme. Sentenced to 3 years in federal prison.

Cornell Corrections Class Action for violations of the SEC Act. Off the

books transactions that violated SEC rules (similar to Enron). William Webster Resigned from SEC due to involvement with UST as Dir.


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Financial Data on PIECP in $sAll data is collected from the NCIA Quarterly Statistical Cumulative Data Chart(s) for 1979 through 1

st

.Qtr. 2009. Included are all prison industry PIECP operations to date.

Gross Wages Paid to Inmates: $494,477,846

Victim Restitution: 48,301,073

Room and Board Deductions: 143,866,374

Family Support 31,968,186

Total State and Federal Taxes: 65,070,079

Net Wages Paid to Inmates: 205,272,134

The foregoing figures do not include wages paid to inmates for non-PIECP work, wages forPIECP work manufactured and sold in the state of manufacture. Labor to manufacture sub-assembly parts at one plant and shipped to another plant to fill PIE orders are not included asinmates are not paid for this sub-assembly labor.

Florida alone has generated over $1billion in gross sales from 1981 to present. During the 5 yearperiod from 2003 through 2008 alone, PRIDEs gross sales totaled: $434,652,538.00.

As stated elsewhere, PRIDE deducts Room and Board payments from the inmate wages. Todate that amount totals $3 million plus. PIECP requires that if a prison industry chooses to takethese deductions the money must go toward offsetting the costs of incarceration. PRIDE R&Bdeductions are not used for that purpose. Instead they put the money into the Prison Industry

Trust Fund. Once deposited PRIDE is allowed to take it out and use it for operational expensesassociated with the PIECP operations. The Taxpayers in Florida are denied these funds.


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Involvement, Wages and Industry Secrecies

PRIDE and other prison industries are fond of stating they attempt to downplay or hide the fact that inmate

labor is used in the manufacture of certain products or that the Corporation or Industry it is partnered with

operates under PIECP. They cite avoiding public knowledge as they have a propensity for not buyingproducts made by inmates.

Private Sector partners under PIECP are often times not listed upon sites or documents pertaining to

particular industries for the foregoing reason.

This makes it difficult to track such partnerships without timely research. In addition, the products, wages

paid to inmates and gross sales of PIECP products or services are unavailable. From Annual Reports of

PRIDE you are able to ascertain the number of total hours worked by their inmate work-force. You are

provided with the gross sales of their products, but both include PIECP work and standard non-pie workand product sales are not broken down into PIE and non-PIE. A visit to the NCIAs quarterly statistics files

reveals the gross wages and deductions paid to inmates by quarter and annual totals, but does not break

down the number of hours worked under the program.

Because of the lack of data and information as to PIECP by the work force, product sales and the actual

number of hours worked on PIE products, establishing the pay scale for the inmate work force is not

possible. Its also not possible to chart the number of actual PIE products produced, shipped or sold.

There should be more transparency in both wages paid to the inmates as well as a breakdown of the sales of

PIE products or services in quarterly statistics and annual reports on industry performance. The mixing

together of PIE and non-PIE products or services under a single heading of gross sales assists PRIDE and

other prison industries from hiding these figures and necessary statistics from the public and government

oversight. An example of the need for such transparency is demonstrated by the following slide.


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Example of PIE Wages Breakdown

In the first quarter of 2009, the NCIA reports that PRIDE paid out $315,141.00 in gross wages to inmates intheir PIE Industries. The net wages received by the inmates was $100,913.00. There were 387 inmates

identified as workers in the program (

http://www.nationalcia.org/wp-content/uploads/2008/05/qtr0109stats.pdf and

http://www.nationalcia.org/wp-content/uploads/2008/05/qtr0109certlist. pdf).

For that quarter the figures provided by the NCIA reflect that each inmate earned an average of $814.32 for

the quarter. This translates to $67.86 per week per inmate in gross pay. The standard work week in PRIDEs

industries is 6 hours per day, 5 days a week, or on average 30 hours per week. $67.86 divided by the 30

hour average provides an hourly gross wage of $2.26 per hour per inmate. Average net wages paid to eachinmate after deductions works out to $260.75 for the quarter and $21.73 per week. For a typical 30 hour

work week this results in an hourly net wage of $.72 per hour worked.

Obviously the number of hours worked by each individual inmate varies. Also one or more industries have

more orders and therefore more hours worked on PIE projects while others have less. Mathematically, the

averages are representative of total hours worked by a given number of inmates employed in PIECP in a

given window of time. Where 387 total inmates earned $315,141 in gross wages over a 12 week period, the

mathematics work out to the figures presented above.What is missing is the number of PIE products manufactured and sold during that period. The gross and net

sales receipts for those products. For reasons obvious to most, prison industries deliberately attempt to hide

certain facts and figures from oversight where those figures would show the actual wages paid to inmates in

the program and the sales of products under the PIECP umbrella.

Transparency is not only needed, it should be mandatory. Encompassing PIE sales within overall annual

sales serves to effectively hide that aspect of the prison industries and disallows a factual determination as

to the success of the program, percentage of gross sales from PIECP and actual wages paid to the inmate

worker.
http://www.nationalcia.org/wp-content/uploads/2008/05/qtr0109stats.pdfhttp://www.nationalcia.org/wp-content/uploads/2008/05/qtr0109stats.pdfhttp://www.nationalcia.org/wp-content/uploads/2008/05/qtr0109certlist.pdfhttp://www.nationalcia.org/wp-content/uploads/2008/05/qtr0109certlist.pdfhttp://www.nationalcia.org/wp-content/uploads/2008/05/qtr0109certlist.pdfhttp://www.nationalcia.org/wp-content/uploads/2008/05/qtr0109certlist.pdfhttp://www.nationalcia.org/wp-content/uploads/2008/05/qtr0109stats.pdf


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SummaryPIECP was developed and implemented in 1979. From enactment through 1995 not much was done under this program. Some

states participated, but the majority of prison industries avoided participation. In 1995 George Bush as Governor of Texas

became involved in faith-based community initiatives (FBCI) that utilized faith-based re-entry programs with prison industriesunder PIECP. Prior to that time, all inmate workers in PIECP were paid prevailing wages. The FBCI program suggested

paying minimum wage instead of prevailing. This is the first documented substitution of minimum wages in lieu of prevailing

wages.

Huge corporations such as Wackenhut, US Technologies and CCA recognized the potential for profits through this program

and began funding the political campaigns of those politicians that could influence PIECP legislation and operations. In Texas

the Governor accepted many contributions due to his open support of faith-based initiatives as well as privatization of prisons

in that state. Wackenhut sought and received authorization from Governor Bush to open and run private prisons with prison

industries in Texas. Within a short period of time Wackenhut and US Technologies moved operations into Florida, where theywere welcomed by Bushs younger brother and Governor, Jeb Bush. Bush allowed Wackenhut and CCA to open and run

private prisons in Florida. Wackenhuts operations included prison industries that were intended to be partnered with US

Technologies at Moore Haven and South Bay prison complexes.

The FDOC became PIECP Certified in 1995. In Florida inmates in the PIECP operations received prevailing wages for their

labor until 1999. In that year, the Florida Legislature under pressure and lobbying by PRIDE enacted several state laws that

allowed for inmates in PIECP to receive minimum wages or prevailing wages. The Legislature also enacted other

legislation transferring the important PIECP Certificate to PRIDE and removed most oversight from the FDOC. On the

National level, the BJA chose the NCIA as the oversight and enforcement agency to oversee PIECP.

When the PIE Program converged with faith-based community initiative programs in Texas, manipulations such as the wage

decrease from prevailing to minimum began and quickly spread to Florida and recently to other states participating in the

program.

In the 2000 election cycle, Wackenhut and other corporations involved in the private prison industrial complex made

substantial contributions to George Bushs Presidential campaign. Once elected Wackenhut contributed heavily to Bushs

inauguration. In Florida Jeb Bush was also receiving contributions from corporations such as Wackenhut. Jeb Bush rewarded

political fund raisers such as James Crosby with Government appointments. His choices for important positions within Florida

Government were later subject to second guessing as many of those appointed committed ethical, civil or criminal acts, wereindicted and several went to prison for their actions.


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Under PIECP in Florida PRIDE exploited the program terribly. The Corporation had been granted

sovereign immunity as a quasi-state agency and exploited that immunity to the fullest extent possible. They

formed 9 spin-off corporations owned and operated by PRIDE management, Current Directors, past

Directors and family members of current and past Directors. The Corporation used the spin-offs to launder

millions of dollars from their nonprofit operations, transferring the profits to the spin-offs and into the

pockets of managers and administrators alike through salaries and bonuses.

The NCIA created a situation whereby prison industries in the PIE Program were required to join theAssociation. This merger of those overseen with those with oversight allowed and greatly contributed to the

abuses delivered to PIECP by the NCIA failing to fulfill the oversight duties required under the DOJ

taxpayer grant.

PIECP was operating so well with substantial profits being earned by prison industries and their partners,

that as the WHOFBCI offices were being established, Congressional members began attempting to get the

federal BOPs Prison Industries (UNICOR) to adopt the PRIDE business plan and participate in PIECP in a

similar fashion. BOP Directors refused and Committee proposals for such a move met with stiff resistance.Supporters were unable to present Legislation to force the transition by UNICOR to the PIE Program.

By 2005 many players and principals in involved with PIECP began to fall under state and federal

investigations. This resulted in the demise of US Technologies and imprisonment of its Chairman. In

Florida PRIDE came under scrutiny because of violations of state laws pertaining to the operations of the

prison industries. Its CEO, CFO, President and others were forced to resign. Spin-offs founded and funded

by PRIDE were dissolved and all ties to them ordered severed.

Floridas Corrections Privatization Commission was abolished after both Commissioners appointed to run

the agency came under suspicion of ethics violation due to ties to the private prison corporations they

oversaw. In the case of Duffee, he was convicted of embezzlement and sent to prison. The prison

corporations tied to both Hodges and Duffee are still operating in Florida. The Keefe Commissary Network

handed the prison canteen contract are still contracted with FDOC to provide commissary services to

inmates, staff and visitors following the indictment, convictions and prison sentences given to Crosby and

Clark due to kickbacks and bribes they received through Keefe from AIS, a Keefe sub-contractor..


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politics and piecp

Documents