Operation Mississippi Hustle was a federal investigation initiated in 2014 by the United States Attorney and prosecuted in the
. It examined the relationship between officials of the
Mississippi Department of Corrections
The Mississippi Department of Corrections (MDOC) is a state agency of Mississippi that operates prisons. It has its headquarters in Jackson. Burl Cain is the commissioner.
History
In 1843 a penitentiary in four city squares in central Jackson ...
and various for-profit prison contractors and subcontractors, who have provided services to the five private prisons in the state. One,
Walnut Grove, closed in September 2016 but has since reopened.
The
FBI
The Federal Bureau of Investigation (FBI) is the domestic Intelligence agency, intelligence and Security agency, security service of the United States and its principal Federal law enforcement in the United States, federal law enforcement age ...
revealed a long history of corruption and bribery beginning as early as 1997. The investigation resulted in indictments against
Chris Epps
Christopher B. Epps (born January 25, 1961) is a Federal inmate and a former commissioner of the Mississippi Department of Corrections (MDOC) and career employee in the state criminal justice system though he started his career as a teacher. Appoi ...
, long-serving Commissioner of the Department of Corrections on November 6, 2014. Epps resigned from his state office and as president of the
American Correctional Association
The American Correctional Association (ACA; called the National Prison Association before 1954) is a private, non-profit, non-governmental trade association and accrediting body for the corrections industry, the oldest and largest such associati ...
(ACA) the day prior to his indictment. He had received bribes and kickbacks worth at least $1.47 million, based on contracts worth $868 million with private prison operators and related service providers.
By October 2018, sixteen other officials, consultants, contractors, and businessmen, including two former state legislators were indicted, with more expected. Eleven pleaded guilty, one committed suicide, and the identity of another had not yet been made public. The ex-mayor of
Walnut Grove, Mississippi
Walnut Grove is a town in Leake County, Mississippi, United States. The population was 510 at the 2020 census, a sharp decrease from 1,911 at the 2010 census, due to the Walnut Grove Youth Correctional Facility being closed by the state in Septem ...
, William Grady Sims, finished his sentence. Six other defendants were convicted and are in federal custody. Four Louisiana defendants awaited trial.
Jim Hood
James Matthew Hood (born May 15, 1962) is an American lawyer and politician who served as the 39th Attorney General of Mississippi from 2004 to 2020.
A member of the Democratic Party (United States), Democratic Party, he was first elected in 20 ...
, the Mississippi Attorney General, announced in February 2017 that he was filing civil suits against 15 prison contractors and several individuals for damages and punitive damages related to the corruption cases. He said that "state law requires that they must also forfeit and return the entire amount of the contracts paid by the state."
[
]
Overview
In the late 20th century, Mississippi began to make contracts with private prison management companies to build and operate prisons. It eventually held contracts for six for-profit prisons: Walnut Grove Youth Correctional Facility
The Walnut Grove Correctional Facility, formerly the Walnut Grove Youth Correctional Facility (WGYCF), was operated as a for-profit state-owned prison in Walnut Grove, Mississippi from 1996 to 2016. Constructed beginning in 1990, it was expande ...
, for inmates under 18 who had been convicted as adults; East Mississippi Correctional Facility
East Mississippi Correctional Facility is a men's prison located in unincorporated Lauderdale County, Mississippi, near Meridian. It is about 90 miles east of the capital, Jackson. Opened in 1999, the special needs prison is intended to provide a ...
, devoted to the treatment of state prisoners with mental illness; Marshall County Correctional Facility
Marshall County Correctional Center (MCCF) is a for-profit prison in Holly Springs, Marshall County, Mississippi, managed by Management and Training Corporation (MTC) on behalf of the Mississippi Department of Corrections.[Tallahatchie County Correctional Facility
Tallahatchie County Correctional Facility (TCCF) is a private prison for men,][Wilkinson County Correctional Facility
Wilkinson County Correctional Center (WCCC) is a private prison in unincorporated Wilkinson County, Mississippi, managed since July 2013 by Management and Training Corporation (MTC) on a five-year contract with the Mississippi Department of Correc ...]
, which was converted to maximum security after receiving numerous prisoners transferred from Mississippi State Penitentiary
Mississippi State Penitentiary (MSP), also known as Parchman Farm, is a maximum-security prison farm located in unincorporated Sunflower County, Mississippi, in the Mississippi Delta region. Occupying about of land,[Delta Correctional Facility
Delta Correctional Facility was a Mississippi Department of Corrections state prison for men, one of opened in the late 20th century and early 21st century in the state, and operated by for-profit corporations. Located in Greenwood, Leflore Coun ...]
, which closed after an escape. Contracts were also made for related mental and medical health services, education, telecommunications, and food services. In 2002, Christopher Epps was appointed as Commissioner of Mississippi Department of Corrections
The Mississippi Department of Corrections (MDOC) is a state agency of Mississippi that operates prisons. It has its headquarters in Jackson. Burl Cain is the commissioner.
History
In 1843 a penitentiary in four city squares in central Jackson ...
. He served under three governors.
On November 6, 2014, the Acting United States Attorney
United States attorneys are officials of the U.S. Department of Justice who serve as the chief federal law enforcement officers in each of the 94 U.S. federal judicial districts. Each U.S. attorney serves as the United States' chief federal c ...
for the Southern District of Mississippi
The United States District Court for the Southern District of Mississippi (in case citations, S.D. Miss.) is a federal court in the United States Court of Appeals for the Fifth Circuit, Fifth Circuit with facilities in Gulfport, Mississippi, Gulf ...
, Harold Brittain, announced indictments he had obtained against the Commissioner Epps and his associate Cecil McCrory
Cecil McCrory (born December 1, 1951) is a former Mississippi state legislator, justice court judge, Rankin County school board president and businessman. His indictment was made public in November 2014 for corruption related to his dealings with p ...
. McCrory was a consultant and Republican
Republican can refer to:
Political ideology
* An advocate of a republic, a type of government that is not a monarchy or dictatorship, and is usually associated with the rule of law.
** Republicanism, the ideology in support of republics or agains ...
former state house member. The government charged that beginning as early as 2005, Epps had taken bribes from various contractors and subcontractors for the state. These bribes had been passed through McCrory and another consultant, Robert Simmons, and had been structured
Structuring, also known as smurfing in banking jargon, is the practice of executing financial transactions such as making bank deposits in a specific pattern, calculated to avoid triggering financial institutions to file reports required by law ...
to fall beneath the mandated reporting amount so they would not come to the attention of federal banking authorities. Epps resigned as commissioner and as the president of the ACA the day before the indictments were announced. Both defendants previously entered into plea bargains and became cooperative informants. Initially, they were to assist the government with the identification of the originators of those bribes, who were also to be prosecuted with the help of both men.
Epps had been appointed to the Commissioner post in 2002 by Democratic Governor Ronnie Musgrove
David Ronald Musgrove (born July 29, 1956) is an American lawyer and Democratic politician who served as the 29th Lieutenant Governor of Mississippi from January 16, 1996 to January 11, 2000 and as the 62nd Governor of Mississippi from January ...
and was retained by his successors, Republican governors, Haley Barbour
Haley Reeves Barbour (born October 22, 1947) is an American attorney, politician, and lobbyist who served as the 63rd governor of Mississippi from 2004 to 2012. A member of the Republican Party, he previously served as chairman of the Republican ...
in 2004, and Phil Bryant
Dewey Phillip Bryant (born December 9, 1954) is an American politician who served as the 64th governor of Mississippi from 2012 to 2020. A member of the Republican Party, he was the 31st lieutenant governor of Mississippi from 2008 to 2012 and 4 ...
in 2012. In 2011, Epps told assembled attorneys involved in negotiating lawsuits that had been brought against the Walnut Grove Correctional Facility
The Walnut Grove Correctional Facility, formerly the Walnut Grove Youth Correctional Facility (WGYCF), was operated as a for-profit state-owned prison in Walnut Grove, Mississippi from 1996 to 2016. Constructed beginning in 1990, it was expande ...
and the East Mississippi Correctional Facility
East Mississippi Correctional Facility is a men's prison located in unincorporated Lauderdale County, Mississippi, near Meridian. It is about 90 miles east of the capital, Jackson. Opened in 1999, the special needs prison is intended to provide a ...
that he could not end the contracts with the for-profit companies operating Mississippi's prisons "because of all the money they spread around Jackson," the state capital. His remarks were made in the period that the Southern District of Mississippi's U.S. Attorney said Epps was receiving more than $700,000 in bribes, including the purchase of a beachfront condo on his behalf.["Lawyers: Epps said prison companies 'spread' money"](_blank)
''Clarion Ledger
''The Clarion Ledger'' is an American daily newspaper in Jackson, Mississippi. It is the second-oldest company in the state of Mississippi, and is one of the few newspapers in the nation that continues to circulate statewide. It is an operating d ...
'', Jerry Mitchell, November 22, 2014. Retrieved 29 January 2017.
The government's revised estimates of the alleged bribes
Bribery is the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official, or other person, in charge of a public or legal duty. With regard to governmental operations, essentially, bribery is "Corru ...
to Epps increased to an estimated total of at least $1.47 million. Over the next two years, the U.S. Attorney filed many indictments against persons alleged to have paid the bribes and indicated that further indictments would be forthcoming. A year after entering a guilty plea, McCrory requested that he be allowed to change his plea to "not guilty" and go to trial. This request was rejected by the judge. Many other defendants pleaded "guilty" while others pleaded "not guilty". One defendant committed suicide
Suicide is the act of intentionally causing one's own death. Mental disorders (including depression, bipolar disorder, schizophrenia, personality disorders, anxiety disorders), physical disorders (such as chronic fatigue syndrome), and s ...
shortly before his arraignment. Numerous corporations were ordered to produce business records by the presiding federal judge Henry Travillion Wingate. Some complied, others ignored the subpoenas, and four requested that the information they were willing to provide be kept under seal, which Wingate took under advisement.
On November 1, 2016, while still awaiting sentencing, Epps was arrested for breaking and entering
Burglary, also called breaking and entering and sometimes housebreaking, is the act of entering a building or other areas without permission, with the intention of committing a criminal offence. Usually that offence is theft, robbery or murder ...
the home he had forfeited to the federal government as a part of his plea bargain. He removed light fixtures and other items which he moved to his nearby previous domicile that he was occupying. His bail was revoked and in December 2016, Wingate ruled that he would be held in jail until sentencing. On May 24, 2017, Epps received a sentence of approximately 20 years.
Background
Mississippi was among the many states that began to depend on private contractors to build and operate prisons to house its growing number of inmates in the late 20th century and early 21st century. These inmates had been convicted and sentenced under increased criminalisation of drug possession and a variety of mandatory sentencing laws. The private prisons and management included contracts with the GEO Group
The GEO Group, Inc. (GEO) is a publicly traded C corporation that invests in private prisons and mental health facilities in North America, Australia, South Africa, and the United Kingdom. Headquartered in Boca Raton, Florida, the company's f ...
, which purchased Cornell Corrections
Cornell Companies (NYSE:CRN) was an American corporation that operated correctional facilities, contracting them to state and local governments. The company's headquarters were located in Houston, Texas. On August 12, 2010, Cornell was acquired b ...
, the Texas firm that built and operated the Walnut Grove Correctional Facility
The Walnut Grove Correctional Facility, formerly the Walnut Grove Youth Correctional Facility (WGYCF), was operated as a for-profit state-owned prison in Walnut Grove, Mississippi from 1996 to 2016. Constructed beginning in 1990, it was expande ...
in Walnut Grove, Mississippi
Walnut Grove is a town in Leake County, Mississippi, United States. The population was 510 at the 2020 census, a sharp decrease from 1,911 at the 2010 census, due to the Walnut Grove Youth Correctional Facility being closed by the state in Septem ...
. The prison opened in 2001 in an unincorporated area of Leake County, but the town annexed the prison property to increase its population and tax base; it derived 15% of its revenues from the prison corporation's payment in lieu of taxes. The East Mississippi Correctional Facility
East Mississippi Correctional Facility is a men's prison located in unincorporated Lauderdale County, Mississippi, near Meridian. It is about 90 miles east of the capital, Jackson. Opened in 1999, the special needs prison is intended to provide a ...
was another private prison operated by Florida's GEO Group, then by Utah's Management and Training Corporation
Management & Training Corporation or MTC is a contractor that manages private prisons and United States Job Corps centers, based in Centerville, Utah. MTC's core businesses are corrections, education and training, MTC medical, and economic & social ...
. Numerous contractors served other public and for-profit facilities, providing related telecommunications, food services, health, and other services.
Leake County Sheriff Greg Waggoner said that he started the federal investigation into the Mississippi Department of Corrections (MDOC) activities. In 2009, he said Epps' MDOC leased buildings were owned by McCrory in Walnut Grove, Mississippi, which later became the Walnut Grove Transition Center. MDOC also contracted with McCrory to operate the male and female facilities. Although Walnut Grove's longtime mayor, Sims, had no correctional experience, McCrory appointed him as the warden of the Transition Center. In addition, Sims had a separate contract for revenues from 19 vending machines at the Walnut Grove Youth Correctional Facility.
Walnut Grove was to be a model transition center to support newly released inmates in adjusting to life outside prison as part of a state effort. The center charged newly released inmates $20 a day for room and board in dormitories and was paid a supplement of $6 daily, per bed, by the MDOC. Nearby Walnut Grove residents complained that the center residents were poorly supervised and appeared to roam in town without structured activities.
According to Waggoner, "It looked like everything new that happened with MDOC, Cecil cCrorywas involved in ... They esidents of the centerwere not supposed to be out at all." He said, "If I ran my facility like that, Epps would have shut me down, but it seemed like there was no problem when McCrory did it." After Sims was reported to have taken a female inmate to a motel in nearby Carthage for sex in November 2009, Waggoner became involved. He reported the allegation to MDOC, which assigned an internal investigator to assist the sheriff in an investigation.
Investigators from both Leake County and the state jointly talked to the female inmate, gathering evidence to refer the case to the county district attorney. In the spring of 2010, before they could do so, the MDOC investigator came to Waggoner and told him it was over. "We're closing the case down," he told Waggoner, who was "shocked" and asked why. Waggoner told a reporter, "You could tell he wasn't happy about it but that he was given orders." Waggoner said firing a man who committed a felony does not end an investigation; it ends when the man is indicted and brought to justice; "If you have knowledge of a felony and chose not to pursue it, you're negligent in your duty." Waggoner called U.S. Attorney John Dowdy for advice who answered that he contacted the FBI afterward to report the situation. The FBI launched an investigation against Sims and eventually Epps which was named the "Mississippi Hustle."[Epps probe, "Mississippi Hustle" started sex scandal](_blank)
''Clarion Ledger
''The Clarion Ledger'' is an American daily newspaper in Jackson, Mississippi. It is the second-oldest company in the state of Mississippi, and is one of the few newspapers in the nation that continues to circulate statewide. It is an operating d ...
'', Emily LeCoz, November 22, 2014. Retrieved 12 September 2016.
Indictments and suicide
On November 6, 2014, the Federal Government of the United States
The federal government of the United States (U.S. federal government or U.S. government) is the national government of the United States, a federal republic located primarily in North America, composed of 50 states, a city within a fede ...
announced that it had indicted Epps on corruption charges; these charges were based on his dealings with the for-profit prison
A private prison, or for-profit prison, is a place where people are imprisoned by a third party that is contracted by a government agency. Private prison companies typically enter into contractual agreements with governments that commit pr ...
industry.[Blinder, Alan.]
2 Former Mississippi Officials Plead Guilty in a Graft Case Involving Private Prisons
" ''The New York Times
''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid ...
''. 25 February 2015. Retrieved on February 27, 2015. The federal indictment stated that McCrory, a Republican and former Mississippi State House member, was a businessman who served as the chairperson of the Rankin County School District
The Rankin County School District is the 3rd largest public school district in Mississippi. The district office is located in Brandon, Mississippi (USA).
In addition to Brandon, the district serves most of Rankin County, including the communit ...
's board of education. He had paid Epps with kickbacks and bribes totaling more than $1 million. Those transactions included a $200,000 payment as part of the mortgage of Epps' primary residence in the Jackson area. Epps leveraged the resulting increased equity with another bribe payment to buy a condominium; he later traded up the latter for a larger, more expensive condominium. In exchange, Epps directed contracts to McCrory-owned companies for prison services contracts, as well as to related companies that hired McCrory as a paid consultant. Per the indictment, contract promotion started in 2007 and ended on March 12, 2014. Epps entered an initial plea of not guilty and received a bond of $25,000.
McCrory had previously served as a judge and former Sheriff's investigator. He started a prison commissary company, G.T. Enterprises and sold it at a substantial profit to the Centric Group holding company, which owns the Keefe Commissary Network (KCN). McCrory also had gone to work for Correctional Communications Inc. "I brought Cecil in, in 1996, to help me with political connections," said owner and consultant, Sam Waggoner. "I do all the work, and Cecil did the political stuff. I talk to him about twice a year." Waggoner said the scandal had affected his business and he worried he would lose around 40 contracts he and McCrory had been given during the past two decades. "Nobody wants to be associated with the company because of the stigma," he said. "But he did no contracts with the county jails, no connections with the sheriffs or anything like that." Sam Waggoner subsequently pleaded guilty to bribery.[Alleged kickback scheme: McCrory's connections vast](_blank)
''The Clarion-Ledger
''The Clarion Ledger'' is an American daily newspaper in Jackson, Mississippi. It is the second-oldest company in the state of Mississippi, and is one of the few newspapers in the nation that continues to circulate statewide. It is an operating d ...
'', Emily Le Coz, 8 November 2014. Retrieved on 12 September 2016.
In November 2014, former State Auditor-turned Governor Phil Bryant
Dewey Phillip Bryant (born December 9, 1954) is an American politician who served as the 64th governor of Mississippi from 2012 to 2020. A member of the Republican Party, he was the 31st lieutenant governor of Mississippi from 2008 to 2012 and 4 ...
ordered rebids of the four operating contracts for prisons that had been awarded by Epps to Utah-based Management and Training Corporation
Management & Training Corporation or MTC is a contractor that manages private prisons and United States Job Corps centers, based in Centerville, Utah. MTC's core businesses are corrections, education and training, MTC medical, and economic & social ...
(MTC). Bryant directed interim Corrections Commissioner Richard McCarty to stop negotiations with MTC over renewing a $60-million-a-year contract to manage four private prisons, which held over 4,000 state inmates. MTC was sued for mistreatment of inmates in two of those prisons. A fifth private prison was still under contract to CCA.
McCrory plea bargained to lesser federal charges. He had begun working as a consultant to MTC, GEO Group
The GEO Group, Inc. (GEO) is a publicly traded C corporation that invests in private prisons and mental health facilities in North America, Australia, South Africa, and the United Kingdom. Headquartered in Boca Raton, Florida, the company's f ...
's successor operator in Mississippi for state prison contracts. It held a $60 million contract to operate three Mississippi prisons: Walnut Grove Correctional Facility
The Walnut Grove Correctional Facility, formerly the Walnut Grove Youth Correctional Facility (WGYCF), was operated as a for-profit state-owned prison in Walnut Grove, Mississippi from 1996 to 2016. Constructed beginning in 1990, it was expande ...
, East Mississippi Correctional Facility
East Mississippi Correctional Facility is a men's prison located in unincorporated Lauderdale County, Mississippi, near Meridian. It is about 90 miles east of the capital, Jackson. Opened in 1999, the special needs prison is intended to provide a ...
and Marshall County Correctional Facility, all of which had been managed by the GEO Group, and a fourth, Wilkinson County Correctional Facility
Wilkinson County Correctional Center (WCCC) is a private prison in unincorporated Wilkinson County, Mississippi, managed since July 2013 by Management and Training Corporation (MTC) on a five-year contract with the Mississippi Department of Correc ...
, which had been managed by the Corrections Corporation of America
CoreCivic, formerly the Corrections Corporation of America (CCA), is a company that owns and manages private prisons and detention centers and operates others on a concession basis. Co-founded in 1983 in Nashville, Tennessee by Thomas W. Beasley ...
. MTC fired McCrory and claimed they knew nothing of his criminal activities.
Epps pleaded guilty to corruption-related charges in February 2015:[ one count of filing a false tax return and one count of conspiracy to launder money.][Former commissioner Of Mississippi Department of Corrections and local businessman plead guilty in federal court]
Archive
. United States Department of Justice
The United States Department of Justice (DOJ), also known as the Justice Department, is a federal executive department of the United States government tasked with the enforcement of federal law and administration of justice in the United State ...
. Retrieved on 12 September 201
Version at the website of
the Federal Bureau of Investigation
The Federal Bureau of Investigation (FBI) is the domestic intelligence and security service of the United States and its principal federal law enforcement agency. Operating under the jurisdiction of the United States Department of Justice, ...
(FBI). As part of the plea, he forfeited two Mercedes Benz
Mercedes-Benz (), commonly referred to as Mercedes and sometimes as Benz, is a German luxury and commercial vehicle automotive brand established in 1926. Mercedes-Benz AG (a Mercedes-Benz Group subsidiary established in 2019) is headquartere ...
vehicles and his two residences.[Mitchell, Jerry and Jimmie E. Gates.]
Chris Epps, Cecil McCrory plead guilty to corruption
Archive
. ''The Clarion-Ledger
''The Clarion Ledger'' is an American daily newspaper in Jackson, Mississippi. It is the second-oldest company in the state of Mississippi, and is one of the few newspapers in the nation that continues to circulate statewide. It is an operating d ...
''. February 25, 2015. Retrieved on 12 September 2016. Epps and McCrory blamed each other for beginning the bribery scheme. Sentencing was first scheduled for June 9, 2015,[ but a day earlier, the U.S. Attorney for Mississippi said the sentencing was indefinitely delayed as they were pursuing additional indictments.
William Martin, Supervisor of Harrison County, a former prosecutor, was indicted in February 2015. He committed ]suicide
Suicide is the act of intentionally causing one's own death. Mental disorders (including depression, bipolar disorder, schizophrenia, personality disorders, anxiety disorders), physical disorders (such as chronic fatigue syndrome), and s ...
hours before he was scheduled to appear on charges of bribery and corruption.
On August 22, 2015, the US Attorney announced the indictment of Irb Benjamin for bribing Epps in connection with the drug and alcohol treatment programs that his company provided under contract to MDOC prisons. In addition, Benjamin was paid at least $862,000 to acquire and maintain American Correctional Association
The American Correctional Association (ACA; called the National Prison Association before 1954) is a private, non-profit, non-governmental trade association and accrediting body for the corrections industry, the oldest and largest such associati ...
(ACA) accreditation for jails in numerous counties. Passing ACA standards was required if the prisons were to gain contracts to hold state prisoners. Epps had been elected in 2010 as the president of the ACA, and resigned the day before his indictment was announced.
Epps personally received at least the $1.47 million in bribes for steering what Assistant US Attorney Darren LaMarca estimated to be $800 million in contracts between 2006 and 2014. Judge Wingate was to hear the cases of others who were charged with bribing Epps.
Benjamin represented Alcorn County in the State House from 1976–80 and the State Senate 1984–92. He later worked for Republican Lieutenant Governor Eddie Briggs
Eddie Jerome Briggs (born October 14, 1949) is an American politician and lawyer. After service in the Mississippi State Senate, Briggs was the 28th Lieutenant Governor of Mississippi, a position which he held from 1992 to 1996. He was the first ...
, who ran as a candidate for the governorship. Alcorn County paid Benjamin, president and lobbyist for Mississippi Correctional Management (MCM), $114,000 a year , although he lived more than 200 miles away. The attorney of the Alcorn County Board of Supervisors said the supervisors were not required to seek bids before giving Benjamin the contract to be warden, as it was a contract for services, which are exempt from state bid laws. He was also paid $5,000 a month to handle and maintain accreditation by the ACA for the Alcorn's Regional Correctional Facility and another $4,500 a month as warden of the jail.
Benjamin formed his business MCM in 1996 when the state Department of Corrections and counties started hiring private contractors to operate prisons and smaller regional jails. MCM operated the Grenada County Jail for several years. Benjamin said the company also had jail accreditation contracts worth $4,000 or $5,000 per month with other counties, including Chickasaw, Hancock, Holmes, Marion, Pearl River, Washington, and Yazoo. In the past, he also worked as a $3,000-a-month jail consultant for DeSoto County. The DeSoto County Board of Supervisors supervisors approved his contract in December 2008, saying "Mr. Benjamin was recommended by Commissioner Epps at the state level." On November 25, 2014, Benjamin said that he was not aware of the Epps recommendation.[Ex-lawmaker Irb Benjamin gets six years in bribery scandal]
''The Clarion-Ledger
''The Clarion Ledger'' is an American daily newspaper in Jackson, Mississippi. It is the second-oldest company in the state of Mississippi, and is one of the few newspapers in the nation that continues to circulate statewide. It is an operating d ...
'', Jeff Amy (AP), March 3, 2017. Retrieved 5 March 2017.
Benjamin pleaded guilty to federal charges on October 18, 2016.[Former state senator to plead guilty in Epps bribery case](_blank)
''Mississippi Today
Mississippi Today is a nonprofit news organization based in Ridgeland, Mississippi. It was founded in 2016 by former NBC chairman Andrew Lack. It is focused on watchdog journalism related to Mississippi's state and local government, economy, e ...
'', Patsy R. Brumfield, October 3, 2016. Retrieved 3 November 2016. He was sentenced to 10 years in prison and a fine of up to a quarter-million dollars.[Irb Benjamin pleads guilty in Epps bribery case](_blank)
''Mississippi Today
Mississippi Today is a nonprofit news organization based in Ridgeland, Mississippi. It was founded in 2016 by former NBC chairman Andrew Lack. It is focused on watchdog journalism related to Mississippi's state and local government, economy, e ...
'', R.L. Nave, October 18, 2016. Retrieved 3 November 2016. Benjamin said that he was "pressured" by Epps; the contractor estimated he had paid the Commissioner between $180,000 and $225,000 in cash bribes to secure support for his contracts to operate the regional jails. His plea also covered bribes paid for drug and alcohol rehab programs which his company ran. LaMarca told Judge Wingate "it asjust a matter of time" until others whom Benjamin informed upon were indicted.[
Robert Simmons, a consultant, was indicted for giving kickbacks to Epps from three contractors involved in constructing expansions of the Walnut Grove and East Mississippi correctional facilities on February 11, 2016. His kickbacks included part of a $10,000-a-month fee from AJA Management and Technical Services of ]Jackson, Mississippi
Jackson, officially the City of Jackson, is the Capital city, capital of and the List of municipalities in Mississippi, most populous city in the U.S. state of Mississippi. The city is also one of two county seats of Hinds County, Mississippi, ...
and more from a second unnamed contractor. He also gave Epps kickbacks on fees involving contracts awarded to Sentinel Offender Services of Irvine, California, which supervises probationers and parolees, allegedly paying Epps $1,400 a month from his $4,000-a-month consulting fee. Simmons said that bribery was "the cost of doing business in Mississippi" when he pled guilty before U.S. District Judge Sul Ozerden in Gulfport on February 18.
In April 2016, McCrory informed the court that he wanted to change his plea to "not guilty" and requested a trial. As a consequence, the judge postponed Epps' sentencing until July 18, 2016. Epps had first been scheduled for sentencing on April 11, 2016, after pleading guilty to money laundering and filing false tax returns. Epps and McCrory's sentencing, scheduled for July 19, 2016, was delayed again by Wingate to give their defense lawyers additional time to review materials concerning how much money was gained by the 15 corporations that paid bribes to the pair. Prosecutors hoped to use the evidence to increase the recommended prison sentences for Epps and McCrory. Epps faced a possible 23 years after his 2015 guilty plea to money laundering and filing false tax returns related to $1.47 million in bribes. Numerous companies denied knowing that their consultants were giving kickbacks to Epps and others. GEO Group
The GEO Group, Inc. (GEO) is a publicly traded C corporation that invests in private prisons and mental health facilities in North America, Australia, South Africa, and the United Kingdom. Headquartered in Boca Raton, Florida, the company's f ...
's Finance Director John Tyrell testified that "hey
Hey or Hey! may refer to:
Music
* Hey (band), a Polish rock band
Albums
* ''Hey'' (Andreas Bourani album) or the title song (see below), 2014
* ''Hey!'' (Julio Iglesias album) or the title song, 1980
* ''Hey!'' (Jullie album) or the title s ...
often have consultants ..."
GEO was paying McCrory $5,000 monthly, which President and Chief Operating Officer Wayne Calabrese later increased to $10,000 (Calabrese has since retired). GEO's Finance Director Tyrrell did not answer why the amount was doubled. He speculated it may have been because on August 10, 2010, the GEO Group
The GEO Group, Inc. (GEO) is a publicly traded C corporation that invests in private prisons and mental health facilities in North America, Australia, South Africa, and the United Kingdom. Headquartered in Boca Raton, Florida, the company's f ...
had absorbed Cornell Companies
Cornell Companies (NYSE:CRN) was an American corporation that operated correctional facilities, contracting them to state and local governments. The company's headquarters were located in Houston, Texas. On August 12, 2010, Cornell was acquired by ...
in a merger. Cornell had been operating Walnut Grove Youth Correctional Facility
The Walnut Grove Correctional Facility, formerly the Walnut Grove Youth Correctional Facility (WGYCF), was operated as a for-profit state-owned prison in Walnut Grove, Mississippi from 1996 to 2016. Constructed beginning in 1990, it was expande ...
and was accused in a lawsuit for mistreating prisoners; the settlement included converting the facility to adults only.["In Epps case, still unclear who else is implicated"](_blank)
''Northeast Mississippi Daily Journal
The ''Northeast Mississippi Daily Journal'' is the largest daily newspaper in northeast Mississippi. It was first published in 1872. It is based in Tupelo, Mississippi
Tupelo () is a city in and the county seat of Lee County, Mississippi, Unit ...
'', Jeff Amy (AP), June 13, 2016. Retrieved 3 August 2016. McCrory remained free on bail, with sentencing proceedings postponed three times in 2017. Outstanding issues related to how much consideration he should receive for his cooperation, including recorded conversations with other participants in the schemes.[ His imprisonment was delayed after his defense requested that the amount of his prospective $150,000 fine be reduced. Wingate already reduced it to $20,000 after McCrory liquidated assets to pay the over $1,000,000 forfeiture sum. Mississippi Attorney General Jim Hood subpoenaed McCrory, who gave a deposition in Hood's civil cases against corrupt companies and bureaucrats, including Florida's GEO Group, who obtained contracts while Epps' was MDOC Commissioner. The prosecutors expected a final judgment to be entered that will include setting a new date for McCrory to report to prison. McCrory initially pleaded guilty to a single count of money laundering conspiracy and faced up to 20 years in prison. He agreed to forfeit $1.7 million in assets. After being sentenced to 8 1/2 years, on February 3, 2017, McCrory continued to remain free on bail,][ with the judge indicating that his prison time could be reduced after the other defendants in the case were sentenced. McCrory asked that his anticipated fine be lowered considerably as he had liquidated most of his assets.] McCrory's sentencing was postponed numerous times, with his attorney disputing the fine Wingate intended to impose. The $20,000 fine was not reduced further.
Assistant USAG LaMarca had announced in June 2016 that eleven additional subjects of the investigation may face criminal charges in the Epps' bribery cases. Ten more people could face federal indictments; another could face state charges, which had been expected by mid-July. LaMarca estimated the corruption's net benefit to contractors exceeded $65 million. Investigators determined that Epps demanded bribes to exercise his influence, not only at the state level but among county supervisors. Epps controlled where state inmates were placed which gave him influence over local jails. Besides Criminal Chief LaMarca, Assistant U.S. Attorney Patrick Lemon, financial analyst Kim Mitchell, acting U.S. Attorney Harold Brittain, and FBI Special Agent in Charge Christopher Freeze, were involved in investigating and prosecuting the case. They estimated a total of $65 million in questionable contracts were involved in the scheme. Given the amount, federal sentencing guidelines recommended that Epps could receive a maximum of 23 years. However, Epps' lawyer asked the judge to sentence Epps based only on the value of the bribes he collected. If the lower amount of $1.47 million had been used, Epps faced a recommended sentence between 14 and 17 1/2 years. Wingate had latitude in sentencing. Because of Epps' cooperation in providing information about those paying the bribes, prosecutors recommended a shorter sentence for the former commissioner.
Calculating benefits to 16 contractors involved examining their accounts. On June 30, John Colette, Epps' defense attorney, said he had received more than 1,500 pages of documents in the previous week and would require at least 30 days to review them. Four companies asked Wingate to shield their information from public view; four more did not respond to subpoenas. Wingate said he would hold a hearing by July 16, 2016 to consider requests for protective orders, and to consider contempt orders against companies that had failed to respond to disclosure requests.[Prosecutor: 11 more to be charged in Mississippi prison bribery inquiry](_blank)
''Associated Press
The Associated Press (AP) is an American non-profit news agency headquartered in New York City. Founded in 1846, it operates as a cooperative, unincorporated association. It produces news reports that are distributed to its members, U.S. newspa ...
'', Jeff Amy, June 30, 2016. Retrieved 6 July 2016.
Dr. Carl Reddix, an obstetrician/gynecologist and owner of Health Assurance LLC, a firm in Jackson, Mississippi, was indicted on July 20, 2016, for seven-count returned by a federal grand jury, was charged with paying bribes and kickbacks to Epps in return for contract awards with the MDOC and for-profit prison operators. The contracts for four for-profit Mississippi prisons held by Wexford Health Sources Wexford Health Sources, Inc. is a healthcare services company headquartered in Foster Plaza Two in Green Tree, Pennsylvania, near Pittsburgh.Twedt, Steve.Wexford Health works with inmates" ''Pittsburgh Post-Gazette''. Sunday April 12, 2009. Retrieve ...
were sequentially taken and subsequently awarded to Reddix. In 2008, his company received a contract to "provide inmate health care services" at the Walnut Grove Correctional Facility
The Walnut Grove Correctional Facility, formerly the Walnut Grove Youth Correctional Facility (WGYCF), was operated as a for-profit state-owned prison in Walnut Grove, Mississippi from 1996 to 2016. Constructed beginning in 1990, it was expande ...
, which was renewed in 2011. Transfers of contracts for the state's East Mississippi Correctional Facility
East Mississippi Correctional Facility is a men's prison located in unincorporated Lauderdale County, Mississippi, near Meridian. It is about 90 miles east of the capital, Jackson. Opened in 1999, the special needs prison is intended to provide a ...
and Marshall County Correctional Facility
Marshall County Correctional Center (MCCF) is a for-profit prison in Holly Springs, Marshall County, Mississippi, managed by Management and Training Corporation (MTC) on behalf of the Mississippi Department of Corrections.[Wilkinson County Correctional Facility
Wilkinson County Correctional Center (WCCC) is a private prison in unincorporated Wilkinson County, Mississippi, managed since July 2013 by Management and Training Corporation (MTC) on a five-year contract with the Mississippi Department of Correc ...]
, awarded in 2013. The attorney for Reddix said he had been the victim of a "shakedown". Chief Judge Daniel Jordan sentenced Reddix to six years in prison, plus two years of supervised release. He was fined $15,000 and required to forfeit more than $1.2 million. U.S. Attorney Mike Hurst said that Reddix had personally made 36 bribe payments to Epps over a three-year period. He reported to prison on January 29, 2018, and is being held at the Federal Correctional Institution, Butner 1 Medium custody, in North Carolina.[Mississippi doctor sentenced for bribery](_blank)
'' WTOK'', December 15, 2017. Retrieved February 13, 2018.[Inmate Locator]
''Federal Bureau of Prisons
The Federal Bureau of Prisons (BOP) is a United States federal law enforcement agency under the Department of Justice that is responsible for the care, custody, and control of incarcerated individuals who have committed federal crimes; that i ...
'' (FBOP). Retrieved November 14, 2018.
["Former state Rep. Bennett Malone's wife charged in Epps' case"](_blank)
''Clarion-Ledger
''The Clarion Ledger'' is an American daily newspaper in Jackson, Mississippi. It is the second-oldest company in the state of Mississippi, and is one of the few newspapers in the nation that continues to circulate statewide. It is an operating d ...
'', Jimmie E. Gates and Geoff Pender, July 25, 2016. Retrieved 26 July 2016.
Teresa Dolan Malone (d.o.b. August 17, 1961) is the widow of former State Representative Bennett Malone
Bennett Malone (January 6, 1944 – December 17, 2017) was an American politician in the state of Mississippi.
Malone was a native of Carthage, Mississippi, and attended East Central Junior College. He was elected to the Mississippi House of R ...
, who died on December 17, 2017. He served in the legislature for 36 years and chaired the Mississippi House Corrections Committee until his resignation in 2015. On July 25, 2016, she was indicted for giving bribes to Epps through McCrory, from 2010 until 2014, on behalf of medical services provider AdminPros LLC. She initially pleaded not guilty,[ but changed her plea to guilty on October 6, 2017 for paying kickbacks to Epps in exchange for the receipt and continuance of an MDOC consulting agreement. She admitted to receiving $225,000 from the agreement for monitoring and Medicaid eligibility contracting which the state had with AdminPros, as arranged by Epps. She received $5,000 monthly from October 2010 to July 2014, from which she paid Epps between $1,000 to $1,750 per month.][Malone to change plea to guilty in Epps Corrections Corruption case]
, '' MSNewsNow'', Howard Ballou, July 17th 2017. Retrieved July 18, 2017. Malone faced a maximum penalty of 10 years in prison and a $250,000 fine.[Wife of Former Representative Pleads guilty to Paying Kickbacks to Former Corrections Commissioner]
Department of Justice
A justice ministry, ministry of justice, or department of justice is a ministry or other government agency in charge of the administration of justice. The ministry or department is often headed by a minister of justice (minister for justice in a v ...
, October 6, 2017. Retrieved February 18, 2018. After she was admitted to a hospital due to complications from a double lung transplant, Wingate delayed her sentencing. Malone was sentenced on May 24, 2019, by Wingate to 41 months (3 years and 5 months) in prison and a $250,000 fine. [ She was being held at the ]FMC Carswell
The Federal Medical Center, Carswell (FMC Carswell) is a United States federal prison in Fort Worth, Texas, for female inmates of all security levels, primarily with special medical and mental health needs. It is operated by the Federal Bureau of ...
, in Fort Worth, Texas
Fort Worth is the fifth-largest city in the U.S. state of Texas and the 13th-largest city in the United States. It is the county seat of Tarrant County, covering nearly into four other counties: Denton, Johnson, Parker, and Wise. According ...
, with a scheduled release date of July 24, 2022, but was moved to the Residential Reentry Management program located on Maxwell Air Force Base
Maxwell Air Force Base , officially known as Maxwell-Gunter Air Force Base, is a United States Air Force (USAF) installation under the Air Education and Training Command (AETC). The installation is located in Montgomery, Alabama, United States. O ...
in Montgomery, Alabama.[Teresa Malone]
''Federal Bureau of Prisons
The Federal Bureau of Prisons (BOP) is a United States federal law enforcement agency under the Department of Justice that is responsible for the care, custody, and control of incarcerated individuals who have committed federal crimes; that i ...
'' Inmate Locater. Retrieved March 19, 2021.
Guy E. "Butch" Evans, an insurance broker, was indicted in August 2016. In 2012 Evans was awarded a contract as the insurance broker of record for the MDOC. He was given exclusive access to MDOC employees to sell policies and products and received commissions from insurance companies. He gave $1,400 to $1,700 per month to Epps for 16 months, starting in January 2013. The Evans arrangement ended with the Epps indictment. Wingate initially rescheduled the trial until April 3, 2017 for Evans. On March 31, 2018, it was announced that Evans would waive indictment and plead guilty to a lesser offense, one that had not yet been charged. In April 2018, Evans pleaded guilty to aiding and abetting tax evasion while paying Epps $19,200.
On May 24, 2017, at the time Epps' sentencing, LaMarca and Colette said his cooperation could lead to charges against six or seven others, including conspirators from outside Mississippi.[ An additional indictment had been obtained but remained sealed.][Former Mississippi Prison Chief Sentenced to Nearly 20 Years]
'' U.S. News & World Report'', Jeff Amy (AP), May 24, 2017. Retrieved 26 May 2017. Epps forfeited his investment and bank accounts, his $310,000 Flowood residence, a $237,601 Gulf Coast condo, and a pair of Mercedes-Benz vehicles to resolve a $1,300,000 judgment against him.
In October 2018, four Louisiana businessmenMichael LeBlanc Sr.; his son, Michael Jr.; Tawasky L. Ventroy; and Jacque B. Jacksonwere indicted and arrested on charges of conspiracy, paying bribes and attempting to pay bribes to Epps and the sheriff of Kemper County, Mississippi, James Moore. In the month before the Epps and McCrory indictments became public in 2014, LeBlanc Sr. called Epps to confirm Ventroy would meet with Epps, who brought $2,000 to Epps. LeBlanc Sr. agreed to give something with a value of $5,000 or more with the intent to have Epps help with awarding and retaining the contracts for LeBlanc Sr.'s company for inmate commissary services and telephone services with the Kemper County Regional Correctional Facility and elsewhere. Jackson allegedly worked for LeBlanc Jr. to help secure the contracts. After the initial Epps' indictment, bribes were also made to Moore, who was covertly cooperating with the FBI investigation. U.S. Attorney Michael Hurst of the Southern District of Mississippi thanked Moore for "coming forward and working with imto catch those who violate our corruption laws".[4 Louisiana businessmen charged in Chris Epps' corruption case]
'' Clarion-Ledger '', Jimmie E. Gates, October 4, 2018. Retrieved November 14, 2018.
Scheduled trials and sentencings
William Grady Sims pleaded guilty to interfering with a witness and received a seven-month sentence plus six months' home confinement. Sims was also ordered by then-Mississippi State Auditor Stacey Pickering to repay $31,530 for using city employees and equipment to work on the Correctional Facility and the privately owned Transitional Center on October 25, 2011.["Longtime mayor of Mississippi town, William Grady Sims, accused of sexually assaulting an inmate"]
''CBS News
CBS News is the news division of the American television and radio service CBS. CBS News television programs include the ''CBS Evening News'', ''CBS Mornings'', news magazine programs '' CBS News Sunday Morning'', '' 60 Minutes'', and '' 48 H ...
'', October 26, 2011. Retrieved 13 June 2017. He was released from custody on January 9, 2013.[
On September 15, 2016, Biloxi consultant Robert A. Simmons was sentenced by Judge Sul Ozerden to seven years and three months for his part in the MDOC bribery scandal. A sealed record filed by the U.S. Attorney's office indicated he had provided the government with "substantial assistance at great risk."] His cooperation, plus a clean prior record, led Ozerden to sentence him to less than the nine years required by federal sentencing guidelines. The Department of Justice initially confronted him with considerable evidence against him, including video and audio recordings and wiretaps. Simmons had been paid a $10,000 monthly fee by AJA Management & Technical Services Inc. of Jackson, Mississippi, for 18 months as it managed expansions of the Walnut Grove and East Mississippi state prisons. Simmons gave a portion of that monthly fee to Chris Epps. Simmons admitted bribing Epps from 2005 to 2014 and William Martin from 2005 through 2011. Martin committed suicide
Suicide is the act of intentionally causing one's own death. Mental disorders (including depression, bipolar disorder, schizophrenia, personality disorders, anxiety disorders), physical disorders (such as chronic fatigue syndrome), and s ...
just before the first hearing on his indictment in February 2015.[Prison sentence was the real price of consultant’s bribery conviction](_blank)
''Sun Herald
The ''Sun Herald'' is a U.S. newspaper based in Biloxi, Mississippi, that serves readers along the Mississippi Gulf Coast. The paper's current executive editor and general manager is Blake Kaplan and its headquarters is in the city of Gulfport ...
'', Anita Lee, September 15, 2016. Retrieved 15 September 2016. Simmons is being held at the Federal Correctional Institution, Forrest City
The Federal Correctional Institution, Forrest City (FCI Forrest City) is a United States federal prison for male inmates in Arkansas. It is part of the Forrest City Federal Correctional Complex (FCC Forrest City) and is operated by the Federal B ...
, Arkansas, and his anticipated release date is March 1, 2024.[
After delaying Epps' sentencing twice, Wingate also delayed sentencing for Rankin County businessman Cecil McCrory and businessman Sam Waggoner. Waggoner pleaded guilty in August 2015 to a single count of bribery and waived indictment in a plea bargain. In November his sentencing was postponed due to his heart surgery. He admitted to Wingate that he paid more than $108,000 in kickbacks to Epps from a consulting contract with the prison phone company Global Tel-Link (GTL), which took over the Mississippi prison telephone business monopoly. As a result of the prosecutors' efforts to determine the value of the damages suffered by the state of Mississippi as a result of the bribery scheme, Waggoner's sentencing was again delayed. On January 19, 2017, the 62-year-old Waggoner was sentenced to five years in federal prison, with two years of supervised release and a $200,000 fine. He had received 5 percent of phone revenues as a consultant for Global Tel-Link, which provided phone services at Mississippi state prisons. He told the FBI that before their investigation started, he wrote Epps to end the payments. In a meeting Epps ripped the letter into "teeny, tiny pieces" and flushed it down a toilet, telling him their arrangement would continue. Waggoner said " ppswas basically isboss." Waggoner paid bribes to Epps from 2012 until at least Aug. 26, 2014. Waggoner is being held at the ]Federal Medical Center, Fort Worth
The Federal Medical Center (FMC) Fort Worth is an administrative-security United States federal prison in Fort Worth, Texas, for male inmates of all security levels with special medical and mental health needs. It is operated by the Federal Burea ...
. His anticipated release date is July 15, 2021.[Inmate Locator]
''Federal Bureau of Prisons
The Federal Bureau of Prisons (BOP) is a United States federal law enforcement agency under the Department of Justice that is responsible for the care, custody, and control of incarcerated individuals who have committed federal crimes; that i ...
''. Retrieved September 8, 2019.
Among other persons charged with bribing Epps, Irb Benjamin, a former state legislator and Alcorn County jail warden, pleaded guilty on October 18, 2016. He faced 10 years in prison, plus a fine of up to a quarter-million dollars. Wingate sentenced him to 70 months in prison, fined the former Democratic state representative and senator $100,000, and ordered him to forfeit $260,782. Wingate said the length of his sentence could be reduced depending on the convictions of the other defendants.[ Benjamin, who said he was "pressured" by Epps, estimated that he paid the commissioner between $180,000 and $225,000 in cash bribes to secure support for the regional jails. His plea also covered bribes paid for drug and alcohol rehab programs which his company ran under contract to the state. LaMarca told Wingate "it asjust a matter of time" until others whom Benjamin informed upon were indicted.][ Benjamin is being held at the minimum security ]Federal Correctional Institution, Forrest City
The Federal Correctional Institution, Forrest City (FCI Forrest City) is a United States federal prison for male inmates in Arkansas. It is part of the Forrest City Federal Correctional Complex (FCC Forrest City) and is operated by the Federal B ...
, Arkansas, with an anticipated release date of June 13, 2022.[Inmate Locator](_blank)
''Federal Bureau of Prisons
The Federal Bureau of Prisons (BOP) is a United States federal law enforcement agency under the Department of Justice that is responsible for the care, custody, and control of incarcerated individuals who have committed federal crimes; that i ...
''. Retrieved August 5, 2018.[
Mark Longoria, CEO of Drug Testing Corporation of Houston, Texas, was also indicted for paying a bribe to Epps. On August 3, 2016, Longoria, who had been recorded by Epps, pleaded guilty to a single felony count of bribery. He had supplied drug testing urine cups and on February 14, 2017 was sentenced to five years in prison, fined $368,000, and ordered to forfeit $131,000.][Epps prison scandal defendant trials pushed back](_blank)
''Mississippi Today
Mississippi Today is a nonprofit news organization based in Ridgeland, Mississippi. It was founded in 2016 by former NBC chairman Andrew Lack. It is focused on watchdog journalism related to Mississippi's state and local government, economy, e ...
'', Patsy R. Brumfield, September 2, 2016. Retrieved 8 September 2016. He is being held at Federal Correctional Institution, Forrest City
The Federal Correctional Institution, Forrest City (FCI Forrest City) is a United States federal prison for male inmates in Arkansas. It is part of the Forrest City Federal Correctional Complex (FCC Forrest City) and is operated by the Federal B ...
, Arkansas, with an anticipated release date of September 13, 2021.[
On December 8, 2016, McCrory repeated his request to change his plea, claiming he had received ineffective aid of counsel in April 2015 and had been pressured by the prosecutor. On December 21, 2016, Wingate rejected McCrory's request to withdraw his plea, ruling it had been made with sufficient advice of counsel. In the FBI's first interview with him, McCrory admitted to laundering $40,000 in cash for Epps; he began wearing a recording device for his conversations with Epps. After being sentenced to 8 1/2 years, on February 3, 2017, McCrory remained free on bail.][Judge rejects try to withdraw plea in prison bribery case]
, ''Sun Herald
The ''Sun Herald'' is a U.S. newspaper based in Biloxi, Mississippi, that serves readers along the Mississippi Gulf Coast. The paper's current executive editor and general manager is Blake Kaplan and its headquarters is in the city of Gulfport ...
'', Jeff Amy (AP), December 21, 2016. Retrieved 3 February 2017. Wingate said that his time may be reduced after the other defendants in the case are sentenced.[Cecil McCrory sentenced to 8.5 years]
''Clarion Ledger
''The Clarion Ledger'' is an American daily newspaper in Jackson, Mississippi. It is the second-oldest company in the state of Mississippi, and is one of the few newspapers in the nation that continues to circulate statewide. It is an operating d ...
'', Jimmie E. Gates, February 3, 2017. Retrieved 4 February 2017. He was to report to prison on November 30, 2017, and as of December 17, 2017, McCrory is being held at the Federal Correctional Institution, Talladega
The Federal Correctional Institution (FCI Talladega) is a medium-security United States federal prison for male inmates in Alabama. It is operated by the Federal Bureau of Prisons, a division of the United States Department of Justice. The facili ...
, Alabama, with an anticipated release date of April 24, 2025.[
On November 1, 2016, while out on bail and awaiting sentencing, Epps was arrested by the ]Flowood, Mississippi
Flowood is a city in Rankin County, Mississippi, United States. The population was 10,202 at the 2020 U.S. Census. It is part of the Jackson Metropolitan Statistical Area.
History
In 1950, a delegation from Flowood petitioned Governor Fielding L ...
Police Department and charged with breaking into his former primary residence, which he had given up to the federal government as part of his plea agreement. He had removed light fixtures and other items which were recovered at his nearby second home. Epps appeared in court on November 3 and said he had made a "terrible mistake", and only wanted to retrieve some outside floodlights for Halloween. On November 15, 2016, Epps petitioned the court to be allowed to be released to house arrest. Epps had been in jail since his November arrest on burglary charges when his bail was revoked.[ In December 2016, Wingate rejected Epps' request for home confinement, saying he would be held in jail until his sentencing, scheduled for May 2017. On May 24, 2017, Epps was sentenced to 325 months (27 years and 1 month) in federal prison. The prosecutor, Assistant U.S. Attorney for the Southern District of Mississippi, Darren LaMarca, recommended a sentence of 13 years due to the substantial cooperation Epps provided, which FBI agent Ty Breedlove characterized to the court as one of the best confidential sources in his career. Wingate responded that the gross value of the contracts Epps received kickbacks on was $868 million.][Chris Epps sentenced to almost 20 years]
''Clarion-Ledger
''The Clarion Ledger'' is an American daily newspaper in Jackson, Mississippi. It is the second-oldest company in the state of Mississippi, and is one of the few newspapers in the nation that continues to circulate statewide. It is an operating d ...
'', Jimmie E. Gates, May 24, 2017. Retrieved 13 June 2017. By July 2017 Epps was moved to the Federal Correctional Institution
The Federal Bureau of Prisons classifies prisons into seven categories:
* United States penitentiaries
* Federal correctional institutions
* Private correctional institutions
* Federal prison camps
* Administrative facilities
* Federal correctio ...
in Seagoville, Texas
Seagoville ( ) is a city in Dallas County, Texas, United States, and a suburb of Dallas. A small portion of Seagoville extends into Kaufman County. The population was 14,835 at the 2010 census. The city is located along U.S. Highway 175, from dow ...
.
As of February 2015, Epps was still eligible to receive benefits from the state Public Employees' Retirement System.
In April 2017, consultant Michael Goddard pleaded guilty to lying to the FBI in regards to a bribe he received from Health Assurance in connection with a jail health care contract for Jefferson County, Alabama. Goddard was scheduled to be sentenced on August 2, 2017, and faced up to five years in prison and a $250,000 fine. He is being held at the Federal Correctional Institution, Butner Low custody, North Carolina, with a scheduled release date of November 1, 2023.[
Wingate recused himself from trying the Carl Reddix case, which was assigned to Chief Judge Daniel Jordan. In a plea bargain, on May 3, 2017, Reddix, who was accused of paying more than $170,000 in bribes, pleaded guilty to a single count of bribery. He was scheduled to be sentenced on August 1, 2017, and remained free on $10,000 bail, with his sentencing delayed until September. At issue is the amount of restitution for which he might be liable, with prosecutors recommending payment of $1.27 million. In October, the judge rejected his arguments and required him to pay the full amount demanded by prosecutors. Reddix was sentenced by Judge Jordan to six years in prison, plus two years of supervised release. He was fined $15,000 and required to forfeit more than $1.2 million. U.S. Attorney Mike Hurst said that Reddix had personally made 36 bribe payments to Epps over a three-year period. He reported to prison on January 29, 2018, and is being held at the Federal Correctional Institution, Butner 1 Medium custody, in North Carolina.][
On August 18, 2019, the four Louisiana businessmenMichael LeBlanc Sr.; his son, Michael Jr.; Tawasky L. Ventroy; and Jacque B. Jacksonagreed to plead guilty to certain charges, though the specifics were not released to the public.][4 Louisiana men to plead guilty in Mississippi bribe scheme]
''Associated Press
The Associated Press (AP) is an American non-profit news agency headquartered in New York City. Founded in 1846, it operates as a cooperative, unincorporated association. It produces news reports that are distributed to its members, U.S. newspa ...
'', Jeff Amy, August 18, 2019. Retrieved September 8, 2019. LeBlanc Sr. was the owner of LCS Correctional Services. He sold five jails to GEO Group for $305 million, with $298 million going to pay debts owed for the construction of those prisons.[ LeBlanc Sr. and his brother Patrick, who died in a plane crash, were involved in bribing a ]Bexar County, Texas
Bexar County ( or ; es, Béxar ) is a county in the U.S. state of Texas. It is in South Texas and its county seat is San Antonio.
As of the 2020 census, the population was 2,009,324. Bexar County is included in the San Antonio–New Bra ...
sheriff and the sheriff's campaign manager, to obtain the contracts for phone and commissary services, though they were not prosecuted for it.[ After taking their guilty pleas, Wingate set aside February 10, 2019 for sentencing hearings against all four men.][4 Louisiana men plead guilty in Mississippi bribe scheme]
''Associated Press
The Associated Press (AP) is an American non-profit news agency headquartered in New York City. Founded in 1846, it operates as a cooperative, unincorporated association. It produces news reports that are distributed to its members, U.S. newspa ...
'', Jeff Amy, October 4, 2018. Retrieved October 5, 2019.
The total number of defendants who pleaded guilty by May 7, 2017 stood at ten, plus the four from Louisiana who took pleas in 2019.[ In late May 2017, Assistant US Attorney LaMarca said that six or seven investigations remained open in Mississippi and Louisiana, and one more indictment was obtained but remains sealed.
]
State legal issues
On February 8, 2017, Mississippi Attorney General Jim Hood
James Matthew Hood (born May 15, 1962) is an American lawyer and politician who served as the 39th Attorney General of Mississippi from 2004 to 2020.
A member of the Democratic Party (United States), Democratic Party, he was first elected in 20 ...
announced he had filed civil cases against 15 corporations and numerous individuals who had engaged in contracts with the MDOC and Epps, and was seeking damages and punitive damages. Hood said "the state of Mississippi has been defrauded through a pattern of bribery, kickbacks, misrepresentations, fraud, concealment, money laundering and other wrongful conduct. These individuals and corporations that benefited by stealing from taxpayers must not only pay the state's losses, but state law requires that they must also forfeit and return the entire amount of the contracts paid by the state. We are also seeking punitive damages to punish these conspirators and to deter those who might consider giving or receiving kickbacks in the future". Besides Malone and Carl Reddix, the defendants included Michael Reddix; Andrew Jenkins; Management & Training Corporation; The GEO Group
The GEO Group, Inc. (GEO) is a publicly traded C corporation that invests in private prisons and mental health facilities in North America, Australia, South Africa, and the United Kingdom. Headquartered in Boca Raton, Florida, the company's f ...
, Inc.; Cornell Companies
Cornell Companies (NYSE:CRN) was an American corporation that operated correctional facilities, contracting them to state and local governments. The company's headquarters were located in Houston, Texas. On August 12, 2010, Cornell was acquired by ...
, Inc.; Wexford Health Sources Wexford Health Sources, Inc. is a healthcare services company headquartered in Foster Plaza Two in Green Tree, Pennsylvania, near Pittsburgh.Twedt, Steve.Wexford Health works with inmates" ''Pittsburgh Post-Gazette''. Sunday April 12, 2009. Retrieve ...
, Inc.; The Bantry Group Corporation; Admin Pros, L.L.C.; CGL Facility Management, LLC; Mississippi Correctional Management, Inc.; Branan Medical Corporation; Drug Testing Corporation; Global Tel*Link Corporation; Health Assurance, LLC; Keefe Commissary Network, LLC of St. Louis; Sentinel Offender Services
Sentinel Offender Services is a criminal justice services and original equipment manufacturing company based in Anaheim, California. The company was founded in 1993 by Robert Contestabile, who is currently the Chairman. Tom Flies is Chief Execut ...
, L.L.C.; and AJA Management & Technical Services, Inc.[Mississippi AG files lawsuits in Epps bribery case]
''The Clarion-Ledger
''The Clarion Ledger'' is an American daily newspaper in Jackson, Mississippi. It is the second-oldest company in the state of Mississippi, and is one of the few newspapers in the nation that continues to circulate statewide. It is an operating d ...
'', Jimmie E. Gates, February 8, 2017. Retrieved 9 February 2017.
In November 2017, Sentinel Offender Services LLC, which provides inmate electronic monitoring, settled its case which involved a $2 million contract for $1.3 million. Hood said his office by that time had retrieved $5.8 million on behalf of Mississippi taxpayers. However, GEO Group, formerly Wackenhut Corrections, which operated many MDOC prisons between 1994 and 2012, continued to fight the charges. GEO Vice President for corporate relations, Pablo Paez, stated that "during heir
Inheritance is the practice of receiving private property, titles, debts, entitlements, privileges, rights, and obligations upon the death of an individual. The rules of inheritance differ among societies and have changed over time. Officiall ...
entire tenure as a service provider to the State, our company was never aware of or involved in any improprieties within the Mississippi Department of Corrections".[Josh Moon, "Key player in Alabama prison plan accused of kickbacks by Mississippi AG"](_blank)
''Alabama Political Reporter'', 16 May 2017. Retrieved November 30, 2017.
In February 2018, Hood cited the Epps corruption when opposing passage of legislation in the state house that would make it more difficult for the state to have remedies for behavior involving fraud or corruption, noting "corporations have just flat got he state's
He or HE may refer to:
Language
* He (pronoun), an English pronoun
* He (kana), the romanization of the Japanese kana へ
* He (letter), the fifth letter of many Semitic alphabets
* He (Cyrillic), a letter of the Cyrillic script called ''He'' in ...
Legislature doing their bidding". He said the bill would "protect crooks and scam artists by gutting the Consumer Protection Act. They would not only block future cases, but would also be used to slow down or block late-stage pending cases."
On May 18, 2017, Hood announced that the state had made the first settlement against Alere Inc., which had purchased Branan Medical Corporation and paid $2 million to the state. On January 24, 2019, Hood announced that his office recovered $27 million from the vendors whom he filed suits against. Management and Training Corporation finally settled the state's suit to recover funds and paid $5.2 million. GEO Group paid $4.6 million, with the named defendant being Cornell Companies, which had been purchased by GEO in 2010. Wexford Health Sources Inc. paid $4 million. Keefe Commissary Network and C. N. W. Construction Company both paid $3.1 million each. $750,000 was paid by CGL Facility Management, which provides maintenance services. $32,188 was paid by Admin Pros LLC, a Medicaid billing service. Insurance agent Guy E. “Butch” Evans paid $100,000.
As of late January 2019, eight lawsuits in bribery schemes were still pending. Hood accused at least 10 individuals and 12 out-of-state corporations of using so-called "consultants" to fix more than $800 million in Mississippi prison contracts.$2M settlement announced in Epps-related lawsuit
''Clarion-Ledger
''The Clarion Ledger'' is an American daily newspaper in Jackson, Mississippi. It is the second-oldest company in the state of Mississippi, and is one of the few newspapers in the nation that continues to circulate statewide. It is an operating d ...
'', May 18, 2017. Retrieved November 30, 2017. Subsequently, two more corporations settled those suits. As he left office, Hood published a list of enumerated recoveries of $26,612,188.22 from complicit corporations. Global Tel*Link Corporation an inmate phone provider, settled for $2.500,000 million. [HOOD RECOVERS $26.6 MILLION, SETTLES FINAL EPPS BRIBERY CASE]
''Mississippi Attorney General
The Attorney General of Mississippi is the chief legal officer of the state and serves as the state's lawyer. Only the Attorney General can bring or defend a lawsuit on behalf of the state.
The Attorney General is elected statewide for a four-yea ...
'', January 24, 2019. Retrieved December 7, 2020. Health Assurance, LLC, a correctional health care provider went bankrupt so no settlement was obtained.[ On May 19, 2020, the Mississippi appeals court ruled against Epps and his wife Catherjean who had litigated against paying $69,489, their tax liabilities for the years 2007-2014, that had been retroactively assessed on those ill-gotten gains emanating from the later discovery of the bribery schemes.][ex-MDOC Commissioner Chris Epps, wife must pay $69,489 in state taxes]
''Clarion Ledger
''The Clarion Ledger'' is an American daily newspaper in Jackson, Mississippi. It is the second-oldest company in the state of Mississippi, and is one of the few newspapers in the nation that continues to circulate statewide. It is an operating d ...
'', Jimmie E. Gates, May 21, 2020. Retrieved September 21, 2020.
References
External links
Attorney General's Investigative Guidelines, September 2005
*
Christopher B. Epps Commissioner
Archive
. Mississippi Department of Corrections
The Mississippi Department of Corrections (MDOC) is a state agency of Mississippi that operates prisons. It has its headquarters in Jackson. Burl Cain is the commissioner.
History
In 1843 a penitentiary in four city squares in central Jackson ...
.
*
United States Of America v. Christopher B. Epps and Cecil McCrory
Archive
- Indictment
* Ramsey, Marshall.
The Fall of Chris Epps
Archive
. ''The Clarion-Ledger
''The Clarion Ledger'' is an American daily newspaper in Jackson, Mississippi. It is the second-oldest company in the state of Mississippi, and is one of the few newspapers in the nation that continues to circulate statewide. It is an operating d ...
''. February 25, 2015.
* United States of America v. Robert Simmons Case 1:16-cr-00010-HSO-RHW Document 1 Filed 02/11/16
*
United States of America v. Carl Reddix"
Indictment
*
United States of America v. Mark Longoria
" Indictment
{{DEFAULTSORT:Mississippi Hustle, Operation
Federal Bureau of Investigation operations
Political corruption investigations in the United States
Political scandals in Alabama
Political scandals in Mississippi