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"Pay to Play" for Private Prisons?

April 26, 2017


Today’s post picks up from a previous post, Crony Capitalism; Private Prison Stocks Have Doubled Since the Election
We all remember the “Pay to Play” rhetoric from Donald Trump during the campaign. However, the Trump administration made a controversial decision last week to award their first federal contract for an immigration detention center to the GEO Group. As mentioned in the previous post , a $100,000 donation by the GEO Group to Trump’s Super PAC may have violated federal. Private companies can’t make political donations while their contracts while holding or negotiating a federal contract. Then again, the GEO Group is unlikely to be penalized due to a technicality; one of their subsidiaries, which doesn’t have any federal contracts, made the donation.
Was there a quid-pro-quo for this newly acquired $110 million immigration detention center contract? There’s no evidence at this time, but the optics are horrible. Nonetheless, this type of decision was the exact scenario that Trump adamantly campaigned against. He was supposed to “drain the swamp.” He repeatedly pointed to the “Pay to Play System,” i.e. preferential treatment for Clinton Foundation donors. Now, he can be accused of the same kind of corruption.
Making matters worse, the Inspector General’s Office of the Department of Justice issued a damning report yesterday about another private prison operator. Their office revealed clear corporate negligence at the infamous federal prison, Leavenworth, which is being operated by CoreCivic, formerly Corrections Corporation of America (CCA). CoreCivic compromised inmate and staff safety by understaffing and closing “mandatory” security posts. Remarkably, their company compensated, at times, by placing staff members who were not corrections officers into these security posts. 
CoreCivic also repeatedly placed three beds into cells that were designed for two beds. Furthermore, their company tried to hide that decision from government auditors. There were other details demonstrating that this company prioritized profits over rehabilitation. You can view a condensed video of the Inspector general’s report:
Did this report impact the Trump administration’s decision to award the recent $110 million contract to the GEO Group? Again, there’s no evidence. And this latest report was years in the making. In fact, there’s no evidence suggesting that Jeff Sessions or the Trump administration considers the recommendations of the Inspector General’s Office in any manner. Otherwise, they would have not reversed the decision by the Obama administration to phase out all federal prison contractors, which was based upon a report by the Inspector General.
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Lazy journalists labeled Epstein as a “financier,” a “man of mystery,” a “philanthropist,” etc. This was one of the most sought-after stories of recent times, yet the corporate media dropped the ball through self-censorship and ineptitude. The evidence indicates that Epstein was involved in the intelligence community. It defies logic to think otherwise considering that he was so deeply tied to one of the largest Ponzi schemes of its time, involved in international arms dealing, owned a fake passport, operated a blackmail scheme that masqueraded as a sex trafficking ring, influenced key business/political leaders, held hundreds of millions of dollars of nebulous wealth, among other reasons. Here's a timeline of events that will help to clear up many of the questions surrounding his life. Timeline 1974 June – Epstein finished studying at Courant Institute of Mathematical Sciences at New York University without receiving a degree. 1974-1976 Epstein was a teacher at Dalton School in Manhattan, an elite private school. 1976 – Epstein was dismissed from Dalton School. Six of his former students spoke to a reporter at The New York Times . They said that he didn’t touch them, but he crossed lines of appropriate behavior, particularly when he attended high school parties. 1976 – Epstein joined Bear Stearns and started as a junior assistant to a floor trader. He gained this opportunity because he impressed then Bear Stearns CEO, Alan “Ace” Greenberg, during a parent-teacher conference . Epstein reportedly tutored the son of Greenberg and was friendly with Greenberg’s daughter. 1980 – Epstein had a rapid rise through the company and became a limited partner in Bear Stearns. 1980 Oct - Epstein featured as Cosmo magazine's “Bachelor of the Month.” 1981 March 12 - Epstein resigned from Bear Stearns. This was after the firm fined him $2,500 for breaking a regulatory rule by letting a friend/client borrow money to buy stock. He also received a 60-day suspension. 1981 April 1 – Epstein testified to SEC officials about his time at Bear Stearns. The SEC questioned him about the suspicious timing of his resignation. It came days before an insider trading scandal. The Seagram Company attempted a takeover of St. Joe’s Mineral Corp. Traders at Bear Stearns were suspected of using offshore accounts to trade based on that nonpublic information. Epstein maintained that his resignation had nothing to do with that investigation and never faced charges. This is the beginning of a pattern of Epstein’s connections to financial scandals without facing time behind bars. 1981 August – Epstein formed his financial advisory firm , Intercontinental Assets Group Inc, which he ran out of his apartment in New York City. 1981 – Epstein was a natural charmer/networker/manipulator/con artist. However, when he met Douglas Leese at a Texas oil tycoon’s party, that was seemingly when he became a player in the intelligence community. Douglas Leese’s name is kind of a footnote in most contemporary Epstein reporting, but Leese was a prominent British arms trafficker. That’s an industry that often is a nexus between intelligence agencies, corrupt politicians, and savvy money launderers; the latter being where Epstein’s help was likely welcomed. Douglas Leese was one of the facilitators of Britain’s largest arms/corruption scandal in history. According to the British Parliament , he helped to arrange some of the bribes, possibly using the offshore bank, the Bank of NT Butterfield in Bermuda, for the Al Yamamah oil-for-arms deal between Saudi Arabia and the British defense contractor worth £43 billion in revenue between 1985 and 2007. Douglas became a mentor to Epstein, according to Douglas Leese’s son, Julian Leese. Douglas Leese was also linked with the Saudi arms trafficker, Adnan Khashoggi. He was one of the key brokers in the Iran-Contra affair .
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