RANKING ASSET MANAGERS REPORT

PRIVATE
PRISONS and
INVESTMENT
RISKS
PART
TWO

How Private Prison Companies
Fuel Mass Incarceration—and How
Public Pension Funds Are at Risk

Randi Weingarten
president
Lorretta Johnson
secretary-treasurer
Mary Cathryn Ricker
executive vice president

AFT Executive Council
J. Philippe Abraham
Shelvy Y. Abrams
Barbara Bowen
Vicky Rae Byrd
Christine Campbell
Zeph Capo
Alex Caputo-Pearl
Donald Carlisto
Larry J. Carter, Jr.
Kathy A. Chavez
Melissa Cropper
Evelyn DeJesus
Aida Diaz Rivera
Jolene T. DiBrango
Marietta A. English
Eric Feaver
Francis J. Flynn
David Gray
Anthony M. Harmon
David Hecker
Jan Hochadel
Fedrick C. Ingram
Jerry T. Jordan
Ted Kirsch
Frederick E. Kowal

Louis
Jerry T.Malfaro
Jordan
Terrence
Martin
Ted Kirsch
Joanne
M.E.
McCall
Frederick
Kowal
John
LouisMcDonald
Malfaro
Daniel
J. Montgomery
Terrence
Martin
Michael
Mulgrew
Joanne M.
McCall
Candice
Owley
John McDonald
Andrew
Daniel J.Pallotta
Montgomery
Joshua
MichaelPechthalt
Mulgrew
Paul
Pecorale
Candice
Owley
David
J. Quolke
Andrew
Pallotta
Jesse
Sharkey
Joshua
Pechthalt
Denise
Specht
Paul Pecorale
Wayne
David J.Spence
Quolke
Tim
JesseStoelb
Sharkey
Jessica
Tang
Denise J.Specht
Ann
Twomey
Wayne
Spence
Adam
Urbanski
Tim Stoelb
Jessica J. Tang
Ann Twomey
Adam Urbanski

Our Mission
The American Federation of Teachers is a union of professionals that champions fairness; democracy;
economic opportunity; and high-quality public education, healthcare and public services for our
students, their families and our communities. We are committed to advancing these principles through
community engagement, organizing, collective bargaining and political activism, and especially through
the work our members do.

Copyright © American Federation of Teachers, AFL-CIO (AFT 2019). Permission is hereby granted to AFT state and local affiliates to
reproduce and distribute copies of the work for nonprofit educational purposes, provided that copies are distributed at or below cost,
and that the author, source, and copyright notice are included on each copy. Any distribution of such materials to third parties who are
outside of the AFT or its affiliates is prohibited without first receiving the express written permission of the AFT.

	

Private Prisons and Investment Risks, Part Two
How Private Prison Companies Fuel Mass Incarceration—and How Public
Pension Funds Are at Risk
Since	2013,	the	American	Federation	of	Teachers	has	
periodically	released	“Ranking	Asset	Managers”	reports.	
These	reports	have	provided	information,	for	the	purpose	of	
transparency,	risk	analysis	and	education,	for	pension	fund	
trustees	and	managers.	
	
This	is	the	AFT’s	second	report	in	a	two-part	series	
highlighting	the	investment	risks	to	pension	funds	and	other	
investors	whose	portfolios	contain	investments	in	the	
private	prison	industry	or	contractors	who	provide	services	
to	immigrant	detention	centers.	Part	1	of	this	series,	“Private	
Prisons,	Immigrant	Detention	and	Investment	Risks,”	
released	in	August	2018,	identifies	investment	managers,	namely	hedge	fund	managers,	who	invest	millions	of	dollars	in	
companies	that	profit	from	detention	facilities	that	house	separated	immigrant	families	and	the	risks	those	investments	pose	
to	our	members’	retirement	security.		
	
Part	2	of	this	series	focuses	on	the	companies	and	asset	managers,	namely	private	equity	firms,	that	profit	from	and	fuel	the	
mass	incarceration	of	black	and	brown	people	in	the	United	States.	
	
The	United	States	incarcerates	more	people	than	any	other	country	in	the	world,	both	in	terms	of	the	number	of	individuals	
incarcerated	and	by	percentage	of	population.i	In	2016,	there	were	roughly	2.2	million	people	in	the	country’s	prisons	and	
jails,	and	1	in	every	116	adults	in	the	United	States	was	incarceratedii—a	rate	far	higher	than	countries	with	more	
authoritarian	regimes,	such	as	Russia,	the	Philippines	and	Iran.iii	If	the	number	of	imprisoned	individuals	in	the	United	States	
made	up	a	city,	it	would	be	the	fifth-largest	in	the	country.iv	
	
This	practice	of	shunting	a	significant	portion	of	the	population	into	the	criminal	justice	system	is	known	as	mass	
incarceration,	and	it	overwhelmingly	and	discriminatorily	impacts	communities	of	color.	Although	people	of	color	make	up	
only	30	percent	of	the	population,	they	make	up	60	percent	of	the	U.S.	incarcerated	population.v	The	American	Civil	Liberties	
Union	estimates	that	1	out	of	every	3	black	boys	and	1	out	of	every	6	Latino	boys	can	expect	to	go	to	prison	in	their	
lifetimes—compared	with	1	out	of	every	17	white	boys.vi	According	to	the	NAACP,	“If	African	Americans	and	Hispanics	were	
incarcerated	at	the	same	rates	as	whites,	prison	and	jail	populations	would	decline	by	almost	40%.”vii		
	
This	racial	divide	in	incarceration	rates	is	exacerbated	by	poverty.	A	2015	report	by	the	Prison	Policy	Initiative	states	that	
“the	American	prison	system	is	bursting	at	the	seams	with	people	who	have	been	shut	out	of	the	economy	and	who	had	
neither	a	quality	education	nor	access	to	good	jobs,”	noting	that	the	median	annual	income	of	U.S.	inmates	prior	to	
incarceration	is	only	about	$19,000.viii	Socio-economic	status	plays	a	significant	role	in	determining	whether	someone	will	
experience	incarceration,ix	yet	racial	disparities	in	incarceration	rates	and	sentencing	persist,	with	a	disproportionately	
negative	impact	on	African-American	men	in	particular.x		
	
The	AFT	believes	that	combating	mass	incarceration	is	a	vital	civil	rights	and	humanitarian	issue—and	as	this	report	
demonstrates,	it	is	also	an	investment	issue.	That’s	why	the	issue	of	private	prisons	is	now	subject	to	a	risk	analysis,	
something	the	AFT	has	done	periodically	since	2013,	to	provide	information,	for	the	purpose	of	transparency	and	education,	
to	pension	fund	trustees.	In	2015,	the	AFT’s	Racial	Equity	Task	Force	released	a	report,	“Reclaiming	the	Promise	of	Racial	

This report aims to address
one of the factors that lead
to mass incarceration: the
growth of the private prison
industry.

1	

	
Equity,”	that	called	for	the	union	and	allies	to	“work	to	combat	factors	that	lead	to	the	mass	incarceration	of	young	black	
males.”	This	“Ranking	Asset	Managers”	report	aims	to	combat	one	of	those	factors:	the	growth	of	the	private	prison	industry,	
whose	business	model	depends	on	increasing	the	number	of	people	in	detention,	often	under	conditions	that	violate	their	
human	rights.	As	nearly	two-thirds	of	prisoners	are	black	and	Latino,xi	the	push	to	incarcerate	larger	numbers	will	
undoubtedly	lead	to	further	disproportionate	incarceration	of	people	of	color.	
	
The	mass	incarceration	crisis	is	felt	deeply	by	AFT	members.	The	National	Resource	Center	on	Children	and	Families	of	the	
Incarcerated	at	Rutgers	University	estimates	that	more	than	2.7	million	children	in	the	United	States	have	an	incarcerated	
parent,	or	about	1	in	28	children;	44-55	percent	of	fathers	in	prison	and	64-84	percent	of	mothers	in	prison	had	at	least	one	
minor	child	living	with	them	before	incarceration.xii	Because	more	than	half	of	all	incarcerated	parents	were	the	
breadwinners	for	their	families,	children	with	incarcerated	parents	are	more	likely	to	experience	poverty	and	housing	
instability,xiii	both	of	which	can	disrupt	learning.	According	to	the	Economic	Policy	Institute,	children	of	incarcerated	parents	
are	more	likely	to	drop	out	of	school,	develop	learning	disabilities	and	suffer	from	ailments	such	as	asthma,	anxiety,	posttraumatic	stress	disorder,	migraines	and	depression,	leading	EPI	to	conclude	that	“criminal	justice	policy	is	education	
policy.”xiv		
	
Furthermore,	the	“zero	tolerance”	discipline	policies	that	schools	previously	adopted	had	the	effect	of	criminalizing	students,	
with	a	disproportionate	effect	on	students	of	color,	who	face	greater	rates	of	suspension,	expulsion	and	being	brought	up	on	
criminal	charges.	The	effect	has	been	students	leaving	public	schools,	which	provide	the	support	and	resources	they	need.xv		
	
Clearly,	the	mass	incarceration	crisis	impacts	educators	and	the	students	they	teach—and	the	crisis	is	fueled	in	part	by	
companies	that	profit	from	the	incarceration	of	communities	of	color.	Large,	for-profit	prison	operators	like	CoreCivic	and	
the	GEO	Group,	along	with	a	number	of	smaller	companies	owned	by	private	equity	firms	that	provide	corrections-related	
support	services,	together	make	billions	of	dollars	annually	when	disproportionate	numbers	of	black	and	Latino	people	are	
sent	to	prison.		
	
That’s	why	mass	incarceration	is	not	only	a	racial	justice	and	civil	rights	issue—it	is	also	an	investment	issue.	A	large	number	
of	public	pension	funds,	along	with	other	institutional	investors,	have	tens	of	millions	of	dollars’	worth	of	exposure	to	the	
private	prison	industry	through	their	investment	portfolios,	whether	through	directly	owned	shares	of	publicly	traded	
private	prison	companies,	indirect	exposure	through	hedge	funds	or	index	funds,	or	investments	in	private	equity	firms	that	
own	companies	providing	corrections-related	services.	
	
Private	prison	companies	and	companies	that	provide	outsourced	
services	to	correctional	facilities	have	no	incentive	to	address	the	
problem	of	mass	incarceration,	because	they	stand	to	make	more	
money	when	more	individuals	are	incarcerated.	In	fact,	private	
prison	companies	actively	contribute	to	the	current	system	of	mass	
incarceration	through	political	expenditures,	policy	development	
and	lobbying.	These	companies	do,	however,	have	an	incentive	to	
cut	costs	in	order	to	maximize	their	profits,	and,	as	this	report	will	
demonstrate,	many	achieve	this	by	lowering	wages	for	workers,	
understaffing,	skimping	on	training	and	providing	as	little	services	
as	possible	to	inmates—at	times	breaking	the	law	and	at	the	
expense	of	inmates’	health,	safety	and	lives.	The	litigation,	regulatory	and	headline	risks	that	result	from	the	abuses	of	the	
private	prison	and	corrections	services	industries,	therefore,	are	significant.		
	
A	number	of	public	pension	funds	have	already	taken	steps	to	mitigate	mass	incarceration	risks,	with	three	of	the	four	
largest	public	pension	funds	in	the	United	States—the	California	State	Teachers’	Retirement	System,	the	New	York	City	
Employees’	Retirement	System	and	the	New	York	State	Common	Retirement	Fund—divesting	from	direct	holdings	in	private	

The investment risks that
result from the abuses of
the private prison and
corrections services
industries are significant.

2	

	
prison	companies	over	the	last	two	years.	Two	other	funds	in	which	AFT	members	participate—the	Chicago	Teachers’	
Pension	Fund	and	the	New	Jersey	State	Investment	Council—also	voted	to	divest	from	private	prison	companies	in	recent	
months,	indicating	a	growing	recognition	among	pension	funds	that	private	prison	investments	pose	serious	investment	
risks	to	workers’	retirement	savings.		
	
Accordingly,	this	report	will:	
	
1. Identify	the	principal	companies,	both	publicly	traded	and	private	equity	owned,	that	profit	from	mass	
incarceration;	
	
2. Outline	the	risks	to	investors	posed	by	these	companies;	
	
3. Provide	a	“watch	list”	of	private	equity	firms	that	own	companies	that	provide	services	to	prisons,	jails	and	
detention	facilities;	
	
4. Call	on	public	pension	funds	to	assess	their	direct	and	indirect	exposure	to	these	companies	and	asset	
managers	and	assess	the	risks	they	pose	to	the	fund;	and	
	
5. Provide	action	steps	for	pension	fund	trustees	to	mitigate	these	investment	risks.	

Steps Pension Funds Have Taken to Address Mass Incarceration
Investment Risk
Several	pension	funds	have	divested	from	the	private	prison	
“I am a grandmother of 17, and all
industry	over	the	last	several	years,	including	the	New	York	City	
my children and grandchildren have
Employees’	Retirement	System,	the	New	York	State	Common	
Retirement	System	and	the	Philadelphia	Board	of	Pensions	and	
been or are in Chicago Public
Retirements.xvi	Since	the	release	of	Part	1	of	this	report	in	August	
Schools. I fully supported the
2018,	the	following	additional	pension	funds	have	taken	steps	to	
divest	from	private	prisons:	
Chicago Teachers’ Pension Fund’s
	
decision to take their money out of
• On	Aug.	17,	2018,	the	Chicago	Teachers’	Pension	Fund	
added	immigrant	detention	centers	and	other	private	
private prison companies that are
prison	operators	to	its	list	of	prohibited	investments.	
harming our communities. These
Said	fund	President	Jay	C.	Rehak:	“We	know	these	
companies see people as dollar
institutions	disproportionately	incarcerate	people	of	
color	and	those	who	live	below	the	poverty	line,	house	
signs, nothing more.”
immigrant	children	and	perpetuate	the	separation	of	
immigrant	families.	[Furthermore,	these	companies]	
—Irene Robinson,
take	advantage	of	and	put	at	risk	unprotected,	low-wage	
Journey for Justice member, Chicago
employees,	while	lacking	fiscal	and	operational	
xvii
transparency.” 	
	
Added	Chicago	Teachers	Union	President	Jesse	Sharkey:	“Our	union	members	serve	tens	of	thousands	of	immigrant	
students	in	our	schools,	and	we’re	committed	to	taking	any	and	all	steps	to	protect	their	families	from	disruption	or	
repression.	That	includes	our	refusal	to	support	corporations	that	seek	to	profit	from	the	national	attack	on	
immigrants—the	same	corporations	that	continue	to	profit	from	the	mass	incarceration	of	black	people	and	the	
harm	that	continues	to	visit	the	families	of	our	black	students.”xviii	

3	

	
•

•

•

	
On	Aug.	31,	2018,	the	New	Jersey	Pension	Fund	divested	its	stake	in	the	GEO	Group	totaling	$1.3	million,	stating	
“Our	division	of	investment	reviewed	the	investment	merits,	including	consideration	of	environmental,	social	and	
governance	issues,	and	consistent	with	its	fiduciary	responsibility	elected	to	sell	the	security.”xix		
	
On	Nov.	8,	2018,	the	California	State	Teachers’	Retirement	System	investment	committee	voted	to	divest	all	directly	
held	shares	of	the	GEO	Group	and	CoreCivic	within	six	months.	The	decision	to	divest	followed	months	of	CalSTRS’	
heightened	engagement	with	the	GEO	Group	and	CoreCivic	regarding	their	business	practices,	which	included	“visits	
to	various	detention	facilities	and	face-to-face	meetings	with	senior	management	concerning	operational	processes	
and	risk	management	efforts,”	according	to	the	pension	fund,	which	cited	risks	related	to	human	rights	violations	of	
immigrants	and	children	of	immigrants	detained	at	the	companies’	facilities.xx		
	
In	December	2018,	the	California	Public	Employees’	Retirement	System,	the	largest	public	pension	fund	in	the	
country,	announced	that	it	was	engaging	in	dialogue	with	management	of	CoreCivic	and	the	GEO	Group,	as	well	as	
defense	contractor	General	Dynamics,	around	concerns	related	to	the	companies’	involvement	in	immigrant	
detention.	According	to	CalPERS’	investment	policy,	the	pension	fund	must	engage	with	companies	on	their	policies	
before	holding	a	formal	vote	on	divestment.xxi	

	
Notably,	most	pension	funds	that	have	divested	from	the	
private	prison	industry	have	divested	their	direct	stock	
holdings,	with	the	exception	of	the	New	York	State	Common	
Retirement	Fund,	whose	private	prison	divestment	policy	
applies	to	all	asset	classes	prospectively,	meaning	that	the	
fund	screens	any	new	asset	manager,	including	private	equity	
funds,	for	exposure	to	the	private	prison	industry.		
	

Who Profits from Mass
Incarceration?

“As a public school parent, I know
teachers work hard to educate our
children. We don’t want to see any
of our children end up in prison, and
it’s heinous that there are companies
out there that think prisons are a
good way to make billions of dollars.
It’s time to rethink how our money is
being invested. Our children are our
future.”

The	United	States	hasn’t	always	been	the	world’s	largest	
jailer.	Most	of	the	explosion	in	the	number	of	people	
incarcerated	has	occurred	only	over	the	last	several	decades,	
and	can	be	attributed	in	part	to	the	war	on	drugs,	which	
—Maulana Tolbert,
officially	commenced	in	the	early	1980s.	In	fact,	according	to	
the	Sentencing	Project,	between	1980	and	2016,	the	number	
Journey for Justice member, Detroit
of	people	incarcerated	for	drug	offenses	increased	more	than	
tenfold;	in	2016,	there	were	more	people	incarcerated	for	drug	offenses	than	there	were	incarcerated	for	any	crime	in	
1980.xxii	In	December	2018,	the	First	Step	Act—bipartisan	legislation	making	changes	to	sentencing	laws—was	signed	into	
law,	and	it	is	expected	to	result	in	thousands	of	federal	inmates	becoming	eligible	for	sentence	reductions	and	early	
release;xxiii	however,	this	legislation	does	not	apply	to	the	state	and	local	prisons	and	jails	that	make	up	the	bulk	of	the	U.S.	
criminal	justice	system.xxiv	Thus,	while	the	legislation	may	be	an	initial	step	in	lowering	the	U.S.	prison	population,	it	does	
nothing	to	address	the	over-incarceration	of	2	million	nonfederal	inmates,	a	significant	portion	of	whom	are	serving	
sentences	for	nonviolent	drug	offenses.xxv	
	
While	the	mass	incarceration	of	people	of	color	has	had	a	devastating	impact	on	entire	communities,	there	are	a	number	of	
companies,	both	publicly	and	privately	held,	that	seek	to	profit	from	the	imprisonment	of	people	of	color.	These	companies	
rely	largely	on	contracts	with	local,	state	and	federal	governments	to	build,	manage	and	operate	prisons,	or	provide	ancillary	

4	

	
services,	such	as	healthcare	and	communications	services,	to	prisons,	and	their	growth	depends	upon	the	growth	of	the	
prison	population	in	the	United	States.	
	
The	private	prison	industry	in	the	United	States	is	dominated	by	two	publicly	traded,	for-profit	companies,	which	together	
account	for	nearly	85	percent	of	the	private	prison	market:xxvi	
	
• CoreCivic	(formerly	Corrections	Corporation	of	America),	the	largest	private	prison	company	in	the	United	States,	
which	owns	and	manages	correctional,	detention	and	residential	re-entry	facilities	in	the	United	States,	totaling	
approximately	78,000	beds	in	19	states.xxvii	
	
• The	GEO	Group,	which	owns	and	manages	correctional	and	detention	facilities	in	the	United	States,	Australia,	South	
Africa	and	the	United	Kingdom,	totaling	approximately	75,000	beds	in	71	facilities;xxviii	it	is	also	the	largest	provider	
of	electronic	monitoring	services	in	the	United	States.xxix	
	
About	9	percent	of	incarcerated	people	in	the	United	States—and	nearly	75	percent	of	people	in	immigrant	detention	
facilities—are	housed	in	private	prisons,xxx	and	this	number	has	grown	significantly	over	the	last	two	decades.	Between	2000	
and	2016,	the	number	of	people	incarcerated	in	private	prisons	grew	five	times	faster	than	the	total	prison	population,	and	
the	number	of	people	in	private	immigrant	detention	centers	increased	by	more	than	440	percent.xxxi	In	2017,	CoreCivic	
earned	more	than	$22,000	per	inmate,xxxii	and	the	GEO	Group	earned	more	than	$24,000	per	inmate.xxxiii	
	
While	public	and	investor	debate	around	the	privatization	of	prisons,	jails	and	detention	facilities	has	largely	focused	on	
publicly	traded	companies	such	as	CoreCivic	and	the	GEO	Group,	the	firms	that	provide	phone	services,	commissary	services,	
medical	services,	bail	bonds	and	other	corrections-related	services	are	perhaps	more	ubiquitous,	serving	thousands	of	
prison,	jail	and	detention	facilities	around	the	country.	These	firms	are	largely	owned	by	private	equity	firms,	whose	owners	
stand	to	profit	from	mass	incarceration—especially	recently,	as	the	Trump	administration	has	ramped	up	immigrant	
detention.	More	details	on	these	firms	and	the	companies	they	own	are	provided	in	Table	1.	
	

Private Equity and Mass Incarceration
	
A	handful	of	private	equity	firms,	drawing	on	capital	from	pension	funds,	foundations,	endowments,	insurance	companies	
and	other	institutional	investors,	have	invested	heavily	in	companies	providing	services	to	prisons,	jails	and	detention	
facilities	around	the	United	States	and	the	more	than	2	million	people	housed	at	those	facilities.	
	
Over	the	last	several	decades,	local,	state	and	federal	governments,	facing	increasing	budget	constraints,	have	outsourced	an	
increasing	share	of	prison-related	services,	such	as	medical	care,	food	services,	telecommunications	and	parole/probation	
services,	to	private	companies	that	promise	to	deliver	these	services	in	a	more	cost-effective	manner.		
	
Unfortunately,	while	these	companies	turn	a	profit	by	paying	workers	less	and	providing	fewer	and	lower	quality	services	
than	public	institutions,	research	has	shown	that	these	privatized	services	can	cost	more	than	government-provided	
services,	even	considering	the	fact	that	private	prisons	sometimes	serve	healthier	and	less	costly	inmates.xxxiv	
	
This	report	includes	a	watch	list	of	seven	private	equity	firms	that	own	corrections	companies	that	profit	from	mass	
incarceration	(see	Table	2	below).	
	
Although	private	equity	firms	acquire	corrections	companies	in	an	attempt	to	make	money	for	their	principals	and	investors,	
the	cost-cutting	involved	has	led	to	allegations	that	some	of	these	companies	neglect,	mistreat	or	abuse	prisoners	and	take	
advantage	of	the	families	of	the	incarcerated,	which	in	turn	poses	litigation,	regulatory	and	headline	risks	to	investors.		
	

5	

	
The	problems	that	can	result	from	privatized	prison	services	have	been	well-documented;	below	are	case	studies	of	three	
private	equity-owned	corrections	companies	and	related	investment	risks.	
	
Company:	Wellpath	(formerly	Correct	Care	Solutions	and	Correctional	Medical	Group	Companies)	
	
Private	equity	owner:	H.I.G.	Capital	
	
• Until	October	2018,	Correct	Care	Solutions	was	owned	by	a	trio	of	private	equity	firms,	including	GTCR,	the	private	
equity	firm	founded	by	former	Illinois	Gov.	Bruce	Rauner;	while	Rauner	no	longer	runs	the	private	equity	firm,	his	
most	recent	financial	disclosures	indicate	that	he	still	earns	money	from	his	investments	in	GTCR.xxxv	On	Oct.	1,	2018,	
H.I.G.	Capital	announced	that	it	had	acquired	Correct	Care	Solutions	and	would	be	merging	it	with	another	
correctional	healthcare	company	in	its	portfolio,	Correctional	Medical	Group	Companies.xxxvi	Prior	to	this	merger,	
Correct	Care	Solutions	provided	medical	and	behavioral	health	services	to	local,	state	and	federal	correctional	
facilities	in	38	states,	reaching	nearly	250,000	patients.xxxvii	
	
• According	to	the	Daily	Beast,	there	were	more	than	140	lawsuits	against	Correct	Care	Solutions	filed	between	2005	
and	2017.xxxviii	In	2017,	Fulton	County,	Ga.,	terminated	its	contract	with	the	company	after	five	inmates	died	within	a	
span	of	75	days,	with	the	county	concluding	that	the	only	connection	between	the	deaths	was	the	fact	that	all	of	the	
inmates	were	being	treated	by	Correct	Care	Solutions.xxxix		
	
• A	lawsuit	filed	in	May	2018	alleged	that	more	than	a	dozen	inmates	under	the	care	of	Correct	Care	Solutions	were	
denied	medical	treatment	for	serious	ailments,	including	a	stroke,	a	broken	hip	and	lung	cancer.	According	to	the	
lawsuit,	the	company’s	contract	with	the	county	detention	center	created	“perverse	incentives”	because	Correct	
Care	Solutions	“makes	more	money	under	the	contract	when	they	refuse	to	provide	inmates	with	necessary	medical	
care.”xl		
	
• And	in	August	2018,	a	video	was	released	as	part	of	a	wrongful	death	lawsuit	against	Correct	Care	Solutions	that	
showed	an	inmate	in	a	Westchester,	N.Y.,	county	jail	collapsing	on	the	ground	and	being	wheeled	back	to	his	cell	in	a	
wheelchair	by	Correct	Care	Solutions	staff.	The	inmate	died	soon	after	from	a	heart	attack,	and	a	state	legislator	
concluded	that	“looking	at	this	video,	it	would	take	more	persuasion	to	get	me	to	go	along	with	the	point	of	view	that	
we	should	have	CCS	or	another	for-profit	entity	running	the	medical	department	[inside	the	jail].”xli	
	
Company:	Corizon	Health	
	
Private	equity	owner:	BlueMountain	Capital	Management	
	
• Corizon	Health,	the	nation’s	largest	correctional	healthcare	company,	owned	by	private	equity	firm	BlueMountain	
Capital	Management,	provides	healthcare	services	to	220,000	prisoners	at	301	correctional	institutions	in	22	
states.xlii	According	to	the	American	Civil	Liberties	Union,	Corizon	Health	has	been	named	as	a	defendant	in	more	
than	600	malpractice	lawsuits	since	2011,	including	allegations	of	medical	neglect.xliii	The	company	has	paid	out	
millions	of	dollars	in	settlements	over	the	years,	including	a	record	$8.3	million	settlement	in	2015	for	a	detainee	
who	died	after	not	receiving	an	intake	assessment	by	a	registered	nurse	as	required	by	state	law.xliv	
	
• In	one	recent	case,	a	prisoner	under	the	care	of	Corizon	Health	died	in	2017	from	a	rare	fungal	infection	after	
reporting	troubling	symptoms	for	more	than	eight	months;	according	to	the	lawsuit,	the	inmate	suffered	a	
“staggeringly	slow,	physically	and	mentally	excruciating	death.”xlv	Stated	one	expert	witness	about	Corizon,	“They’re	
private,	their	goal	is	to	make	money,	so	they	put	policies	in	place	that	aren’t	necessarily	[intended]	to	benefit	the	
patient.”xlvi	

6	

Company:	Securus/JPay	
Private	equity	owner:	Platinum	Equity	
•

Securus	provides	telecommunications	services	to	more	than	3,400	correctional	facilities	in	the	United	States	and
Canada;xlvii	in	2015,	the	company	acquired	JPay,	which	provides	money	transfer,	email	and	video	visitation	services
to	inmates	in	36	states	and	Washington,	D.C.xlviii

•

The	company’s	high	rates	and	fees	charged	to	inmates	and	their	families	have	been	reported	in	the	New	Yorkerxlix
and	the	Guardian.l	In	2015,	the	Federal	Communications	Commission	established	rate	caps	on	inmate	phone	calls,
with	one	commissioner	pointing	to	an	example	of	a	family	of	one	inmate	that	had	spent	$28,000	over	10	years	to
communicate	with	him.li	However,	Securus,	along	with	other	prison	telecommunications	companies,	challenged	the
rule,lii	and	the	Trump	administration	announced	in	2017	that	it	would	no	longer	defend	the	FCC’s	ruling,liii	giving
prison	telecommunications	companies	an	opening	to	charge	exorbitant	rates	going	forward.

•

In	addition	to	allegations	of	overcharging	its	captive	consumer	base,	Securus	has	also	made	headlines	for	alleged
illegal	activity.	Earlier	this	year,	a	lawsuit	was	filed	alleging	that	the	company’s	agreement	with	Bristol	County	in
Massachusetts	involved	an	illegal	kickback	arrangement	that	resulted	in	the	cost	of	phone	calls	from	the	county	jails
nearly	doubling.liv	In	2016,	Securus	settled	a	lawsuit	alleging	that	the	company	illegally	recorded	privileged	and
confidential	conversations	between	inmates	and	attorneys	and	then	provided	these	recordings	to	prosecutors.lv	And
in	January	2018,	a	former	inmate	filed	a	proposed	class-action	lawsuit	against	JPay,	alleging	that	the	company’s
policies,	including	charging	a	monthly	$3	maintenance	fee	and	a	$1	ATM	decline	fee	for	inmates	and	former	inmates
to	access	their	money,	are	monopolistic	and	illegal.lvi

•

Securus,	along	with	other	correctional	telecommunications	providers,	has	also	pushed	online	video	visitation	as	an
alternative	to	in-person	visitation	of	inmates,	including	writing	bans	of	in-person	visits	into	its	contracts	with
facilities.lvii	While	this	certainly	has	the	effect	of
driving	more	business	to	video	visitation,	which	can	
“As a public school parent who
cost	users	$1	per	minute,	compared	with	free	inworks closely with teachers who
person	visits,lviii	it	also	has	a	negative	impact	on	
prisoners:	Research	has	shown	that	in-person	visits	
serve black and brown children, I
reduce	subsequent	crime	and	recidivism.lix	Perhaps	
know the devastating impact that
due	to	growing	public	outcry	over	this	practice,	in	
mass incarceration has on
2015	Securus	stated	that	going	forward	it	will	defer	
to	its	clients’	policy	on	visitation.lx	
classrooms and on families. Private

As	these	cases	illustrate,	the	privatization	of	public	services	
introduces	a	profit	incentive	that	can	result	in	companies	
taking	extreme	measures	to	cut	costs—putting	employees	and	
inmates	at	risk	in	the	process.	Some	AFT	members	have	
witnessed	firsthand	the	dangers	that	can	occur	when	their	
jobs	are	privatized.	In	2013,	the	Milwaukee	County	Jail	in	
Wisconsin	hired	a	private	company,	Armor	Correctional	
Health	Services,	to	provide	health	services	at	the	jail,	
replacing	the	unionized	registered	nurses,	members	of	the	
Wisconsin	Federation	of	Nurses	and	Health	Professionals.		

prison companies make headlines all
the time for the way they cut
corners and put workers and
inmates at risk—and it’s hurtful to
think that they profit by putting
people behind bars.”
—Angel Gober,
Journey for Justice member, Pittsburgh

7	

Upon taking over healthcare services at the jail, Armor began slashing	staffing	levels,	with	a	former	WFNHP	member	
describing	Armor’s	approach	as	“an	accident	waiting	to	happen.”	In	2016,	four	inmates	died	in	the	jail	over	the	course	of	
just	a	few	months,	including	the	child	of	an	inmate	who	had	given	birth	in	jaillxi	 and	an	inmate	who	died	of	dehydration	after	
being	denied	water	as	punishment.lxii	
As	reported	in	the	Milwaukee	Journal	Sentinel,	“The	private	contractor	responsible	for	medical	care	at	Milwaukee	County’s	
jails	has	failed	to	meet	basic	standards	of	care	and	staffing	mandates,”	with	Armor	failing	to	fill	30	percent	of	all	medical	
positions	at	the	jail.lxiii	In	2018,	Milwaukee	County	prosecutors	brought	criminal	charges	against	Armor	for	falsifying	health	
records.lxiv		
The AFT represents public employees who work in a variety of professions, including corrections officers and parole and
probation officers who work in prisons and with the formerly incarcerated every day. As a result, these workers
understand the criminal justice system and are strong advocates for fair and equal treatment for prison workers and the
incarcerated. AFT public employees recognize that private prison companies put both public safety and public employee
pensions at risk, and believe that privatizing our justice system threatens our democracy.

Fiduciary Arguments for Divestment

It	is	well	within	the	scope	of	a	pension	fund	trustee’s	fiduciary	responsibility	to	consider	the	legitimate	risks	associated	
with	investments	in	the	private	prison	industry,	and	to	consider	whether	to	divest	entirely.	CoreCivic	and	the	GEO	Group	
rely	on	incarcerating	people	to	turn	a	profit	and,	therefore,	have	an	incentive	to	forgo	spending	to	ensure	the	health	and	
safety	of	those	incarcerated	in	order	to	increase	payouts	to	shareholders	and	executives.	There	are	clear	financial,	headline	
and	regulatory	risks	associated	with	investing	in	these	companies:	

•

A	2016	report	from	the	Justice	Department’s	inspector	general	revealed	that	privately	operated	federal	prisons	are
more	dangerous	than	federally	managed	prisons,	with	higher	rates	of	assaults.lxv	This	is	evident	in	the	numerous
lawsuits	against	CoreCivic	and	the	GEO	Group,	including	a	lawsuit	alleging	that	understaffing	at	a	CoreCivic	facility	in
Idaho	led	to	inmates	being	beaten	and	stabbed	by	members	of	a	prison	gang,lxvi	and	a	lawsuit	in	which	a	federal
judge	ruled	in	2012	that	a	GEO	Group	facility	in	Mississippi	failed	to	protect	inmates	from	gang	violence.lxvii

•

Because	private	prison	companies	do	not	have	to	respond	to	requests	for	information	under	the	Freedom	of
Information	Act,	it	is	difficult	for	investors	and	the	public	to	access	clear	information	regarding	conditions	and
possible	abuses.lxviii	This	can	result	in	headline	risks	to	investors	when	these	issues	become	public—for	example,	the
Guardian	reports	that	over	the	last	year,	four	different	lawsuits	have	been	filed	alleging	that	the	companies	“violated
the	federal	Trafficking	Victims	Protection	Act	by	threatening	solitary	confinement	or	withholding	basic	necessities,
such	as	food,	toilet	paper	and	soap,	if	detainees	refused	to	work”	at	five	CoreCivic	facilities	and	one	GEO	Group
facility.lxix

•

Private	prison	companies	face	vulnerability	to	political	changes	because	of	the	humanitarian	issues	associated	with
their	business.	For	example,	in	2016	the	Obama	administration	announced	it	would	phase	out	the	use	of	private
prisons	for	federal	detainees,	and	in	2017	the	Trump	administration	reversed	the	decision.lxx	And	in	December
2018,	the	First	Step	Act	was	signed	into	law,lxxi	which	is	expected	to	lead	to	thousands	of	federal	nonviolent	drug
offenders	qualifying	for	early	release	or	reduced	sentences.lxxii	In	another	example	of	how	private	prisons	are	subject
to	political	events,	in	January	2019,	a	federal	jail	in	Brooklyn,	N.Y.,	experienced	an	electrical	failure,	leaving	more
than	1,000	inmates	with	minimal	heat	and	no	lights	in	their	cells	for	at	least	a	week.	The	power	failure	happened
during	the	federal	government	shutdown,	which	impeded	lawyers’	ability	to	meet	with	their	clients	at	the	jail	and
monitor	the	situation.lxxiii

8	

Private	equity-owned	companies	that	privatize	corrections	services	present	many	of	these	same	investment	risks—including	
regulatory,	litigation	and	headline	risks:	
•

Changes	to	state	laws	can	impact	these	companies’	ability	to	operate;	for	example,	California	recently	passed
legislation	outlawing	cash	bail,lxxiv	which	could	have	a	significant	impact	on	companies	such	as	Aladdin	Bail	Bonds,
particularly	if	other	states	follow	suit.

•

Similarly,	changes	to	federal	policies	can	impact	corrections	companies’	bottom	lines.	For	example,	the	FCC’s
decision	to	cap	prison	phone	call	rates	in	2015,	and	its	subsequent	reversal	in	2017,	illustrates	just	how	vulnerable
prison	telecommunications	companies	are	to	political	wind	shifts.

•

Harmful	practices	on	the	part	of	corrections	companies—particularly	those	that	generate	lawsuits	and/or	media
attention—can	lead	states	to	terminate	their	contracts,	compounding	financial	risks	to	investors.	At	least	five	states
have	canceled	contracts	with	Corizon	Health	over	the	last	several	years,	including	Indiana,	which	terminated	its
contract	not	long	after	the	South	Bend	Tribune	reported	that	the	company	faced	dozens	of	lawsuits	in	the	state,
including	allegations	of	wrongful	death.lxxv

•

As	outlined	above,	prison	healthcare	companies	face	a	number	of	lawsuits	alleging	mistreatment	of	prisoners,
withholding	of	care	and	wrongful	death.	These	lawsuits	can	result	in	settlements	or	judgements	compelling	the
company	to	pay	millions	of	dollars,	posing	a	financial	risk	to	investors	in	addition	to	headline	risks.

Private Equity Watch List
To	be	included	in	our	watch	list	in	Table	2,	a	private	equity	firm	must	have	reported	ownership	of	a	company	for	which	a	
significant	portion	of	business	is	derived	from	providing	services	to	correctional	facilities.	This	list	is	not	a	comprehensive	
overview	of	all	private	equity	ownership	of	corrections	companies,	and	private	equity	portfolios	are	subject	to	change.		
In	addition	to	reviewing	their	portfolios	for	direct	holdings	of	CoreCivic	and	the	GEO	Group,	we	encourage	pension	fund	
trustees	to	review	their	portfolios	for	exposure	to	private	equity	firms	included	in	this	report	and	to	consult	our	watch	list	
when	making	asset	allocation	decisions.	

“I find it immoral that a company
Furthermore,	pension	fund	trustees	should	raise	concerns	
with	any	private	equity	manager	on	this	watch	list	with	
could make money off of something
which	their	pension	fund	is	currently	invested	or	
that affects people’s lives so
considering	investing,	including	asking	them	to	take	
deeply.”
meaningful	steps	to	address	the	risks	associated	with	the	
corrections	companies	in	their	portfolios,	to	remove	
—Eric Olson,
corrections	companies	from	their	portfolios	and	to	commit	
publicly	to	not	investing	in	private	prison-related	holdings.	
Colorado WINS (Workers for Innovative
Pension	fund	trustees	should	also	consider	divesting	from	
and New Solutions) member
companies	that	fail	to	take	steps	to	ensure	their	business	
practices	do	not	contribute	to	the	problem	of	mass	
incarceration	and	that	put	prisoners,	their	families	and	communities	at	risk.	
We	also	urge	pension	funds	to	consider	adopting	comprehensive	policies	similar	to	that	of	the	New	York	State	Common	
Retirement	Fund	that	prohibit	new	exposure	to	private	prisons	in	any	asset	class,	and/or	policies	that	restrict	investments	in	
private	equity	firms	or	other	companies	that	privatize	public	jobs.	For	further	recommendations	for	pensions	and	employee	
benefit	plans,	see	“What	Can	Pension	Fund	Trustees	Do?”	below.	

9	

	

What Can Pension Fund Trustees Do?
We	urge	pension	fund	trustees	wishing	to	consider	exposure	to	the	private	prison	industry	as	part	of	their	investment	
decision-making	process	to	consider	taking	any	or	all	of	the	following	measures:	
	
1. Consult	our	watch	list	when	making	asset	allocation	decisions.	
	
2. Review	your	pension	fund’s	investment	portfolios	for	exposure	to	private	prison	and	corrections	companies	
in	public	and	private	markets	across	all	asset	classes.	
	
3. Direct	your	pension	fund	staff	to	evaluate	the	impact	to	the	fund	of	divesting	from	the	private	prison	
industry,	and	consider	divesting	from	directly	owned	shares.	Similarly,	ask	your	index	fund	provider	and	
consultant	to	undertake	an	analysis	of	the	risk-and-return	profile	of	index	funds	that	do	not	hold	companies	
in	the	private	prisons/corrections	industries,	and	consider	investing	in	index	funds	that	do	not	have	this	
exposure.		
	
4. Engage	with	CoreCivic	and	the	GEO	Group	to	demand	that	they	adopt	policies	to	ensure	just	and	humane	
treatment	of	detainees	and	proper	oversight	over	the	corrections	companies	providing	services	to	inmates	
who	are	incarcerated	in	their	facilities.	Consider	filing	or	supporting	shareholder	proposals	that	emphasize	
these	demands.	
	
5. Engage	with	private	equity	companies	in	your	portfolio	that	own	corrections	companies	and	ask	what	steps	
they	are	taking	to	address	the	investment	risks	associated	with	these	companies.	Mandate	similar	
engagement	with	private	equity	firms	that	are	soliciting	new	or	additional	investments	from	your	pension	
fund.	For	new	private	equity	agreements,	include	provisions	similar	to	those	adopted	by	CalSTRS	regarding	
firearms	manufacturers	that	exclude	investments	in	corrections	companies,	and	protect	your	fund	with	optout	options	should	such	investments	occur.	
	
6. Develop	and	adopt	investment	beliefs	or	other	policies	that	restrict	investments	in	the	private	
prisons/corrections	industry	specifically	and	in	companies	involved	in	human	rights	abuses	more	broadly.	
As	part	of	this	process,	reach	out	to	public	pension	funds	that	have	already	taken	action	to	divest	from	
private	prisons	to	learn	about	their	decision-making	process	and	to	access	policy	language	that	may	serve	
as	a	guide	for	your	own	fund.	
	
7. Develop	and	adopt	policies	prohibiting	investments	in	firms	that	privatize	public	sector	jobs;	consider	using	
the	CalPERS	investment	policy	on	restricting	private	equity	investments	in	public	sector	outsourcers	as	a	
model	policy	for	your	own	pension	fund.		
	
8. Investigate	the	companies	and	private	equity	managers	named	in	this	report	and	their	compliance	with	
your	fund’s	beliefs	if	your	pension	fund	has	already	adopted	investment	beliefs	that	apply	across	asset	
classes,	and	request	that	staff	produce	and	share	compliance	reports	on	the	subject.		
	
9. Support	state-level	legislation	requiring	greater	transparency	and	disclosure	from	companies	that	profit	
from	mass	incarceration,	and/or	legislation	banning	the	privatization	of	correctional	services.	

10
	

	

Conclusion
As	this	report	clearly	demonstrates,	companies	that	profit	from	mass	incarceration—including	publicly	traded	private	prison	
companies	and	private	equity-owned	corrections	services	companies—make	millions	off	of	the	criminalization	and	
incarceration	of	communities	of	color.	However,	these	millions	come	with	significant	regulatory,	litigation	and	headline	risks	
to	investors.		
	
Mass	incarceration	of	black	and	brown	people	in	the	United	States	is	a	civil	rights	and	humanitarian	issue	that	impacts	
communities	across	the	country,	including	places	where	AFT	members	live	and	work.	The	AFT	is	committed	to	working	
together	with	our	allies	to	put	an	end	to	mass	incarceration	so	that	no	child	or	family	we	serve	has	to	endure	the	injustice	of	
this	practice,	and	so	that	for-profit	corporations	can	no	longer	enrich	themselves	off	of	locking	up	communities	of	color.	
	
	 	
Special	note	to	private	equity	managers:	If	you	feel	that	your	fund	has	been	placed	in	the	incorrect	category,	please	
	 let	us	know.	Contact	the	AFT’s	Center	for	Workers’	Benefits	and	Capital	Strategies	at	either	202-585-5817	or	
aftresearch@aft.org.	

	

11
	

Table 1: Private equity-owned firms providing services to prisons, jails and
detention facilities
Data	compiled	by	the	Private	Equity	Stakeholder	Project.	
Company	
Securus/JPay	

Industry/Service	
Telephone/	
Communications	

Scope	
Securus,	which	owns	JPay,	serves	more	than	
3,400	public	safety,	law	enforcement	and	
corrections	agencies	and	more	than	1.2	million	
inmates	across	North	America.lxxvi	

Private	Equity	Owner	
Platinum	Equitylxxvii	

Global	Tel	Link	

Telephone/	
Communications	

Global	Tel	Link	serves	approximately	2,300	
facilities	and	1.8	million	inmates	in	50	states,	
the	District	of	Columbia	and	Puerto	Rico.lxxviii	

American	Securitieslxxix	

Keefe	Group/Trinity	
Services	
Group/Swanson	
Services/ICSolutions	

Commissary/	
Keefe	Commissary	Network	serves	more	than	
Food/	Telephone/	 half	a	million	inmates	weekly	and	12	out	of	14	
Communications	
outsourced	state	departments	of	corrections.lxxx	

Aladdin	Bail	
Bonds/Seaview	Surety	

Bail	

Aladdin	is	the	largest	retail	pre-trial	release	
service	provider	in	the	United	States.lxxxiii	

Endeavour	Capitallxxxiv	

Corizon	Health	

Healthcare	

Corizon	Health	provides	healthcare	services	to	
more	than	220,000	prisoners	at	301	
correctional	institutions	in	22	states.lxxxv	

BlueMountain	Capital	
Managementlxxxvi		

Wellpath	

Healthcare/	
Probation	

Wellpath	provides	medical	and	behavioral	
health	services	for	more	than	275,000	patients	
located	in	local,	state	and	federal	correctional	
facilities,	as	well	as	state	hospitals	and	other	
facilities.	It	acquired	competitor	Correctional	
Medical	Group	Companies	in	October.lxxxvii	

H.I.G.	Capital

Attenti	

Electronic	
Monitoring	

Attenti	is	a	global	provider	of	electronic	
monitoring	technologies,	serving	hundreds	of	
national,	federal,	state	and	local	correctional	
and	law	enforcement	agencies	around	the	
world.lxxxviii	

Apax	Partners	

Sentinel	Offender	
Services	

Probation	

Sentinel	Offender	Services	is	a	private	
probation	company	that	partners	with	
community	corrections,	courts	and	law	
enforcement.lxxxix	

Bison	Capital	Asset	
Managementxc	

(Formerly	Correct	Care	
Solutions/Correctional	
Medical	Group	
Companies)	

H.I.G.	Capitallxxxii

Telecommunications	provider	ICSolutions	
serves	180,000	inmates	housed	in	more	than	
200	correctional	facilities	nationwide.lxxxi	

The	information	contained	in	the	above	table	attempts	to	identify	major	private	equity	firms	that	own	companies	in	the	
corrections	industry	and	may	not	be	comprehensive.	The	Corrections	Accountability	Project	maintains	a	database	of	private	
ownership	of	corrections	companies	that	may	provide	additional	information.		

12
	

Table 2: Asset manager watch list
Private	Equity	Firm	

Correctional	Companies	Owned	

American	Securities	

Global	Tel	Link	

Apax	Partners	

Attenti	

Bison	Capital	Asset	Management	

Sentinel	Offender	Services	

BlueMountain	Capital	Management	

Corizon	Health	

Endeavour	Capital	

Aladdin	Bail	Bonds/Seaview	Surety	

H.I.G.	Capital

Keefe	Group/Trinity	Services	Group/Swanson	
Services/ICSolutions	
Wellpath	

Platinum	Equity	

Securus/JPay	

13
	

Table 3: Public pension fund ownership of CoreCivic and the GEO Group, as of
Jan. 16, 2019*
Data	from	the	most	recent	available	Form	13F	filings	made	with	the	Securities	and	Exchange	Commission.	
Pension	Fund	

CoreCivic	Shares	
Owned	(1,000s)	
39	

GEO	Group	Shares	
Owned	(1,000s)	
39	

Arizona	State	Retirement	System	

84	

86	

California	Public	Employees’	Retirement	System	

315	

254	

California	State	Teachers’	Retirement	System†	

190	

184	

Colorado	Public	Employees’	Retirement	Association	

21	

21	

Employees	Retirement	System	of	Texas	

41	

0	

Illinois	State	Board	of	Investment	

19	

0	

Louisiana	State	Employees’	Retirement	System	

32	

32	

Michigan	Department	of	Treasury	(Investment	Management)	

44	

45	

Municipal	Employees’	Retirement	System	of	Michigan	

28	

29	

New	Jersey	Division	of	Investment†	

17	

32	

Alaska	Retirement	Management	Board	

New	Mexico	Educational	Retirement	Board	

28	

29	

New	York	State	Teachers’	Retirement	System	

252	

166	

Ohio	Public	Employees	Retirement	System	

211	

93	

Oregon	Investment	Council	

46	

49	

Pennsylvania	Public	School	Employees’	Retirement	System	

24	

25	

Retirement	Systems	of	Alabama	

154	

158	

State	Board	of	Administration	of	Florida	Retirement	System	

84	

76	

State	Teachers	Retirement	System	of	Ohio	

195	

197	

South	Dakota	Investment	Council	

30	

13	

Teacher	Retirement	System	of	Texas	

14	

14	

Teachers’	Retirement	System	of	the	State	of	Kentucky	

21	

27	

Tennessee	Consolidated	Retirement	System	

80	

88	

Utah	Retirement	Systems	

31	

16	

*Share	ownership	subject	to	change.
†Votes	in	2018	by	this	pension	fund	to	divest	from	private	prison	companies	will	likely	affect	future	reported	ownership.	

14
	

i	http://www.prisonstudies.org/highest-to-lowest/prison_population_rate?field_region_taxonomy_tid=All	
ii	https://www.bjs.gov/content/pub/pdf/cpus16.pdf		

iii	http://www.prisonstudies.org/highest-to-lowest/prison_population_rate?field_region_taxonomy_tid=All		
iv	https://www.cnn.com/2018/06/28/us/mass-incarceration-five-key-facts/index.html		

v	https://www.americanprogress.org/issues/race/news/2012/03/13/11351/the-top-10-most-startling-facts-about-people-of-color-and-

criminal-justice-in-the-united-states		

vi	https://www.aclu.org/issues/smart-justice/mass-incarceration		
vii	https://www.naacp.org/criminal-justice-fact-sheet		

viii	https://www.prisonpolicy.org/reports/income.html		

	

ix	https://www.peoplespolicyproject.org/2018/01/30/mass-incarceration-new-jim-crow-class-war-or-both	
x	https://www.npr.org/2017/11/25/566438860/research-finds-racial-disparities-in-prison-sentences		

xi	https://www.americanprogress.org/issues/race/news/2012/03/13/11351/the-top-10-most-startling-facts-about-people-of-color-and-

criminal-justice-in-the-united-states		

xii	https://nrccfi.camden.rutgers.edu/files/nrccfi-fact-sheet-2014.pdf		

xiii	https://prospect.org/article/mass-incarceration-and-achievement-gap		

xiv	https://www.epi.org/publication/mass-incarceration-and-childrens-outcomes		

		

xv	https://www.aclu.org/issues/juvenile-justice/school-prison-pipeline

xvi	https://www.aft.org/sites/default/files/invest-risks-prisons-detention-2018.pdf		

		

xvii	https://www.usnews.com/news/top-news/articles/2018-08-17/chicago-teachers-pension-fund-divesting-from-private-prisons
xviii	https://www.aft.org/press-release/afts-weingarten-and-ctus-sharkey-chicago-teachers-pension-funds-divestment		

xix	http://www.pionline.com/article/20180831/ONLINE/180839963/new-jersey-pension-fund-divests-13-million-stake-in-private-

prison-company		

xx	https://www.pionline.com/article/20181108/ONLINE/181109890/calstrs-to-divest-from-private-prison-companies-corecivic-geo-

group		

xxi	https://www.ai-cio.com/news/calpers-engages-private-prison-companies		
xxii	https://www.sentencingproject.org/criminal-justice-facts		

xxiii	https://www.nytimes.com/2018/12/18/us/politics/senate-criminal-justice-bill.html?login=email&auth=login-email		

	

xxiv	https://www.vox.com/future-perfect/2018/12/19/18148413/first-step-act-senate-criminal-justice-reform-sweeping-overhaul	
xxv	http://nymag.com/intelligencer/2018/12/first-step-act-skepticism.html		

xxvi	https://www.houstonchronicle.com/business/article/Companies-earn-billions-to-shelter-immigrant-13044968.php		
xxvii	http://ir.corecivic.com/static-files/f242d017-6ce3-4bb5-ae33-f6888059dc9b		

xxviii	http://www.snl.com/Interactive/newlookandfeel/4144107/2017-GEO-Annual-Report.pdf		
xxix	https://www.geogroup.com/Electronic_Monitoring		

xxx	https://www.sentencingproject.org/publications/private-prisons-united-states		

xxxi	https://www.sentencingproject.org/wp-content/uploads/2018/07/Capitalizing-on-Mass-Incarceration.pdf		

xxxii	Based	on	CoreCivic’s	2017	revenue-per-bed	count:	http://ir.corecivic.com/financial-information/annual-reports		

xxxiii	Based	on	the	GEO	Group’s	2017	revenue-per-bed	count:	http://www.snl.com/Interactive/newlookandfeel/4144107/2017-GEO-

Annual-Report.pdf		

xxxiv	https://www.nytimes.com/2011/05/19/us/19prisons.html		

		

xxxv	https://www.politico.com/story/2018/07/09/illinois-governor-detention-centers-702293
xxxvi	https://higcapital.com/news/release/1128		

xxxvii	http://www.correctcaresolutions.com	(accessed	Sept.	8,	2018)	

xxxviii	https://www.thedailybeast.com/prison-health-care-provider-sued-140-times-now-blamed-for-at-least-six-deaths		

xxxix	https://www.myajc.com/news/local/county-end-morehouse-contract-for-inmate-care-after-die/Yl9HFCFVleAu8RT98wSjdL		
xl	https://www.apnews.com/48a70553a2b54df3a75892a7b2819182		

xli	https://www.nbcnewyork.com/news/local/I-Team--Westchester-Looks-for-New-Jail-Healthcare-after-Video-shows-Inmate-Denied-

during-Heart-Attack-492044891.html		

xlii	http://www.corizonhealth.com/About-Corizon/Locations		

xliii	https://www.newyorker.com/business/currency/making-profits-on-the-captive-prison-market		

		

xliv	https://www.mercurynews.com/2015/02/10/alameda-county-8-3-million-jail-death-settlement-mandates-jail-health-care-reforms

xlv	https://www.washingtonpost.com/news/post-nation/wp/2017/10/27/something-is-eating-my-brain-an-inmate-said-a-lawsuit-says-

he-was-left-to-die/?noredirect=on&utm_term=.f87c7bd23eb7		

xlvi	https://www.kansascity.com/news/politics-government/article195673934.html		
xlvii	https://securustech.net/facilities-we-serve		
xlviii	https://www.jpay.com/PAvail.aspx		

xlix	https://www.newyorker.com/business/currency/making-profits-on-the-captive-prison-market		
l

https://www.theguardian.com/commentisfree/cifamerica/2012/may/23/scandal-phone-call-price-gouging-prisons	

li	https://www.theguardian.com/us-news/2015/oct/22/regulators-slash-price-prison-calls-fcc

15
	

lii	https://docs.fcc.gov/public/attachments/DOC-341762A1.pdf		

liii	https://qz.com/904925/donald-trumps-fcc-will-stop-fighting-exorbitant-prison-phone-call-rates		
liv	https://www.bostonglobe.com/metro/2018/05/03/lawsuit-challenges-high-cost-calling-from-

jail/q17v1CL0bZBhxOXd9qOBRP/story.html		

lv	https://theintercept.com/2016/03/16/securus-settles-lawsuit-alleging-improper-recording-of-privileged-inmate-calls		
lvi	https://thinkprogress.org/prison-technology-companies-inmates-9d4242805363		

lvii	https://www.theatlantic.com/business/archive/2017/08/remote-video-visitation/535095		

lviii	https://www.nytimes.com/roomfordebate/2014/02/23/does-video-visitation-help-prisons-and-families/video-visitation-could-

exploit-prisoners-or-help-families-2		

		

lix	https://www.vox.com/2015/10/22/9589052/prison-visits-recidivism

lx	https://www.prnewswire.com/news-releases/securus-technologies-revises-video-visitation-policy--defers-to-prisonjail-officials-on-

rules-for-onsite-visits-300077180.html		

lxi	http://archive.jsonline.com/news/baby-born-to-inmate-at-milwaukee-county-jail-does-not-survive-b99762131z1-386869111.html		

lxii	http://archive.jsonline.com/news/milwaukee/more-than-two-months-later-family-of-inmate-who-died-in-milwaukee-county-jail-has-

no-answers-b997530-385486621.html		

lxiii	https://www.jsonline.com/story/news/investigations/2016/10/29/shortage-medical-staff-plagues-milwaukee-jails/92775782		

lxiv	https://www.jsonline.com/story/news/crime/2018/02/21/milwaukee-county-jails-health-care-contractor-charged-falsifying-inmate-

records/359481002		

lxv	https://www.aft.org/sites/default/files/invest-risks-prisons-detention-2018.pdf		
lxvi	https://www.apnews.com/959feeb7469b473cbd08d9f60360be4f		

lxvii	https://www.nytimes.com/2018/04/10/us/private-prisons-escapes-riots.html		

		

lxviii	https://www.aft.org/sites/default/files/invest-risks-prisons-detention-2018.pdf

lxix	http://inthesetimes.com/features/ice_immigrant_detention_centers_forced_prison_labor_investigation.html		

lxx	https://www.npr.org/sections/thetwo-way/2017/02/23/516916688/private-prisons-back-in-mix-for-federal-inmates-as-sessions-

rescinds-order		

lxxi	https://www.theguardian.com/us-news/2018/dec/21/trump-prison-reform-first-step-act-signed-law		

lxxii	https://www.nytimes.com/2018/12/18/us/politics/senate-criminal-justice-bill.html?login=email&auth=login-email		
lxxiii	https://www.nytimes.com/2019/02/01/nyregion/mdc-brooklyn-jail-heat.html		

lxxiv	https://www.politico.com/magazine/story/2018/08/29/california-abolish-cash-bail-reformers-unhappy-219618		

		

lxxv	http://wfhb.org/news/indiana-dept-of-corrections-cancels-contract-with-healthcare-provider
lxxvi	https://securustechnologies.tech/about	(accessed	Sept.	2,	2018)	

lxxvii	https://www.platinumequity.com/our-portfolio/portfolio/2017/securus	(accessed	Sept.	3,	2018)	
lxxviii	http://www.gtl.net/about-us	(accessed	Sept.	2,	2018)	

lxxix	https://www.american-securities.com/en/companies/GTL	(accessed	Sept.	3,	2018)	

lxxx	https://www.keefegroup.com/companies/keefe-commissary-network-112	(accessed	Sept.	2,	2018)	
lxxxi	https://www.keefegroup.com/companies/icsolutions-115	(accessed	Sept.	2,	2018)	

lxxxii	https://ecfsapi.fcc.gov/file/106121307119696/2018-06-12%20-%20Joint%20Application.pdf	
lxxxiii

https://endeavourcapital.com/ec/the-aladdin-group	(accessed	Sept.	2,	2018)	

lxxxiv	https://endeavourcapital.com/ec/the-aladdin-group	(accessed	Sept.	2,	2018)	

lxxxv	http://www.corizonhealth.com/About-Corizon/Locations	(accessed	Sept.	2,	2018)	
lxxxvi	“Corizon	Health	completes	recapitalization”	(media	release,	April	17,	2017)	

lxxxvii	http://www.correctcaresolutions.com	(accessed	Sept.	2,	2018);	https://higcapital.com/news/release/1128

(media	release,	Oct.	1,	
2018)	
lxxxviii	https://www.apax.com/investments/tech-telco/our-investments/attenti	(accessed	Dec.	19,	2018)	
lxxxix	https://www.businesswire.com/news/home/20180727005059/en/Sentinel-GTL-Form-Partnership-Provide-Offender-Tracking		
(media	release,	July	27,	2018)	
xc	http://www.bisoncapital.com/portfolio	(accessed	Sept.	3,	2018)	

16
	

The American Federation of Teachers would like to thank the Journey for Justice Alliance for
its continuing advocacy and organizing on education and racial justice issues. We would also
like to acknowledge the Private Equity Stakeholder Project’s work in engaging investors and
empowering communities, working families and others impacted by private equity investments.
We would like to thank the following organizations for supporting this report:

JOURNEY FOR JUSTICE ALLIANCE