My last segment about the rife corruption in Florida's Department of Corrections was: INSOURCING - Will Florida's new Gov. Scott fall in with the crooks...or clean them out? and included a poll asking: "Will Rick Scott abolish PRIDE and clean up the FDOC? Or will he join them in further scamming Florida taxpayers?" I provided multiple choices for voters and the there were a total of 66 votes.
The answer the majority chose was: "Scott will cut himself into the corruption and money made from it." 54% chose that response. Only 4% chose " Scott will clean up FDOC and PRIDE."
While many may think a poll is just a poll and it a) doesn't matter how you vote, or b) the outcome makes no difference, I tend to disagree. In the case of the Governor-Elect of Florida many citizens, critics, advocates and readers that followed the many stories leading up to the last Gubernatorial election were left with the impression that Rick Scott is a con-man who helped to bilk Medicare out of million of dollars, suggesting he would do the same to Florida if elected.
Of course opponents to Scott's candidacy did much to keep this information in front of the voters in Florida. Was it simply campaign rhetoric based upon a combination of facts? or deliberately blown out of proportion to serve the purposes of his detractors? I can't provide a firm, well researched answer here - that would take another segment entirely. However, I can say that Scott isn't in one of the 50+ prisons he now has control over - or a federal facility for what he (or his company) purportedly did.
What I can provide is my impression as to Rick Scott's intentions based upon his actions since the election...and that impression is that regardless of whether you supported Scott or not, he is on the right track down there in the Sunshine State. But there are concerns.
Scott chose carefully for his law enforcement transition team, picking those who have the most knowledge and expertise on issues he campaigned on: criminal justice reforms, reducing the costs of incarceration, reforming the Florida Department of Corrections (FDOC) and addressing the numerous critical problems with the state's Prison Industry program run by Prison Rehabilitative Industries and Diversified Enterprises (PRIDE). One of his recent appointments clearly reflects he is listening to the recommendations of his transition team.
His team made many recommendationsconcerning the FDOC corruption and PRIDE's business practices and operations. In response to those recommendations the Gov.-Elect chose an "outsider" to take the place of FDOC Secretary Walt McNeil. Scott chose Edwin Buss from my home state, Indiana. Buss is a reformer here in Indy and serves as a Corrections Commissioner. Indiana Governor Mitch Daniels said he was not surprised that Buss was on the short list of a lot of incoming state Governors due to his reform efforts here in Indiana:
"Buss brings to Florida nearly twenty-four years of hands-on experience in corrections, emergency response, public safety, supervision and budgeting. As Commissioner of the Indiana Department of Corrections and a key member of Governor Mitch Daniels’ cabinet, Buss was responsible for over 7,500 employees, 26,000 inmates, 10,000 parolees throughout the state’s corrections facilities. Prior to serving as Commissioner, Buss served as Superintendent of two Indiana prisons where he refined Death Row and execution procedures, implemented accountability metrics and implemented a safe prison initiative. Throughout his career, Buss has been successful in implementing innovative policies that improve operations while reducing wasteful spending."
Mr. Buss will have his hands full with the FDOC. Though the former head of the department, James McDonough addressed the rampant corruption that had troubled the FDOC for years when he served as Secretary from 2006 through early 2008, he didn't get it all. What he missed were those factions of the "Good Ol' Boys" (or "Dixie Mafia" as most came to call James Crosby and his crew) who simply went underground during McDonough's tenure and outlasted his stint as head of the department.
From '08 through the present, in McDonough's absence many of the programs he put in place and changes he made, have been changed back or done away with entirely. An important sidebar to this corruption within FDOC is the connections between that agency and the prison industries. The FDOC Secretary position holds a permanent seat upon the Board of Directors of PRIDE. The labor force used by PRIDE are the inmates under the care, custody and control of FDOC and the property, equipment, buildings and other facilities used in industry operations are also state owned and leased to PRIDE. Improvements made to property, building or equipment used by PRIDE remains the property of the FDOC.
In September 2007 - as I've written previously - Secretary McDonough resigned from the PRIDE Board and suggested to Governor Crist that PRIDE be abolished, turnover money owed to the FDOC for room and board deductions taken under the PIECP program and surrender the PIECP certificate back to the FDOC. Following his demands, a loud protest was made by lawmakers, many of which were obviously voicing objections paid for with PRIDE's money through their numerous paid lobbyists, Guy Spearman, Ron LaFace, Wilbur Brewton and Kelly Plante. A hearing was scheduled for December 2008 before the Senate Criminal Justice Appropriations Committee to discuss the proposal to abolish PRIDE.
Part of the reason for the Secretary's pursuit of abolishing PRIDE was the numerous illegal spin-offs it created to maximize the use of inmate labor in the PIE program. These spin-offs were simply a way for the non-profit to funnel money out of the banks and into their hands through this scheme. In the end it cost PRIDE $19 million. Here is just one articleabout the activities that caused McDonough to call for abolishment:
Firm that employs inmates sues its spinoff company
PRIDE's lawsuit filed by a reconstituted board complains of conflicts of interest by joint officers and resulting losses.
By JONI JAMES
Published September 24, 2005
The state-created St. Petersburg company that employs prisoners has sued the controversial spinoff firm that cost the company millions of dollars and drew the scrutiny of the governor.
PRIDE filed suit Sept. 8 in Pinellas Circuit Court against Industries Training Corp., two of its subsidiaries and a former PRIDE executive. It seeks to recoup a fraction of the millions of dollars it lost supporting ITC, which handled payroll and other administrative services for PRIDE.
The lawsuit accuses R. Michael Smith, ITC's chief financial officer, of breaching his fiduciary duty to PRIDE by helping ITC spend PRIDE's money when he was serving as chief financial officer of both companies.
The lawsuit was prompted by the recent sale of ITC's employment placement service, Labor Line, to a North Carolina company that recently incorporated in Florida.
PRIDE asserts it deserves proceeds from the sale because it created the business, gave it to ITC in 1999 and invested hundreds of thousands of dollars more in its operation. The suit doesn't specify the amount PRIDE is seeking.
PRIDE president Jack Edgemon, along with PRIDE's attorneys, Greenberg Traurig's Ronald LaFace of Tallahassee and I. William Spivey II of Orlando, couldn't be reached for comment Friday.
Smith, reached Friday, referred all questions to ITC's attorney, Roy Harrell Jr. of Holland & Knight's St. Petersburg office. Harrell couldn't be reached.
The suit marks a new chapter in the PRIDE-ITC saga and reflects the fact that Gov. Jeb Bush has replaced the majority of the board since last summer, when scrutiny of PRIDE and ITC's relationship began.
As recently as last month, PRIDE's board declined to sue the former spinoff because attorneys said there weren't enough assets to make it worth the litigation cost.
But with this suit, PRIDE acknowledges for the first time that its long relationship with ITC represented a conflict of interest for PRIDE and its former leaders. The shared corporate structure of the two firms allowed executives who worked at both to use PRIDE revenues to keep ITC afloat.
"Smith placed himself in direct conflict of interest that prevented him from promoting the best business and financial interests of PRIDE," the lawsuit reads. The former board, which included many members who had helped establish ITC and appointed Smith to his dual roles, never conceded that point.
Last month, an internal report ordered by the new board estimated PRIDE had spent more than $67.7-million over six years propping up ITC, which continuously ran a deficit but paid hefty salaries to Smith and former PRIDE chief executive officer Pamela Jo Davis.
At the same time, PRIDE, formally known as Prison Rehabilitation Industries and Diversified Enterprises, was failing to employ additional inmates. The nonprofit company was created by the Legislature in 1981 to run the state's prison industries, using inmate labor in agriculture and manufacturing businesses. In exchange for their labor, PRIDE is supposed to teach inmates skills they can use upon release to make a living.
ITC was a drain on PRIDE from the beginning. The board agreed to funnel 10 percent of PRIDE's monthly revenue to ITC for handling administrative work. ITC also took over PRIDE's employment placement service for ex-prisoners and compensation for Davis, Smith and other top PRIDE managers.
The relationship began to unravel in June 2004 when Bush's inspector general launched an audit. Davis and Smith were put on leave and eventually left PRIDE. PRIDE broke from ITC in January.
Joni James can be reached at 850-224-7263 or jjames@sptimes.com
In the face of all the exposed corruption ongoing within PRIDE, the loss of millions to former Executives and the "affiliated" spin-offs, the Florida Lawmakers chose continued corruption over McDonough's proposed reform plan.
Spearman and Brewton "lobbied" the Committee Chairman, Victor Crist to continue the scheduled 2007 PRIDE hearing so that Mr. Brewton could attend (he was unavailable, you know) and present PRIDE's arguments before the Committee. McDonough argued that it should be PRIDE who represented themselves before the Committee and not their lobbyists, but Crist ignored his protests and set the Hearing date forward to January 8, 2008. ON January 7, 2008 McDonough announced his retirement. The hearing was still held, but McDonough had been forced to tone down his presentation. In the end, the Committee and the Governor announced support for McDonough's plan and initiated proposed legislation to revamp PRIDE and return the PIECP Certificate to the FDOC.
As I wrote on this earlier, none of it happened as planned. PRIDE's lobbyists were able to disrupt and then stop all attempts at getting legislation out of Committee and even a second demand from the Governor for PRIDE to turn over the PIECP certificate was ignored - both by PRIDE and the "new" Secretary, Walt McNeil. McNeil attended most of the PRIDE Board meetings after his appointment and in 2009 flatly refused to "accept" the certificate from PRIDE, citing financial restraints for doing so. This allowance by McNeil to leave the certificate with PRIDE resulted in many words of praise about the Secretary from the entire Board at the next Board meeting. This was a real shame on part of Secretary McNeil to deny the Governor's demand for the return of this important certificate and the power attached to it regarding prison industry operations under PIECP.
PRIDE has demonstrated time and again that no one - even the sitting Governor of Florida has the power or authority to interfere with their operations. Over the course of the past 13 years now, many state and private agencies and individuals have taken on PRIDE and all have lost. These include: the Florida OPPAGA (government accountability) in 1994, 1997and again in 2003, and 2006, Governor's Inspector General in 2005, and has so far avoided investigations by the U.S. Bureau of Justice Assistance (though an investigation has been done by the BJA but the findings have as yet not been released). So fare they have defied both Governors Bush and Crist...and only time will tell if they will be able to continue their defiance under Scott's administration.
It was necessary to provide the foregoing so you will "feel" the amount of corruption, arguing and bitter fighting that has been ongoing involving both the FDOC and PRIDE over the past decade. Now, getting back to Scott and his appointments you'll understand why this "feeling" is important.
Among those appointed by Scott is Hayden Dempsey to serve as "special counsel" to the Governor. Among Dempsey's duties will be to oversee Scott's "legislative agenda". Beside the fact that Dempsey is one of two lobbyists chosen by Scott there is a genuine skepticism - beyond Dempsey being a lobbyist (which is bad enough) - about this particular choice. If the Governor-Elect is genuinely interested in reforming or abolishing PRIDE then this pick is a truly bad choice. Here is the bio offered on Hayden Dempsey:
"Hayden Dempsey, currently a shareholder and the Director of Public Affairs at Greenberg Traurig, will join the Administration as Special Counsel to the Governor. In this role, Dempsey will oversee and direct the passage and implementation of Scott’s legislative agenda. Dempsey brings to the Administration a developed understanding and working knowledge of Florida’s state government and the legislative process. While at Greenberg, Hayden has been recognized for his superior ability to navigate successfully through the many challenges presented by Florida legislative process. Prior to joining Greenberg, Dempsey served as Legislative Affairs Director to Governor Jeb Bush, responsible for securing passage of the Governor’s Legislative agenda and supervising the legislative affairs directors for the Governor’s agencies. He also served as Deputy General Counsel to Governor Bush where he provided legal advice to the Governor, Lt. Governor and executive staff and represented the Governor in litigation. “Hayden’s depth of knowledge of the legislative process and his political experience and insight will prove a valued asset to the new Administration,” said Scott."
Dempsey's lobbying is accomplished through the firm of Greenberg Traurig (of Jack Abramoff fame). I suggest those interested in this particular appointment, scroll down at the wikipedia link and read about the "controversies" Greenberg Traurig has been involved in.
As I've written before, Greenberg Traurig currently represents PRIDE in at least one major case - ATL v. PRIDE - there in Pinellas County, Florida. In addition Ron LaFace represented PRIDE in this litigation and until last year served as PRIDE's General Counsel. In addition LaFace and Greenberg Traurig also lobbied on behalf of PRIDE through 2009...at the Executive level. You're right, the Governor is found at the "Executive" level of government. So what does this mean?
Well for one thing, it doesn't provide a warm, fuzzy feeling for those of us who have been advocating that PRIDE needs to be abolished, reformed or simply made to abide by all the laws of Florida and PIECP. For those who haven't been involved in this battle over PRIDE's alleged corruption, it means Scott has chosen an affiliate of the Corporation he is preparing to go to war with...right at his side as an ally. Can't get any more mixed up than that.
I am certainly not happy about this choice by the incoming governor as "special counsel" to handle his legislative agenda - which as already noted, is something PRIDE's lobbyists have been able to tie up or stall for three years now on issues involving reforming them. However, I am willing to wait a month or so and see if this choice changes his "attitude" about abolishing or reforming PRIDE. If he pursues the advice and recommendations from his transition team members I'm willing to concede that just possibly the choice is having no impact...but as they say, "only time will tell."
Obviously as I've pointed out time and again - PRIDE is deeply involved in using inmate labor in the PIE program. Other states are also involved in PIECP and many diverse corporations are partnered with them. Among those corporations profiting from inmate labor is Walmart. Walmart is also a sponsor and financial contributor to ALECand is represented upon ALEC's Private Enterprises Board by Maggie Sans. Hmmm why do I say this has any bearing upon this issue involving the appointments by Mr. Scott? Funny you should ask.
Yesterday the Governor-Elect made more appointments. One of those he chose was Mr. Bryan Koon. Koon's brief bio is provided in the article:
"Koon brings to Florida nearly twenty years’ experience managing tactical and strategic emergencies in the military, government and private sector. In his current role as Director of Emergency Management for Wal-Mart Stores, Inc., Koon is responsible for the emergency management operations of over 8,500 facilities worldwide. He is an acknowledged expert in the fields of emergency preparedness, disaster response, continuity of operations and continuity of government. Koon’s broad and varied experience includes several years in the White House Military Office where he developed, maintained and implemented high level, classified programs to ensure continuity of government and continuity of operations in the wake of a tactical or natural disaster. He also served the nation with distinction as a Surface Warfare Officer in the United States Navy, both active duty and in the Navy Reserve."
So as far as I'm concerned two of the appointments now made by Mr. Scott indicates that Florida's prison industry and PRIDE in particular may have supporters placed relatively close to the incoming governor.
As I said I'm willing to wait and see how this pans out over the next month or so. I'm also willing to admit that the personal beliefs, positions or agendas of individuals don't always have to coincide with those of their employer or company. This is why I have adopted - and urge you to withhold judgment until we all see how the wind blows.
In either case prison industries are - and have been - stealing your jobs right and left. This series has proven that by providing links, documents and other materials demonstrating job losses to prisoners. Florida is no exception to this activity. Through the partnerships PRIDE had with several private sector manufacturers in the past, hundreds of jobs were lost to prison inmates. At the same time PRIDE has managed to avoid all attempts to bring them into compliance - both with their mission goals as well as the state and federal laws that govern them.
After the critical and damning report presented by Scott's law enforcement transition team it is obvious that something immediate and all encompassing needs to be done regarding PRIDE and the FDOC. The problems have been identified and solutions provided. If nothing is done now, then the last opportunity for reform of both will be gone and we'll be left with simply more of the same.
Let me know what you think, your views and opinions on these issues and how you feel 2011 will unfold for Florida's PRIDE and FDOC...and the fate of your jobs.