Corrections Corporation of America
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| Corrections Corporation of America | |
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| Type | Public (NYSE: CXW) |
| Founded |  Nashville, Tennessee (1983-28-01) |
| Founder | Tom Beasley Don Hutto Dr. Robert Crants |
| Headquarters | Nashville, Tennessee |
| Area served | USA |
| Key people | William F. Andrews (Chairman) John D. Ferguson (CEO), (Vice Chairman) & (President) |
| Industry | Prisons |
| Market Cap | US$ 3.32 Billion (2008) |
| Revenue | ▲ US$ 1.478 Billion (2007) |
| Operating income | ▲ US$ 266.30 Million (2007) |
| Net income | ▲ US$ 133.37 Million (2007) |
| Total assets | ▲ US$ 2.485 Billion (2007) |
| Total equity | ▲ US$ 1.221 Billion (2007) |
| Employees | 16,600 (2008) |
| Website | www.correctionscorp.com |
Corrections Corporation of America (NYSE: CXW) (CCA) is a company that manages public prisons and other facilities[1], and has concessions for many others.
The company is the fifth largest prison (corrections) system in the United States, behind only 3 states and the federal government. As such, CCA manages 69,000 beds in 64 facilities, of which it owns 40 facilities, in 19 states and Washington, DC
CCA was incorporated on January 28, 1983, by three businessmen who sought to bring the provision of corrections, a traditionally government-administered service, into the private sector. CCA is based in Nashville, Tennessee.
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CCA is the largest private prison provider in the United States, with meteoric stock growth, more than doubling in the first eight months of 2006. Among 63 other facilities, CCA runs T Don Hutto Residential Center, a former medium-security prison in Taylor, TX which, since 2006, has held immigrant detainees, under a pass-through contract with Immigration and Customs Enforcement division of Homeland Security. The basic contract pays CCA approximately $2.8 million monthly, for a maximum incarceration of 512 individuals. (Minimum = $5,000+ per prisoner.) Approximately half the prisoners are children, some of them born in this country. All detainees at the facility have been charged with illegal entry into the United States and have been determined to be expedited removal cases. While awaiting their deportation, many exercise their legal right to apply for asylum and are released on bond while awaiting court hearings. A recent lawsuit asserted that the children were being held in inhumane conditions. The resulting settlement (August 2007) gained on-site pediatric service for the children being detained, as well as a requirement that the toilets in their open cells be made private with the addition of a shower curtain. Additional visitation hours, hours of schooling, and recreational opportunities were also agreed upon. The facility continues to be the site of vigils and protests by various human rights groups.
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[edit] The Olympic Motel
Houston Processing Center was CCA's first design, build and manage contract from the U.S. Department of Justice for the Immigration and Customs Enforcement (formerly the Immigration and Naturalization Service) in Texas. Construction was underway on the Houston Processing Center in Texas when the INS notified CCA that it needed housing for detainees earlier than expected. Co-founders Tom Beasley and Don Hutto went to Houston to find a motel to temporarily house detainees. The owner of the local Olympic Motel agreed to a 90-day lease. After a team of contractors cleaned and secured the facility, an INS inspection team approved the facility for use by 86 detainees, scheduled to arrive at 11:00 p.m. on Super Bowl Sunday. Hutto bought toiletries at Wal-Mart with his American Express card, produced photo ID cards and rolled fingerprints, while other corporate officers distributed sandwiches and helped security staff escort detainees to their living quarters. CCA's Houston Processing Center opened a few months later, in March 1984, and remains in operation for ICE today.
[edit] Allegations of Mistreatment
Numerous individuals, organizations and former prisoners and immigration detainees have alleged mistreatment and inhumane conditions in CCA facilities.[1] There have been rapes,[2][3] beatings, and deaths at CCA facilities. [4]
[edit] Lobbying activities
According to the Center for Responsive Politics, in 2005, the company paid close to $3.4 million dollars to five different firms to lobby the federal government. The company’s chairman, William Andrews, and its CEO, John Ferguson, have been generous donors to Republican senatorial and Presidential candidates. Philip Perry, who is the son-in-law of Dick Cheney, and who served as general counsel for the Department of Homeland Security between 2005 and 2007, lobbied for C.C.A. while he was at the law firm of Latham & Watkins.
