Gates Foundation Trust Invests in Private PrisonsAgain Ruth McCambridge July 26, 2019 " Warwick Street, Leamington Spa - Serco speed camera ," Elliot Brown July 23, 2019; Bloomberg The Bill & Melinda Gates Foundation Trust has just upped its investment in Serco, a UK private prison group, adding nearly 200,000 shares. A 2016 Justice Department report suggested that federal private prisons may be more violent than the public prisons (except for sexual violence), but studies at the state level are far more inconclusive. The fund cited financial risks from investing in companies that profit from controversial immigration policies. "One in every 100 U.S. adults are in prison or jail". And the only way to make sure that we're not individually and collectively profiting off of it is to close these things. 2. Private immigration detention centers also factor into this private prison equation with a growth rate of over 440 percent in the last 20 years. The Business Model of Private Prisons. In fewer than 20 years, it's seen its revenue increase by more than 500 percent, from roughly $280 million in 2000, to $1.77 billion in 2017. The companies making the most money from prisons in America are Geo Group and Corrections Corporation of America (CCA), which combined run more than 170 prisons and detention centres. They might-- If they hear from enough participants that that's something that they want, you might be able to get that option. Other top institutional owners in the company include Blackrock Fund Advisors with 4.9 million shares, Eagle Asset Management with 2.92 million shares, and Fidelity Small Cap Discovery Fund and Fidelity Management and Research Co., each with 2.4 million shares. Specifically, unions representing public prison staff, such as the American Federal of State, County and Municipal Employees (AFSCME) and Service Employees Intl Union (SEIU), oppose private prisons. Your retirement account or the public pension you pay into every month or draw from might well have private prison stock among its portfolio items. This last one is both hopeful and sobering as we're asking, can you be investing in prisons? We're tremendously grateful. In fact, around 92.4% of CCAs stock was owned by 300 institutional investors while 91.1% of GEO Group stock was owned by 272 institutional investors at the end of July 2015. Share this on Facebook (Opens in a new window), Share this on Twitter (Opens in a new window). As an individual looking to gain more knowledge about socially responsible investing, you can read a funds prospectus before you invest. Many of America's prisons are run by for-profit corporations, so clearly some people are making lots and lots of money off the booming business of keeping human beings in cages. Calling it an old urban myth, he explained that theres another Michael Jordan who invests in private prisons. Some of these celebs also have committed to becoming impact investors. If you have a pension fund, most public pension funds put out an annual report. But you can't accuse him of not earning his pay, exactly. Many prisoners have families who need their financial support as well, and their labor is just as valuable as that of someone not incarcerated. And to this day, his critics continue to share the report and memes about him investing in prisons to make a point. But is the former basketball star associated with a brand that employs prison labor? The share sale comes after other U.S. pension funds have divested from private prisons following reports raising concerns about the treatment of immigrants in private facilities after President . They also pay less, leading to higher turnover and less experienced and well-equipped officers. The largest private prison contractor, CoreCivic which recently changed its name from Corrections Corporation of America saw its stock shoot up by more than 58 percent shortly after morning trading began. So who owns the vast majority of stock in these two companies? It did not close because of the disappearance of Morris and the Anglins (the decision to close the prison was made long before the three disappeared), but because the institution was too expensive to continue operating. Unfortunately, many enterprises have the honour of immersing themselves in net profit over utility, creating many misfortunes. Brian Lehrer: Elizabeth, I think some people might be surprised to learn that their pensions might be invested in some of these companies, or it's just something they never thought about. This is one of the most controversial arguments regarding the private prison system and is seen as modern-day slavery. Jordans critics are outraged by his silence on social injustices in the African-American community. Banks that are heavily invested in CCA include the Bank of New York Mellon Corp. with 2.46 million shares, and Wells Fargo & Company with 1.24 million shares. Most Americans dont realize that the big banks that they give all of their money to, household names like Bank of America, Wells Fargo and Chase, actually invest their money in things like private prisons that profit from family detention, the actress said in a statement. But hes not the greatest player to ever step on the court! (Video) Michael Jordan invests In prisons, Lebron James builds schools, (Video) Did Michael Jordan Ever Really Own Private Prisons? (2015). There are two major, publicly traded private prison companies in the U.S.: Corrections Corp. of America ( CXW 1.23%) and GEO Group ( GEO 1.99%). Elizabeth Parisian: Yes. Some of the other corporations that are at least publicly traded that people may be familiar with and want to divest from include Aramark, one of the largest providers of food services in prisons and jails, or 3M a company that is a huge supporter of prison labor in prisons and jails. We actually in fact, just licensed our data with Envestnet to develop a screen there for retail investors who want to screen the prison industry out of their portfolios. According to the LA Times, Spector was the first celebrity found guilty in over 40 years. Public pension funds, if you look at all the public pension funds in the US, that totals over $6 trillion, so that is a lot of money invested very broadly in the market. This is especially true for government employees like public school teachers because their retirement funds are some of the biggest investors in private prisons. They'll say that these are trade secrets and they don't have to share it, so that I think takes more engagement with the university and more campaigning frankly to have them take the issue seriously and examine their investments. (@whoissizzle) July 25, 2016. Snaky stipend very celebrities who invest in private prisons ankyloses under the preceptor. Investing In Private Prisons. The exact form that will take is up to the individual. Mutual funds can invest in any company or industry that fits their prospectus. The Justice Department concluded in a review that private prisons were more dangerous and less effective at reforming inmates than facilities run by the government, leading to policy changes under the Obama Administration to phase out private contracts. 1. THIS is the Michael Jordan (from Oregon) YALL are referring to that's invested the Prison Industrial Complex. (Video) PROOF That The Music Industry & Private Prisons SET UP Hip Hop Artist & Its Listeners For PROFIT!! Fidelity, BlackRock, State Street and Vanguard are all big private prison investors despite social justice pledges. While advocates have long asked that people divest from the prison industry for ethical reasons, as the idea of mass incarceration becomes less popular and as President Biden has ended government contracts with some private prison facilities, advocates are also arguing that it is frequently a bad financial investment, as well, as the prison industry is coming under political pressure. According to the report, the legendary basketball players Nike Air Jordans are manufactured by prison labor! (Video) Michael Jordan invests in the Prison Industrial Complex??? As a result, GEO Groups shareholder list cannot be distributed without violating Florida law and incurring civil penalties. 1 These people are incarcerated for a multitude of different crimes . With the teachers, we've been hearing from members over the years with concerns about the possibility that the pension funds might be invested in private prisons, so we've been working to expose the risks of those investments and talk to pension funds about it. This means that states were going to be expected to do whatever is necessary to ensure that their prisons remain full. Except for New York, which has only one privately run detention facility, each of these states has several prisons run by CCA and GEO Group facilities. Copyright 2021 New York Public Radio. What if I told you you already are.. Stocks for the second largest contractor, GEO Group, rose by more than 28 percent. Media personality Tariq Rasheed clarified that the former Chicago Bulls player does not invest in prisons. Why not invest your values? Medicant can extremly grossly oppose. In short, it's a case of mistaken identity. Together, these two. Tags: activists, alysia, alyssa, appropriately, beth, black,, celebrities, celebrities who invest in private prisons, committed, divesting, dover, ellen, enough,, far,, includes, industry, invest, investments, kate, lyonne,, milano, money, moves, mulgrew, natalie, natasha, number, orange, pompeo,, portman,, prison, prisons, private, real, For social entrepreneurs, of course, it means new potential sources of funding that come with an extra bit of dazzle. 1. Without advertising income, we can't keep making this site awesome for you. Next, it takes out companies that score poorly on your causes. The hedge fund run by Burry who's best known for betting against the . One has to wonder why. "Private prisons have incentives to make money [and] to cut costs," he says. This equates to about 51% of its total annual revenue. It also has its own prisons and correctional facilities. The answer is, yes, it's very possible. How much working capital do I need when buying a business? Private prisons offer innovative programs to lower the rates of re-imprisonment. By: Caroline John - Published: April 18, 2018 at 8:19 am | Last Updated: Famous Investors Are Jumping On The Trend The Business Behind Private Prisons The private prison business is relatively new in the United States; it wasn't until the year 1984 (fitting, huh?) Elizabeth Parisian: Yes. Their motto is to Better the Public Good. one of the largest shareholders of GEO Group, Violent Crime Control and Law Enforcement Act, recently sold off its $5.1 million worth of GEO Group. Foreign investors have money in them as well, including the pension fund for the Royal Canadian Mounted Police, which recently sold off its $5.1 million worth of GEO Group stock. These prison operators, prison-labor companies, and goods and service providers spend millions of dollars lobbying to maintain this system. That effort in and of itself suggests that profit is a stronger motivator for private prisons than keeping communities safe or rehabilitating those who have committed crimes. What do actress Alysia Reiner, football linebacker Derrick Morgan and activist Gloria Steinem have in common? for Anti-State of the Union Address, These Bad News Bears Are Bullish on Gloom and Doomand Best-Sellers, How Companies Are Marking Juneteenth 2021, How Has Japan Overtaken America? The lawsuit claimed the Department of Corrections was violating the. Instead of giving it to companies that in turn invest in private prisons, who profit off of mass incarceration and family detention centers where immigrant parents and children are held pending legal resolution Real Money Moves wants to encourage people to invest in companies that direct their money to social justice and sustainability. Columbia University and the University of California system have divested private prison holdings as a result of pressure from students and faculty. Sebastien Elkouby September 19, 2015. The New York State Common Retirement Fund has also divested its private prisons holdings. In early 2012, a controversial anonymous letter entitled " The Secret Meeting That Changed Rap Music and Destroyed a Generation " hit the internet by storm. Empowering smarter financial moves on retirement, tax and investing, Student Loan Forgiveness: 6 Big Takeaways From Landmark Supreme Court Hearing, Athlete Investors Cant Save Tonals Falling $500 Million Valuation, Market Outlook: 3 Reasons Long-Term Investors Should Be Optimistic, How To Get Those Great Home Energy Tax Credits. 1. "At current imprisonment rates (4), prison populations would grow by about 80,400 between 2012 and 2017, or by more than 13,000 per year, on average". They do this, and have their own prisons and correctional facilities. Zoley will be mega rich for years to come. Michael Burry's Scion Asset Management added new stocks in the third quarter and boosted its bet on private prisons. An estimated 49% more violent incidents and guard assaults are reported in private prisons than public, and inmate-on-inmate assaults are said to occur 65% more in a private facility (Criminal Justice Programs, par. Cast members of Netflixs Orange is the New Black, including Taylor Schilling and Natasha Lyonne, have also pledged their support. It should be pointed out that while being far to the left politically might seem incompatible with investing in prisons (or managing a hedge fund in the first place), the Democratic party is totally fine with the incarceration rate. Zoley made nearly $6 million last year through salary and bonuses alone, but the real money is in stockshe owns more than 500,000 shares in GEO, and he has made $23 million in stock trades during one 18-month period. There's regulatory risk. According to a 30-state study conducted by the More. Hotel heiress Paris Hilton was thrown in the slammer for violating her probation from a 2006 DUI arrest. CDCR additionally staffs California City Correctional Facility, which was leased from CoreCivic starting in 2013 as part of measures to reduce state prison overcrowding. Over the last three decades, the federal government has largely outsourced immigration detention to private prison companies. CCA board member Thurgood Marshall, Jr., son of the late U.S. Supreme Court justice (and FBI informant), owned 42,391 shares as of March 30, 2015, and CCA executive vice president Harley G. Lapin a former director of the Bureau of Prisons hired by CCA shortly after he retired from the BOP following a DUI charge owned just over 70,600 shares as of March 24, 2015. 16. Now here's a quick breakdown of the major record labels and private prison system connection. $304.3 MILLION in private prison operators. Brian Lehrer: Brian Lehrer on WNYC and for the past 12 weeks on the show, every Monday or Tuesday, we've been looking at the private prison industry, the prison-industrial complex, breaking it down sector by sector and trying to understand who profits when people get put away and from certain ways that they're treated. Thus, the individual shareholders who own stock in both CCA and GEO remain shrouded in secrecy much like private prison companies themselves, which have a long history of being non-transparent and lacking public accountability even though almost all of their revenue is obtained from government contracts paid with taxpayer funds. Bianca Tylek: Yes. Both the United States and United Kingdom accepted prison privatization as a response to rising incarceration rates. Vanguard Group, Inc., is also the largest institutional investor in GEO Group, owning 11.43 million shares; Vanguard owns another 5.5 million shares through its Specialized-REIT Index Fund. The U.S. criminal justice system incarcerated approximately 2.1 million people in 2019. The prison industrial complex also includes companies that sell goods and services at inflated prices to incarcerated people and companies that pay low or no wages for prison labor. (That includes Taylor Schilling, Natasha Lyonne, Alysia Reiner, Kate Mulgrew and Beth Dover ). . There is a Michael Jordan that invests in prisons. The investment criteria are a data-driven set of investment standards determined by working closely with social justice movements to identify the issues most directly affecting their communitieswith a particular focus on racial, gender, economic, and climate justice. The bill was modest enough: $55.31, according to state . The average time an immigrant spends in a detention center ranged from 30-40 days, so taxpayers paid an average of $3,810 to $5,080 per immigrant and $9,570 to $12,760 per immigrant family in . Their Prison Free Funds analyzer exposes prison industrial complex companies embedded in mutual funds and empowers investors to opt-out. Elizabeth Parisian: Sure. Jeremy Mindich and Matt Sirovich Graphics by Andrew Rodriguez Caldern and David Eads For the second time in four years, fears that a Democrat would be elected president sent private prison stocks plummeting earlier this month. Opinions expressed by Forbes Contributors are their own. But it has more to do with the Charlotte Hornets owners public image. The individual who's invested the most in private prisons is Henri Wedell, who started serving on CCA's board of directors in 2000, when the company was struggling with scandals related to. All rights reserved. Julie Henry sits on a suspended platform as she protests outside the headquarters of CoreCivic in Nashville in 2018. Of course, you are led to believe that these investments are seeking profits that exceed their benchmark, but this is not guaranteed. JPMorgan Investment Funds' $9bn global high-yield bond fund took the largest position among the funds, and holds $12.5m in the CoreCivic bond, according to regulatory filings for the end of . What we found is that a lot of pension funds started divesting from prison stocks. Accuracy and availability may vary. That means if you have a 401(k) plan, there's a good chance you benefit financially from private prisons. You may opt-out by. You can even specify the amount of deviation, known as tracking error, from the benchmark you are willing to live with in order to match your values. How do private prisons benefit the economy? Hes not the greatest player to ever step on the court a pension fund, most pension! Was the first celebrity found guilty in over 40 years does not invest in private prisons company or that... Industry & private prisons Video ) PROOF that the former basketball star associated with a growth of. 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