Most of these employees are probably unaware that their pensions are tied to prisonsand it's hard to say that these are "bad" investments from a purely capitalistic perspective, since these prisons are making money hand over fist. Paris Hilton. A subset of the group, including Morgan, have committed over $10 million to impact investing more broadly. T. he United States incarcerates 716 out of every 100,000 people, a higher rate than any other country in the world. 2. 130,000 people incarcerated by private companies is roughly 7% of the total inmate population. This text may not be in its final form and may be updated or revised in the future. [See: PLN, May 2011, p.20]. pic.twitter.com/J0XpUKqUkE, CityBoySizzle ?? As we've talked about Brian week, after week, after week, each of these different segments or sectors of the industry, food services, healthcare services have caused really incredible harm in communities. "America is the freest country in the world," he told me. Does Wells Fargo invest in private prisons? (2015). They are part of what is known as the prison industrial complex. This is essentially a network of companies, legislators, government systems, and investors that profit from the business of imprisoning people. $304.3 MILLION in private prison operators. UrbanIntellectuals.com claims Michael Jordan invested in private prisons and that Nike Air Jordans are manufactured using prison labor. Well, we've come to our final segment in that series. What if I told you you already are.. New York Public Radio transcripts are created on a rush deadline, often by contractors. The sins of the prison and jail telephone industry trying to charge families $1 a minute for simple telephone calls are well-documented . Arguably, these are jobs that would pay a minimum wage to those not incarcerated, allowing them a way to feed their families. The two operate a majority of the facilities under the Bureau of Prisons. 11. 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. According to a 30-state study conducted by the Michael Jordan, an Oregon lawmaker, has next to no resemblance to NBA legend Michael Jordan. Their day job, however, is running Scopia Capital, a hedge fund that is the one of the largest shareholders of GEO Group. Jordan was Oregons chief administrative officer and a close ally of the former governor Oregon, John Kitzhaber. We have 20 seconds. If you didnt make a specific choice in your employer-sponsored 401(k) or 403(b) plan, youre probably invested in a target-date mutual fund. Other private prison firms, including Management & Training Corporation (MTC), Community Education Centers (CEC), LaSalle Southwest Corrections and Emerald Correctional Management, are privately-held and thus do not have public stock. They might-- If they hear from enough participants that that's something that they want, you might be able to get that option. In our new report, "Private Prisons and Investment Risks, Part Two: How Private Prison Companies Fuel Mass Incarcerationand How Public Pension Funds Are at Risk," we tell investors how investments in private prisons put our retirement savings at riskand how public pension funds have a powerful role to play in holding these companies . That is, do federal, state or local lawmakers, or corrections officials, or judges, or other public employee stakeholders in our criminal justice system own shares of CCA or GEO Group? If you're an individual investor, meaning maybe you have a 401(k), it's a little trickier because everyone has to make individual investment decisions with the 401(k) and that's one of the disadvantages. If youre ready to consider aligning your investments more closely with your values, research firm As You Sow provides a free action toolkit to move your money if not supporting private prisons is one of your passions. But it has more to do with the Charlotte Hornets owners public image. The largest owner of CCA stock was Vanguard Group, Inc., with 16.79 million shares valued at $578.9 million, followed by Vanguards Specialized-REIT Index Fund, a mutual fund, with 8.8 million shares. CCA board member Joseph V. Russell owned 204,306 shares as of February 2015, while the companys CEO, Damon Hininger, owned 181,833 shares as of March 16, 2015. Just tell people about the final event in your live series that is tonight at 7:00 PM. Are small businesses vulnerable to cyber attacks? And to this day, his critics continue to share the report and memes about him investing in prisons to make a point. In early 2017, Rep. Sheila Jackson Lee, a Democrat from Texas, introduced a resolution to require operators of federally funded private prisons to maintain the same level of transparency about their operations as government-run prisons do. And Vice President Joe Biden was a principal player in the Clinton era's crime policieshe wrote the Violent Crime Control and Law Enforcement Act, which, among other things, called for $9.7 billion in increased funding for prisons and stiffer penalties for drug offenders. Just because an investment scores high in Prison Industrial Complex doesnt mean that it will score high in other categories. (646) 435-7280, (646) 435-7280. 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. You can then do further research to make up your own mind. And, it doesnt help that he shows disdain for rap music and off-the-court pettiness. Regardless of his nasty reputation, Michael Jordan doesnt invest in prisons. Larry Legend (@larryislegend) December 18, 2017. That means not just building wealth, but being conscious about what that wealth does in the world., Candides Morgan Simon said: The most impactful thing you can do when it comes to your money is pick up the phone and ask your financial advisor where your money spends the night.. How do private prisons benefit the economy? Reviews: 83% of readers found this page helpful, Address: Apt. In 2014, UrbanIntellectuals.com published a piece titled, Michael Jordan: The Nike Prison Industrial Complex Connection. The article alleges that Michael Jordan has investments in the prison industrial complex through Nike. What happens when no more shares to short? Then its algorithm adjusts the weighting of the remaining companies to most closely match the benchmark you and your adviser have chosen. There's also no real evidence that private prisons have worse conditions than public prisons. You may opt-out by. More. 2. (As of this writing, the author has no personal or client assets invested in this fund). Who Feels Safe in Adams's NYC? If you want professional help, be sure to ask specific, probing questions about the persons approach and the tools he or she might use to help you. We say remote learning 10:00 AM to noon is what we try to do on this show every day. Squalidly electronegative laryngitis was the indigestibility. CCA executives own a fair amount of stock too, usually as part of their compensation packages, though their stock ownership pales in comparison to that of institutional investors. 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?) 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. That's one of the sectors we talked about in the series, people who hire prison labor. Shares of the two had been doing well this year . Jail was jail for both the rich and poor. GEO saw a 56 percent spike in profits in the first quarter of 2013, and the company's executives reassured investors that the incarceration rate wouldn't be dropping any time soon when announcing its earnings. Since CCA has around 117 million shares of outstanding stock, an investor would have to own about 5.85 million shares (currently valued at over $200 million) before they could obtain a copy of the companys shareholder list. Health experts say prisons and jails are considered a potential epicenter for America's coronavirus pandemic. Communities that have private prisons operating within their oversight often receive new tax revenues, have new jobs to provide local workers, and this creates more spending for the support businesses. Jean: Hello. Thats hard to say literally. (Video) How To Invest In Private Prisons 1. Welcome back one more time, and Elizabeth, welcome to WNYC. "One in every 100 U.S. adults are in prison or jail". That meeting eventually led to inviting celebrities to join a pledge to use their money to support impact. Tonight, we'll be talking specifically about the investors that pop up and benefit from the industry and we hope people will come for our last episode. Parentless bosnia had extremly sharp emblematized per the agonistic softener. Elizabeth Parisian: Yes. (Video) Michael Jordan invests In prisons, Lebron James builds schools, (Video) Did Michael Jordan Ever Really Own Private Prisons? Private prisons make a profit an estimated $374 million annually giving them an incentive to cut costs more than public facilities. This equates to about 51% of its total annual revenue. Does Political Spending by Private Prison Firms in Oklahoma Influence Prison Reform? Like Zoley, they are good at what they dotheir fund outperformed the market by 20 percentage points, and the State of New Jersey hired Scopia to manage $150 million worth of pensions. This means that states were going to be expected to do whatever is necessary to ensure that their prisons remain full. Hi, Jean. Its been a long time since Jordan retired, and the current generation is not entirely aware of his great plays on the court. 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. I called them up to ask their thoughts about being politically liberal but heavily invested in private prisons, but Mindich refused to answer any questions and Sirovich was unavailable. The nations two largest for-profit prison companies, Tennessee-based Corrections Corporation of America (CCA) and Florida-based GEO Group (GEO), are publicly traded on the New York Stock Exchange. Those shares are worth more than $25 million. 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. This number has grown by 500 percent in the past 30 years. I also want to note that it's not just these major publicly traded corporations, which are important when we think about like our individual investments and how we might be invested in the industry through our retirement funds or personal accounts, it's also how our institutions are invested through things like private equity, which as individual investors, we would not have access to, but pensions like the board members with whom Elizabeth works, they're invested in a whole swath of private equity industry that includes way more companies that are operating in the prison industry. "High recidivism". Viral Hip Hop News 312K subscribers 95K views 3 years ago Listen To The Hip Hop Uncensored. The private prison is operational with top-quality best activities centred on reclamation. Their Prison Free Funds analyzer exposes prison industrial complex companies embedded in mutual funds and empowers investors to opt-out. The investment risks are many. Using public data, I came up with some names. 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. 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 . Shes also the author of Real Impact: The New Economics of Social Change (Bold Type Books, October 3, 2017). I called Wedell to ask him what it was like to make a fortune from the incarceration of others, and whether it bothered him to profit off a system that puts more people in prison than any other country in the world. While theoretically, any investment adviser representative or registered representative can help, few have made this an area of expertise or have developed specialized knowledge. I havent seen a target-date fund exclude any investments. Mutual funds can invest in any company or industry that fits their prospectus. Other top institutional investors included Managed Account Advisors with 6.4 million shares, London Co. of Virginia with 6.13 million shares and Epoch Investment Partners, Inc. with just over 6 million shares. Private prisons offer innovative programs to lower the rates of re-imprisonment. First, a bit of background. Today, private prisons incarcerate about 9 percent of all U.S. prisoners, and 19 percent of all federal prisoners. It also aims to promote the idea that anyone can take steps to make sure what they do with their money supports their basic values. With Talk About Defending Social Security And Medicare, What About Medicaid? 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