Despite a Crashing Economy, Private Prison Firm Turns a Handsome Profit

While the nation's economy flounders, business is booming for The GEO Group Inc., a private prison firm that is paid millions by the U.S. government to detain undocumented immigrants and other federal inmates. In the last year and a half, GEO announced plans to add a total of at least 3,925 new beds to immigration lockups in five locations. The Immigration and Customs Enforcement (ICE) agency and the U.S. Marshals Service, which hire the company, will fill the beds with inmates awaiting court and deportation proceedings.

GEO reported impressive quarterly earnings of $20 million on February 12, 2009, along with an annual income of $61 million for 2008 -- up from $38 million the year before. But the company's share value is not the only thing that's growing. Behind the financial success and expansion of the for-profit prison firm, there are increasing charges of negligence, civil rights violations, abuse and even death.

Detaining immigrants has become a profitable business, and the niche industry is showing no signs of slowing down. The number of undocumented immigrants the U.S. federal government jails has grown by at least 65 percent in the last six years. In 2002, the average daily population of immigration detainees was 20,838 people, according to ICE records. By 2008, the average daily population had grown to 31,345.

Since 2003, more than a million people have been processed through federal immigration lockups, which are part of a network of at least 300 local, state and federal lockups, including seven contracted detention facilities. GEO operates four of those seven for-profit prisons.

Numerous investigations and reports have documented problems at GEO's immigration detention facilities.

At the company's Northwest Detention Center in Tacoma, Washington, federal prosecutors charged a GEO prison administrator in September 2008 with "knowingly and willfully making materially false, fictitious, and fraudulent statements to senior special agents" with ICE, according to court filings. A February 2008 audit found that over a period of more than two years ending in November 2005, GEO hired nearly 100 guards without performing the required criminal background checks. The GEO employee responsible, Sylvia Wong, pleaded guilty. In the plea agreement the federal government stated that Wong falsified documents "because of the pressure she felt" while working at the GEO lockup to get security personnel hired at the detention center "as quickly as possible."

Two months before the fraud charges, a study by the Seattle University School of Law and the nonprofit group OneAmerica reported that conditions at the Tacoma facility violated both international and domestic laws that grant detained immigrants the right to food, due process and humane treatment.

Federal immigration officials have the authority to incarcerate undocumented immigrants, asylum-seekers, and even lawful permanent residents while they await hearings with immigration judges or appeal decisions. ICE reports the average length of stay is 30 days, but detentions can last years, according to a November 2008 ICE fact sheet.

Pramila Jayapal, executive director with OneAmerica, took part in interviewing a random sample of more than 40 immigrants detained at the Northwest Detention Center, which holds approximately 1,000 immigrants at any given time.

"It's a very giant concrete box. It's just like a jail," said Jayapal. "You're only supposed to meet in the client area, which is only a few rooms."

One inmate from Mexico, Hector Pena-Ortiz, told interviewers that guards had interrogated and handcuffed him twice, demanding that he sign immediate deportation papers despite the fact that he had a pending appeal. Under federal law, immigrants cannot be deported from the United States if their immigration legal cases are still pending. During one of the incidents, guards admitted to having a file on the wrong inmate, Pena-Ortiz said.