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Private Prison Executive Sentenced in Fraud Scheme

In 1993 Clifford Todd, 68, was chairman of Kentucky based U.S. Corrections Corporation, a private prison firm. In March of this year he was sentenced by a federal judge to a 15-month prison term.

Todd pleaded guilty to mail fraud last year for his part in a bribery and extortion scheme. Also convicted in the scheme was Richard Frey, former Jefferson County corrections chief. Frey was convicted in November of extorting $198,000 in bribes from Todd, in exchange for the corporation getting and keeping a lucrative county jail contract.

In addition to the 15-month prison sentence, Todd was fined $40,000, and in an ironic twist, U.S. District Judge John Heyburn ordered Todd to pay for the cost of his incarceration.

According to a 1995 report by the University of Florida, U.S. Corrections Corp. operates four private facilities, all in Kentucky, with a total population of 2,198 prisoners. They are the third largest private prison corporation, with a 6.42% market share. In comparison, the two largest prison corporations (Corrections Corporation of America and Wackenhut Corrections Corp.) control 30.48% and 25.82% of the U.S. market share in private prison beds.

It is not known at this time where Todd will serve his sentence, but it's amusing to imagine what it might be like if he were to end up in one of his former company's prisons.

Sources: Corrections Digest, Private Correctional Facility Census

 

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