Georgia to Take on Sentencing and Prison Reform

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Two articles in the Atlanta Journal-Constitution in the past two days reveal a sudden new priority of Georgia's leadership to tackle criminal sentencing and prison reform. First, the AJC interviewed Governor Nathan Deal, who acknowledged the growing costs of Georgia's prison system. “We’re at a point in time where the necessity for doing something has gotten so big that to turn our head and pretend the problem does not exist is not responsible government,” the Governor told interviewers. The Governor said that the State now spends more than $1 billion per year on the prison system.

The article also quotes Georgia's Special Council on Criminal Justice Reform, which has recommended changing the criminal code to result in shorter sentences for some non-violent offenders, and to increase the options for alternatives to sentences of incarceration. Another proposal is for a "safety valve" provision, similar to Federal sentencing, for courts to impose lesser sentences in some drug trafficking cases.

Also, Lieutenant Governor Casey Cagle stated in an interview yesterday, regarding sentencing and prison reform, that  "It's a conversation that I think needs to happen. We are in a position to where we can, with technological advancements, have home arrest, we can have ankle bracelets. There are a lot of tools that are available to us today that save money but also help the individual as well."

Georgia Prisons Big Source of Tax Fraud According to USA Today

 

An article in USA Today claims that prison inmates in Georgia, Florida, California and elsewhere caused the Internal Revenue Service to issue $39 million in undeserved federal tax refunds in 2009. Georgia came in second with $3,560,562 in fraudulent refunds issued to prisoners, but was far outstripped by Florida's $12,576,944 in refunds. The IRS identified 44,944 false or fraudulent tax returns filed by prisoners in 2009, however an audit identified 54,410 tax returns which the IRS had failed to identify as having been filed by prisoners.The number of undeserved refunds paid out was up from $13.4 million in 2004.

While some inmates came legally receive income from investments, inheritances and other sources, the false tax returns are typically based on fictitious jobs and taxes that were never withheld. Although inmates do work in prison, prison jobs do not pay enough to trigger withholding. The scams often involve the theft of Social Security Numbers and other information from others. In some cases, the inmates will find the names of businesses which have declared bankruptcy, in order to make it more difficult for the IRS to verify the claims.

A Florida inmate, Danilo Suarez, obtained $58,022 in tax refunds by filing 14 or more false tax returns. Jeanni Renee Hillin, a Tennessee inmate, received $58,651 in refunds in 2006. 

Conrad Black on the Problems of the U.S. Justice and Prison System: Prisoners are "An Ostracized, Voiceless Legion of the Walking Dead"

 

Canadian citizen Conrad Black, former head of Hollinger International, Inc., and once the third biggest newspaper magnate in the world, was charged in the Northern District of Illinois with diverting corporate funds for his own use and was convicted in July of 2007for "honest services" mail fraud, in violation of 18 U.S.C. s 1846, and obstruction of justice, following a jury trial. On June 24, 2010, the Supreme Court issued an opinion in Black v. U.S., case # 08-876, vacating Black's honest services convictions and remanding his case on the ground that the district court's instruction to the jury on honest services was incorrect. Black was incarcerated at the Federal Correctional Center in Coleman, Florida, and was released on bail two weeks ago after spending two years and four months in prison. He remains in the U.S. pending an appeal to return to Canada.

Lord Black's (he was made a member of the House of Lords of the United Kingdom by Queen Elizabeth II and Prime Minister Tony Blair) legal odyssey aside, he has become an observer and critic of the U.S. criminal justice system. Black has kept a diary, which may be viewed here, regarding his experience in prison. Most recently, on July 31, Black published a letter in Canada's National Post entitled "Conrad Black: My Prison Education." Black does pause to criticize his conviction in passing, citing the "fallibility of American justice." However, Black's letter provides a glimpse into life at the end of the tunnel of the federal criminal justice system. Black discusses his daily calls to his wife and his difficulties in getting updates on his application for bail in prison. He recounts the interest of his fellow inmates in the developments and media attention in his case, and rather poignantly describes the lengthy goodbyes from his friends:

"The Mafiosi, the Colombian drug dealers, (including a senator with whom I had a special greeting as a fellow member of a parliamentary upper house), the American drug dealers, high and low, black, white, and Hispanic; the alleged swindlers, hackers, pornographers, credit card fraudsters, bank robbers, and even an accomplished airplane thief; the rehabilitated and unregenerate, the innocent and the guilty, and in almost all cases the grossly over-sentenced, streamed in steadily for hours, to make their farewells."

"Most goodbyes were brief and jovial, some were emotional, and a few were quite heart-rending. Many of the 150 students that my very able fellow tutors and I had helped to graduate from high school, came by, some of them now enrolled in university by cyber-correspondence."

 

Black goes on to criticize harsh federal sentencing policies, especially for drug offenders, citing in particular the disparities in the crack cocaine sentencing Guidelines and their disproportionate impact on African-Americans. He also takes the public defender system to task for being subservient to the will of prosecutors, and laments the United Sates' massive prison population and prison industry in comparison with other Western democracies. Black concludes that "America’s 2.4 million prisoners, and millions more awaiting trial or on supervised release, are an ostracized, voiceless legion of the walking dead; they are no one’s constituency."

 

CTV.ca

 

Sir Robert Allen Stanford's Congressional Ties and Prison Blues

So whatever happened to indicted billionaire Sir Robert Allen Stanford? Well, not much, as reported by the Houston Chronicle. Stanford, who is charged with allegedly defrauding investors of more than $7 billion, is still incarcerated, despite his extensive efforts to secure release prior to his trial since his arrest in June of last year. Stanford has submitted a report from a physician to U.S. District Judge David Hittner of the U.S. District Court for the Southern District of Texas, in which the physician opines that Stanford is close to “a complete nervous breakdown.” Two psychiatrists have diagnosed Stanford with severe depression as a result of his confinement.

Stanford's counsel complained to the court that Stanford needed to have frequent communication with his defense team in order to review the more than 7 million documents in the case and answer questions by his counsel. Unmoved, Judge Hittner denied Stanford's latest motion for release in an order issued two days before Christmas, and Stanford has appealed the denial.

Stanford's trial is still a year away, scheduled to begin in January 2011. He has denied the government's charges, as well as civil fraud charges brought by the U.S. Securities and Exchange Commission.

Also reported in the Chronicle, similar to confessed attorney/Ponzi schemer, Scott Rothstein, Stanford allegedly had many ties to politicians. The Department of Justice is investigating approximately $2.3 million dollars in alleged contributions from Stanford and his staff to politicians over the past decade, as well as $5 million paid to lobbyists.  Donations by Stanford and his staff included $40,000 to the Senate Republican Campaign Committee, $100,000 to the inaugural committee of George W. Bush and $500,000 to the Democratic Senatorial Campaign Committee. He furthermore set up his own lobbying firm in Washington, D.C. Stanford is alleged to have successfully lobbied to defeat legislation in Congress relating to financial secrecy and offshore banking which would have allegedly revealed his activities.

Stanford allegedly treated politicians to trips to the Carribean, hosting dinners with lobster and caviar. Illustrative of Stanford's high level government contacts was the fact that, mere hours after Stanford was arrested last year, Representative Pete Sessions of Texas, Chairman of the National Republican Congressional Committee, sent Stanford an e-mail stating that he "loved" Stanford and believed in him, and offering his advice or to listen to Stanford. Stanford and his staff contributed $44,375 to Sessions. Stanford entertained numerous Congressional delegations to the Carribean nation of Antigua, where Stanford was based, at a total cost of $311,307. Stanford also hosted a wedding dinner for New York Representative John Sweeney at a five-star restaurant owned by Stanford in Antigua, and held a cocktail fundraiser for Ohio Representative Bob Ney in Miami. Ney was later sentenced to 30 months imprisonment for accepting money and gifts from convicted lobbyist Jack Abramoff.

Stanford opened a trust office in Miami in 2001, which allegedly enabled his bank to sell millions in certificates of deposit. This event allegedly prompted him to become involved in politics in order to prevent legislation which would have forced Stanford to reveal the source of the flow of monies to the office.

19 politicians have returned a total of $87,800 in contributions from Stanford to the court-appointed receiver. Other politicians have stated that they have donated money contributed by Stanford to charity, including $45,000 by Senator Bill Nelson of Florida, and $11,800 by Representative Charlie Rangel.

 

Rapper T.I. Reports Late to Prison

Rapper T.I., whose real name is Clifford Harris, held a big send off bash at the Phillips Arena in Atlanta Sunday night according to CNN. The going away party, called “T.I’s Goodbye Bash,” was given as Rapper T.I. was set to report to federal prison this week and was attended by 16,000 fans.

In a blatant show of disrespect for the system that treated him with extreme leniency, on Tuesday Rapper T.I. showed up late at the Federal Prison in Forrest City, Arkansas according to the AP. Generally federal inmates who are allowed to turn themselves in at federal prison facilities are given a deadline for showing up at the prison gates. Rapper T.I. was, apparently, 29 minutes late.

The Bureau of Prisons had no comment on whether the rapper’s late arrival at prison would affect his plea deal with U.S. Attorney David Nahmias of Atlanta, who trumpeted the extremely lenient deal for Rapper T.I. months ago because of the exceptional community service performed by the Rapper while awaiting sentencing.