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This week we escalated our campaign against prison profiteer @TomGores, demanding the @NBA force the sale of his @DetroitPistons. Now, I'm fielding Qs about his "commitment to reform." Having spent 10 mos in conversation with Tom and his team, let me put this idea to rest. THREAD
When his name first hit media re: prison telecom corp Securus, Tom claimed he didn’t know it had so many ethical issues. This could worry investors who expect Platinum to diligence investments—but Tom knew. And his brother Alec, owned Securus’ main competitor, GTL, until 2009. /2
Interesting fact, Securus was fined $1.7 million in 2017 for providing misleading information to the FCC for its $1.6 billion acquisition by Tom’s firm Platinum Equity. /3 https://www.fcc.gov/document/securus-agrees-pay-17-million-civil-penalty
Now, as public criticism mounts, Tom is claiming to be a "change agent" in the prison telecom industry—the hero we’ve all be waiting for.
But let’s get real, Tom got into a predatory business that preys on families to make money, not for charity. And it's obvious... /4
But let’s get real, Tom got into a predatory business that preys on families to make money, not for charity. And it's obvious... /4
See, rather than reform Securus upon acquiring it, the first thing Platinum did was try to buy the next largest competitor—or expose more to ppl its predation.
The FCC blocked the deal, agreeing with us and others that it was against public interest. /5 https://thecrimereport.org/2019/04/23/how-the-fight-for-prison-phone-justice-scored-a-major-victory/
The FCC blocked the deal, agreeing with us and others that it was against public interest. /5 https://thecrimereport.org/2019/04/23/how-the-fight-for-prison-phone-justice-scored-a-major-victory/
While we had already opened lines of communication, it wasn't until after we killed this deal, estimated at ~$350M, that Platinum execs reached out for serious conversation on the demands we had delivered a few weeks earlier with a deadline of EOY 2020. /6 https://worthrises.org/liberate-our-pensions-our-demands
We had frequent conversations, cumulatively about 25+ hours of dialogue over the course of 10 months.
At the same time, we invited investors to join our calls for action. Our staff often came face-to-face with Platinum execs in front of pension investors. We heard their lies. /7
At the same time, we invited investors to join our calls for action. Our staff often came face-to-face with Platinum execs in front of pension investors. We heard their lies. /7
Defending its acquisition, Platinum claims it ensured Securus stopped requiring visit restrictions that forced the use of its video services.
In reality, this practice ended a while ago, and yet Platinum still benefits bc facilities that ended visits haven't reinstated them. /8
In reality, this practice ended a while ago, and yet Platinum still benefits bc facilities that ended visits haven't reinstated them. /8
Platinum also claims that Securus has proactively moved to reduce rates significantly since its acquisition.
In reality, Securus’ rates have gone down less than the overall market and only under pressure from advocates. /9
In reality, Securus’ rates have gone down less than the overall market and only under pressure from advocates. /9
For example, between 2018 and 2020, the national avg jail rate fell by 28% while Securus’ avg jail rate fell 26%.
And this rate reduction should be credited to advocates who pushed for legislation, demanded contract renegotiations, and slammed the corp to bring about change. /10
And this rate reduction should be credited to advocates who pushed for legislation, demanded contract renegotiations, and slammed the corp to bring about change. /10
In 2018, the Zero Profits coalition in NYC, led by @WorthRises @ColorofChange @BklynDefender, moved the city council to pass the first law making jail phone calls free. The contract was with Securus—and Platinum told investors it had made calls free. /11 https://www.nytimes.com/2018/08/06/nyregion/phone-calls-free-nyc-jails.html
Also, in 2018, advocates in Texas—the nation's largest state prison system—like @TexasIFA convinced the board of corrections to slash rates from $0.26 to $0.06 per minute. The contract was with Securus and dramatically shifted its national average. /12 https://www.dallasnews.com/news/crime/2018/08/24/texas-prisons-slash-inmate-phone-call-rates-from-26-to-6-cents-per-minute/
In 2019, grassroots activists in Illinois like @UCIMC led efforts to lower prison call rates and landed the cheapest contract in the nation at $0.009 per minute. That contract was with Securus and again reduced its national average. /13 https://truthout.org/articles/illinois-prison-phone-rates-are-lowest-following-grassroots-activism/
But, that same year, advocates were pushing a bill in Connecticut that would make phone calls from state prison free. Securus spent $40,000 lobbying AGAINST the law until it was exposed and the corp rescinded its opposition afraid of bad publicity. /14 https://theintercept.com/2019/05/23/connecticut-prison-inmate-calls/
Only in 2020, did Platinum finally instruct Securus to lower its highest rates, specifically those that often provoked headlines. However, while lower, the new rates are hardly worth celebrating. Many still run at a new high of $15 for a 15-minute call. /15
And Platinum often blames facilities for their high rates, but this too is misleading. If you remove kickbacks, Securus’ take home on a single call minute can range from $0.009 to more than $0.20 or $0.30. Not to mention that the corp helped create the kickback model. /16
Investors began to see through Platinum’s reform claims, and some even denied the firm investment dollars. The PA State Employee Retirement System blocked a $150 million proposed investment with the firm citing Securus as the reason. /17 https://www.wsj.com/articles/pennsylvania-pension-passes-on-platinum-equity-investment-amid-prison-phone-controversy-11569361404
In response, Platinum restructured and rebranded the corp (now Aventiv Technologies) and embarked on a crisis management campaign that included announcing its own weak reform agenda, hiring spokespeople, weekly press releases, and a propaganda website. /18
Nevertheless, in the second half of 2019 Securus’ valuation plummeted thanks to advocacy across the field. The $1.2 billion dollars in debt that Platinum used to buy Securus was worth just $850 million by January 2020. /19
It was then, when Tom—who claims he’s doing the “hard work”—cancelled a meeting with families directly impacted by Securus’ predatory practices that he had agreed to months earlier. His team asked to reschedule and then abruptly cut off communication without explanation. /20
The pandemic hit shortly after, and it sadly a huge boost for Securus’ business as prison and jails became hotspots for the virus and suspended visits, and people became more dependent on costly phone calls to communicate with loved ones inside. /21
Then in May, George Floyd was murdered, and uprisings sprung up around the country. @NBA players used their platform to speak out against systemic police violence against Black people. The league supported and the gross irony in Tom’s support couldn’t be louder. /22
See, Securus doesn’t just exploit families with incarcerated loved ones—who are disproportionately Black and Brown due to racist policing and criminal legal policies. It also funnels the limited resources it extracts back into law enforcement in kickbacks for contracts. /23
It records the calls of people awaiting trial in jail—many who simply can’t afford bail—and then turns them over to prosecutors to help put people away. In the worst cases, it illegally hands over recordings of privileged attorney-client calls. /24 https://www.pressherald.com/2020/08/18/lawsuit-alleges-illegal-wiretapping-in-maine-county-jails/
It also illegally purchased GPS tracking data for people on the outside who are in communication with incarcerated people and shared that data with law enforcement. In fact, the FCC fined major phone carriers $200M+ for providing Securus this data. /25 https://www.techdirt.com/articles/20180511/09405239819/prison-phone-monopoly-securus-under-fire-again-this-time-doling-out-everybodys-private-phone-location-data.shtml
Securus is now requiring people in prison and jail to provide a voice print to use the phone. It packages these voice prints into databases to sell to law enforcement, encouraging them to rely on junk science for investigations and convictions. /26 https://theintercept.com/2019/01/30/prison-voice-prints-databases-securus/
The list of predatory practices Securus engages in with the approval of Tom and his partners at Platinum Equity is endless, and they have no interest in changing. Platinum has already owned the corp for 3 years, plenty of time to create change. /27
Tom’s newest claim, after being forced to resign from the @LACMA board over his investment in Securus, is that he’s reinvesting his profit share rather than pocketing it. The promise is a silly distraction. When Platinum or its investors benefits, Tom benefits—period. /28
Tom once said to me, “progress needs patience,” as he sat down to dinner in his multi-million-dollar home and I sat down to eat with families struggling to pay their bills thanks to him. I responded, “patience needs progress.”
Your time is up Tom: http://www.pistonsdeservebetter.com /29
Your time is up Tom: http://www.pistonsdeservebetter.com /29
