Tag Archive: Michael Hellriegel

CEC Investigation: Our Legislators Take Action – Part VII

After years of groups and individuals raising warning signs about problems in halfway houses, the issue was placed in stark relief in a N Y Times devastating series of articles Unlocked by Sam Dolnick. On Thursday the Senate Legislative Oversight Committee chaired by Bob Gordon (D-37) and vice-chaired by Barbara Buono (D-18) will hold a hearing. On Monday the Assembly Law and Public Safety Committee chaired by Charles Mainor (D-31) and vice chaired by Gilbert Wilson (D-5) will hold another hearing. The goals are to understand the problems and bring about solutions.

The Problems: Past articles in the Blue Jersey CEC Investigation series have highlighted serious improprieties regarding halfway houses – particularly those of Community Education Centers (CEC), which last year received $71 million out of $105 million in government expenses. It is a story of CEC’s Founder John Clancy who used a dubious agreement from a prior Attorney General to set up a shell non-profit company and then through large political contributions, lobbying, PR, a well connected legal VP, and friendship with a U.S. attorney and later governor to create a large corrections corporation. With insufficient monitoring from the Department of Corrections (DOC), this company ran facilities that bred an atmosphere of inmate drugs, escapes, violence, gangs, rapes, and deaths. With unqualified staff, security was compromised, the public at large was placed in danger with unnecessary escapes, and the goal of helping to reduce recidivism was given short shrift.

Christie confidante and CEC Senior Vice President, William Palatucci aided, abetted and defended CEC. Governor Christie as a lawyer at Dughi and Hewitt, as U.S. Attorney, and later as governor at a minimum praised and enabled the activities of CEC. He failed to implement remedies that other more responsible parties were calling for over the years, and he may have done so willfully and improperly. Now we are at the point where the valid role of halfway houses is being discredited, and the largest company in New Jersey is facing such severe financial problems that the DOC might need to take over at a moment’s notice thousands of inmates lodged annually in CEC facilities. CEC failings are not confined to NJ DOC contracts, but extend to those held by NJ local governments and such states as Texas, Alabama, and Colorado.

There are numerous solutions. The agreement that allowed CEC to use a non-profit organization as a front, in contravention to established regulations, should be ended for any future contracts and possibly existing contracts. CEC was able to build a monopolistic position, and it is now time to enable legitimate non profits to compete fairly for DOC contracts small and large. The Boxer audit laid out key recommendations for remedies, and it is essential to establish what progress DOC has achieved so far and to assure the recommendations are met. Dangerous inmates should not be lodged in halfway houses. The security and living conditions of inmates need to be improved. Process measures must be established to assure that the goals of reducing recidivism through drug treatment, job readiness, and other skills preparatory to re-entering the general population are being well administered. More qualified staffing is important. Pay-to-play regulations urgently need strengthening. People like Governor Christie should be disabused of the notion that privatization brings huge savings, as previous studies have shown that such savings are scant. Goals should include integrity, safety, and reducing recidivism not an elusive search for savings.

Below the fold are suggestions for some of the individuals who should testify and what questions legislators might ask the individuals.