Stockard on the Stump: CoreCivic battles former consultant over ICE business
Tennessee's private prison operator is suing a consultant for $500 million for allegedly stealing a contract for non-detention services with federal Immigration and Customs Enforcement.
CoreCivic, a Brentwood-based company that runs four Tennessee prisons, filed suit against Universal Strategic (US) Advisors this year, claiming it breached a deal to bring in business for CoreCivic by landing its own $73 million contract with ICE in March. The case was filed in Metro Nashville Circuit Court, but US Advisors is seeking removal.
Wanting to expand its web beyond federal and state prison operations, CoreCivic hired US Advisors for $30,000 a month to help it ink an agreement with ICE to handle administrative work dealing with undocumented immigrants who are under federal supervision. The job involves people who are released from detention on humanitarian grounds, bond or parole, those waiting for removal after immigration proceedings or people classified as fugitives from ICE or should be removed for other reasons, according to the filing.
The idea was to enable ICE agents to work the front lines amid increased deportations under the Trump administration with CoreCivic taking over personnel and administrative work such as checking records, collecting documents, answering phone calls, entering data and doing criminal history checks.
CoreCivic signed a one-year contract with US Advisors and paid the company $1.56 million. But, according to the lawsuit, shortly after President Donald Trump was sworn in, the consulting firm notified CoreCivic in early February it was ending the contract in 30 days.
Both companies hoped to take advantage of inside contacts.
US Advisors' chief executive officer, Tim Robbins of Utah, had held numerous leadership jobs in ICE and was an old acquaintance of Bart Verhulst, vice president of federal relations for CoreCivic. He was privy to the CoreCivic's proprietary information and helped shape its plan to 'penetrate' the Department of Homeland Security market.
CoreCivic contends Robbins was supposed to avoid conflicts of interest, and he helped CoreCivic submit a proposal to ICE in 2023 for case management services. It was re-submitted in August 2024 and January, and CoreCivic was told that ICE was interested in its proposal. But 'out of the blue,' on Feb. 9, CoreCivic received a letter from US Advisors terminating their agreement.
In early March, 'much to its shock and dismay,' CoreCivic found out US Advisors and Robbins, while under contract, submitted their own proposal to ICE and then won the contract.
Is there no honor among profiteers?
Tennessee is using a vendor on shaky ground in other states to send out the money for its private-school voucher programs.
The state has been contracting with Student First Technologies for two years, with an annual licensing fee of $695,000, for the Education Savings Accounts targeting low-income students in three counties and its Individualized Education Account program for special needs students, according to the Department of Education.
The department executed an amendment to the contract in early April to launch the so-called Education Freedom Scholarships for up to 20,000 students, depositing money into students' online accounts to pay for tuition and other expenses at private schools, but not directly to parents. The legislature's Fiscal Review Committee approved the expansion in March at a cost of $625,000 for the initial buildout and launch.
Despite Breakdowns in Two States, ESA Provider Student First Seeks to Expand
Privatizing education isn't cheap.
The newest iteration is costing north of $140 million annually, at least half of it going to students already enrolled in private schools, while the cost for ESAs could reach $25 million a year. Add the $1.3 million for disseminating money, and you're creating a cottage industry.
The problem is that Student First Technologies promised West Virginia officials in September 2024 it wouldn't go after more business until it repaired glitches that caused more than 3,000 unfilled orders and forced parents to spend their own money for books, technological equipment and other services, according to a States Newsroom report.
Besides those shortcomings, Student First lost a $15 million contract for an Arkansas voucher program when it couldn't do the job correctly.
Tennessee and Student First have run into some of their own technical problems, but the company apparently has handled them. And instead of looking for another vendor, the state is doubling down with more work and a bigger contract.
The state's relationship with Student First comes on the heels of a $2.5 million no-bid contract with Florida-based ClassWallet that used Career Ladder funds for teachers to pay the tab. Former Education Commissioner Penny Schwinn, who is going for a deputy secretary position in the U.S. Department of Education, caught the ire of lawmakers when she inked the deal without taking bids.
Which is worse, skipping the bidding process or sticking with a company facing lawsuits for shoddy work? It's a toss-up.
Nashville Democrats are trying to recall Metro Councilman David Benton after his appearance with xenophobic U.S. Rep. Andy Ogles in an anti-immigrant press conference at the State Capitol, on Memorial Day no less.
While Ogles accused Metro Nashville Mayor Freddie O'Connell of opposing President Trump's efforts to deport people without legal documentation, Democrats are peeved that Benton is backing the move to 'Stop the invasion.'
Recalling a Metro Council member could be difficult. The last time it happened took place way back in 2009 when Nashville attorney Jamie Hollin defeated Pam Murray, who was tied up in turmoil over allowing mobile vendors on Cleveland Street.
Aside from Democrats, the Metro Council's Immigrant Council also condemned Benton, saying his 'racist' propaganda is especially problematic because he represents a district with a large Latino population, which was targeted by ICE in a South Nashville roundup two weeks ago.
Nashville immigrant caucus 5-29-25
Never mind that many of the people Ogles and his ilk want to deport are washing the dishes, cooking the food and changing the bed sheets for white-bread America.
Also put out of your mind that a handful of state lawmakers, mainly from Williamson County, used the State Capitol on a federal holiday to conduct a publicity stunt inside the Old Supreme Court chambers on the first floor, which is controlled by the governor.
According to one report, the event was moved abruptly into the Capitol because of the threat of rain. But a press release sent out on Friday, May 23, said it would be held in the Old Supreme Court.
Did it rain that day?
'Now I will stand in the rain on the corner / I watch the people go shufflin' downtown.' *
* 'Fool in the Rain,' Led Zeppelin
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