The owner of basketball team Detroit Pistons, Tom Gores, is buying Securus. This is proof that the private prison business is becoming the industry for investors.
Securus is the second largest prison phone company in the US. Following closely behind GTL, Securus prides itself on being a core provider of “civil and criminal justice technology solutions.” These correctional solutions are geared at public safety, investigations, monitoring and corrections.
Detroit Pistons owner Tom Gores is reportedly buying Securus for a whopping $1.5 billion. Gores is also the founder and CEO of Platinum Equity, a massive investment firm. Acquisition of Securus by Platinum Equity can only be possible under President Donald Trump’s administration. The reason for this is not far-fetched: private prison business is favored under the administration.
Trump Administration Gives Private Prison Owners Business Boosts
As soon as Trump came to power, stocks of CoreCivic and GEO Group skyrocketed. Both are the largest owners of private prison facilities across the US. They not only construct prisons and rake in millions of government contracts; they also undertake related prison businesses.
The Trump’s administration is not only favoring prison contractors, it is also favoring prison phone calls, among them Securus.
This is largely because the Obama administration regulated prison call charges, but Trump’s government reversed the regulations. The moment Trump assumed office, he appointed Ajit Pai as the chairman of the Federal Communication Commission (FCC).
One of the first things Pai did was to reverse any existing regulations capping prison call charges. This is largely to the detriment of the families of incarcerated persons who have to pay massive payments to speak to their incarcerated loved ones.
Detroit Pistons Owner Becomes New Private Prison Business Owner
Detroit Pistons owner Gores bought the Detroit Pistons basketball team in 2011. The city of Detroit was on the point of declaring economic bankruptcy. The Detroit Pistons basketball team was always losing in competitions. The people were groaning under hard times.
Then Gores surfaced to buy Detroit Pistons for a massive $325 million, a risky venture at the time. Gores had earlier founded Platinum Equity in 1995 – to buy and sell various companies. Forbes listed the company as the 23rd largest private company in 2011, and today Gores is worth about $3.3 billion.
Gores had stated he bought Detroit Pistons to revitalize the Detroit economy. He also owns Union-Tribune, the largest newspaper in San Diego. Buying the prison phone company Securus will further improve the fortunes of Detroit Pistons owner.
But how this will translate to the benefits of families of prison inmates remains to be seen. Several people do not see how a new management for a private prison phone company will favor loved ones of incarcerated persons in any way yet.