I was startled to realize the amount of money that has been made by the Keefe Group through prisoners. It is nearly $40.4 million! And the G T Enterprises has made nearly $3.2 million through prisoners in terms of gross revenue. All this has been through the MDOC inmate services.
It was in 2008 that the Keefe Group contract had started. I was surprised to realize that since then it was renewed a number of times. Its last renewal was in 2011. That will be expiring on August 31, 2015. The contracts had been signed by Chris Epps who was the Commissioner at that time.
These contracts allowed The Keefe Group to processing the deposits of inmates. Besides, they could sell them prepaid debit cards. The Group was allowed to process the trust funds of inmates.
I came to know that the contracts granted an exclusive right to The Keefe Group to sell MP3 music players to inmates. But these were being sold at $115 plus sales tax to the inmates. MDOC was receiving $15 for each player that was sold.
Next was the exclusive right for selling song downloads. Out here the inmate was being charged $1.70 for each song download. MDOC was receiving $0.10 for each song download from this costing.
Another was the exclusive right given to the Keefe Group for selling commissary items. These would include food items, various personal hygiene products, besides tobacco, and such other items. Here, Keefe Group was paying a commission rate. This was 29.4% for any sales that were made in the prisons that were state-operated prisons. It was paying 24% at the state prisons that were privately operated. In addition, The Keefe Group deducted 10% from the total sales amount of all the “visitation bags” that were sold each month at these prisons. Read more about Keefe Group on Blogspot
Cecil McCrory was the owner of G.T. Enterprises. I was told that he later sold this company to the Keefe Group. This was in 2008. At that time, the MDOC contract gave GT Enterprises the right for selling various commissary products. This was for the Walnut Grove Youth Correctional Facility.