Profiting Off Misery
Endeavour Capital and the Public Pension Funds and Endowments Propping up the Predatory Bail Industry
Over the past few decades, the number of Americans incarcerated in jails has swelled, contributing significantly to the nation’s mass incarceration crisis. On any given day, more than 400,000 people are in jail even though they have not been convicted of a crime. They are detained before trial, many because they cannot afford cash bail. Courts have told them they can return home if they post money bail to secure their release, but more often than not, they simply can’t afford the cost of freedom. This crisis has become so severe that one in five people incarcerated in America today are pretrial detainees who have not been convicted of a crime. When people cannot afford the cost of bail, they often turn to a for-profit bail bond company—which can secure their release for a nonrefundable fee.
Private equity firm Endeavour Capital—backed by large public pension funds, university endowments, and foundations—owns Aladdin Bail Bonds, the largest bail bond company in the United States, and Seaview Insurance, a related insurer. Despite growing concern from the public and public officials about the harms caused by for-profit bail, Endeavour has stood by its investment in Aladdin. Relying on public investment dollars, Endeavour Capital has expanded Aladdin Bail Bonds to several additional states. It has also spent millions of dollars lobbying to expand for-profit bail to states where it is against the law and fighting efforts to reform the predatory system. This report lays out the impact of the investment of taxpayer money into Endeavour capital, and the case for divestment.
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Press ReleaseFeb 2020
ACLU and Color of Change Statement on Endeavour Capital’s Divestment from Predatory, For-Profit Bail Industry
NEW YORK — In a major win for the movement to end the predatory for-profit bail system, the American Civil Liberties Union and Color Of Change have learned that private equity firm Endeavour Capital has exited its investment in Aladdin Bail Bonds and its affiliate Seaview Insurance. This comes on the heels of a multi-year campaign waged by the ACLU and Color Of Change to pressure Endeavour to exit the for-profit bail industry or to persuade its investors to divest from it. A report put out by the ACLU in December of 2019 outlined how Endeavour Capital acquired Aladdin Bail Bonds, the largest for-profit bail bond company in the country, in 2012. Since that time, Endeavour has expanded the company’s presence from three states to eight. It spent heavily to fight bail reform or expand for-profit bail in states like California, Oregon, and New Mexico. The largest investors in Endeavour Capital include the Washington State Investment Board, the Public Employee Retirement System of Idaho, the Oregon Investment Council, and the University of Washington Endowment fund. Udi Ofer, director of the Justice Division at the ACLU, issued the following statement: “On any given day, hundreds of thousands of people are incarcerated in jail because they cannot afford money bail. This system does not exist by accident, but as a result of the billions of dollars that large companies are making off the backs of the people exploited by our criminal legal system. Endeavour is just the latest large corporation that has decided it is politically unwise to profit off the exploitation inherent in the bail industry. Just as we have seen a movement away from investments in for-profit prisons, we’re now seeing the same for money bail. “Ending the predatory system of money bail and wealth-based incarceration is a key pillar in the ACLU’s strategy to end our mass incarceration crisis. Money shouldn’t determine someone’s freedom from incarceration. Profits must be removed from playing any role in deciding whether a person is free or in jail. It's time to end our nation's system of cash bail, which lets the size of your wallet determine whether you are locked up.” Scott Roberts, senior criminal justice campaign director at Color Of Change, issued the following statement: “The predatory, for-profit bail industry preys on our nation’s most vulnerable people, particularly those who are too poor to buy their way out of jail. This disproportionately affects Black and brown communities, which continue to be ravaged by a criminal legal system that is motivated by profit and racism. Since we exposed the giant publicly-traded insurers and private equity behind for-profit bail in 2017, Tokio Marine, Randall & Quilter, and now Endeavour Capital, have gotten out of the racist bail industry. It’s time for Fairfax Financial to do the same. “The message today is clear: You cannot get rich by tearing Black and brown families apart. Voters, investors, and taxpayers see you, they understand what you are doing, and they will hold you accountable. Endeavour’s decision to divest from money bail is the latest victory for the growing movement to end the incarceration and criminalization of our communities.” -
Press ReleaseJun 2019
ACLU and Southern Poverty Law Center Sue Trump Administration Over Discriminatory Cash Bail System
The American Civil Liberties Union, ACLU of Georgia, and Southern Poverty Law Center filed a federal lawsuit today challenging the Trump administration’s cash bail system that discriminates against people held in Georgia immigration prisons based on their financial status. The federal government detains thousands of people each month, including asylum seekers, lawful permanent residents, and victims of human trafficking, in Georgia’s Irwin County Detention Center and Stewart Detention Center. Many of these individuals — charged with violations of civil immigration law and detained pending deportation proceeds — have been found eligible for release, but are currently detained solely because they lack the financial resources to buy a bond for their freedom, in violation of their rights to due process and equal protection under the Fifth Amendment of the U.S. Constitution and the Immigration and Nationality Act. “Georgia immigration officials routinely flout federal laws by keeping low-income immigrants in detention months after the court has set bond in their case simply because they cannot afford to pay their bond,” said Ivy Wang, senior staff attorney for SPLC. “This practice of wealth-based detention is not only unconstitutional, but it also significantly hinders a person’s ability to defend their case and support their family.” Plaintiff Jose Torres-Soto is one of them. Following a traffic accident in December, the husband and father of four, including three U.S. citizen children, was transported to the Irwin County Detention Center, where he sat for five months before receiving a court hearing on May 2. During the hearing, the immigration judge refused to set bond lower than $18,000, but did not explain why bond was set so high or ask if Torres-Soto, who had been working overtime as a manufacturing company machine operator to make ends meet, could pay it. “I work hard to provide for my family, but it’s almost never enough,” said Torres-Soto. “When I was detained by ICE, our situation went from bad to worse. No one should be deprived of their freedom only because they don’t have the money to get out. My family and I don’t deserve this treatment.” Federal immigration officials have determined that certain individuals can be safely released on cash bond. Yet, federal officials refuse to take into account an individual's ability to pay when they set bond, and as a result, many individuals languish in harsh prison facilities for months while their case is pending. “A person's wealth should never decide their freedom, but that's exactly what's happening in Georgia and across the country,” stated Sean J. Young, legal director of the ACLU of Georgia. “Many people who have already been found eligible for release remain in detention for months as they await the resolution of their immigration cases simply because of the amount of money in their pocket.” The case, Torres-Soto v. Barr, is filed in the U.S. Court for the Middle District of Georgia. Defendants are U.S. Attorney General William Barr, officials from the Executive Office of Immigration Review, the Department of Homeland Security, U.S. Immigration and Customs Enforcement (ICE), and Irwin County Detention Center. “The Constitution doesn’t allow the government to lock you up just because you lack financial resources,” said Michael Tan, senior staff attorney with the ACLU’s Immigrants’ Rights Project. “Our lawsuit seeks to end the government’s unlawful practice of jailing people solely because they don’t have the money to post bond and buy their freedom.” The complaint is at: https://www.aclu.org/legal-document/torres-soto-v-barr -
News & CommentaryFeb 2023
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News & CommentaryFeb 2023
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America’s Pretrial System Is Broken. Here’s Our Vision to Fix It.
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Press ReleaseDec 2017
Smart Justice
ACLU Announces Nationwide Campaign to Support Movement to End Money Bail
NEW YORK — The American Civil Liberties Union’s Campaign for Smart Justice is launching an initiative that focuses on bolstering the movement to end money bail and eliminate wealth-based pretrial detention. The initiative is a part of the campaign’s unprecedented, nationwide, multi-year effort to reduce the U.S. jail and prison population by 50 percent and to combat racial disparities in the criminal justice system by challenging the injustices that have helped make America the world’s largest incarcerator. “It’s time to end our nation’s current system of cash bail that lets the size of your wallet determine whether you are granted freedom or stay locked up,” said Udi Ofer, director of the ACLU Campaign for Smart Justice. “This nationwide system of wealth-based incarceration keeps people who have not been convicted of a crime in jail for weeks, months, and even years. People lose their families, jobs, and homes as they wait for their case to move through the system. Money should never decide a person’s freedom, yet that’s exactly what happens every day in courts across the country. The money bail system was originally designed to ensure that people returned to court as their case progressed. It has since transformed into a system that targets those who cannot pay bail, impacting poor and middle class households. Black Americans are subject to pretrial detention at a higher rate than white arrestees with similar charges and history. Controlling for all other factors, pretrial detention is the greatest predictor of a conviction. One study showed that the non-felony conviction rate jumps from 50 percent for people released pretrial to 92 percent for those jailed pretrial. For felony cases, the rate jumps from 59 percent to 85 percent when an accused person is jailed. As a result of the current cash bail system, millions of people are forced to pay cash bail after their arrest or face incarceration before trial. This is despite the fact that they are presumed innocent and have not been convicted of a crime. To avoid being locked up while their cases go through the courts, people who cannot afford bail must pay a non-refundable fee to a for-profit bail bonds company to post the required bail amount. According to a recent report by Color of Change and the ACLU Campaign for Smart Justice, a small number of insurance companies collect their cut of nearly all the bail bond premiums collected by bail agencies. Nine bail insurers each underwrite a billion dollars in bonds to cover the vast majority of the estimated $14 billion in bonds posted by for-profit bail each year, yielding about $2 billion in industry profits. “The injustice of wealth-based detention keeps thousands of people behind bars on a daily basis,” Ofer said. “On any given day in the United States, nearly 450,000 people are sitting in jail even though they have not been convicted of a crime — many because they are too poor to afford cash bail. It’s an unfair system that has an unequal impact on people based on both wealth and race. The only ones benefitting from the current money bail system are bail industry profiteers. It’s time to end a bail system that leads to the incarceration of people awaiting trial because they’re too poor to afford bail.” Many states have already begun to address these issues with a smarter approach. In 2017, New Jersey all but removed money as a condition of release for people awaiting trial. Instead of wealth, the New Jersey system now requires individualized and robust hearings to determine why a person, who has been accused but not had the opportunity to defend themselves in court, should not be allowed to return home to fight their case without completely disrupting their and their families’ lives. Since New Jersey’s bail reform law took effect on January 1, 2017, the daily population in New Jersey’s jails has dropped 17.2 percent and cash bail has been imposed only 33 times out of 33,400 defendants. The ACLU Campaign for Smart Justice is expanding its bail reform efforts both federally and at the state level in this new initiative, which not only protects recent reforms but also advocates for new or further reforms through an integrated campaign effort that includes targeted litigation, communications, and legislative advocacy. These efforts will include a “Bail Shark of the Month” communications initiative to highlight the multinational insurance corporations driving the cash bail system.