The GEO Group Inc

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NYSE
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GEO
company headquarters
USA
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The world’s second-largest private prison company. It owns and operates prisons and jails, including immigration jails and “community corrections” centers, and uses forced prison labor. It also provides e-carceration technologies, transportation, and other services as part of the criminal punishment system.

 

The GEO Group Inc, formerly Wackenhut Corrections Corporation (WCC), is a Florida-based company that owns, operates, and leases out prisons; jails, including immigration jails; and residential reentry centers in the United States, Australia, and South Africa. As of 2023, it owns, manages, or leases 100 prisons “community corrections” centers worldwide—with a total capacity of approximately 81,000 beds—and incarcerates tens of thousands more through electronic monitoring, or “e-carceration,” technologies.

In 2023, GEO Group generated just over 62% of its total revenues from federal prison and immigration authorities, including U.S. Immigration and Customs Enforcement (ICE), the U.S. Marshals Services (USMS), and the Federal Bureau of Prisons (BOP). The rest of the company’s revenue derived mostly from contracts with state, local, and international prison agencies.

Because a large portion of its revenue depends on BOP and USMS contracts, GEO has sought ways to circumvent the Biden administration’s 2021 directive on eliminating the use of private prisons operated by these agencies. In 2021, for example, GEO Group proposed paying the city of McFarland, Calif., $500,000 in administrative fees to contract with the USMS to hold up to 770 “pretrial detainees.” In return, McFarland would subcontract with GEO Group to imprison these individuals at its Western Region Detention Facility. By contracting with county, rather than federal, agencies, GEO Group could continue its existing relationship with the federal government.

Between 2013 and 2020, the company was incorporated as a Real Estate Investment Trust (REIT), which meant it was not subject to federal corporate income taxes. As a REIT, GEO Group was required to distribute 90% of its income to stockholders, making it reliant on short-term loans from banks to fund its growth. Following announcements by most major U.S. banks that they would stop financing private prison companies, it reorganized as a taxable corporation in January 2021.

Private Prisons

GEO Group opened its first U.S. prison in the late-1980s. The company operates its prisons under county, state, or federal contracts under three business models. Under the first, it owns and manages prisons; under the second, it manages government-owned prisons through manage-only contracts; and under the third, it leases some of its prisons to third parties for use by government agencies.

As of 2023, GEO Group owns, manages, and/or leases out 49 prisons and jails, including immigration jails, in the U.S. Operated on behalf of ICE, USMS, the BOP, and State Departments of Corrections, these prisons and jails incarcerated over 62,000 people in 2023. Some are currently empty (“idle”).

GEO Group prisons throughout the country have long faced allegations of inhumane living conditions, understaffing, violence, inadequate medical care, forced prison labor (see more below), physical and sexual abuse (including illegal strip searches), overcrowding, “staff corruption,” prolonged use of solitary confinement, and other problems. In 2023, for example, a man incarcerated at the then GEO-operated Lawton Correctional and Rehabilitation Facility in Oklahoma died after prison guards locked him in a cell, with life-threatening injuries, for hours without care. The company discontinued its contract for the prison in June 2024, claiming issues with funding and “staff recruitment and retention.”

Until 2021, GEO Group owned and operated Abraxas, a youth and family “residential treatment” company that ran “youth centers” for “hard-to-place juvenile populations.” One of its youth jails, Abraxas Academy in Morgantown, Penn., was reportedly used to hold migrant teenagers detained by ICE. The center was cited by state regulators for sexual harassment and abuse, as well as excessive use of force in restraining children. In 2018, an employee pled guilty to sexually harassing and assaulting an Abraxas “resident,” and at least one other employee was terminated after being caught on video physically assaulting a child. At the Abraxas-Hector Garza Center in San Antonio, Texas, monitors found that 81% of children held there in 2020 had reported being put in painful restraints.

In July 2021, GEO Group divested the operational side of Abraxas, which became a nonprofit organization. The company still retains ownership of the buildings that Abraxas operates in and holds lease agreements with Abraxas for its six youth jails.

Immigration Jails

GEO Group owns and/or manages 28 immigration jails on behalf of ICE and USMS, with a total capacity of approximately 30,500 people. ICE contracts accounted for 42.7% of GEO Group’s annual revenue in 2023. ICE pays the company a per diem rate based on the number of immigrants it imprisons. In 2022, for example, a contract between ICE and GEO Group for the company’s operation of ICE’s LaSalle Processing Center stipulated a guaranteed minimum of 1,170 jailed immigrants at a rate of $76.64 per bed each day (approximately $2.7 million a month).

ICE is the single largest client of GEO Group, accounting for 42.7% of the company’s total revenues in 2023. Following the Trump administration’s announcement in 2018 of its “zero-tolerance” immigration policy and plans to add 15,000 more beds to facilitate family detention, GEO Group’s stock prices increased by 1.79%. In 2020, just before Biden took office, ICE awarded the company a new 10-year contract for the continued operation of its South Texas ICE Processing Center. Organizers and advocates have observed that ICE deliberately extended this contract by an unusually long period of time in order to extend “the harm of this administration far beyond Trump’s term in office.”

While the Biden administration’s executive order regarding private prisons does not apply to contracts with ICE, GEO Group has stated that changes in federal immigration policies and changes in federal immigration policies may impact the government’s use of public-private partnerships with prisons and immigration jails and therefore negatively affect the company’s contracts with ICE. The company has also identified “declines in crossings and apprehensions along the Southwest border” as a risk to its shareholders.

GEO Group has lied about its involvement in family separation. Since 2014, the company has managed the Karnes County Immigration Processing Center, an ICE jail designed to hold up to 1,328 people. The immigration jail previously held up to 830 migrant families with children until 2021, when ICE announced it would instead begin using it as a short-term “reception center” for detained immigrants. The company claimed that it “has never had any involvement, in any way” with the separation of families.

Like its other prisons, GEO Group’s immigration jails have been implicated in numerous human rights abuses, including sexual abuse, forced labor (see below), medical neglect, spying, excessive use of solitary confinement, deprivation of food and recreation time, and other inhumane conditions that have resulted in deaths and self-deportations.

Prisons and Immigration Jails Outside the US

GEO Group has operations in Australia, Canada, South Africa, and the United Kingdom. In addition to managing three prisons in Australia, one in South Africa, and one “immigration removal centre” in the U.K., the company has provided services for the design and construction of 11 new prisons and for the renovation and expansion of two additional prisons abroad. As of 2023, it provides primary health services to thirteen public prisons in Australia and, through its GEOAmey joint venture, provides transportation services to prisons and immigration jails in the U.K. In 2023, these international operations accounted for just over 10% of its total revenues.

As with its U.S. prisons and immigration jails, GEO’s operations abroad have been linked to various human rights abuses and incidents of violence and death. In the U.K., for example, individuals including victims of torture and those found to be at the highest risk of mental health–related problems have been held at the GEO-managed Dungavel House immigration jail for “unnecessarily prolonged” periods of time. In Australia, the company has been implicated multiple times in the mistreatment and deaths of aboriginal individuals incarcerated in its prisons, including in 2021, 2020, and 2015. Similar incidents have occurred at the company’s Kutama-Sinthumule Correctional Centre, where, in 2014, guards reportedly left incarcerated people locked in cells for days with no access to food or medication, leading to riots.

GEO Group has reported that it will continue to expand its international operations, capitalizing on “foreign governments’ initiatives to enter into public-private partnerships for secure services.”

Prison Labor

GEO Group routinely uses prison labor as part of its prison operations. For as little as 50 cents per day, people incarcerated in the company’s prisons and assigned to “facility work programs” cook and serve food, operate commissaries, launder clothing, clean common areas, landscape, or perform other prison maintenance. This labor saves GEO Group millions of dollars each year.

In addition to working prison maintenance and operations jobs, some people held in GEO Group prisons work for specialized industries, such as metal fabrication, manufacturing, woodwork, horticulture, auto mechanics, commercial cleaning, carpentry, painting, and plumbing. Some of these programs operate within the prisons, such as in two New Mexico prisons in Guadalupe and Lea County, which house “state industry programs.” Other programs operate outside GEO Group’s prisons. For example, in 2016, GEO Group’s Phoenix West prison in Arizona established an off-site partnership with local construction company Erickson Framing.

Others incarcerated in GEO Group prisons  participate in voluntary “community service” work programs. For example, some people incarcerated at the company’s New Castle Correctional Facility in Indiana are required to complete an annual 365 hours of unpaid community work, which has included farming and harvesting produce, repairing town property, and picking up trash along highways. In 2017, New Castle’s prison workers performed 24,349 hours of unpaid labor that, at minimum-wage rates, would have cost the state $176,000. In 2020, work crews from Fulham Correctional Centre in Australia were assigned to months of similar, unpaid “community projects.”

While GEO Group presents prison jobs as voluntary work programs, vocational training courses, or community service opportunities, its “inmate handbooks” reveal that these jobs are often performed under the threat of punishment. According to one such handbook from a Pennsylvania prison, those who refuse to work or encourage others to refuse to work may lose privileges, including commissary and “good time” earnings; be assigned to administrative segregation; or be placed under disciplinary custody status. Another handbook from a New Mexico prison stated that “failing to report to work” constitutes “escape without force” and can be punished by up to 365 days of “punitive segregation” and the loss of privileges, including all “good time” earnings. In 2020, the NAACP and a group of people incarcerated in three GEO Group prisons in Arizona filed a lawsuit alleging that the company’s use of prison labor is akin to slavery. The case is still pending as of April 2022.

GEO Group also routinely uses forced labor in immigration jails that it operates on behalf of ICE. More than 50,000 immigrants have been working in the company’s immigration jails without pay or for $1 a day, according to a 2014 lawsuit filed by immigrants held in ICE’s immigration jail in Aurora, Colo. While the case is still pending as of March 2022,  it produced multiple documents that shed light on the company’s practices. Under the company’s sanitation policy for its Aurora jail, immigrants were required to work as janitors. The jail’s 2013 “detainee handbook” further specified that “[e]ncouraging others to participate in a work stoppage or refusing to work” may be punishable by disciplinary segregation or the loss of privileges, including commissary.

Some immigrants also worked in “voluntary work programs” for $1 a day, performing prison maintenance and operations tasks such as stripping and waxing floors, doing laundry, preparing food, cutting hair, and working as library aides. Aurora’s 2012 Detainee Work Plan shows that work shifts last between three and eight hours, and that workers are paid $1 per day regardless of the number of hours they work. According to one account, during a single month in 2012, work performed by immigrants in Aurora would have cost GEO Group at least $125,000 in wages had the company hired outside personnel. Instead, the company paid a total of $1,680 for the same labor, and hired only one outside janitor for the entire jail.

Lawsuits were also filed against GEO Group in Washington and California in 2017.The Washington lawsuit alleges a violation of state labor laws. In October 2021, a federal jury in the case determined that GEO Group violated Washington’s minimum wage laws by paying detained workers at its Northwest ICE Processing Center only $1 per day and that it must pay nearly $17.3 million in back pay for the work that they performed. The California lawsuit, which is still pending as of July 2022, claims that forced labor in immigration jails operated by GEO Group violates the federal Trafficking Victims Protection Act (TVPA). The TVPA prohibits forced labor. In two similar lawsuits against CoreCivic, the courts ruled that anti-trafficking laws apply to private immigration jails.

Community Corrections, Residential Reentry, and Day Reporting Centers

GEO Group is the largest provider of 'community corrections' services in the U.S., owning, managing, and/or leasing out 46 residential community corrections/reentry centers and 85 non-residential reentry centers or Day Reporting Centers (DRCs). The majority of these centers operate under state contracts, although 15 of them operate under contracts with the BOP. Combined, they hold approximately 6,838 people, including children, who are “reenter[ing] the community after incarceration” or who have been diverted there as a so-called “alternative” to incarceration. The company’s DRCs surveil thousands more awaiting trial or on parole or probation via daily check-ins, drug and alcohol monitoring, and “intensive case management.”

GEO Group began its expansion into this industry in 2010, when it started acquiring community corrections services companies. Between 2010 and 2017, it acquired Cornell Companies, a private prison operator that specialized in “corrections and treatment programs” and Community Education Centers (CEC), a private prison company that operated residential reentry centers, halfway houses, and in-prison drug treatment programs. GEO Group’s expansion into this “alternatives to incarceration” industry was, in large part, a strategic response to increased public scrutiny surrounding the use of private prisons. The company has stated that “expansionary projects” and “strategic acquisitions” in the community corrections industry is “accretive to [the] company’s earnings and cash flows.”

Like its prisons, these community corrections and day reporting centers have documented histories of abuse, neglect, and mismanagement. In 2020, for example, The Intercept reported that GEO Group systematically ignored the spread of COVID-19, allowing cases to skyrocket, at its halfway houses throughout the country. A 2020 lawsuit similarly alleged that GEO Group did not observe proper COVID safety and health protocols at one of its halfway houses in Texas and threatened individuals if they called any agencies to report deaths or request information or testing.

In 2019, more than 200 reentry center “residents” in Houston sued the company, alleging that during Hurricane Harvey they were left in a flooded GEO Group halfway house surrounded by toxic waste, without food, clean water, or medical care.

E-carceration

In line with GEO Group’s attempt to reposition itself as a provider of reentry services and alternatives to incarceration, the company has expanded its reach within the electronic monitoring (EM), or e-carceration, industry through its subsidiary BI Incorporated (BI). As of 2021, GEO Group monitors over 150,000 individuals “through an array of technology products including radio frequency, GPS, and alcohol monitoring devices.”

Founded in 1978 to monitor cattle and livestock, BI now effectively employs the same technology to monitor and control people. In 2018, BI monitored over 144,000 people across all 50 U.S. states using EM technology. BI holds contracts with local, state, and federal law enforcement and prison agencies to monitor immigrants and individuals within the criminal punishment system.In 2004, ICE contracted BI to be the exclusive EM technology provider for its expanded “Alternatives to Detention” program called Intensive Supervision Appearance Program (ISAP). The ISAP program aimed to reduce the costs of ICE detaining refugees and migrants during their asylum or deportation proceedings by placing them on ankle bracelets that monitored their movements 24/7. BI still holds the exclusive contract for ISAP, which was renewed in 2020 for five years and is worth a potential $2.2 billion.

GEO Group purchased BI for $145 million in 2011. With this acquisition, the company “ensured that whether ICE is expanding detention or expanding alternative forms of detention, they’re getting paid.” While the “Alternatives to Detention Program'' is purportedly designed to focus on people with “serious criminal histories” or who pose a threat to public safety, 89% of individuals in ISAP are not considered “dangerous or violent” by ICE’s own criteria. In 2015, immigration attorneys in Texas filed a formal complaint to the Department of Homeland Security, which oversees ICE, documenting how asylum seekers were deliberately misled and/or coerced into agreeing to wear ankle bracelets in order to be released from detention. The complaints included charges that personnel threatened to withhold medical care for their children if they chose to seek bond hearings instead of agreeing to wear the ankle monitors.

BI also oversees a number of EM subsidiaries purchased by GEO Group. For example, Protocol Criminal Justice Inc, an EM company acquired by GEO Group in 2014 for $13 million, manages tracking data for monitored individuals on BI EM technologies.

Transportation and Deportations

As part of its private prison operations, GEO Group provides prison transportation services via its “in-house transportation division,” GEO Transportation, Inc. (GTI). GTI provides armed, secure ground and air transportation services to federal, state, and local prison authorities across all 50 U.S. states. The company boasts that it has transported over 8.1 million incarcerated people since its founding in 2007.

As part of its involvement in immigrant detention, GTI provides ICE with transportation services, including deportation flights. In 2021, for example, DHS awarded the company a $4.8 million contract for “emergency Haitian migrants flight services.” That month, thousands of migrants and asylum seekers from Haiti were deported via “repatriation flights” from Texas.

A 2016 GEO report also revealed that the company purchased two “New Specialized Transport Buses” for its Karnes County Residential Center. The buses, outfitted with child safety seats, were intended to be used to transport children ages four to 17 to “field trips,” court appearances, and immigration appointments. The buses, lined with infant car seats, have been criticized as “prison buses for babies.”

Economic Activism Highlights
  • In March 2021, Canada’s largest public sector pension fund, PSP, sold all 600,000 of its shares in CoreCivic and GEO Group. This was following a public campaign led by the Public Service Alliance of Canada, a union that represents the majority of federal employees.

  • In April 2020, Danish pension funds PKA, which runs pension funds in the social and healthcare sector, and Lærernes Pension, the Danish teachers pension fund, divested from CoreCivic and GEO group.
  • In October 2019, the California Public Employees' Retirement System (CalPERS), the largest pension fund in the U.S., announced that it will sell its stocks of private prison companies GEO Group and CoreCivic.
  • In August 2019, PNC Bank became the seventh major bank to announce that it would not no longer finance private prisons and immigrant detention centers, including private prison companies CoreCivic and GEO Group.
  • On August 6, 2019 the Denver City Council voted to not renew future contracts with private prison companies CoreCivic and GEO Group to operate halfway houses in the city. The future contracts were directed to community corrections facilty operations and would have been worth $10.6 million.
  • On July 31, 2019, Barclays PLC announced that it will stop providing future financing to companies that manage private prisons and immigration holding facilities, joining other major lenders in shunning the industry. Barclay's current financing of GEO Group would expire in May 2024. 
  • On July 30, 2019, Adweek reported that the public relations firm Edelman terminated a lucrative contract with GEO Group shortly after agreeing upon it because of internal pressure from Edelman staffers protesting the partnership and worries of potential blowback that could endanger relationships with other clients. 
  • On July 15, 2019, Fifth Third Bank became the sixth major bank to announce that it would not provide future financing to companies that manage private prisons and immigration holding facilities, including GEO Group. The decision comes at the heels of SunTrust Bank and BNP Paribas' decisions to end future financing of private prison companies. 
  • On July 12, 2019, BNP Paribas announced it will no longer provide future financing for US private prison operators, including GEO Group. BNP Paribas became the fifth major bank and first foreign bank to distance itself from the industry, announcing the decision only days after SunTrust Bank's decision to end future financing of the private prison industry.
  • On July 8, 2019, SunTrust Bank, the fourth largest bank in the US, announced, "Following an ongoing and deliberate process, SunTrust has decided not to provide future financing to companies that manage private prisons and immigration holding facilities." SunTrust's decision follows three other major US banks deciding to end future contractual relations with CoreCivic and GEO Group.
  • On July 5, 2019, it was announced that the Candian Pension Plan Investment Board (CPPIB) which manages $299 billion USD in pension funds, quietly divested from GEO Group and CoreCivic from their list of foreign public equity holdings. In December 2018, the CPPIB held nearly $8 million USD in GEO Group and CoreCivic stock. Federal MP Charlie Angus argued that public pressure convinced the CPPIB to drop its holdings. Advocacy groups SumOfUs and LeadNow collected more than 55,000 signatures calling for the divestment of GEO Group and CoreCivic from the CPPIB portfolio. The CPPIB has declined to comment on the divestment.
  • On March 12, 2019, Wells Fargo CEO Timothy Sloan declared that the bank decided two years ago to end its business relationships with Geo Group. A bank's spokesperson later confirmed that Wells Fargo will "cut ties" with Geo Group when its current obligations expire.
  • On March 5, 2019, JPMorgan announced it would no longer finance private operators of prisons and detention centers citing the bank's ongoing evaluations of the costs and benefits of serving different industries.
  • On November 7, 2018, the Teachers’ Retirement Board of the California State Teachers’ Retirement System voted to direct investment staff to remove the Fund’s holdings in the two U.S. publicly-held companies that operate private prisons: CoreCivic and GEO Group. As of November 6, 2018, combined CalSTRS Global Equities and Fixed Income Portfolios’ holdings in CoreCivic and in GEO Group were $12,142,211.
  • On July 17, 2018, the Metro Nashville City Council voted to pass a resolution to not invest or contribute to any private company going forward. The resolution specifically named CoreCivic, a publicly-traded company that operates private prisons in Tennessee and profits from the detention of immigrant detainees, but it also applies to other large private prison companies such as G4S and Geo Group.
  • On July 13, 2018, New York State announced that it will fully divest from private prisons and private immigrant detention center corporations, becoming the first in the country to eliminate private prison stock holdings in CoreCivic and GEO Group. The campaign was led by Make the Road New York with the support of Enlace.
  • On October 26, 2017, the Philadelphia Board of Pensions and Retirement divested $1.2 million from private prison companies, including The GEO Group, Inc.
  • In August 2017, Cincinnati City Council proposed divesting $2.5 million from companies involved in private prisons, stating that the city "should not support an 'immoral' system." The companies the city is proposing to divest from include G4S, CoreCivic, and the GEO Group.
  • On June 8, 2017, New York City's pension funds divested $48 million from private prison companies, including GEO. 
  • In March 2017, a class-action lawsuit is filed against GEO for forced labor in its immigration detention center. The class-action lawsuit, originally filed in 2014, marks the first time a class-action suit against a private prison in the United States has moved forward. 
  • On July 22, 2016, the Berkeley City Council passed a resolution to divest from "major human rights violators," including GEO. 
  • On February 25, 2016, University of California Davis ASUCD passed prison divestment resolution that urges “both the Board of Regents of the University of California (UC Regents) and the ASUCD to undertake practices of corporate social responsibility by divesting in corporations which are directly and indirectly involved in the private prison industry,” including CoreCivic, Inc., Geo Group, and Wells Fargo.
  • On February 22, 2016, Portland’s Social Responsible Investments Committee unanimously voted to recommend to the city to divest from Wells Fargo & Company for its ties to private-prison companies, such as Geo Group.
  • On February 10, 2016,  California State University, Los Angeles administrators have agreed to divest from private prison companies after pressure from CSULA Black Student Union.
  • In December 2015, University of California Chief Investment Officer announced that the UC endowment, covering 10 campuses across the state, divested from private prisons, including GEO.
  • In December 2015, the California Endowment divested its holdings from "companies that derive significant annual revenue from private prison services," including GEO Group. 
  • In July 2014, Columbia University divested its shares in GEO Group after a student-led campaign. The decision also prohibits any future investment in the prison industry.
  • In April 2014, three investors, Scopia Capital, DSM, and Amica Mutual Insurance pledged to remove their collective investments of about $60 Million from the CoreCivic, Inc. and the GEO Group. DSM President Hugh Welsh explained, “In accordance with the principles of the UN Global Compact, with respect to the protection of internationally proclaimed human rights, the pension fund has divested from the for-profit prison industry.” This marks full divestment for DSM and Amica and a 27% decrease in shares for Scopia, which has decreased its private prison stock by 59% since December 2012.
  • In December of 2013, Systematic Financial Management divested 74,550 shares of GEO stock, thereby exiting from the private prison industry completely. Systematic Financial Management is an investment company that manages over $13 billion in investments for local governments, retirement funds, corporations, wealthy individuals, and unions. 
  • In April 2013, Florida Atlantic University ultimately rejected a 6 million dollar donation from GEO Group in exchange for naming rights on the university's football stadium, after severe pressure from students, faculty, and community activists protesting the company's human rights record and links to the prison industry. 
  • In 2012, Wells Fargo divested nearly 33 percent of their holdings in GEO Group.
  • In 2012, the United Methodist Church voted to permanently divest its shares in GEO Group and simultaneously moved to institute a screen against future investment in any prison-related industry. 
  • In 2011, Enlace International launched the Prison Industry Divestment Campaign “to address the root causes of harm to communities of color caused by the Criminal and Immigration System” and to call on all public and private institutions to divest from GEO Group.
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27 June 2022