A report has found that a Tennessee sheriff has been indicted for making profits from inmate labor.
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{p}Report Finds Tennessee Sheriff Profited from Inmate Labor, Leading to Indictment (AP Photo/Kim Chandler, File){/p}
GIBSON COUNTY, Tennessee (WZTV) –
An investigation has exposed a Gibson County sheriff who allegedly made a profit from the labor and care of Tennessee inmates. The sheriff has been indicted on multiple counts related to the illegal activity.
According to a report by the Tennessee Comptroller’s Office, Sheriff Paul Thomas, who has held the position since 2014, was found to have gained profit from the labor of Gibson County and Tennessee Department of Correction (TDOC) inmates, to benefit not only himself but also a group of investors.
The Tennessee sheriff has been indicted for allegedly profiting from inmate labor, according to a recent report. The Tennessee Comptroller’s Office shared a photo of the sheriff in question alongside the report.
According to a report from last year, Thomas and a group of local investors established a trio of for-profit businesses under the name Alliance Group. These businesses provided staffing assistance to local companies, offered transitional housing to current and former inmates, and organized transportation for those who were on work release or commuting to and from work after being incarcerated.
During the period from February 2020 to October 2022, it was discovered by investigators that Thomas had directed a sum of $1,417,204.06 in inmate wage fees and deductions for the benefit of the Alliance Group.
Moreover, Alliance provided Thomas with a total of $181,644.50 in compensation, payroll benefits, and legal representation services, all of which were acquired through inmate labor, as per the investigation.
According to reports, he is said to have held a 20% stake in Alliance and was barred by state legislation from earning any profits or benefits from the work of prisoners.
“Our investigators identified multiple deficiencies within the sheriff’s office that coincided with this scheme,” said Comptroller Mumpower. “We also learned that Sheriff Thomas failed to disclose his ownership interest in Alliance in his annual filings with the Tennessee Ethics Commission and violated his duty to secure and properly guard inmates until they were lawfully discharged.”
According to the report, Thomas was responsible for overseeing at least 170 inmates who were employed by Alliance staffing agency during the investigation.
According to the report, Alliance Transportation received a payment of $18 per day for transporting the inmates to and from work. Moreover, the investigation uncovered that 82 inmates were residing in Orchard House, a transitional home, without the necessary authorization from Gibson County jail. These inmates were charged $40 per day by Orchard House.
Thomas stands accused of deceiving the TDOC regarding inmate housing arrangements. Specifically, he is alleged to have allowed 74 inmates who were being held in the Gibson County jail to reside at Orchard House without obtaining the necessary approval from a judge.
The jail’s management system mistakenly believed that the inmates were still housed there, leading to the county receiving $507,273 in reimbursements from TDOC.
According to the report, Thomas forced the county to release funds to Orchard House without the knowledge or consent of TDOC. It is worth noting that Orchard House was not affiliated with the jail and did not have any jail staff. Additionally, there was no contract in place between the county and Orchard House.
Upon investigation, it was discovered that Thomas acted inappropriately by mishandling the wages earned by inmates working for Alliance. Specifically, he directed a sum of $448,637.09 to be deposited into a private account owned and controlled by the Alliance Group, which was not in compliance with proper procedures.
In May of 2024, Paul Thomas faced indictment from both the Davidson and Gibson County Grand Juries on a total of 22 counts. These counts included theft, forgery, computer crimes, and official misconduct. The investigation led to these charges being brought against Thomas.
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