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These are the user uploaded subtitles that are being translated: 1 00:00:00,590 --> 00:00:03,730 You're watching CNBC On Demand. 2 00:00:07,750 --> 00:00:13,650 In this episode of American Greed, the $81 billion business of mass 3 00:00:13,650 --> 00:00:19,410 incarceration and how head of prisons Chris Epps makes a killing in the lock 4 00:00:19,410 --> 00:00:20,490 -up state of Mississippi. 5 00:00:21,230 --> 00:00:23,990 Earl Berry has been a career criminal. 6 00:00:24,350 --> 00:00:28,150 He's known to play for and draw for and like to crack a lot of jokes. 7 00:00:29,180 --> 00:00:30,660 He's not doing a lot of joking today. 8 00:00:31,140 --> 00:00:33,520 What he controlled was just amazing. 9 00:00:34,100 --> 00:00:40,000 What Epps controls as the state's prison commissioner is a $350 million a year 10 00:00:40,000 --> 00:00:41,000 gold mine. 11 00:00:41,460 --> 00:00:42,740 Chris Epps gives. 12 00:00:43,300 --> 00:00:46,800 If Epps, their person, should get this contract, he would. 13 00:00:47,160 --> 00:00:48,160 And takes. 14 00:00:48,540 --> 00:00:53,780 Like, he deserved to wear a Rolex watch. He deserved to drive a Mercedes -Benz. 15 00:00:54,440 --> 00:00:56,500 condos down in the Gulf Coast. 16 00:00:57,140 --> 00:01:01,940 Why would one business partner be paying another business partner's home 17 00:01:01,940 --> 00:01:05,580 mortgage? That's not out of the goodness of your heart. That's not an accident. 18 00:01:06,060 --> 00:01:11,100 Because Chris Epps knows everything from a bag of chips to a phone call home has 19 00:01:11,100 --> 00:01:12,100 a price tag. 20 00:01:12,220 --> 00:01:16,360 All of these services businesses are competing for and they're worth a lot of 21 00:01:16,360 --> 00:01:21,280 money. And he's running one of the largest pay -to -play schemes in 22 00:01:21,280 --> 00:01:26,010 history. Chris Epps touched everything, and it turned out almost everything 23 00:01:26,010 --> 00:01:28,730 Chris Epps touched was corrupt. 24 00:01:29,150 --> 00:01:33,670 Chris Epps likes to say he's the tallest hog at the trough. 25 00:01:33,950 --> 00:01:37,750 At some point, we reminded him that hog is typically the first to get 26 00:01:37,750 --> 00:01:38,750 slaughtered. 27 00:01:53,130 --> 00:01:58,510 At the FBI office in Jackson, Mississippi, the feds have called a 28 00:01:58,510 --> 00:02:03,030 meeting with Prison Commissioner Christopher F., head honcho of the 29 00:02:03,030 --> 00:02:04,550 Department of Corrections. 30 00:02:04,930 --> 00:02:09,289 We came up with the scenario to get him to come meet. He's used to going to 31 00:02:09,289 --> 00:02:13,010 meetings with public figures. He didn't necessarily think that something was 32 00:02:13,010 --> 00:02:14,010 wrong. 33 00:02:14,150 --> 00:02:18,650 Our initial interaction was very friendly, and then we just wanted him to 34 00:02:18,650 --> 00:02:19,650 something real quick. 35 00:02:19,900 --> 00:02:24,280 Because today's gathering is, in fact, a carefully constructed ruse. 36 00:02:24,980 --> 00:02:28,860 For months, the feds have been tapping his phone and collecting undercover 37 00:02:28,860 --> 00:02:34,680 video. The results of those efforts are queued up on the video screen and ready 38 00:02:34,680 --> 00:02:35,319 to roll. 39 00:02:35,320 --> 00:02:37,380 And now they tighten the screws. 40 00:02:38,140 --> 00:02:39,140 We hit play. 41 00:02:39,940 --> 00:02:42,600 And that was enough for him to go, oh, no. 42 00:02:44,000 --> 00:02:48,500 We have video of those who had been paying the kickbacks to Mr. Epps. 43 00:02:48,840 --> 00:02:54,440 Handing him cash and having Mr. Adams just flip through the cash, it was 44 00:02:54,440 --> 00:02:58,960 appearing. He appeared to be visibly upset. 45 00:02:59,640 --> 00:03:05,180 And when I say upset, he was firing, shaking. 46 00:03:05,660 --> 00:03:12,460 There's no better persuasion tool than a video recording. He's not 47 00:03:12,460 --> 00:03:14,120 a good guy at this point. 48 00:03:14,810 --> 00:03:18,670 No matter what you may have thought of him prior to this, he's been on the take 49 00:03:18,670 --> 00:03:22,510 for the last seven to eight years. 50 00:03:23,590 --> 00:03:27,970 This is a story about the big business of locking people up. 51 00:03:28,330 --> 00:03:32,570 Now that they go by, this don't cross my mind several, several, several times. 52 00:03:32,870 --> 00:03:37,490 And how it made Chris Epps very powerful and rich. 53 00:03:41,230 --> 00:03:45,310 To understand Chris Epps, it helps to understand where he came from. 54 00:03:45,910 --> 00:03:51,290 Epps' life would have been seen as almost an American success story. I 55 00:03:51,290 --> 00:03:54,750 grew up in the poorest county in America, Holmes County, Mississippi. 56 00:03:55,350 --> 00:04:00,130 Raised on his grandparents' farm, Epps recalls pulling turnips and feeding 57 00:04:00,130 --> 00:04:01,990 chickens each morning before school. 58 00:04:02,370 --> 00:04:06,830 He applies that same hard work ethic to earn his degree in education before he 59 00:04:06,830 --> 00:04:09,470 takes a job with the Mississippi Department of Corrections. 60 00:04:10,080 --> 00:04:13,040 He begins at the bottom, a lowly guard. 61 00:04:14,300 --> 00:04:18,579 Epsis said in the past that he was at first terrified of being around so many 62 00:04:18,579 --> 00:04:20,760 felons, and with good reason. 63 00:04:21,519 --> 00:04:26,700 The state penitentiary known as Parchman has been notorious since 1901. 64 00:04:27,640 --> 00:04:32,560 Established more for profit than rehabilitation, according to Jerry 65 00:04:32,560 --> 00:04:36,820 journalist and MacArthur genius who has investigated Mississippi prisons for 66 00:04:36,820 --> 00:04:37,820 years. 67 00:04:38,430 --> 00:04:44,950 Parchment was a plantation they essentially converted into a prison with 68 00:04:44,950 --> 00:04:47,910 the inmates working the fields. 69 00:04:48,150 --> 00:04:52,830 And by the way, they didn't just work their fields. They would dole them out 70 00:04:52,830 --> 00:04:55,510 basically plantations around there. 71 00:04:55,730 --> 00:04:58,610 In other words, it's a for -profit scheme. 72 00:04:59,250 --> 00:05:05,110 They had the inmates working at the cotton fields from sunup to sundown. And 73 00:05:05,110 --> 00:05:07,410 state was just raking in the money from this. 74 00:05:07,870 --> 00:05:14,030 And they could whip them, and they actually used that whip up until the 75 00:05:14,030 --> 00:05:16,490 which is hard to believe, but it's true. 76 00:05:16,890 --> 00:05:23,330 In 1972, the federal court reminds Mississippi that slavery is over and 77 00:05:23,330 --> 00:05:26,090 it to abandon its plantation -era policies. 78 00:05:26,550 --> 00:05:30,630 But in Mississippi, reform is a hard road to hoe. 79 00:05:31,440 --> 00:05:36,520 Once prisons began to cost money, Mississippi didn't in turn really want 80 00:05:36,520 --> 00:05:40,400 these prisons, so you had really horrible conditions. 81 00:05:41,100 --> 00:05:47,360 Civil lawsuits on behalf of inmates cite sewage backups, extreme isolation, and 82 00:05:47,360 --> 00:05:48,600 dehumanizing conditions. 83 00:05:49,300 --> 00:05:51,720 And they just open and put us in hell, man. Look at the flow. 84 00:05:59,739 --> 00:06:00,739 Dawn, 85 00:06:04,120 --> 00:06:08,860 she asks that we use only her first name, has a husband who has served time 86 00:06:08,860 --> 00:06:10,200 Parchman since 1998. 87 00:06:11,000 --> 00:06:16,840 She says in the summer, temperatures inside the prison hit 100 degrees or 88 00:06:17,180 --> 00:06:18,860 And you watch the older inmates. 89 00:06:19,770 --> 00:06:25,610 Regardless of their crime, you just watch them one by one just kind of die 90 00:06:25,610 --> 00:06:27,450 because they can't take the heat. 91 00:06:27,990 --> 00:06:32,070 Parchman, I believe, is pretty much the worst of the worst. 92 00:06:33,390 --> 00:06:38,190 Climbing the ranks to head of security at Parchman, Epps witnesses these 93 00:06:38,190 --> 00:06:39,930 transgressions and more. 94 00:06:40,330 --> 00:06:45,490 He saw the inmates hungry, fighting mad. 95 00:06:46,320 --> 00:06:50,340 He saw the sewers backed up. He saw the leaking roof. 96 00:06:50,540 --> 00:06:54,020 So he came from knowledge. 97 00:06:54,800 --> 00:06:58,380 The abuses are as commonplace as they are shocking. 98 00:06:59,200 --> 00:07:04,400 Mississippi became one of the first prisons in the United States to have 99 00:07:04,400 --> 00:07:05,400 conjugal visits. 100 00:07:05,940 --> 00:07:11,280 Is it a humanitarian reform, allowing inmates to connect with their loved 101 00:07:11,520 --> 00:07:12,540 Not exactly. 102 00:07:13,290 --> 00:07:19,750 It's a money -making scheme that turns guards into pimps. The correctional 103 00:07:19,750 --> 00:07:26,330 officers had someone type up the dummy marriage certificate and brought in 104 00:07:26,330 --> 00:07:30,490 prostitutes. And then the guards, of course, were getting a cut of this. 105 00:07:30,930 --> 00:07:35,350 Mitchell's sources suggest that Parchman's culture of corruption twisted 106 00:07:35,390 --> 00:07:36,510 moral compass. 107 00:07:37,000 --> 00:07:41,000 I've talked to people who were in prison, inmates in prison in the 1970s 108 00:07:41,000 --> 00:07:46,720 Parchment, and they told me Chris Epps was corrupt way back then. It was 109 00:07:46,720 --> 00:07:48,440 something that had been going on the whole time. 110 00:07:49,260 --> 00:07:53,880 But Epps has learned how things work in the Mississippi prison system, and he 111 00:07:53,880 --> 00:07:55,300 has a knack for politics. 112 00:07:55,680 --> 00:07:59,900 He flies through the ranks collecting a string of awards, says former 113 00:07:59,900 --> 00:08:02,380 Mississippi Attorney General Jim Hood. 114 00:08:02,890 --> 00:08:06,290 He was in the National Guard. He served our state and our country. He was the 115 00:08:06,290 --> 00:08:09,090 president of the American Corrections Association. 116 00:08:09,470 --> 00:08:13,630 And, you know, you love to see somebody come up and run and start at the bottom. 117 00:08:13,810 --> 00:08:18,450 Jimmy Gates covered state politics as a journalist for the Clarion Ledger in 118 00:08:18,450 --> 00:08:24,050 Jackson. This man was unique in the sense with his folksy style. You know, 119 00:08:24,050 --> 00:08:26,450 everybody liked the Chris Epps. You know, he was loved. 120 00:08:27,470 --> 00:08:31,290 In the black community, you know, he was loved in the white community, you know, 121 00:08:31,290 --> 00:08:32,249 at that time. 122 00:08:32,250 --> 00:08:38,409 I think he saw himself as being a public official, you know, maybe even governor 123 00:08:38,409 --> 00:08:39,409 one day. 124 00:08:39,450 --> 00:08:46,010 In 2002, Epps is tapped for the number one post at the MDOC, Commissioner of 125 00:08:46,010 --> 00:08:47,010 Corrections. 126 00:08:47,890 --> 00:08:53,730 Next on American Greed, whispers around the state capitol, how does a humble 127 00:08:53,730 --> 00:08:56,010 public servant live so large? 128 00:08:56,840 --> 00:09:01,520 Looking back, I think to drive a $100 ,000 car and have a $10 ,000 Rolex watch 129 00:09:01,520 --> 00:09:04,840 on a state government salary would be pretty questionable to most folks. 130 00:09:18,160 --> 00:09:23,820 By 2005, Chris Epps has worked his way up to the top. As commissioner of the 131 00:09:23,820 --> 00:09:27,730 Mississippi Department of Corrections, And he's the only African -American 132 00:09:27,730 --> 00:09:29,610 director of a Mississippi agency. 133 00:09:30,250 --> 00:09:32,530 He's an ace at schmoozing legislators. 134 00:09:33,550 --> 00:09:38,310 Once he became commissioner, he made it a point that he knew the legislature. 135 00:09:38,670 --> 00:09:42,890 He knew the names of each legislator's wives, whether they had kids. You know, 136 00:09:42,890 --> 00:09:46,270 he was just that folksy kind of type person, you know, made you feel at ease 137 00:09:46,270 --> 00:09:46,989 with him. 138 00:09:46,990 --> 00:09:51,890 He uses that down -home charm even when delivering tough news, like at this lead 139 00:09:51,890 --> 00:09:55,430 -up to the execution of Earl Berry, an inmate on death row. 140 00:09:55,900 --> 00:09:58,340 Errol Berry has been a career criminal. 141 00:09:58,880 --> 00:10:02,980 He's known to play for and draw for and like to play a lot and crack a lot of 142 00:10:02,980 --> 00:10:03,980 jokes. 143 00:10:04,100 --> 00:10:05,720 He's not doing a lot of joking today. 144 00:10:06,400 --> 00:10:11,820 He was able to convince the state lawmakers to basically give him the 145 00:10:11,820 --> 00:10:13,800 wanted, the vast majority of the time. 146 00:10:14,040 --> 00:10:15,120 They loved him. 147 00:10:15,460 --> 00:10:19,360 It was the same way with the media, including myself. I just love this guy, 148 00:10:19,360 --> 00:10:21,560 I'm saying this as a... 149 00:10:22,120 --> 00:10:26,060 African -American person, you know, just seeing another African -American male 150 00:10:26,060 --> 00:10:29,560 doing something that we don't see often here in the state of Mississippi. 151 00:10:30,520 --> 00:10:35,520 And Epps has successfully led the state to one of the lowest costs per inmate in 152 00:10:35,520 --> 00:10:38,460 the nation, about $41 per day. 153 00:10:38,760 --> 00:10:40,940 But there's a flip side to that equation. 154 00:10:41,860 --> 00:10:46,280 Civil rights lawsuits naming both the Department of Corrections and Epps 155 00:10:46,280 --> 00:10:50,900 accuse him of providing grossly inadequate shelter and sanitation. 156 00:10:51,660 --> 00:10:54,000 and neglecting mentally ill prisoners. 157 00:10:55,040 --> 00:11:00,560 Epps fires back in the press saying, the ACLU hasn't got a clue about running a 158 00:11:00,560 --> 00:11:06,040 prison. He's cultivated an image as a straight -talking prisons expert with 159 00:11:06,040 --> 00:11:07,340 impeccable tastes. 160 00:11:08,880 --> 00:11:11,320 The guy wore custom -tailored suits. 161 00:11:11,620 --> 00:11:12,700 He wore a Rolex. 162 00:11:12,920 --> 00:11:13,920 He drove a Mercedes. 163 00:11:14,360 --> 00:11:18,840 There's also his gated home in Flowood, an affluent suburb of Jackson. 164 00:11:19,520 --> 00:11:24,560 a second Mercedes driven by his wife, and a waterfront condo on the 165 00:11:24,560 --> 00:11:25,560 Gulf Coast. 166 00:11:25,940 --> 00:11:31,540 As a state employee, Epps' take -home salary is about $132 ,000 a year. 167 00:11:31,920 --> 00:11:36,520 Looking back, I think to drive a $100 ,000 car and to live in a half -million 168 00:11:36,520 --> 00:11:40,720 -dollar home and have a $10 ,000 Rolex watch on a state government salary would 169 00:11:40,720 --> 00:11:42,780 be pretty questionable to most folks. 170 00:11:43,360 --> 00:11:46,580 In Mississippi, prisons are a big business. 171 00:11:47,200 --> 00:11:51,100 The state ranks third in the nation for the number of people incarcerated per 172 00:11:51,100 --> 00:11:56,160 capita. With all those people locked up, the Department of Corrections is 173 00:11:56,160 --> 00:11:58,460 Mississippi's third largest employer. 174 00:11:59,180 --> 00:12:02,840 Its annual budget is nearly $350 million. 175 00:12:03,680 --> 00:12:06,820 More than half is doled out to government contracts. 176 00:12:07,400 --> 00:12:11,820 Whether it's commissary or telephones or medical, all of these services 177 00:12:11,820 --> 00:12:15,120 businesses are competing for, and they're worth a lot of money. 178 00:12:15,530 --> 00:12:18,890 Molly Motley Blythe is with the FBI in Jackson. 179 00:12:19,150 --> 00:12:22,590 Whoever gets that, that's their bread and butter. That's their livelihood. 180 00:12:23,090 --> 00:12:28,550 The reliance on private contractors stems from the 1990s tough -on -crime 181 00:12:28,550 --> 00:12:31,870 sentencing, which caused Mississippi prisons to overflow. 182 00:12:32,430 --> 00:12:37,810 Seeking to avoid federal fines for overcrowding, the state turns to for 183 00:12:37,810 --> 00:12:39,910 companies to build more prisons. 184 00:12:40,410 --> 00:12:42,310 There was a huge battle in the legislature. 185 00:12:42,940 --> 00:12:47,040 A lot of the corporate interest came in, spread money around the legislature, 186 00:12:47,260 --> 00:12:49,700 and they voted to open up private prisons. 187 00:12:50,060 --> 00:12:54,380 Now, in his job as commissioner, Chris Epps seems to have the clout to steer 188 00:12:54,380 --> 00:12:56,500 contracts to any company he prefers. 189 00:12:57,720 --> 00:13:02,700 Normally, you know, a public contract, you're going to have bids, but with the 190 00:13:02,700 --> 00:13:06,600 Department of Corrections, they allowed them to have this huge number of no -bid 191 00:13:06,600 --> 00:13:10,570 contracts. You know, the legislature is involved with certain things, but for 192 00:13:10,570 --> 00:13:13,810 the most part, it's hands -off. It's what they trust in, whatever you want to 193 00:13:13,810 --> 00:13:19,610 do. In 2007, Epps signs off on a no -bid contract with a company named GT 194 00:13:19,610 --> 00:13:23,050 Enterprises, owned by Cecil McCrory. 195 00:13:24,810 --> 00:13:30,090 Cecil McCrory and Chris Epps, you know, seem to have some bond. I think it goes 196 00:13:30,090 --> 00:13:34,730 back to when McCrory was once a legislator on the Corrections Committee. 197 00:13:35,640 --> 00:13:38,800 McCrory already has his finger in a lot of pies. 198 00:13:39,120 --> 00:13:43,920 Now he's using that good old boy network to get into business with state 199 00:13:43,920 --> 00:13:48,880 prisons. With his newly inked contract, McCrory's company will supply 200 00:13:48,880 --> 00:13:52,480 merchandise to prison commissaries throughout Mississippi. 201 00:13:53,180 --> 00:13:57,340 Inmates are barred from receiving food, snacks, and toiletries from their 202 00:13:57,340 --> 00:14:01,100 families. They have to purchase these items through the commissary. 203 00:14:02,860 --> 00:14:06,740 Typically inmates don't have much money, and so this may be coming from families 204 00:14:06,740 --> 00:14:10,800 or whatever, and so they're buying these things, but they're gouging them. 205 00:14:11,140 --> 00:14:17,080 Dawn says she spends $400 each month on commissary at Parchman because inmates 206 00:14:17,080 --> 00:14:20,220 like her husband are hungry and don't get enough food. 207 00:14:20,780 --> 00:14:24,820 They feed grown men like you would feed a two -year -old toddler. 208 00:14:25,160 --> 00:14:27,400 The portion sizes are... 209 00:14:28,990 --> 00:14:34,150 There's so many things on the tray that you can't eat. The rice is uncooked. The 210 00:14:34,150 --> 00:14:37,990 green beans, you never know if you're going to have a frog head in them. 211 00:14:37,990 --> 00:14:38,990 mystery meat. 212 00:14:39,190 --> 00:14:42,510 $400 a month is always hard for Dawn to manage. 213 00:14:42,770 --> 00:14:47,330 But when she has to cut back her hours at work, the commissary is unaffordable, 214 00:14:47,450 --> 00:14:49,330 and her husband pays the price. 215 00:14:49,730 --> 00:14:54,370 I have photos of him before and after. He was... 216 00:14:54,880 --> 00:14:57,820 and healthy and taking vitamins. 217 00:14:58,080 --> 00:15:04,860 Once I was unable to provide the commissary, he shriveled up, just went 218 00:15:04,860 --> 00:15:08,400 from one human being into a completely different human being. 219 00:15:08,600 --> 00:15:14,340 And if he can't afford commissary, then he's starving, basically. 220 00:15:15,900 --> 00:15:18,760 Meanwhile, McCrory lives high on the hog. 221 00:15:19,660 --> 00:15:25,540 With the commissary contract, his company, GT Enterprises, gets a 75 % cut 222 00:15:25,540 --> 00:15:26,319 the profits. 223 00:15:26,320 --> 00:15:30,920 It amounts to millions made off of inmates and their families, according to 224 00:15:30,920 --> 00:15:33,060 later reports by Jerry Mitchell. 225 00:15:33,620 --> 00:15:36,100 You know, it's just ridiculous prices. 226 00:15:36,800 --> 00:15:43,480 For example, a six -ounce bag of barbecue chips cost $1 at a discount 227 00:15:43,480 --> 00:15:48,480 inmates and their families pay $3 .56 for a five -ounce bag in prison. 228 00:15:49,050 --> 00:15:52,450 A dollar pack of AAA batteries will set them back four bucks. 229 00:15:53,150 --> 00:15:59,810 In 2007 and 2008, McCrory's contract reels in over $3 .2 million in 230 00:15:59,810 --> 00:16:05,970 profit. No big contracts. You can just go to a buddy of yours from high school 231 00:16:05,970 --> 00:16:08,930 or a brother -in -law and give them a contract. 232 00:16:09,370 --> 00:16:13,630 Special Agent Ty Breedlove works with the FBI in Jackson. 233 00:16:14,280 --> 00:16:17,760 There's other people that did commissary, could provide the same 234 00:16:17,760 --> 00:16:21,780 they were never considered because they weren't Cecil McCrory. 235 00:16:22,920 --> 00:16:28,140 Cecil McCrory will later tell the feds it's around this time in 2007 that Epps 236 00:16:28,140 --> 00:16:30,080 demands a share of the problem. 237 00:16:30,800 --> 00:16:35,900 Over the next year, McCrory kicks up $3 ,000 or $4 ,000 a month for the GTE 238 00:16:35,900 --> 00:16:36,900 contract. 239 00:16:37,240 --> 00:16:41,280 Now, Chris may have had a little lark in his heart before, but when they began 240 00:16:41,280 --> 00:16:43,240 this privatization of prisons, that... 241 00:16:43,470 --> 00:16:45,810 poured money in Mississippi like we hadn't seen before. 242 00:16:46,150 --> 00:16:51,670 Coming up on American Greed, Epps and McCrory target the billion -dollar -for 243 00:16:51,670 --> 00:16:52,850 -profit prison industry. 244 00:16:53,390 --> 00:16:57,410 It's just incredible what they did and how arrogant they got under everyone's 245 00:16:57,410 --> 00:16:58,410 notice. 246 00:17:11,589 --> 00:17:16,670 In Mississippi, prison commissioner Chris Epps and his buddy Cecil McCrory 247 00:17:16,670 --> 00:17:19,170 partnered in a business of sorts. 248 00:17:20,250 --> 00:17:24,150 Epps takes to CEO life like a pro, and why not? 249 00:17:24,430 --> 00:17:26,670 They're teeing up to make a killing. 250 00:17:27,650 --> 00:17:32,690 In 2008, McCrory sells his company, GT Enterprises, to the out -of -state 251 00:17:32,690 --> 00:17:37,350 provider, Keef Commissaries, scoring a hefty profit. 252 00:17:38,320 --> 00:17:43,940 Chris Epps signs the MDOC contract over to Keefe, but advises that they keep 253 00:17:43,940 --> 00:17:46,240 McCrory on the payroll as a consultant. 254 00:17:47,320 --> 00:17:51,460 Darren LaMarca is the U .S. attorney for the Southern District of Mississippi. 255 00:17:51,860 --> 00:17:56,060 The larger corporations were told you need to have someone within Mississippi 256 00:17:56,060 --> 00:18:01,880 who has access to the commissioner, and Cecil McCrory was pitched as that 257 00:18:01,880 --> 00:18:06,120 person, and you need to pay him, whether it be... 258 00:18:06,510 --> 00:18:10,110 $2 ,000, $4 ,000, $8 ,000 every month. 259 00:18:10,730 --> 00:18:15,130 As the feds will later learn, this is the start of a lucrative pattern, 260 00:18:15,270 --> 00:18:16,670 according to Mike Hurst. 261 00:18:17,470 --> 00:18:21,750 The money started flowing from Cecil McCrory to Epps, and in return, the 262 00:18:21,750 --> 00:18:24,390 contract started flowing from Chris Epps to Cecil McCrory. 263 00:18:25,810 --> 00:18:30,570 Epps expected a portion of that. So they would meet once a month for coffee. 264 00:18:30,830 --> 00:18:32,970 They'd meet at Waffle Houses all around town. 265 00:18:33,370 --> 00:18:38,130 And they'd show up, and they'd do a handshake, and cash would go from 266 00:18:38,130 --> 00:18:41,790 Epps, sit down, have a cup of coffee, and then they'd go their separate ways. 267 00:18:42,030 --> 00:18:47,190 But despite selling GT Enterprises, McCrory hasn't simply sold out to become 268 00:18:47,190 --> 00:18:51,950 consultant. He has a number of businesses, including a new entity he 269 00:18:51,950 --> 00:18:53,450 College Street Leasing. 270 00:18:53,950 --> 00:18:59,510 And in December 2009, Epps signed a lease between the MDOC and this new 271 00:18:59,510 --> 00:19:00,510 of McCrory's. 272 00:19:02,640 --> 00:19:07,440 College Street Leasing will operate two transition centers, also known as 273 00:19:07,440 --> 00:19:12,520 halfway houses, to provide housing and work programs for male and female 274 00:19:12,520 --> 00:19:15,060 in the town of Walnut Grove, Mississippi. 275 00:19:15,540 --> 00:19:20,900 If prisons are a big business in Mississippi, they are absolutely huge in 276 00:19:20,900 --> 00:19:26,160 Grove. The town of 1 ,900 people already has two prisons nearby. 277 00:19:26,680 --> 00:19:30,300 Greg Wagner was sheriff of Walnut Grove for almost 20 years. 278 00:19:30,940 --> 00:19:33,320 You had a regional prison that was under me. 279 00:19:33,640 --> 00:19:38,280 You had a private prison in Walnut Grove. The transition centers were a 280 00:19:38,280 --> 00:19:39,280 different story. 281 00:19:40,080 --> 00:19:42,460 It hadn't been advertised. It was just done. 282 00:19:42,780 --> 00:19:46,180 But a lot of things were done that way under Chris Epps' administration. 283 00:19:47,440 --> 00:19:51,900 McCrory's company acts sort of like a work program, providing job 284 00:19:51,900 --> 00:19:52,900 for inmates. 285 00:19:53,160 --> 00:19:55,920 But not without taking a cut of the pay. 286 00:19:56,540 --> 00:19:59,780 McCrory charges them $20 a day for room and board. 287 00:20:00,360 --> 00:20:05,440 That's in addition to the $6 per inmate per day that the state pays McCrory. 288 00:20:08,740 --> 00:20:10,220 And the work program? 289 00:20:10,520 --> 00:20:12,360 It's slipshod at best. 290 00:20:12,740 --> 00:20:18,620 The idea itself was terrible. The residents of Walnut Grove could go and 291 00:20:18,620 --> 00:20:21,760 inmate and check them out on a Saturday morning, have them come clean their 292 00:20:21,760 --> 00:20:24,040 house, and then return them like a library book. 293 00:20:24,340 --> 00:20:29,160 To make matters worse, the books are checking themselves out of the library. 294 00:20:30,430 --> 00:20:33,390 That was the men's facility there. 295 00:20:33,650 --> 00:20:35,350 And they had a cyclone fence. 296 00:20:36,530 --> 00:20:39,210 They got ready to leave. They just went out there and jumped over the fence. It 297 00:20:39,210 --> 00:20:42,690 wasn't a big deal. Well, they would walk across from there and then come, like, 298 00:20:42,750 --> 00:20:45,670 downtown and just walk around like they were free people. 299 00:20:46,830 --> 00:20:52,870 Meanwhile, Epps promotes the transition centers as part of MDOC's cost -saving 300 00:20:52,870 --> 00:20:57,510 agenda. When Chris would go to the legislature, Chris got what he wanted. 301 00:20:58,090 --> 00:20:59,670 It seemed like it didn't matter. 302 00:21:00,350 --> 00:21:06,970 But when Chris wasn't around the legislators, and it was a meeting, say, 303 00:21:06,970 --> 00:21:09,490 just a group of sheriffs, it was all about Chris. 304 00:21:10,290 --> 00:21:15,150 That side came out. He would say, I'm the tallest hog at the trough. 305 00:21:15,670 --> 00:21:20,830 Now, that's a southern colloquial term, but what he's meaning is I am the most 306 00:21:20,830 --> 00:21:22,410 important person in this room. 307 00:21:25,350 --> 00:21:31,010 That sense of being untouchable also applies to the lesser hogs on Epps' 308 00:21:32,150 --> 00:21:35,250 This building here, this was the women's facility. 309 00:21:35,910 --> 00:21:40,650 Grady Sims is the mayor of Walnut Grove and warden of this transition center. 310 00:21:41,010 --> 00:21:44,650 I cautioned Grady about the inmates out on the streets. 311 00:21:45,330 --> 00:21:50,590 And Grady would just kind of brush it off what he thought was that Chris Epps 312 00:21:50,590 --> 00:21:52,350 was going to cover him if anything happened. 313 00:21:52,760 --> 00:21:57,600 In November 2009, Sheriff Greg Wagoner gets a visit from a local woman. 314 00:21:57,980 --> 00:22:01,620 She had been an employee down there, and they'd let her go. 315 00:22:02,180 --> 00:22:05,400 And she was ready to tell me what was going on. 316 00:22:05,640 --> 00:22:11,660 It seems Grady Sims, the mayor slash warden, has been checking a female 317 00:22:11,660 --> 00:22:16,380 out of one of the transition centers and into a local no -tell motel. 318 00:22:16,800 --> 00:22:18,700 It's an explosive allegation. 319 00:22:19,320 --> 00:22:22,180 The sheriff immediately contacts John Hunt. 320 00:22:22,650 --> 00:22:25,650 One of Mississippi Department of Corrections' own investigators. 321 00:22:26,030 --> 00:22:29,850 Together, they launch a case looking into the suspected sex abuse. 322 00:22:30,910 --> 00:22:35,950 But just as things are gathering steam, Hunt informs him their case has been 323 00:22:35,950 --> 00:22:36,950 shut down. 324 00:22:37,870 --> 00:22:42,950 So what are you talking about? Everything that you've uncovered is 325 00:22:42,950 --> 00:22:47,810 more and more felonies. You don't just stop it. He said, I know. 326 00:22:48,510 --> 00:22:49,510 But he stopped. 327 00:22:50,310 --> 00:22:51,590 Turned around and walked out. 328 00:22:53,800 --> 00:22:55,200 Who killed their case? 329 00:22:55,880 --> 00:22:58,180 The sheriff has just one suspect, 330 00:22:59,140 --> 00:23:01,940 Chris Epps, Commissioner of the Department of Corrections. 331 00:23:02,740 --> 00:23:08,000 It was obvious to me that that came from Commissioner Epps. He wouldn't have 332 00:23:08,000 --> 00:23:10,680 shut it down without Chris Epps wanting to shut it down. 333 00:23:10,960 --> 00:23:15,180 I knew at that point I couldn't just allow this to go on. 334 00:23:16,260 --> 00:23:21,180 FBI Special Agent Ty Breedlove remembers hearing the sheriff's story. 335 00:23:21,440 --> 00:23:23,220 The case was progressing as it should. 336 00:23:23,680 --> 00:23:26,860 The only thing that was different was getting the call from Commissioner Epps 337 00:23:26,860 --> 00:23:29,580 saying, you can stand down, we're not investigating that. 338 00:23:29,880 --> 00:23:35,120 He says Chris Epps not only shuts down the investigation, he rubs it in when he 339 00:23:35,120 --> 00:23:38,180 runs into the chief investigator, John Hunt, at work. 340 00:23:38,520 --> 00:23:42,280 John Hunt was leaving his office at the Department of Corrections, and he sees 341 00:23:42,280 --> 00:23:46,440 Commissioner Epps smoking a cigar and yelled across the parking lot, and he 342 00:23:46,440 --> 00:23:51,440 says, there goes John Hunt. He always gets his man and starts laughing, and 343 00:23:51,440 --> 00:23:52,440 just kind of laughed. 344 00:23:52,540 --> 00:23:55,520 you know, back and then got in the car and was like, son of a bitch. 345 00:23:57,140 --> 00:24:01,160 We figured the person that could fill in the missing pieces would be Mayor Sims 346 00:24:01,160 --> 00:24:02,160 himself. 347 00:24:03,060 --> 00:24:08,080 When confronted, Grady Sims strikes a deal and pleads guilty to federal 348 00:24:08,080 --> 00:24:12,460 tampering. It triggers the start of a federal probe into McCrory and F. 349 00:24:12,840 --> 00:24:16,400 They dub it Operation Mississippi Hustle. 350 00:24:17,040 --> 00:24:20,460 Luckily, people like to talk in the hospitality state. 351 00:24:21,000 --> 00:24:24,640 You start hearing the same things, and then you start hearing things about Epps 352 00:24:24,640 --> 00:24:28,440 telling people that his mortgage has been paid off or that he may have a 353 00:24:28,440 --> 00:24:31,360 on the coast and he's driving very flashy vehicles. 354 00:24:31,900 --> 00:24:36,820 Everything that Cecil McCrory did involved corrections, and it had to be 355 00:24:36,820 --> 00:24:38,840 with Commissioner Epps' approval. 356 00:24:39,340 --> 00:24:44,080 Their relationship could explain Epps deep -sixing the investigation of Grady 357 00:24:44,080 --> 00:24:48,300 Sims. Cecil McCrory was trying to sell that facility, and they didn't need more 358 00:24:48,300 --> 00:24:50,340 bad publicity. They had several people escape. 359 00:24:50,830 --> 00:24:53,050 And then now you had the sexual assault allegations. 360 00:24:54,430 --> 00:24:59,930 We knew that Cecil was making a living off of his relationship with the 361 00:24:59,930 --> 00:25:02,430 commissioner of the Mississippi Department of Corrections. 362 00:25:03,650 --> 00:25:06,630 Prosecutors combed through McCrory's bank finances. 363 00:25:07,050 --> 00:25:11,890 Our financial analyst was going through, I mean, thousands and thousands of 364 00:25:11,890 --> 00:25:12,890 pages of records. 365 00:25:13,080 --> 00:25:18,040 Going back to July of 2008, Cecil McCrory withdrew a cashier's check from 366 00:25:18,040 --> 00:25:21,960 personal bank account in the amount of $100 ,000. 367 00:25:23,760 --> 00:25:28,780 The check is made payable to Countrywide Bank, which holds the mortgage on Epps' 368 00:25:28,900 --> 00:25:29,900 Flowood home. 369 00:25:30,140 --> 00:25:33,940 I remember her calling me right from down the hall saying, I found it, I 370 00:25:33,940 --> 00:25:39,060 it. And I ran down to her office, and she had found wire transfers that Cecil 371 00:25:39,060 --> 00:25:43,760 McCrory had made directly to Chris Epps' home mortgage. 372 00:25:44,490 --> 00:25:49,370 Why would one business partner be paying another business partner's home 373 00:25:49,370 --> 00:25:53,250 mortgage? That's not out of the goodness of your heart. That's not an accident. 374 00:25:53,890 --> 00:25:59,570 The last one was the exact amount to pay off Commissioner Epps' home when you 375 00:25:59,570 --> 00:26:00,570 were on to something. 376 00:26:00,630 --> 00:26:04,730 There was some celebratory dancing at the U .S. Attorney's Office, and Mike 377 00:26:04,730 --> 00:26:10,230 Hurst did a little dance. I don't recommend that you all ever see that, 378 00:26:10,230 --> 00:26:11,310 was very excited about it. 379 00:26:12,340 --> 00:26:15,820 Next on American Greed, the money rolls in. 380 00:26:16,120 --> 00:26:19,800 Epps had so much money coming in, he didn't know what to do with all of it. 381 00:26:19,800 --> 00:26:21,860 suddenly, friends shift allegiance. 382 00:26:22,360 --> 00:26:27,060 This relationship had existed for so long, there was no reason for Epps not 383 00:26:27,060 --> 00:26:28,060 trust him. 384 00:26:40,080 --> 00:26:41,120 By 2013, 385 00:26:41,820 --> 00:26:46,800 Chris Epps is America's longest -serving prison commissioner, withstanding both 386 00:26:46,800 --> 00:26:48,580 Democratic and Republican governors. 387 00:26:49,160 --> 00:26:54,540 One constant has been an increasing reliance on for -profit private prisons. 388 00:26:54,960 --> 00:26:59,300 Three different private contractors have operated East Mississippi since it 389 00:26:59,300 --> 00:27:03,180 opened, including Management Training Corp. and GEO. 390 00:27:04,470 --> 00:27:08,610 Those were probably the biggest contracts MDOC awarded, and Cecil was a 391 00:27:08,610 --> 00:27:10,050 consultant for all of those companies. 392 00:27:10,470 --> 00:27:14,410 Management and training court, and they came into business. McCrory asked for $6 393 00:27:14,410 --> 00:27:16,950 ,000 a month, and Epps said that's way too low. 394 00:27:17,730 --> 00:27:22,290 So he called McCrory back later and said, I got us $12 ,000. He literally 395 00:27:22,430 --> 00:27:28,330 I got us $12 ,000, because they split it. So McCrory still got his six, but 396 00:27:28,330 --> 00:27:29,330 got his six. 397 00:27:29,670 --> 00:27:33,370 The more money that Cecil made... the more money he could give back to 398 00:27:33,370 --> 00:27:34,370 Commissioner Epps. 399 00:27:35,210 --> 00:27:39,310 Chris Epps and his buddy Cecil McCrory don't know it, but the feds have 400 00:27:39,310 --> 00:27:43,250 wiretapped their phones, and they're tracking every move. 401 00:27:43,870 --> 00:27:48,010 We had a few other people that we suspected that were doing the same thing 402 00:27:48,010 --> 00:27:50,710 Epps, so we put together a pretty big chart. 403 00:27:51,310 --> 00:27:55,950 It turns out McCrory is just the tip of the proverbial iceberg. 404 00:27:56,490 --> 00:27:59,990 The kickbacks don't just involve McCrory's companies and out -of -state 405 00:27:59,990 --> 00:28:05,010 consulting contracts, but also lobbyists and elected officials, including 406 00:28:05,010 --> 00:28:09,890 Mississippi movers and shakers like Teresa Malone, the wife of a former 407 00:28:09,890 --> 00:28:16,230 lawmaker. Teresa Malone was an intended beneficiary of what her husband was able 408 00:28:16,230 --> 00:28:17,510 to do for Mr. Epps. 409 00:28:18,730 --> 00:28:21,210 Herb Benjamin, a former state senator. 410 00:28:21,690 --> 00:28:26,310 Dr. Carl Reddix, a physician who provides medical care for inmates at 411 00:28:26,310 --> 00:28:27,310 prisons. 412 00:28:27,550 --> 00:28:30,110 Dr. Reddix actually paid Mr. 413 00:28:30,310 --> 00:28:33,450 Epps thousands of dollars each month. 414 00:28:34,070 --> 00:28:38,010 And Sam Wagoner, a distant cousin of the Leak County Sheriff. 415 00:28:38,370 --> 00:28:42,730 You have a $40 ,000 wire transfer to the commissioner from one of the subjects, 416 00:28:42,770 --> 00:28:46,270 and then two days later there's a contract that gets approved. 417 00:28:47,070 --> 00:28:52,410 While Epps and McCrory's scheme is driven by greed, former Attorney General 418 00:28:52,410 --> 00:28:58,370 Hood points the finger at more than $3 billion in revenue earned by the 419 00:28:58,370 --> 00:28:59,370 private prisons. 420 00:28:59,830 --> 00:29:02,450 Those companies will pay a lot to get one of those contracts. 421 00:29:02,950 --> 00:29:06,350 That's been the root of a lot of evil in our prison system. 422 00:29:08,470 --> 00:29:13,230 In March, FBI agents initiate a meeting with Cecil McCrory. 423 00:29:13,710 --> 00:29:18,210 It was all about, let's get Cecil first, then we can probably figure out who 424 00:29:18,210 --> 00:29:19,210 else is dirty. 425 00:29:19,270 --> 00:29:23,430 Agents asked him about Chris Epps and if he knows anything about kickbacks or 426 00:29:23,430 --> 00:29:27,330 bribes. He was just like, absolutely not. I don't know what you're talking 427 00:29:27,330 --> 00:29:33,190 about. We rolled out the sheet of transactions and pointed to the mortgage 428 00:29:33,190 --> 00:29:34,190 payment. 429 00:29:34,910 --> 00:29:38,170 And McCrory said, well, I might know a little something about that. 430 00:29:38,710 --> 00:29:41,990 Not only did he fill in missing pieces about... 431 00:29:42,360 --> 00:29:47,460 His bribe payments, at that point it became clear, Dr. Reddick's, Herb 432 00:29:47,840 --> 00:29:52,000 Theresa Malone, everybody that had been on our radar, they were giving him money 433 00:29:52,000 --> 00:29:53,080 he wasn't entitled to. 434 00:29:54,380 --> 00:29:59,340 McCrory spells out how he eventually became the bag man for all of Epps' 435 00:29:59,340 --> 00:30:03,170 cronies. Cecil told us that Commissioner Epps was just getting bribes from 436 00:30:03,170 --> 00:30:06,690 everybody. He didn't know what to do with the money, so he asked them to 437 00:30:06,690 --> 00:30:09,050 it and then wire it up to his investment account. 438 00:30:09,450 --> 00:30:14,670 Coffee became their code for let's get together and you pay me my money. 439 00:30:15,470 --> 00:30:19,570 According to McCrory, those handoffs could amount to shocking amounts of 440 00:30:19,810 --> 00:30:24,230 and at those Waffle House meetings, the money now flows from Epps to McCrory. 441 00:30:24,670 --> 00:30:28,870 It's still Epps' money, but McCrory is helping him deposit it. 442 00:30:29,840 --> 00:30:35,140 One time, Epps brings him a gift, a duffel bag that McCrory mistakes for a 443 00:30:35,140 --> 00:30:39,800 souvenir. It was swag that you get at these conferences, and Cecil was like, 444 00:30:39,840 --> 00:30:42,540 well, I don't need another bag, so he didn't pay any attention to it. So they 445 00:30:42,540 --> 00:30:44,480 have their coffee, and then they get up to leave. 446 00:30:45,320 --> 00:30:49,280 McCrory had left the bag behind when Epps stopped him at the door. 447 00:30:49,600 --> 00:30:51,640 The commissioner looks at Cecil and says, hey, where's your bag? 448 00:30:51,940 --> 00:30:53,500 He's like, go get the bag right now. 449 00:30:53,760 --> 00:30:56,960 And so Cecil goes back in, and he's like, what's the big deal with this bag? 450 00:30:57,600 --> 00:31:02,820 Opens it up, there's $40 ,000 in cash in the bag with a note that has all the 451 00:31:02,820 --> 00:31:07,060 wiring instructions for Commissioner Epps' investment account retirement 452 00:31:11,580 --> 00:31:16,200 During Epps' reign, the cost of inmate phone calls had reported to have risen 453 00:31:16,200 --> 00:31:17,480 $14 a minute. 454 00:31:18,560 --> 00:31:21,820 Investigators learned Epps takes a percentage of those profits, too. 455 00:31:22,540 --> 00:31:27,680 Even the supply of urine test cups includes a lucrative kickback to the 456 00:31:27,680 --> 00:31:30,800 commissioner. It involved inmate health care. 457 00:31:31,040 --> 00:31:35,660 It involved the telephone system, the private prisons. 458 00:31:36,080 --> 00:31:40,540 Chris Epps touched everything, and it turned out almost everything Chris Epps 459 00:31:40,540 --> 00:31:42,420 touched was corrupt. 460 00:31:43,420 --> 00:31:49,000 Meanwhile, Chris Epps resorts to stashing all that cash at banks around 461 00:31:49,660 --> 00:31:53,860 He was taking those bribes back to his home, and then he would deposit those 462 00:31:53,860 --> 00:32:00,380 into multiple bank accounts. One example is July 30, 2009, and he made four 463 00:32:00,380 --> 00:32:06,960 stops at four different bank branches and deposited $9 ,000 at each 464 00:32:06,960 --> 00:32:08,120 bank branch. 465 00:32:08,380 --> 00:32:11,600 So $36 ,000 on his drive into work. 466 00:32:11,930 --> 00:32:16,950 He knew that if you deposit cash in amounts of $10 ,000 or more, it would 467 00:32:16,950 --> 00:32:19,630 trigger a reporting requirement from the local bank. 468 00:32:19,850 --> 00:32:23,330 He was getting money from so many sources, I don't know how he kept up 469 00:32:24,450 --> 00:32:26,250 Next on American Greed. 470 00:32:26,830 --> 00:32:31,330 There's always this comment about the tallest hog in the trough, and so at 471 00:32:31,330 --> 00:32:35,350 point we reminded him that hog is typically the first to get slaughtered. 472 00:32:35,350 --> 00:32:36,350 more greed? 473 00:32:36,650 --> 00:32:41,150 Follow us on Instagram, connect with us on Facebook, and listen to the American 474 00:32:41,150 --> 00:32:43,870 Greed Podcast wherever you get your podcasts. 475 00:32:44,510 --> 00:32:45,710 We'll be right back. 476 00:32:53,970 --> 00:32:59,650 In 2014, as feds watched the money from kickbacks and bribes pass hands, 477 00:33:00,010 --> 00:33:03,510 investigators nicknamed Chris Epps Big Money. 478 00:33:04,010 --> 00:33:05,010 The Wire. 479 00:33:05,640 --> 00:33:11,060 had been up 60 days, and we had compiled plenty of evidence. 480 00:33:11,320 --> 00:33:15,900 He is a smart guy, and if we laid out everything we have, he's going to say, I 481 00:33:15,900 --> 00:33:17,060 have no choice but to cooperate. 482 00:33:17,480 --> 00:33:22,420 They call Epps to a meeting with the FBI under the ruse they're investigating a 483 00:33:22,420 --> 00:33:23,760 possible death threat. 484 00:33:24,080 --> 00:33:25,080 We were all excited. 485 00:33:25,360 --> 00:33:28,120 This is the room we used, and... 486 00:33:28,960 --> 00:33:33,960 We had a video ready and queued up for the moment that we were going to tell 487 00:33:33,960 --> 00:33:35,300 we knew what he'd been up to. 488 00:33:35,700 --> 00:33:40,120 As soon as the video started playing, he broke out to a sweat and began wiping 489 00:33:40,120 --> 00:33:41,580 his forehead with a handkerchief. 490 00:33:42,160 --> 00:33:43,900 I can remember the video we chose. 491 00:33:44,420 --> 00:33:48,320 He was in his car, and he's wearing his National Guard shirt. 492 00:33:48,900 --> 00:33:50,860 He was retired from the National Guard. 493 00:33:51,160 --> 00:33:54,460 And he giggles in the video when he takes the cash. 494 00:33:54,700 --> 00:33:55,720 He's just giddy. 495 00:33:56,240 --> 00:34:01,340 That was the $18 ,000 bribe payment that we had given him just a few days prior. 496 00:34:01,720 --> 00:34:06,760 The juxtaposition between what was on the screen and the way his face looked 497 00:34:06,760 --> 00:34:13,199 when he saw it would make anybody feel sad because it was a very hard moment 498 00:34:13,199 --> 00:34:17,000 him to understand that he was in big trouble. 499 00:34:17,260 --> 00:34:21,060 Faced with the insurmountable evidence, Epps agrees to flip sides. 500 00:34:21,460 --> 00:34:24,440 We went back to his house. We took... 501 00:34:24,699 --> 00:34:29,739 $65 ,000 from his safe that day. We put the titles to both of his Mercedes. 502 00:34:30,120 --> 00:34:34,380 Quite a few things started happening right from the very first day. 503 00:34:34,600 --> 00:34:38,639 Like how Epps seemed to enjoy the power that comes with being a government 504 00:34:38,639 --> 00:34:42,620 informer. A lot of times when you're putting a wire on somebody, it takes 505 00:34:42,620 --> 00:34:43,438 an hour. 506 00:34:43,440 --> 00:34:44,620 Not with the commissioner. 507 00:34:45,020 --> 00:34:48,860 That would be like a three -hour conversation because he loved to talk. 508 00:34:49,120 --> 00:34:51,500 And he was super nice, but... 509 00:34:52,219 --> 00:34:56,100 Listening to him on the Title III on the wire, you got a little bit different 510 00:34:56,100 --> 00:35:00,160 taste of his personality because he did bully other people that he worked with. 511 00:35:00,260 --> 00:35:03,580 You know, he would kind of hang up and then kind of laugh, like, don't mess 512 00:35:03,580 --> 00:35:05,940 me. You know, I'm the tallest hog at the trough. 513 00:35:06,760 --> 00:35:07,820 We'd heard it firsthand. 514 00:35:08,920 --> 00:35:13,020 And so at some point we reminded him that hog is typically the first to get 515 00:35:13,020 --> 00:35:14,020 slaughtered. 516 00:35:14,540 --> 00:35:19,280 And he had never thought about that. But he's not wrong. He was corrections. 517 00:35:20,030 --> 00:35:21,930 And nobody questioned anything he did. 518 00:35:23,450 --> 00:35:28,550 But as Epps amassed his network of cronies, he's created a system that's 519 00:35:28,550 --> 00:35:30,810 dangerous for both staff and prisoners. 520 00:35:31,890 --> 00:35:36,130 Jerry Mitchell and reporters at the Clarion Ledger publish a series on 521 00:35:36,130 --> 00:35:37,210 Mississippi prisons. 522 00:35:37,750 --> 00:35:44,650 We ran a huge package of stories and just delineated corruption, beatings, 523 00:35:44,650 --> 00:35:48,010 violence, just all these things that were happening behind bars. 524 00:35:48,830 --> 00:35:54,350 Reporters ask Epps whether low -paid officers are susceptible to bribes. Epps 525 00:35:54,350 --> 00:35:58,430 says, I believe it's the character of the individual that makes a person 526 00:35:58,430 --> 00:36:00,410 susceptible to many things. 527 00:36:01,050 --> 00:36:03,370 That was rather ironic, wasn't it? 528 00:36:04,170 --> 00:36:09,390 On November 5, 2014, Chris Epps quits his job as commissioner at the 529 00:36:09,390 --> 00:36:12,070 Department of Corrections without notice. 530 00:36:13,420 --> 00:36:18,600 A day later, Chris Epps and Cecil McCrory are indicted on allegations of 531 00:36:18,600 --> 00:36:22,360 fraud, bribery, money laundering, and tax evasion. 532 00:36:22,820 --> 00:36:28,480 U .S. attorneys point to nearly $1 billion worth of private prison 533 00:36:28,480 --> 00:36:30,980 almost $1 million in bribes. 534 00:36:31,740 --> 00:36:38,540 Literally like 10 days after our series ended, the corrections commissioner 535 00:36:38,540 --> 00:36:40,760 was indicted by a federal grand jury. 536 00:36:41,610 --> 00:36:43,370 So what can I say? 537 00:36:43,570 --> 00:36:46,770 To me, that was just proof. All this corruption was true. 538 00:36:47,210 --> 00:36:48,950 Everybody knew there was others involved. 539 00:36:49,370 --> 00:36:53,550 The FBI, you know, the U .S. Attorney's Office, you know, they would just tell 540 00:36:53,550 --> 00:36:55,530 us, just hold on, you know, more is coming. 541 00:36:55,990 --> 00:36:59,930 Up next, Chris Epps gets caught pilfering again. 542 00:37:00,430 --> 00:37:04,290 Why Chris Epps would want to steal while he's on probation for a billion -dollar 543 00:37:04,290 --> 00:37:07,890 public corruption case. That doesn't make sense. It defies logic. 544 00:37:21,320 --> 00:37:28,020 On November 6, 2014, Chris Epps and Cecil McClory appear in U .S. District 545 00:37:28,020 --> 00:37:33,160 Court in Jackson, Mississippi, on a 49 -count federal indictment. 546 00:37:33,620 --> 00:37:37,340 Again, this wasn't just a Mississippi public corruption case. This is 547 00:37:37,340 --> 00:37:42,680 that had national implications because many businesses from outside the state 548 00:37:42,680 --> 00:37:43,680 Mississippi were participating. 549 00:37:44,000 --> 00:37:47,580 In our office, our job is really just beginning. 550 00:37:48,280 --> 00:37:50,940 The indictment is just the opening salvo. 551 00:37:51,680 --> 00:37:57,060 Epson McCrory plead not guilty and are released on bail, but each could face 552 00:37:57,060 --> 00:38:00,360 more than 200 years behind bars if convicted. 553 00:38:01,040 --> 00:38:05,880 I sat in the courtroom the other day, you know, when the former commissioner, 554 00:38:06,040 --> 00:38:10,360 you know, the commissioner that I looked up to, you know, with shackles on his 555 00:38:10,360 --> 00:38:14,200 legs, you know, how could this have happened, you know? 556 00:38:14,560 --> 00:38:19,580 But even with the specter of a prison sentence looming, Epps hasn't lost his 557 00:38:19,580 --> 00:38:24,960 swagger. He shows up to federal court wearing his Rolex watch that a state 558 00:38:24,960 --> 00:38:29,860 employee has somehow bought and who's claiming his innocence in federal court. 559 00:38:30,060 --> 00:38:35,420 That was Chris Epps. A few days later, the former commissioner strides into his 560 00:38:35,420 --> 00:38:37,700 local Mercedes -Benz dealership. 561 00:38:37,960 --> 00:38:40,860 They had their car seized and house seized. 562 00:38:41,200 --> 00:38:46,300 He went out and got his wife another Mercedes Benz, and we found out about 563 00:38:46,300 --> 00:38:47,300 and reported that too. 564 00:38:47,580 --> 00:38:49,000 It was just incredible. 565 00:38:50,140 --> 00:38:52,980 This is not the only trouble Epps steps in. 566 00:38:54,740 --> 00:38:59,060 I guess he got the idea that he could go back to his old house, which was in 567 00:38:59,060 --> 00:39:03,400 possession of the Marshal Service, and get his old landscaping lights. 568 00:39:03,960 --> 00:39:08,280 So he went back over there, lifted the garage open, and he ripped the circuit 569 00:39:08,280 --> 00:39:10,820 board out of the wall and then went out and pulled up all the lights. 570 00:39:11,040 --> 00:39:14,360 He's on probation for a billion -dollar public corruption case. 571 00:39:15,000 --> 00:39:17,040 It doesn't make sense. It defies logic. 572 00:39:17,820 --> 00:39:23,100 Again, his arrogance is the reason he did that. He thought he could go back to 573 00:39:23,100 --> 00:39:27,580 that house that the government owned and get some of his property because he was 574 00:39:27,580 --> 00:39:28,580 Chris Epps. 575 00:39:29,560 --> 00:39:32,360 Epps is arrested and charged with burglary. 576 00:39:33,160 --> 00:39:35,640 This time, the judge denies the bail. 577 00:39:36,360 --> 00:39:40,620 Over the next three years, a host of players are sentenced in the bribery 578 00:39:40,620 --> 00:39:45,980 scandal. This entire investigation ended up being the largest, most complex, far 579 00:39:45,980 --> 00:39:49,320 -reaching public corruption investigation in Mississippi's history. 580 00:39:49,660 --> 00:39:53,080 I tell you, God is our witness. We're going to come after the other corrupt 581 00:39:53,080 --> 00:39:57,760 politicians, and we're going to clean up this state for our kids and our 582 00:39:57,760 --> 00:40:03,310 grandkids. Former legislator Herb Benjamin is sentenced to six years for 583 00:40:03,310 --> 00:40:07,390 Epps in connection with drug treatment programs and consulting contracts. 584 00:40:08,250 --> 00:40:13,210 Dr. Carl Reddix is sentenced to six years for paying kickbacks to Epps in 585 00:40:13,210 --> 00:40:16,850 exchange for providing care to inmates at East Mississippi. 586 00:40:17,610 --> 00:40:24,010 In 2016, Teresa Dolan Malone, the widow of a former state rep, is sentenced to 587 00:40:24,010 --> 00:40:28,130 three years, five months for giving bribes to Epps through McCrory. 588 00:40:28,510 --> 00:40:31,890 She confessed in the same way that the others did. 589 00:40:32,150 --> 00:40:36,110 She would say she did work, but there's no records of anything actually 590 00:40:36,110 --> 00:40:40,270 occurring. And then she would pay Epps. And in her mind, it just didn't make 591 00:40:40,270 --> 00:40:41,830 sense that she had done anything wrong. 592 00:40:42,510 --> 00:40:47,030 Agent Molly Motley -Blythe says Epps gave a similar response. 593 00:40:47,650 --> 00:40:52,110 We had lengthy conversations where he would explain that this was just a tip. 594 00:40:52,480 --> 00:40:57,920 This was just a thank you for allowing us to work in Mississippi. 595 00:40:58,380 --> 00:41:03,340 Attorney General Jim Hood sued companies associated with the bribery scandal, 596 00:41:03,540 --> 00:41:09,120 saying they owed nearly a billion dollars in revenue due to Mississippi's 597 00:41:09,120 --> 00:41:10,160 -racketeering laws. 598 00:41:10,820 --> 00:41:14,500 These three companies had $660 million contracts. 599 00:41:15,100 --> 00:41:16,640 It's a lot of money in Mississippi. 600 00:41:17,000 --> 00:41:18,200 They weren't Mississippi companies. 601 00:41:18,810 --> 00:41:22,150 So they saw the money flowing in Mississippi, and they came in and took 602 00:41:22,150 --> 00:41:23,150 advantage of it. 603 00:41:23,490 --> 00:41:28,930 I made them pay not only the profit, but in many instances, their whole 604 00:41:28,930 --> 00:41:29,930 contracts. 605 00:41:30,310 --> 00:41:35,290 None of the companies admit to wrongdoing, and no criminal charges were 606 00:41:35,290 --> 00:41:36,290 against them. 607 00:41:36,450 --> 00:41:40,350 Many assert that their contracts were not linked to kickbacks. 608 00:41:40,970 --> 00:41:44,210 But most agreed to settle, and in 2019, 609 00:41:44,990 --> 00:41:48,490 Hood's office recovers $26 million in settlements. 610 00:41:49,370 --> 00:41:53,230 Cecil McCrory is sentenced to eight and a half years in prison for money 611 00:41:53,230 --> 00:41:59,170 laundering. Federal prosecutors recommended a lenient sentence for Chris 612 00:41:59,170 --> 00:42:00,230 light of his cooperation. 613 00:42:01,010 --> 00:42:02,830 But the judge disagrees. 614 00:42:03,350 --> 00:42:07,850 In 2017, Chris Epps, the man who spent three decades running Mississippi 615 00:42:07,850 --> 00:42:12,210 prisons, is sentenced to just under 20 years behind bars. 616 00:42:14,000 --> 00:42:19,700 For Dawn, whose husband served time at Parchman, justice was slow and costly. 617 00:42:20,560 --> 00:42:23,260 These are our mothers, our daughters. 618 00:42:23,500 --> 00:42:29,240 Just like the men or our husbands, he just felt like he was untouchable, like 619 00:42:29,240 --> 00:42:35,060 could just do whatever he wanted to do to the inmates, to the inmates' 620 00:42:35,160 --> 00:42:39,200 and get away with it for all those years. 621 00:42:39,920 --> 00:42:44,260 The problem was with these kickbacks, the money wasn't going back into the 622 00:42:44,260 --> 00:42:48,140 prison system, and so it's all of society that suffered by that 623 00:42:48,680 --> 00:42:54,580 Whenever somebody who's in public power is lining their pockets, everybody who 624 00:42:54,580 --> 00:42:55,580 believed in them suffers. 57105

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