Let's Get Honest! Blog: Absolutely Uncommon Analysis of Family & Conciliation Courts' Operations, Practices, & History

'A Different Kind of Attention Develops Sound Judgment' | 'Suppose I'm Right Here?…' (posted 3/23 & 3/5/2014). Over 680 posts, Public-Interest Investigative Blogging On These Matters Since 2009.

Now, the “Find,” About NCJFCJ (Nevada), its Pittsburgh-based NCJJ, and so-called NCJJ’s E.Hunter Hurst III (d. 2012)’s multi-million-dollar, NASDAQ-traded (“PRSC”) Providence Service Corporation (and, its Board Members’ background companies)

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If you haven’t read the previous post — go back and read it, for the context and significance!  Thanks (it took about two days to compile and write up).

“Post-Publication Preview:”  Section titles in this post include:

  • Was “Kids-For-Cash” just “The Tip of the Iceberg”?
  • What is, and is not, RICO? (Jeff Grell Interview).  For example, BCCI)
  • Pre-Game Pep Talk (on Why we all should understand RICO, and “Models for Change”)
  • The “FIND” and Questions It Raises: 
  • SOME (not all!) INFORMATION on PROVIDENCE SERVICE [singular, not “services”] CORPORATION, its SOLD-OFF SUBSIDIARIES, and SOME (not all) of its BOARD MEMBERS and their PRIOR COMPANIES
  • How I found this one (the NCJFCJ / Providence Services Corporation connection)? (I read tax returns, cont’d.)
  • More on NCJFCJ and NCJJ (Including some of its donors)
  • “Gratuitous Posting” (not essential to the post) and some more Food for Thought on Moelis & Company (Providence’s Financial Advisor for latest subsidiary sell-off):   [[aka what hard work (and your family’s three generations of Wharton School of Business, plus strategically choosing work likely to produce multi-million-dollar fees) can do]]

My eyes were crossing towards the end of this, but I still question what kind of positive juvenile justice reform is likely to take place under the watchful (?) eye of a nonprofit judicial membership association (NCJFCJ) claiming a subsidiary “NCJJ” which neglects to mention the NASDAQ-traded multi-million-dollar business one of its devoted employees has been directing since 1997 apparently, or that some of the subsidiaries are getting in trouble at the state level for, oh, racketeering (South Carolina-based subsidiary) and coverup of sexual abuse at one of the institutions at least two board members had ties to (Florida-based Youth Services International)?  Meanwhile NCJFCJ is primarily government funded, but also takes donations.

I just found after publishing last night, that the IPO (Public Offering Registration with the SEC)  on The Providence Service Corporation (found at “NASDAQ.com”) took place only in 2004.  This link also reveals, I think, who backed it when it was still private.  I’m setting up a separate page to show it off as an example of how centralized control of the “diversionary services” nationwide was attempted by a for-profit corporation.

As familiar and conditioned as we are with the for-profit / not-for-profit tax sectors throughout this country, I still say that income-taxing “all” (except those who file for or are tax-exempt) HAS created (perpetuated) a caste system,  an administrative nightmare, and an inherent imbalance of power between government and people because the people cannot fully see or monitor what government is doing with revenues they help provide.  It has driven revenues underground and work opportunities into the nonprofit and government sectors. Let alone it creates a statistical impossibility — it is impossible to track all the nonprofits, and that impossibility sets the stage for crooks vs. IRS (actually, IRC, Internatl Revenue Code)-compliant to the DISadvantage of the IRS-compliant.  And transparency/accountability to the public supporting all this?  Forget it.  That system has been around now for just over 100 years (1913-2013), and we are reaping the consequences…..some are reaping profits, but most, consequences.

That Prospectus Summary starts:

(From 2004 IPO (Public Offering Registration with the SEC)  on The Providence Service Corporation)

Our business

We provide government sponsored social services directly and through not-for-profit social services organizations whose operations we manage. The recipients of our services are individuals and families who are eligible for government assistance pursuant to federal mandate. The governmental entities that pay for these services include welfare, child welfare and justice departments, public schools and state Medicaid programs. Our counselors, social workers and mental health professionals provide our services primarily in clients’ homes and communities, instead of in institutions. Our delivery method reduces the government’s costs for such services while affording the clients a better quality of life. As of December 31, 2003, we served, directly and through our managed entities, 13,371 clients from 99 locations in 17 states and the District of Columbia.

Our services

Among the services we deliver are:

Home and community based counseling.     We provide counseling in clients’ homes and help schools manage at-risk students through training and counseling programs on school grounds. Our counseling services address such social problems as marital and family issues, depression, drug and alcohol abuse, domestic violence, chronic truancy, hyperactivity, and criminal and anti-social behavior.
Foster care.     We recruit and train foster parents and license family foster homes. We also offer therapeutic foster care to emotionally disturbed children and adolescents who might otherwise require institutional treatment.
Provider managed services.     We manage the delivery of government sponsored social services by multiple providers on behalf of the not-for-profit entities we manage. Management services we provide include intake, assessment and referral services, monitoring services and network and case management services.

Our contracts and revenues

Our revenues are derived from our provider contracts with state and local government agencies and government intermediaries and from our management contracts with not-for-profit social services organizations. Under the majority of our provider contracts, we are paid an hourly fee. In other situations, we receive a set monthly amount. Where we contract to manage the operations of a not-for-profit social services provider, we receive a management fee based on the number of clients enrolled with that entity or a percentage of its revenues. As of December 31, 2003, we and our managed entities operated pursuant to 202 contracts. For the fiscal year ended December 31, 2003, our revenues grew to $59.3 million, an increase of over 42% from our $41.8 million in revenues for the twelve month period ended December 31, 2002. Additionally, during the same period we increased the revenues of the social services organizations whose operations we manage to a total of $62.8 million from a total of $46.1 million.

(End of “Post-Publication Preview”)


In fact, here are the first 9 posts of 2016 in a table (or see Table of Contents page for the blog).

Post# (2016)


Sticky?

2016 Posts (only), in Chrono Order. Published
 1 2016 More Business As Usual in MN? (Criminalizing, Terrorizing, Jailing Mothers) Jan. 23, 2016
 2 Re: CFCC and other Public Institution/Private Profit Partnering…The Public has already been Weighed in the Balance and Found (Dumbed-Down) Feb. 21, 2016
 3 Ignorance — about Privatization, Reorganization of Government within the USA– Ain’t Bliss! Feb. 23, 2016
 4 What does Custody-Switching REALLY have to do with Unsound Psychological Theory? (Not much, actually) Feb. 25, 2016
5 Milton H Erickson (Clinical Hypnosis), The Gottmans, The HHS of Course, and Psychoeducational Interventions for Situational (not “Characteriological”) Violence..and California’s “Mental Health Oversight and Accountability Commission” — REALLY??  Yes…. Feb. 26, 2016
 6 Credentialing and Schooling Psychologists (speaking of MN and the Grazzini-Rucki case) Feb. 28, 2016
 7 Still Caught up in DV/Custody Drama? For 2016, What about Catching up on OVW Discretionary Grants (2013) and these SIX, ah, “Groups”? March 2, 2016
8 Dumpster Diving in the Credibility Gap (While We Were Being Battered or Seeking Safety, These PhDs were Debating Batterer Typology for PsychoEducational Treatments and, of course More Forensic Clinical Research with (AFCC) Colleagues) March 6, 2016
 9 About UNevada-Reno-based NCJFCJ, its Pittsburgh-based NCJJ, and NCJJ’s E.Hunter Hurst III(d.2012)’s Tuscon-based, multi-million-dollar, NASDAQ-traded company (“PRSC”): First, the Context March  10, 2016

Read the previous post, #9, get the juicy details on this one, and by the end of both posts, didhope readers will start to comprehend the size of the problems generated by having public/private partnerships run government institutions, and be persuaded to do further research on NCJFCJ, Providence Service Corporation (and maybe even the organizations run by some of its earlier board members, as shown below)!

Then, in another post, I will (I hope) raise my concerns about how Models For Change, through its constant focus on “diversionary services” actually may have helped set up RICO, in the Commonwealth of Pennsylvania, and by way of the Juvenile Law Center (location: Philadelphia), although that center then became even so the organization filing a class-action suit on behalf of victims of the similar type of RICO (Kids-for-Cash Scandal in Luzerne County, ca. 2008) in the juvenile justice system within the state. (see their website for the full account.  There’s actually a menu item (link) for the Luzerne County scenario on the top banner, but it’s no longer current.  I found the description under “Legal Docket” paging back by year, to 2009:

FEBRUARY 26, 2009
H.T. et al. v. Mark A. Ciavarella, Jr., et al.Filed a federal class action lawsuit in the United States District Court for the Middle District of Pennsylvania on behalf of the children and families of Luzerne County, Pennsylvania, who suffered significant harm as a result of ex-Luzerne County juvenile court judge Mark A. Ciavarella and the “kids-for-cash” scandal.

Was “Kids-For-Cash” just “The Tip of the Iceberg”?


Here’s also a link to my search on the site under “Kids-for-Cash Scandal” which brings up several other results, some of them as recent as summer 2015. (However clicking on them seems to lead to a dead end staff or intern list instead). I found a description at “orange-papers.org” as a comment (dated 5/2013 by “JR Harris”), however be forewarned that the main topic is, well disturbing to read.  Notice though this was taking place 2003-2008, it was only in 2007 when a parent contacted the JLC that things started to happen.  JLC didn’t discover the “Kids-for-Cash Scandal” on their own; parents reported it.  A third lawsuit (towards bottom of comment) mentions they filed under RICO for this situation:

Luzerne Kids-for-Cash Scandal In 2007, a frantic call from an alarmed parent prompted Juvenile Law Center to investigate irregularities in Pennsylvania’s Luzerne County juvenile court. We discovered that hundreds of children routinely appeared before Judge Mark Ciavarella without counsel, were quickly adjudicated delinquent (found guilty) for minor offenses and immediately transferred to out-of-home placements. We petitioned the Pennsylvania Supreme Court in 2008 to vacate the juveniles’ adjudications of delinquency and expunge their records. Though the court denied our initial petition, once the United States Attorney alleged that Ciavarella and another Luzerne County judge had accepted nearly $2.6 million in alleged kickbacks from two private for-profit juvenile facilities, the Pennsylvania Supreme Court granted our request for extraordinary relief. The US Attorney also filed federal criminal charges against both judges. The scope of the violations of the children’s rights in Luzerne County turned out to be more egregious than anyone could have imagined. From 2003 to 2008, the Luzerne County judicial corruption scandal altered the lives of more than 2500 children and involved more than 6000 cases. Over 50 percent of the children who appeared before Ciavarella lacked legal representation; 60 percent of these children were removed from their homes. Many of them were sent to one or both of the two facilities at the center of the corruption scandal. Believed to be the largest judicial corruption scandal in our history,the story was featured in a 2009 episode of ABC’s “20/20.” For their involvement in the “kids-for-cash” scandal, Judge Michael Conahan, the facilities’ former co- owner Robert Powell, and the developer Robert Mericle pled guilty to federal criminal charges; Judge Mark Ciavarella was found guilty of various federal crimes following his trial in 2011. In 2009, the Pennsylvania Supreme Court vacated the adjudications of all youth who appeared before Ciavarella between 2003-2008, dismissed their cases with prejudice and ordered all of their records expunged. In addition to the federal criminal prosecutions and the proceedings before the Pennsylvania Supreme Court, we partnered with pro bono co-counsel Hangley Aronchick Segal Pudlin & Schiller to file a federal class action lawsuit on behalf of the children and parents who suffered emotional trauma and financial loss as a consequence of the corruption scheme. The suit seeks monetary damages from the former judges, private facilities, the former co-owner of the facilities and the developer. The suit makes claims under federal civil rights laws and the federal Racketeering Influenced and Corrupt Organizations (RICO) Act. We remain dedicated to improving Pennsylvania’s juvenile justice system and preventing the recurrence of such widespread violations of children’s rights in the future. In October 2012, Pulitzer Prize-winning journalist William Ecenbarger published a book on the “kids-for-cash” scandal, Kids for Cash: Two Judges, Thousands of Children, and a $2.8 Million Kickback Scheme.

A judge, a co-owner and a developer of the facilities.   This happened in Pennsylvania.


I‘d like to ask whether the Models for Change initiative-pushers just might not be too concerned about this problem of lack of transparency as to flow of funding.. or whether that lack of transparency as to funding flow was, perhaps, part of the intended design.   I did look at the MacArthur Foundation key employee salaries — phew!  Plenty of them totalled over ½ million each, when benefits were concerned, but the base compensation was just below and sometimes over $500,000 — in 2013.


What is, and is not, “RICO”?

Interview with Attorney Jeff Grell who teaches on this and was involved in supporting prosecution under RICO of shareholders of the Bank of Credit and Commerce International (BCCI), which attempted to illegally buy an American bank / holding company, which itself held other banks.

Scope — large; Organization setup: complex, hard to follow, with complexity and secrecy setting up the ability to commit massive fraud, and (almost) get away with it.

Investigators in the US and the UK revealed that BCCI had been “set up deliberately to avoid centralized regulatory review, and operated extensively in bank secrecy jurisdictions. Its affairs were extraordinarily complex. Its officers were sophisticated international bankers whose apparent objective was to keep their affairs secret, to commit fraud on a massive scale, and to avoid detection. (from Wiki on “BCCI,” link below).

Question:  When or if that’s become the norm for governmental operations in and within the USA, what does that set the stage for, if not the possibility also of fraud, theft, money-laundering, or similar-type activities  on a massive scale?  Do we continue the “just take it on faith” mentality? Or, work a little harder, perhaps to grasp (get some basic definitions of) basic operations as working legitimately vs. illegitimately?


In Layman’s Terms, What, exactly, is RICO? (Jeff Grell Interview.  For example, BCCI)

The term “RICO” may be unfamiliar, or familiar, but not understood.  The Attorney Jeff Grell (who it turns out in at least 2000 was teaching at U Minnesota) I think explains it well.  Here’s an interview with him which introduces how this 1970 act was used to bring down several mafia families, and then discusses what scenarios might violate the RICO Act.  From his Year 2000 interview at AmericanMafia.com.  I quote it here and may discuss again later.  FYI, keep in mind….

An Interview With RICO Expert Attorney Jeffrey Grell

by John William Tuohy
To help us understand the expansive uses to which RICO has been put, we contacted Jeffrey E. Grell, an expert on RICO.

Mr. Grell graduated magna cum laude, from Georgetown University Law Center in 1990. As an associate attorney with Jones, Day, Reavis & Pogue in Washington, DC from 1990-93, he helped develop the factual and legal arguments in support of RICO claims against the shareholders of the Bank of Credit and Commerce International, the infamous “BCCI“.

For a flavor of the scope of BCCI, nicknamed “Bank of Crooks and Criminals International,”  see reviews of The Outlaw Bank:  A Wild Ride into the Secret Heart of BCCI” by (Times Correspondents) Jonathan Beaty, S.C. Gwynne, published in 2004 by Beard Books.  Kirkus review of an older version shows certain BCCI characteristics:

An unconventional but thorough audit of the failed Bank of Credit and Commerce International, by a pair of Time correspondents whose coverage of the stateless institution’s scandalous collapse earned them a slew of journalism awards. Beaty and Gwynne (Selling Money, 1986) offer a four-part rundown on BCCI, the financial establishment of choice for arms dealers, drug traffickers, intelligence operatives, terrorists, Third World strongmen, and other scofflaws. The authors first recount how confidential sources tipped them on the biggest story of their professional lives. They then provide a concise, third- person briefing on the Arab-owned, Pakistani-run bank’s origins and off-the-books operating procedures.

Chartered in backwater venues like the Cayman Islands to evade oversight by regulatory authorities, BCCI (founded in 1972) resorted to money laundering, Ponzi schemes, secret ledgers, tax evasion, and allied misdeeds in catering to its criminal clientele. An accounting commissioned by the Bank of England finally exposed the extent of BCCI’s deficits and offenses, impelling the bank’s closing.

Resuming the narrative as it unfolded from their points of view, the authors cover how they learned that BCCI was something larger and more sinister than a transnational depository institution.

In conclusion, they address the failure of governments everywhere to clamp down on BCCI despite abundant evidence of its corruption. Throughout, Beaty and Gwynne make clear that the bank’s capacity to suborn or use pillars of the political community played a crucial role in its success. The ranks of those tarnished include the prominent likes of Lord Callaghan, Jimmy Carter, Clark Clifford, and Bert Lance, while the much shorter list of good guys features Jack Blum (a former Senate investigator) and Gotham’s D.A., Robert Morgenthau. The ringside format takes some getting used to, but it ultimately affords as vividly clear an explanation of the BCCI conspiracy as we’re apt to get anytime soon. (Sixteen pages of b&w photographs–not seen) — Copyright ©1993, Kirkus Associates, LP. All rights reserved.–This text refers to an out of print or unavailable edition of this title.

Wikipedia on BCCI (Some of intro; recommended to read the rest):

The Bank of Credit and Commerce International (BCCI) was an international bank founded in 1972 by Agha Hasan Abedi, a Pakistani financier.[1] The Bank was registered in Luxembourg with head offices in Karachi and London. A decade after opening, BCCI had over 400 branches in 78 countries, and assets in excess of US$20 billion, making it the 7th largest private bank in the world.[2][3]
BCCI came under the scrutiny of numerous financial regulators and intelligence agencies in the 1980s due to concerns that it was poorly regulated. Subsequent investigations revealed that it was involved in massive money laundering and other financial crimes, and illegally gained the controlling interest in a major American bank. BCCI became the focus of a massive regulatory battle in 1991, and, on 5 July of that year, customs and bank regulators in seven countries raided and locked down records of its branch offices.[4]


Investigators in the US and the UK revealed that BCCI had been “set up deliberately to avoid centralized regulatory review, and operated extensively in bank secrecy jurisdictions. Its affairs were extraordinarily complex. Its officers were sophisticated international bankers whose apparentertjective was to keep their affairs secret, to commit fraud on a massive scale, and to avoid detection.“[5]
The liquidators, Deloitte & Touche, filed a lawsuit against the bank’s auditors, Price Waterhouse and Ernst & Young, which was settled for $175 million in 1998. By 2013, Deloitte & Touche claimed to have recovered about 75% of the creditors’ lost money.[6]

Good grief, that’s three out of “the big four” (formerly “the big eight”) auditing firms in the world! Recent (Oct. 6, 2015) article in “The Financial Times”  shows Price Waterhouse Coopers (“PwC”) on top again, while another on December 10, 2013 speculated on What Would Happen if the Big Four Became the Big Three? by Francine McKenna in “Chicago Booth.com” (University of Chicago’s Booth School of Business publication).

The five-year anniversary of Lehman Brothers’ collapse was remembered in September 2013 with TV shows, articles, and editorials. But the anniversary of another corporate crisis is now rarely mentioned: it has been 13 years since energy trading firm Enron imploded in an accounting fraud scandal. That was followed by the collapse of its auditor, Arthur Andersen, which reduced the number of large global audit firms from five to four. Ever since, those firms—Deloitte, Ernst & Young, KPMG, and PricewaterhouseCoopers—have dominated.

What would happen if another major audit firm exited the market?

Here’s another link to an Opinion and Order (8/13/1998) in U.S. District Court of Appeals, D.C., on two (consolidated) cases involving BCCI, in addition to the criminal case against it. You can see the basic claims and the intricacies of ownership from some of the summary of facts, let alone from even listing the Plaintiffs.

http://law.justia.com/cases/federal/district-courts/FSupp2/17/10/2488622/
First American Corp. v. Al-Nahyan, 17 F. Supp. 2d 10 (D.D.C. 1998)
U.S. District Court for the District of Columbia – 17 F. Supp. 2d 10 (D.D.C. 1998)
August 13, 1998

. . .

>On November 15, 1991, the United States filed in this Court a three-count Indictment charging BCCI with conspiracy, wire fraud and racketeering. On January 24, 1992, this Court, following findings of fact and conclusions of law with supporting reasons made in open court, accepted the pleas of guilty of the four corporate defendants, collectively known as BCCI, and the Plea Agreement between them and the United States of AmericaSee BCCI Plea Agmt.; see also Transcript of Guilty Plea Proceedings at 7 (Jan. 24, 1992). As part of its plea, BCCI admitted that its former management and operators had “fraudulently and secretly acquired (1) direct or indirect ownership and control over the shares of First American Bankshares Inc….” BCCI Plea Agmt. at 4.[3]


After accepting the plea, and in accordance with 18 U.S.C. § 1963, this Court then entered an Order of ForfeitureBCCI Holdings, 1992 WL 100334. Under the BCCI Plea Agreement, and pursuant to the Order of Forfeiture, BCCI forfeited to the United States its ownership interests in all property located in the United States.

You can see how serious, and how bad, RICO (and money-laundering, fraud, etc.) can get, and how complex it might be to prosecute — the parts have to be discovered and related to the whole and to the illegal activity involved.

Also, how many people think – consistently —  of banks as having owners, shareholders?  How centralized, regionalized/international is the ownership of the average bank?  With that centralized control of operations (via shareholders, or shareholder “nominees”), the greater the distance between management and clientele (and the less transparent the relationships) the less accountability.

Back to Jeff Grell’s Interview in year 2000:

(An Interview With RICO Expert Attorney Jeffrey Grell by John William Tuohy, cont’d.)

Mr. Grell is currently (date: Year 2000) a partner with the Minnesota law firm of Leonard, Street and Deinard, is an Adjunct Professor at the University of Minnesota Law School where he teaches a course entitled Civil RICO.

He is a member of the advisory board of the national publication Civil Rico Report. Jeff is the author of “Exorcising RICO From Product Litigation,” William Mitchell Law Review, Vol. 24, No. 2, 1998; and “HMOs under RICO: Issues the courts are likely to confront, Civil RICO Report, Vol.16, No. 1, May 10, 2000.

Mr. Grell can be reached the law firm of Leonard, Street and Deinard, 150 South Fifth Street, Suite 2300, Minneapolis, MN 55402. (612)335-1929 or jegrell@ricoact.com or visit his website: http://www.ricoact.com

TUOHY: In layman’s terms, what is RICO?

MR. GRELL: The Racketeer Influenced and Corrupt Organizations Act. There are three ways in which someone can violate RICO:

(a) You can violate RICO by investing the proceeds of racketeering activity in an enterprise. These are usually money laundering cases. For example, a drug ring owns a legitimate car dealership but in addition to selling cars, the drug ring launders its cash through the car dealership’s books.

(b) You can violate RICO by obtaining or maintaining control over an enterprise through a pattern of racketeering activity. For example, a small business has borrowed money from a loan shark; the businessman cannot repay the loan, so the loan shark demands that the business be signed over to him or he will kill the businessman.

Imagine the (inappropriate) power possible when situations of debt can be manufactured or created, large-scale?  That’s why I’m so concerned about all the unmonitored activity in the tax-exempt realm, especially when funding is from government itself.

(c) You can violate RICO by participating in an enterprise through a pattern of racketeering activity. A stereotypical example of such a violation occurs when an outsider bribes the employees of a company to get favorable terms under a contract with the company.

You can also violate RICO by conspiring to commit any of the substantive offenses described in paragraphs (a), (b) or (c). The examples provided are merely examples. There is an endless variety of conduct that may constitute a violation of RICO. The “term” enterprise also does not mean only businesses or a corporations. It can mean just about any group of people.

But, it still takes certain kinds of activity to violate RICO.  For example, people may want to talk about whether the above car business (for example) makes good, or not-so-good, appropriately-priced, or over-priced cars.  Now consider the family court system — some people, or groups of people, want to focus on the outcomes:  “Custody going to batterers” or “fails to protect children” or “uses unsound psychological theories” (parental alienation).

I am not looking so much at that as at the operations and how the cash flows and resulting professions (supervised visitation, batterers intervention, parent education, train-the-trainer, behavioral modification, etc.) got set up and function.  For example:  court-ordered consumption of services for which there is no grass-roots demand or possibly even no genuine need, and in which court-connected individuals can make a nice moon-lighting, or post-employment cash flow. Supervised Visitation, in particular, is itself a form of extortion of one parent to pay the provider.  Once in place, it attracts the providers, the provider-trainers, and once the providers are positioned, the court is encouraged to provide more customers (see “Kids for Cash”).

The more complex it is (federal government sponsoring state governments to sponsor nonprofits to provide; court (state, in California) employees called judges, sometimes form their own nonprofits or sit on boards), the easier it is for bribery to take place.   Example © above mentioned bribery to get favorable contract terms.  Money “lost in the cracks” obviously can be used for bribes.

TUOHY: RICO had a rough start in 1970 because appeals courts differed on its proper use. In 1981, the dispute was settled by the United States Supreme Court with what many have termed “An overly generous interpretation.” Jeff, what was the argument about in the appeals court and why is the Supreme Court’s decision so roundly critized?

MR. GRELL: I believe you are talking about the Supreme Court’s decision in United States v. Turkette, 452 U.S. 576 (1981). In that case, the Supreme Court held that RICO applied to both legitimate and illegitimate RICO enterprises. Before that decision, many lower courts were attempting to limit RICO to “criminal”, “illegitimate” or “racketeering” enterprises.

The problem with this limitation is two-fold:

1) Congress did not limit RICO’s definition of enterprise to “criminal”, “illegitimate” or “racketeering” enterprises, so there was no basis for the courts to impose such a limitation;

2) how does one fashion a workable definition of a “criminal”, “illegitimate” or “racketeering” enterprises? Are such enterprises made up of only Italians or Colombians? The lower court’s were never able to answer this question, instead, they basically said: “we don’t know how to define a ‘criminal’, ‘illegitimate’ or ‘racketeering’ enterprise but we know one when we see one.” That’s not a legal standard that the Supreme Court is likely to approve — especially when the statute does not provide for such a limitation. So, in Turkette, the Supreme Court ruled that when Congress used the term “enterprise” without limitation, Congress meant for RICO to apply to all enterprises — legitimate or illegitimate.

Of course, as a result of this decision, there is no limit to the type of enterprise to which RICO can apply: businesses, corporations, relatively informal groups of people working together for a common goal; political parties; unions; protest groups, and others all potentially fall within RICO’s scope — not just groups that fit the stereotypes of mobsters and drug rings...

So?  WAKE UP!  SOMEONE has to think about what is and is not RICO.  The people engaged in it already are.  Major occurrences, international in scope with elements of the scheme in the United States.  Involving Banks.  Accounting firms failing to report or confront it were involved.  

I hate to say this, but as intimidating, shocking, or simply discouraging as it might be to contemplate RICO, the more people who would never consider engaging in it (i.e., basically honest people) who know what it is, we are more likely to recognize it when we see it, and potentially be able to reduce or eliminate it within or around government institutions.  

You cannot obtain “justice” or equality, fairness in institutions which are saturated, or even significantly affected by groups of people whose relationships and activities would qualify to be called a Racketeering-Influenced and Corrupt Organization, but these situations have occurred, and do occur unless identified, and broken up.

One thing we should learn to be alert to is just what ARE the relationships between income-producing activities which fly below the radar, and generate a consistent cash-flow THROUGH government entities, but illegitimately, not for bona fide public benefit and not in a bona fide manner.  This is not a situation helped by “don’t want to think about it, I’d rather basically just trust those in authority” mentality.  Those in authority are human beings; so are you!


So, re: NCJFCJ, NCJJ, and my discovering NCJJ director E. Hunter Hurst, III’s “Providence Service,” my last post, #9 for 2016, began like this:

This post was drafted January 20, 2016.  It  holds a significant “find” that I don’t know who else has found, or would ever have found.   Probably, only people who drill-down on organization tax returns and notice what might be missing when any organization describes itself, boasting about the public service it’s done over the decades, might have run across this information.  There are some indicators that the organization involved did not want it to be found.

I am under considerable personal pressure this year (more than last year), and because of possible consequences depending in how I may find a way to stand up to it, I am concerned that this information might not get out.  So, although it may not be in perfect sequence with other posts, or even various sections within this post in the best sequence, I am publishing it now.  

The “find” on this post speaks loudly as to whether or not the private and government-funded organizations collectively driving national family court, and juvenile justice policy (including responses to child abuse and domestic violence, i.e., criminal matters) can be trusted AT ALL, and whether they should, or should not be permitted to continue setting standards and driving policy, let alone receive cooperation and government financing (grants and contracts).

Subtitle “The “FIND” and Questions it Raises:below names the find.  This introduction discusses the impact it had on my understanding and my understanding of its significance to the larger picture.

PRE-GAME PEP TALK:

I know Donald Trump  & Cruz & Rubio versus Hillary and Bernie and/or, the Oscars, Saturday Night Live, gaming, Facebook, or just about anything might more stimulating or entertaining.  Whichever candidate becomes the President of the United States of America (that’s assuming that’s one of the above does), ALL of us will be better off by understanding better our own juvenile and family court systems, and who’s been running which programming HOW through them, which is a window into where we (“the public” — that’s who this blog is addressed to, although I know who else is watching it recently) stand in relationship to government entities that are taking private payments to alter government towards pre-defined models that were NOT grassroots and NOT conceived of in the normal, designated legislative processes intended for the states, and each state from its own citizens.**

(**Citizenhood, at least to engage in most normal commerce  in the US or territories it seems has to be tied to a location, like personhood for corporations, you must declare. You can move (it’s harder for most people than for corporations) but you must state where — a “legal domicile”).  For example, the MacArthur Foundation, which initiated Models for Change, states its jurisdiction is Illinois.  It files tax returns also in Florida and New York states, but its operations span on many continents.)

We really should comprehend how tax-exempt foundations (billion-dollar) network with tax-exempt and tax-receiving government entities to advertise how great the ideas are, and conceal how convoluted the financing of those ideas is, and from just what a SMALL (oligarchy) it proceeds, and whether the response to this situation is vote Republican or vote Democrat (hint:  it isn’t.  BOTH SIDES of the aisle engage in similar tactics; I happen to have landed on a more progressive one in this case, but I could show the other side of the aisle – easily– in the family courts).


You want to sit back and let “Models for Change” be applied nationwide without understanding it?  You want to go along not having a viable database (free, accessible to the public) to show how USDOJ/OVW favorites are positioned near the top of the office for expansion and repeating customers without revealing conflicts of interest, or failure to incorporate, or not being, exactly, a legal business entity though acting, talking, and being talked to as though it was? (See “Caught up in DV/Custody Drama?  Catch up on This..” post).

I also believe that people who take some time to look at some of this “paperwork”** will be wiser to propaganda about jobs and budgets, knowing that the real profits are in owning investments which can be sold, leveraged to produce more, which produce significant dividends that can be then distributed outwards for public relations (and tax write-offs), as well as setting up personal empires in the nonprofit sector.  Until you actually read some mega-fortune 990PF returns, certain things just don’t sink in…

**(paperwork available on-line; for example, tax returns showing how private foundations account for their operations, how well-paid are their directors, trustees, officers, and key subcontractors (whether individuals or businesses run by individuals), and how credible (or not) are the accounting of the many (many, many many) nonprofits which have positioned themselves underneath the shower of gold coins and other blessings (so to speak) from that paternalistic, privately-controlled wealth of this country.


The “FIND” and Questions It Raises:

REGARDING the NCJFCJ and its long-term and obvious attempts to transform both JUVENILE and FAMILY court systems into the “diversionary into mental and behavioral health services” model how is it that the leader of one their primary “centers” in Pittsburgh, it turns out, in 1996 developed a public-traded company to take advantage of (profit from) this policy? 
And that several board members of this company, it turns out, had similar backgrounds in private, for-profit prisons and behavioral modification institutions involving youth? [Youth Services International, Parents and Children Together…]
And that, as I discovered, at least one of those associated institutions (run previously by board members of the public-traded corporation) had been subjected to lawsuits, among other things, over coverup of sexual abuse of youth and shut down because of this? (Links below).
  And, how is it that NFJFCJ, in commemorating his life’s work on their website, “forgot” to mention his public-traded company,  although their respected and beloved, recently deceased employee’s public-traded organization was so large that two years later, it sold off one of its subsidiaries which was generating $346 million dollars?
“Minor” amnesia by NCJFCJ?

 What’s really going on here?

 


I looked not just at the main corporation, but some of the corporations associated with the board members (at least as of 2009).  THis doesn’t pretend to be thorough.  It is an alert to ask, how did others miss this and not report the conflict of interest?  What does it reflect on what NCJFCJ might “really” be about, in that there was NO mention of the association with one of their own?

I’m not really qualified to research NASDAQ-traded corporations, but they can be identified, and their board of directors’ affiliations, to a degree, also can.  An issue here is “specialization information silos” on the part of the public.


SOME (not all!) INFORMATION on PROVIDENCE SERVICE [singular, not “services”] CORPORATION, its SOLD-OFF SUBSIDIARIES, and SOME (not all) of its BOARD MEMBERS and their PRIOR COMPANIES.

Hint:  Pay attention to an “Inc.” (= an INCorporation) vs. an “LLC” (Limited Liability Company) these names can start to resemble each other.

The overall corporation was PROVIDENCE SERVICE CORPORATION.

Two subsidiaries were sold, completion of this sale announced Nov. 2, 2015

Providence Service Corporation Completes Sale of Providence Human Services and Providence Community Services:  TUCSON, Ariz.Nov. 2, 2015 /PRNewswire/ — The Providence Service Corporation (Nasdaq:  PRSC) today announced the completion of its previously announced definitive agreement to sell all the outstanding ownership interests of Providence Human Services, LLC (PHS) and Providence Community Services, LLC (PCS), both wholly owned subsidiaries of The Providence Service Corporation, to Molina Healthcare, Inc. (NYSE:  MOH).  Consistent with terms previously reported and prior to giving effect to working capital and other customary closing adjustments, Molina paid $200 million to The Providence Service Corporation upon closing.

The divested businesses generated revenue of approximately $346 million in 2014 and $176 million in the first half of 2015.  Providence will use 50% of the net cash proceeds from the transaction to prepay certain loans under its existing credit facility.  Subject to additional management evaluation of market and business conditions, share price and other factors and evaluation and approval by Providence’s Board of Directors, the remaining net proceeds of the transaction may be used for acquisitions, investments in the long-term development of the Company’s other segments and the return of capital to stockholders through a share buyback program, among other uses.

Moelis & Company LLC served as The Providence Service Corporation’s financial advisor and Paul Hastings LLP served as its legal advisor. …

There has been a namechange since. From a similar, but prior, announcement:

PHS [Providence Human Services, LLC] is one of the largest national providers of accessible, outcome-based behavioral and mental health services and operates in 23 states and the District of Columbia. PHS’ broad national footprint is deployed on a local level enabling it to effectively target specific needs in diverse geographies. PHS generated revenue of approximately $346 million for 2014.From press release, “Molina Healthcare to Acquire Providence Human Services and Providence Community Services, the Behavioral and Mental Health Subsidiaries of the Providence Service Corporation

Just today, I see, it declared its 5.5%/year dividend for a certain kind of stock:

Providence Service Corporation Declares Cash Dividend on Convertible Preferred Stock

TUCSON, Ariz.March 8, 2016 /PRNewswire/ — The Providence Service Corporation (Nasdaq:  PRSC), today announced that its Board of Directors has declared a cash dividend on its 5.5%/8.5% Series A convertible preferred stock. The dividend is payable on April 1, 2016 to holders of record as of 5:00 p.m. New York City time on March 15, 2016. The dividend will be paid at a rate of 5.5% per annum, which is equal to approximately $1.36749 per share of convertible preferred stock.

About Providence
The Providence Service Corporation is a holding company whose subsidiaries provide critical healthcare and workforce developments services, comprised of non-emergency transportation services, workforce development services, legal offender rehabilitation services, health assessment services, and care management services in the United States and abroad. For more information, please visit prscholdings.com.  SOURCE The Providence Service Corporation

RELATED LINKS http://www.prscholdings.com

The “International (Europe)” seems to be Great Britain, France, Germany, Spain, Poland and Sweden + Saudi Arabia (!) + South Korea + Australia, and places in the US are categorized by which subsidiary is where.

Interesting that the street address in Tucson, Arizona at this site matches a (recent) street address for 501©3 “Sonoran Institute” with a board full of powerfully connected (it seems) people:


Founded in 1990, the Sonoran Institute informs and enables community decisions and public policies that respect the land and people of western North America.http://www.sonoraninstitute.org   Founded in 1990, the Sonoran Institute helps communities conserve and restore those assets and manage growth and change through collaboration, civil dialogue, sound information, practical solutions and big-picture thinking.

The Sonoran Institute contributes to a vision of a West with:
• Healthy Landscapes – including native plants and wildlife, diverse habitat, open spaces, clean air and water – from Northern Mexico to Western Canada
• Vibrant communities where people embrace conservation to protect quality of life today and in the future.
• Resilient economies that support prosperous communities, diverse opportunities for residents, productive working landscapes and stewardship of the natural world.

The Sonoran Institute informs and enables community decisions and policies that respect the land and people of western North America. Facing rapid change, communities in the West value their natural and cultural assets, which support resilient environment

Related Organization (at exact same street/Suite#, up through latest tax returns I have, as Providence Service Corporation)  to The Sonoran is The Rincon Institute – EIN# 86-0684609 44 E. Broadway Blvd #350 Tucson AZ 85701. It’s shown on their tax return, Schedule “R”.

Search Again

ORGANIZATION NAME ST YR FORM PP TOTAL ASSETS EIN
Sonoran Institute AZ 2014 990 38 $5,834,431.00 86-0684610
Sonoran Institute AZ 2013 990 40 $2,990,397.00 86-0684610
Sonoran Institute AZ 2012 990 41 $4,036,106.00 86-0684610

 and:

ORGANIZATION NAME ST YR FORM PP TOTAL ASSETS EIN
RINCON INSTITUTE AZ 2014 990 22 $210,505.00 86-0684609
RINCON INSTITUTE AZ 2013 990 21 $217,532.00 86-0684609
Rincon Institute AZ 2012 990EZ 10 $323,792.00 86-068460

The Sonoran Institute primary revenue appears to be “Program Contracts”  The Rincon Institute, which is supposed to be supporting it, seems to be structured to lose money, which it is doing very well, with a board of 3 (1h/week) recently, “Luther Propst”.  At this point, I’d “back-burner” the address coincidence/discrepancy, but not completely forget it.

There is no question both nonprofits have the street address “44 E. Broadway Blvd #350, Tucson, AZ,” and that Providence Service Corporation’s main website claims the same street address.  However I see that in the Arizona Corporation Commission listing, it’s not 44, but “64” E. Broadway (and, no suite#), Tucscon, AZ.

Arizona Corporation Commission (Business Entity Search): (Checking the odd street/suite# coincidence.

The Providence Service Corporation is shown — current street address is 64 E. Broadway Blvd., and Officers are:

WARREN RUSTAND CHIEF EXECUTIVE OFFICER 64 E. BROADWAY BLVD.
TUCSON, AZ 85701   (SINCE) 11/19/2012 (LAST UPDATED): 03/18/2015

ROBERT WILSON SECRETARY 64 E. BROADWAY BLVD. TUCSON, AZ 85701 (SINCE) 11/19/2012 (LAST UPDATED) 03/18/2015.

Other Directors, at same address, are: Christopher Shackleton, Robert A. Kerley (since 2005) and in La Quinta, CA, Kristi Meints (referenced below also):

KRISTI MEINTS DIRECTOR
79795 SANDIA
LA QUINTA, CA 92253
08/01/2003

In 2012 Annual report, their street address was ℅ “Magda Gaxiola.”  I looked her up — and found a number of different corporations, some in different states:  Home Tutoring A-Z (payroll); Mister Car Wash (etc.):

Per Sec. of State, In Idaho  Per ZoomInfo in Tucson, “Mister Car Wash” and her LinkedIn says Administrative Assistant for Providence 2007-2012

Searches under “Arizona Corporation Commission” seem to expire (you’d have to search again, in other words), but once clicking on the organization name, a list of annual reports will show.  They are clickable and show images of each year’s reports.  So, part of Year 2012’s shows the directors, some who I’ll reference below (i.e., Fletcher McCusker, Craig Norris) and “Additional Director”  Hunter Hurst III in Pittsburgh.  I did not find an Annual Return showing  44 E. Broadway Blvd — but you can see the main website does.

Meanwhile: — the Registered Agent address is not E. Broadway, but all the directors are listed at 44 East Broadway #350 as the tax returns also reflect. (Arizona Corporation):

05239534 THE SONORAN INSTITUTE
05240293 THE RINCON INSTITUTE

For The Rincon Institute, Chairman Donald Diamond has one address, and Secretary Donald Diamond, another. Oh well…  The organization (and Chairman’s) address  201 s kinney rd tucson az 85735 (“Spend a day in the Old West”) matches a Western Film Studio and visitor attraction, “Old Tuscon.”


I don’t know about The Sonoran Institute connection (if it’s anything more than office changes and coincidence or not), but I don’t think it too coincidental that a South Carolina subsidiary of Providence Service Corporation was sued for (racketeering and extortion, including of the indigent) as reported by Wikipedia, a lawsuit filed just October 2, 2015.  Also note that it may have originated from (or later bought) Providence Community Corrections in TN.  There’s a clear interest in corrections in the board members.

This the entire “wiki” (obviously somewhat new, and called a “stub”) except for the footnotes.  Providence’s website name has also changed since then, I see:

https://en.wikipedia.org/wiki/Providence_Service_Corporation

Providence Service Corporation is an American social services corporation listed on the NASDAQ. One of its subsidiaries, Providence Community Corrections, has been sued for racketeering and extortion.[4][5]

Overview[edit]

Providence Service Corporation was established in 1997.[1] It has a payroll of 13,697.[2] Its Chairman is Christopher S. Shackelton and its Chief Executive Officer is James M. Lindstrom.[3]

The company provides social services, and it is “reimbursed by government programs such as welfare, juvenile justice, Medicaid or corrections.”[6] It comprises four subsidiaries: IngeusLogistiCareMatrix Medical Network, and Providence Human Services (including Providence Community Corrections).[7]

It is listed on the NASDAQ.[8]

Providence Community Corrections[edit]

Providence Community Corrections was established in 1972.[9] It is headquartered in Greenville, South Carolina.[9]

The subsidiary was accused of “extortion” in Rutherford County, Tennessee in 2015.[4]By October 2015, it was sued by Equal Justice Under Law, the pro bono wing of Baker, Donelson, Bearman, Caldwell & Berkowitz, for “violating racketeering laws by jailing impoverished people who fail to pay court fines for traffic violations and misdemeanor offenses, and by refusing to waive fees for the indigent” in Rutherford County, Tennessee.[5] Additionally, the lawsuit “accuses Rutherford County officials of conspiring with Providence Community Corrections in the scheme and violating federal racketeering laws.”[10]

References[edit]

  1. Jump up to: a b “Overview: Profile”Providence Service Corporation. Retrieved October 28, 2015.
  2. Jump up to: a b c “Providence Service Corp. (PRSC)”Yahoo Finance!. Retrieved October 28, 2015.
  3. Jump up to: a b “Providence Service Corp (PRSC.O)”Reuters. Retrieved October 28, 2015.
  4. Jump up to: a b c Stockard, Sam (October 2, 2015). “Lawsuit against Providence Community Correction alledges extortion, racketeering”The Murfreesboro Post(Murfreesboro, Tennessee). Retrieved October 28, 2015.
  5. Jump up to: a b Dewan, Shaila (October 1, 2015). “Private Probation Company Accused of Abuses in Tennessee”The New York Times. Retrieved October 28, 2015.
  6. Jump up ^ “Providence Service Corp”Bloomberg Business. Retrieved October 28, 2015.
  7. Jump up ^ “Company Information”Providence Service Corporation. Retrieved October 28, 2015.
  8. Jump up ^ “The Providence Service Corporation(NASDAQ:PRSC)”Google Finance. Retrieved October 28, 2015.
  9. Jump up to: a b “Company Overview of Providence Community Corrections, Inc.”Bloomberg Business. Retrieved October 28, 2015.
  10. Jump up ^ Barchenger, Stacey (October 1, 2015). “Lawsuit accuses Rutherford probation company of extortion”The Tennessean (Nashville, Tennessee). Retrieved October 28, 2015.

 Footnote “9” above is a Yahoo summary of the SC Corrections firm, with Key Executive Brian Heidinger:

Providence Community Corrections, Inc., a misdemeanor probation service company, offers supportive services for city/county courts and agencies. Its services include probation case management for jurisdictions without publicly operated departments, as well as service programs that take on administrative or supplemental services. The company engages in the monitoring and supervision of those sentenced to probation; provision of rehabilitative services; and collection and disbursement of court-ordered fines, fees, and restitution. It offers a court administration system, which allows city/county officials access to data and custom reports. The company’s services also include supervision, asses…

Detailed Description 902 North Church Street Greenville, SC 29601 United States

Founded in 1972


VERRY INTERRESTING — because “NCJJ” it claims was formed in 1973…


How I found this one (the NCJFCJ / Providence Services Corporation connection)? (I read tax returns, cont’d.)

Well, in looking at some older NCJFCJ Fiscal year 2005** tax returns; at that time (and still) I saw it’s primarily gov’t funded ($13.0M out of $14.4M total grants that year alone), and found one of their board of directors (see the list — its full of judges, naturally), a revered leader of the “National Center for Juvenile Justice,” E. Hunter Hurst III (d.2012)was also board of directors (1996-2008) of a NASDAQ-traded “Providence Service Corporation” (Arizona address, Delaware corp);  [** TAKE A LOOK!].  Plenty of others were also on the NCJFCJ, board, but that is definitely a searchable name, so I searched it.

Delaware Business Entity Search There are dozens (more than) of company names with the words “Providence” on them — I didn’t find the subsidiaries — and possibly this one is the one in question.  It was filed 12/20/1996…

2697846 THE PROVIDENCE SERVICE CORPORATION

 

So, therefore Hunter Hurst III was simultaneously on (working for) the nonprofit HHS grantee NJCJFCJ promoting diversionary services into behavioral health care for juveniles, while, with others, running a for-profit corporation, public-traded, that obviously had conflict-of-interest involvement in the responsible fatherhood field.

Board of directors in 2009 (an SEC statement, simple google namesearch to find) had connection to PACT, Inc. (Parents and Children Together, Inc.).  In fact, it appears that Providence simply absorbed “Parents and Children Together, Inc.” keeping or taking on board one of its leadership, in Craig A. Norris:

This is from an April, 2009, “Preliminary Proxy Statement to Shareholders” filed with the SEC about an apparent intent for takeover (as to board of trustees); more on this below.  Use the “PageDown” or scrolling feature to get to the section describing current Board of Directors:

SCHEDULE 14A INFORMATION, Proxy Statement Pursuant to Section 14(a)

Craig A. Norris has served as our director since November 2008 and as our chief operating officer since April 2004 and as president, eastern division, from May 1998 to March 2004. Prior to joining our company, Mr. Norris served as the chief operating officer of Parents and Children Together, Inc., a home based counseling provider from June 1994 until April 1998,** which we acquired in February 1997. Mr. Norris was employed as a psychotherapist for the Arizona Department of Health from December 1992 until June 1994. Mr. Norris was a treatment coordinator for the Arizona Center for Clinical Management, a managed care behavioral health care provider for southern Arizona, from May 1992 until December 1992. Mr. Norris received a bachelor’s degree in psychology from the University of Arizona in 1989 and dual master’s degrees in counseling and organizational management from the University of Phoenix in 1993 and 1996, respectively.

**This includes the year “PRWORA” (Welfare Reform) was passed, 1996.  Welfare Reform is notable for directing marriage/fatherhood HHS grants to nonprofits in an effort to produce behavioral change among the impoverished — in fact, eventually, among all single or unmarried parents, regardless of economic status, in the name of “public benefit.”

In fact, Providence Service Corporation only having been started  (incorporated in Delaware) at the end of 1997, it could be said that acquiring PACT, Inc. was basic to its operating concepts:

This link might be helpful, again:  Arizona Corporation Commission (Business Entity Search).  I didn’t find it, however, the term “PACT” standing for “Parents and Children Together” has been used in contexts of family literacy, and as a program offered by various community groups.  It’s understood to be under the category of Healthy Marriage/Responsible Fatherhood federal grants.

Mathematica Policy Research (Princeton), a “frequent-flyer” in HHS evaluations,

called its own five-year evaluation of some of these programs (Under contract to HHS) as “Parents and Children Together” Notice staff “Robin Dion” (comes up in other contexts).

The past several decades have seen sweeping changes in family structure. To support the positive involvement of fathers with their children and help couples build and sustain healthy relationships and marriages in which to raise children, the federal government created the Healthy Marriage and Responsible Fatherhood grant program.Grants are awarded to community-based organizations to provide services to low-income families in three key areas: instruction in relationship skills, parenting education, and activities to promote family economic stability.

Parents and Children Together (PACT) is a five-year evaluation of these programs. Our evaluation focuses on selected programs funded by four-year grants awarded in September 2011. The evaluation consists of two major components: an impact/implementation study conducted in 6 sites, and a qualitative study in 4 sites. A smaller substudy of fatherhood programs serving Hispanic fathers focuses on 4 additional sites.

The impact study involves random assignment of eligible program applicants to the program or a control group. A follow-up survey is conducted 12 months after random assignment. The implementation study consists of site visits, web-based surveys of program staff and partner organizations, and analysis of enrollment and participation data. The qualitative study uses ethnographic techniques to enhance our understanding of participants’ lives and the factors that may affect their ability to benefit from responsible fatherhood and healthy marriage programs

Here’s from an HHS (the sponsoring office) website, talking about the same study:

See at website “http://www.acf.hhs.gov/programs/opre/research/project/parents-and-children-together-pact-evaluation” referring to a Mathematica Policy Research contract with the OPRE (Office of Planning, Research and Evaluation)

Just showing, the phrase is in common usage, as either a program, or a program evaluation.  However, the corporation “PACT” involving Craig Norris — I don’t know where it may be found, at least in its pre-absorption-into-Providence status.

 

11/21/2008 PRWire Press Release on Norris‘ promotion to Board of Directors shows PACT, Inc. was in Arizona

What’s more, an SEC Schedule 14A (proxy) statement to shareholders, attempting to prevent a board takeover by a group of shareholders who, it turns out, had some stake in the Arizona correctional system, I saw from its (Providence Service Corporation’s) board of directors “bio blurbs” a significant interest in the type of diversionary service providers the entire system is being re-tooled to farm youth (and younger, and older) people out to through the justice system NCJFCJ, with help from sources such as the MacArthur Foundation’s longstanding “Models for Change,” seeks to privatize.

 

WHO AGE (in 2009) ** Term Ends
Hunter Hurst, III (1)(2)(3) 70 1 2010
Fletcher Jay McCusker (5) 59 3 2009
Kristi L. Meints (1)(2)(3)(5) 54 3 2009
Craig A. Norris 41 1 2010
Warren S. Rustand (1)(2)(3)(4) 66 2 2011
Richard Singleton (1)(2)(3) 73 2 2011

[[“PROVIDENCE SERVICE CORP filed this Form PREC14A on 04/17/2009, that is, “UNITED STATES SECURITIES AND EXCHANGE COMMISSION… SCHEDULE 14A INFORMATION, Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934.”]]

(and no, I do not read these all the time.  I do, however, have a laptop and was searching E. Hunter Hurst III and Providence Service Corporation, once I learned of its existence.  This started with looking at a nonprofit tax return and noticing the board of directors! The link I’ve provided is also posted on the corporate website.  Board of Directors (and key staff) start about page 11…)


A LOOK AT THE BOARD OF DIRECTORS’ AFFILIATIONS:

Among the Board of Directors’ affiliations (of “Providence Service Corporation” — the NASDAQ-traded company I refer to, it’s under “PRSC”) as listed about 2009, is Youth Services International, Inc.  based in Florida, “Preparing Troubled Youth for the Future” …” their clients are government agencies serving troubled youth.

YSI is the premier provider in the Youth Care Industry of educational and developmental services that change, dramatically, the thinking and behavior of troubled youth.

We offer the most comprehensive programs and services available to government agencies serving at-risk youth. YSI has been recognized for its dynamic approach to rehabilitating juveniles through integrated programs, staff mentoring and environments to promote learning and change. To support that change, YSI provides extensive Community Based Aftercare Programs in seven states.

Looking up the Florida Registrations for this group, several names, only one still active:

Corporate Name Document Number Status
YOUTH SERVICES INTERNATIONAL, INC. F97000003822 Active
YOUTH SERVICES INTERNATIONAL OF DADE COUNTY, INC. P96000092586 INACT
YOUTH SERVICES INTERNATIONAL OF FLORIDA, INC. P95000096219 NAME HS
YOUTH SERVICES INTERNATIONAL SOUTHEASTERN PROGRAMS, INC. F97000005665 INACT

YSI (top row) — registered in Florida in 1997 (one year after Providence Service Corp), it’s got a Florida address but is legal domicile Maryland, and three directors have the same last name:  “Slattery.”  EIN# is 52-1715690, however it is a “For-Profit” company so you won’t see its Form 990 tax return.

Here’s the Bloomberg.com (stocks research)  link showing YSII company overview: where it came from and who it’s now under, and its key executives, all men, ages 59-64:

Youth Services International, Inc. provides educational and developmental services that change the thinking and behavior of troubled youth in the United States. It offers programs and services to government agencies serving at-risk youth; and rehabilitates juveniles through integrated programs, staff mentoring, and environments to promote learning and change. The company was founded in 1991 and is based in Sarasota, Florida. Youth Services International, Inc. is a former subsidiary of Correctional Services Corporation, LLC. As of November, 2005, Youth Services International, Inc. operates as a subsidiary of Jfs Development, Llc.

Yet, the head (on Board) was at the same time working for a nonprofit (NCJFCJ) primarily funded itself by government.  No wonder, with the “NCJJ” operating under NCJFCJ umbrella in Pennsylvania since 1970s, it didn’t exactly catch onto “Kids for Cash” (broke around 2011? in Luzerne County, PA) racketeering fiasco involving judges referring youth to institutions they had a private stake in…

What’s even more disturbing — recently (2014ff) I’m seeing lawsuits against this specific company publicized in Huffington Post and elsewhere:  It was getting sued for covering up sexual abuse of youth in its care!

Lawsuit alleges private prison company covered up youth sexual abuse 1/13/2014 by Chris Kirkham:

photo, Chris McGonigal, used in Huffington Post article

A pair of recent lawsuits against a private youth prison operator in Florida amplify claims that the company, Youth Services International, has frequently covered up reports that staff sexually abused young people held inside its facilities.

According to a suit filed in October in federal court, the top administrator at one YSI youth prison regularly made sexual advances toward teenage boys held there in 2010 and 2011 and on at least one occasion brought inmates home with him and into his bedroom. A separate case filed in Florida court in November alleges that a female guard at another YSI facility in 2012 began an “intimate and sexual relationship” with a 14-year-old inmate.

Florida officials at the Department of Juvenile Justice did not investigate these alleged incidents until months and even nearly a year after they occurred, according to accounts from the mothers of the victims and documents obtained by The Huffington Post. This was in part because the for-profit prison operator failed to immediately report the alleged episodes as required under its contracts with the state.

The lawsuits reinforce the findings of a recentHuffington Post investigation that revealed more than two decades of abuse and neglect inside private prisons operated by Youth Services International and other companies run by its founder, James Slattery. The series focused particular attention on the state of Florida, which has become emblematic of a nationwide trend in which growing numbers of prisoners of all ages are placed inside institutions operated by for-profit companies. Florida has entirely privatized its youth prisons.

The articles detailed multiple instances of young inmates at YSI facilities in Florida complaining of having been beaten, sexually assaulted or neglected by guards only to have their reports buried or minimized. Former staff at these prisons told HuffPost that the company systematically discouraged employees from reporting mistreatment and other violations in order to avoid imperiling future state contracts

Another article (8/26/2014) on Youth Services International:

 Juvenile Justice boots Youth Services International, 8/26/2014 in “Historic City News” (St. Augustine, Florida),Historic City News has learned that the private company, Youth Services International, can no longer respond to a current invitation to negotiate the contract for the St. Johns Juvenile Correctional Facility Florida because the Department of Juvenile Justice has canceled a contract with the controversial operator of a 40-bed residential facility in Santa Rosa County.

The canceled contract means Youth Services International can’t bid on new contracts with the state for at least 12 months; having potentially far-reaching implications for the way the state rehabilitates juvenile offenders. …In a June 26 letter to the provider, the (Florida’s Juvenile Justice) department said the Santa Rosa County facility saw four YSI staff members terminated in a two-month period for excessive or unnecessary use of force or the failure to report safety and security issues. The company continues to operate nine private, for-profit juvenile facilities in Florida.In November, the Huffington Post reported that “Florida’s Department of Juvenile Justice has continued to award tens of millions of dollars’ worth of prison contracts to YSI, despite a civil rights investigation by the Justice Department and probes into negligence and violent conditions by authorities in at least five states. In the past year alone, the company has already received four new contracts in Florida totaling nearly $37 million.

This sounds like one “bad-ass” for-profit prison company.

On the board of Providence Service Corporation (link below), Fletcher Jay McCusker, looks like one of the founders perhaps, at that time had a bio blurb which reads:

Fletcher Jay McCusker has served as our chairman of the board of directors and chief executive officer since our company was founded in December 1996. Prior to founding our company, Mr. McCusker served as executive vice president of Youth Services International, Inc., a Nasdaq listed company that provided private institutional care for at-risk youth, from July 1995 until December 1996.

Also, one of the older board members at the time, with a military background, and on the corporate board from near its beginning.

Richard Singleton has served as our director since March 1998. Colonel Singleton is a retired United States Army colonel having served in the Army for 30 years. He was one of the founders of Youth Services International, Inc., a Nasdaq listed company that provided private institutional care for at-risk youth. He served as a superintendent of Boys School for the Department of Juvenile Justice State of Florida from June 1999 to July 2004.

From January 1997 until June 1999, Colonel Singleton was the Regional Director of operations for Three Springs, Inc., located in Huntsville, Alabama, where he was responsible for the overall operations and management of juvenile justice facilities in the State of Georgia. Colonel Singleton received a bachelor’s degree in education from the South Carolina State University in 1958 and a master’s degree in public administration from the University of Missouri in 1972.

Let me get this straight:  Singleton was running the overall operations and management for the State of Georgia (or, facilities IN Georgia) from Huntsville, Alabama??


 

MORE ON NCJFCJ and NCJJ

Acronyms can get confusing when they are frequently about National Centers, Juveniles and of course Justice.  So here are two:NCJFCJ = (The) National Council of Juvenile and Family Court Judges, Inc. = a nonprofit organization.

“NCJJ” =  (The) National Center for Juvenile Justice =/= a nonprofit organization, but is located in Pittsburgh, PA and run by NCJFCJ.

  • This isn’t helped much to keep straight when TAGGS.hhs.gov (that’s a database for federal agency HHS itself) insists on continuing to report its grants to “NCJFCJ” under a different name (I searched by EIN#362486896):
Recipient Name City State ZIP Code County DUNS Number Sum of Awards
NATIONAL COUNCIL OF JUVENILE COURT JUDGES  RENO NV 89507-8970 WASHOE 081275067 $ 21,094,228
  •   Showing: 1 – 1 of 1 Recipients
  • Notice “and Family [Court Judges]” is missing from TAGGS’ version of the name….  Also click to see the address at HHS is a PO Box in Reno, and that HHS has it classified as Non-profit, Private, NON-Government Organization.  Below, I’ll show the last HHS grants showing it got (2012-2015), for just a taste of its federally-funded (here, through HHS grants) activities:
Region: 9
Type: Law Enforcement Agency ( Including Criminal Rehabilitation )
Class: Non-Profit Private Non-Government Organizations
  • This is just Grant 90EV0415.  The “CFDA” labels a category of federal domestic assistance, and “93592” stands for Family Violence Prevention and Services/Grants for Battered Women’s Shelters: Discretionary.  A look at NCJFCJ’s tax returns probably shows most of this “discretionary” money isn’t going to battered women’s shelters (in fact, even to grants.  The Fiscal Year 2012 return I just saw says NCJFCJ distributed “$0.00” to any organization, a symptom of an intent to control operations.  Below, I show, most is going to its own employees.)
Award Number Award Title Action Issue Date CFDA Number Award Action Type Principal Investigator DUNS Number Sum of Actions
90EV0415 Resource Center on Domestic Violence: Child Protection and Custody (CPC Resource Center) 09/17/2011 93592 NEW Maureen Sheeran 081275067 $ 1,100,000
90EV0415 Resource Center on Domestic Violence: Child Protection and Custody (CPC Resource Center) 07/24/2012 93592 NON-COMPETING CONTINUATION MAUREEN SHEERAN 081275067 $ 1,100,000
90EV0415 Resource Center on Domestic Violence: Child Protection and Custody (CPC Resource Center) 09/12/2013 93592 NON-COMPETING CONTINUATION MAUREEN SHEERAN 081275067 $ 960,000
90EV0415 Resource Center on Domestic Violence: Child Protection and Custody (CPC Resource Center) 01/08/2014 93592 ADMINISTRATIVE SUPPLEMENT ( + OR – ) (DISCRETIONARY OR BLOCK AWARDS) MAUREEN SHEERAN 081275067 $ 0
90EV0415 Resource Center on Domestic Violence: Child Protection and Custody (CPC Resource Center) 08/25/2014 93592 NON-COMPETING CONTINUATION MAUREEN SHEERAN 081275067 $ 1,000,000
90EV0415 Resource Center on Domestic Violence: Child Protection and Custody (CPC Resource Center) 09/23/2015 93592 NON-COMPETING CONTINUATION MAUREEN SHEERAN 081275067 $ 1,000,000

  • On checking who NCJFCJ subcontracted with in their 2012 tax year, I noticed two individuals were paid over $100K, and one of these individuals (from Manhattan Beach, California) was “D. Alan Henry,” — who participated as affiliated with “Models for Change” [probably means “MacArthur Foundation”] in a December, 2014 conference with pages of participants, and as hosted by “Coalition for Juvenile Justice,” website “juvjustice.org.”

What else, justice-organization-wise, in the 1970s, in America? Well, passage of the “JJDPA” (Juvenile Justice and Delinquency Prevention Act) in 1974 — separate topic.  But, looks to me like the nonprofits lined themselves up accordingly, some with their hands out. Implementing — there’s the OJJDP and CCJJDP, etc.

From the “Looking Back/Looking Forward” link on “NCJJ” website, I see that the Children’s Bureau (then under DOL) was collecting statistics, but with passage of the JJDPA and forming of OJJDP (which I looked at separately), it seems that (so-called’ NCJJ” got the contract to maintain the “Juvenile Court Statistics.”  These stats had been earlier collected, tracking age, gender, race, and type of offense (color-coded on specific cards) — as far back as 1927.

SO, the OJJDP granted to “NCJJ” (meaning, in fact, the nonprofit NCJFCJ, it would seem) as early as 1975 — with the website claim that NCJJ was formed in only 1973.  Huh?

http://www.ncjj.org/About/Looking_Back_Series.aspx

The first Juvenile Court Statistics report was published in 1929 by the U.S. Department of Labor’s Children’s Bureau. The report presented information based on 1927 data from 42 courts in 15 states. Since 1975, the work has been the responsibility of the National Center for Juvenile Justice’s (NCJJ) National Juvenile Court Data Archive project (the Archive) that is funded by the Office of Juvenile Justice and Delinquency Prevention, U.S. Department of Justice. The data used in the 2010 national estimates were contributed to the Archive by more than 2,300 courts with jurisdiction over 83% of the juvenile population.


 

The Office of Juvenile Justice and Delinquency Prevention (OJJDP) became responsible for Juvenile Court Statistics following the passage of the Juvenile Justice and Delinquency Prevention Act of 1974. In 1975, OJJDP awarded the National Center for Juvenile Justice (NCJJ) a grant to continue the report series.

Although NCJJ agreed to use procedures established by HEW to ensure reporting continuity, NCJJ also began to investigate methods of improving the quality and detail of national statistics. A critical innovation was made possible by the proliferation of computers during the 1970s. As NCJJ asked agencies across the country to complete the annual Juvenile Court Statistics form, some agencies began offering to send the detailed, automated case-level data collected by their management information systems. These information systems often reflected traces of the original statistical cards used to collect the data back in the 1920s. NCJJ learned to combine these automated records to produce a detailed national portrait of juvenile court activity – returning to the original objective of the Juvenile Court Statistics series. The project’s transition from using annual case counts to analyzing automated case-level data was completed with the production of Juvenile Court Statistics 1984. For the first time since the 1930s, Juvenile Court Statisticscontained detailed case-level descriptions of the delinquency and status offense cases handled by U.S. juvenile courts. This case-level detail continues to be the emphasis of the reporting series.

Ironically, no such functional database, as enabled by computers since the 1970s (lert alone 1980s, 1990s, 2000s and 2010s) has been yet thought necessary to enable the public to adequately track tax revenues (appropriate funds) directed THROUGH the OJJDP grants system.  The USDOJ doesn’t have a functional database, despite it having been the public who funds both the Justice system AND the appropriations it disburses….   

 

The NCJFCJ states it goes back to 1939, but its incorporation in Nevada seems to be much later.  The NCJJ, see title of this post and E Hunter Hurst III’s life’s work, above states its origins was 1973.  The JJDPA, we just saw, dates to 1974. Similar in time, (and a common topic on my blog), the “AFCC” which also serves to break down jurisdictional borders and coordinate family court policy from its own ranks — not the public’s — cites a 1963 beginning; however, as to when it incorporated?  That was in 1975, in Illinois.


 

I recently learned something very interesting about the National Center for Juvenile Justice (“NCJJ”) part of the NCJFCJ, located (unlike the other parts of this nonprofit) in Pennsylvania, not University of Nevada-Reno, and how one of its primary (founding, and board of directors leadership) individuals, 1973-2008, and having died in 2012 only, was also on the board of directors of a public-traded entity specializing in consulting to government, particularly regarding the behavioral health services.  Oddly, despite how well-known the man was in these circles, the NCJFCJ tribute failed to mention his private, for-profit business activities which would, understandably, profit from policies pushing “DIVERSIONARY SERVICES for YOUTH” as national policy.    Just bringing it up here, may publish more on it later, as time allows:

Anything seeking to be a “National Center” of a justice-related event, theme, or category, ought to be scrutinized as to funding, operations, and for conflicts of interest. But of course, we aren’t taught to do this kind of critical thinking in general — but instead to respond to journalistic reporting of events, pro or con, and argue according to the themes already framed by them.

To find, Use search terms (I”m having some trouble with pdf uploads these days, and so do not have an exact link, sorry), search “E. Hunter Hurst III, NCJFCJ” then E. Hunter Hurst III, Providence Service Corporation,” this is from a shareholders’ proxy statement (about 2009, and on page 25 of it, which lists their board of directors).  or his name, and “obituary” or “memorial”

 

Here’s NCJFCJ’s Memorial to a beloved leader of many years.  I’m posting all of it, so you can see it fails to mention =Providence Service Corporation at all. I only found it on a short memorial in the Pittsburgh Gazette, and followed up from that small bit of information.  Any chance NCJFCJ leadership had NO IDEA that he also ran a public-traded company, started in 1996 (right at PRWORA)?

  • In Memory of NCJJ Founding Director E. Hunter Hurst, III
  • June 27, 2012

    On June 19, 2012, E. Hunter Hurst, III, the founding Director of the National Center for Juvenile Justice (NCJJ), the research division of the National Council of Juvenile and Family Court Judges (NCJFCJ), passed away. Hurst was hired in 1973 as director and first employee of NCJJ in Pittsburgh.

  • “First employee of NCJJ” is a mis-statement, and its inaccuracy from such an organization has to be policy — intentional.  E Hunter Hurst III was an NCJFCJ employee as “NCJJ” is not a separate legal entity.  If an organization positioned to coach the courts themselves can’t get this straight on their own website, what does this say about how highly technical matters of law and due process might be handled?

A “center” is not necessarily an employer; to be an employer one must in this country be a corporate or government entity or “person.”  Employers pay employees wages and in the employers relationship to the IRS, write off such wages as expenses.  NCJFCJ, what’s more, is a non-profit entity, lumping “Compensation” onto a summary page, and a statement of revenues on the tax return (and occasional, depending on size, independent audit financial statements); individual employees submit tax returns.


My point here is that a page on NCJFCJ itself verbally misleads the public as to who is one of its own “divisions” by verbally elevating it to independent (from NCJFCJ) employer status!


Here’s a MacArthur Foundation (“macfound.org”) website showing their funding to NCJFCJ for this E. Hunter Hurst, III, “center” in Pittsburgh, over time.  Take a look at the size of grants, too!  They are on this page listing “Grants to the National Center for Juvenile Justice” and under that category, citing the NCJJ as part of their (famous) “Models for Change” programming.  Please pardon the quote within a quote, but here’s just one such grant:

  • $2,675,000Active Strategy

    2013 (Inactive Grant)

    Juvenile Justice

    RENO, NEVADA — The National Center for Juvenile Justice (NCJJ), which is the research arm of the National Council of Family and Juvenile Court Judges, has served as the Models for Change technical resource center in assisting state and local jurisdictions with tracking and documenting systems reform progress and outcomes. This grant will enable NCJJ to: (1) update information on Models for Change policy and practice innovations and their outcomes; and (2) develop a new website portal that will enable national tracking and monitoring of system reform efforts.

    – See more at: https://www.macfound.org/grantees/564/#sthash.vsl8JFa8.dpuf

  • Over his nearly 35 years as director, Hurst guided the development of NCJJ from an independently funded research division of NCJFCJ to a nationally renowned research, policy development, and technical assistance organization serving agencies, judges, and court personnel.
  • A native of Mississippi, Hurst began his career in Louisiana as a juvenile probation officer and later as an intake supervisor in the East Baton Rouge Parish Family Court. He moved into justice research, working for and eventually directing the National Council on Crime and Delinquency’s Survey and Planning Center in Austin, Texas, before moving with his family to Pittsburgh to found NCJJ.
  • Hurst is survived by his wife of 45 years, Suzanne, two children, Hunter IV (a research associate with NCJJ) and Jacob, and one grandchild, Hunter V.Click here to read more about E. Hunter Hurst, III as written by NCJJ. [that link seems broken at the NCJFCJ site]

I may be wrong about it NOT being an organization if something has changed recently (as in the case of Battered Women’s Justice Project having changed, in 2013, from a project of “DAIP” in Duluth, MN, to its own EIN# and legal entity, also in Minnesota).  Here’s a self-defininion from the “NCJJ.org” website.

I’m including to also point out that while E. Hunter Hurst III was its first “employee” and long-term leader, champion and developer, in fact this says it “NCJJ” was founded by a judge in 1973:

(Logo for NCJJ also reads “research division of NCJFCJ”)

“The National Center for Juvenile Justice (NCJJ), located in Pittsburgh, PA. is the research division of the National Council of Juvenile and Family Court Judges and is the oldest juvenile justice research group in the United States, having conducted national and sub national studies on crime and delinquency since 1973. NCJJ was founded by the Honorable Maurice B. Cohill, Jr., now a Senior Federal Judge in Pennsylvania’s Western District Court.

NCJJ is a private, non-profit organization### whose mission is effective justice for children and families through research and technical assistance. For four decades, NCJJ has conducted research and provided objective, factual information that professionals and decision makers in the juvenile and family justice system use to increase effectiveness.

NCJJ’s success stems from a unique blend of technical skill and practical experience that has enabled us to make complex research and statistical information understood by juvenile justice professionals and decision makers.

NCJJ’s Board of Fellows, a diverse group of dedicated judges, researchers, providers, and justice system professionals, inform our work and guide our decision-making. In addition to our funded projects, we also maintain a Research Endowment that was established by the Scaife and McCune Foundations and is used to support worthy research efforts that would otherwise not be possible.

IS IT?  Go to Pennsylvania’s business entity and charitable search websites — and find it registered as a nonprofit organization — or the IRS “Exempt Select Organizations” database.

** I also believe that “oldest juvenile research group” statement, unless the focus is on “research” — as it’s known that the “National Council on Crime and Delinquency” (NCCD, current HQ are in Oakland, California) dates back much, much earlier — 1913 as I recall, and focused originally on probation.

IS the “NCJJ” a separate entity?  I went looking at “990finder” for a tax return.  Apparently there’s some name confusion — the label does come up, but if you click through, it’s actually attached to NCJFCJ tax returns based in Reno, Nevada — not this one, in Pittsburgh PA.  (This also might explain why I didn’t find “NCJFCJ” (written out) by searching at the same site:

This search result reflects a mis-labeling (error?) by the database provider, which is the SF-based “Foundation Center,” itself a nonprofit.  EIN# 362486896 is for the National Center for Juvenile and Family Court Judges. Click organization name to see.  Incidentally, their tax year begins Oct. 1, so “2013” is actually a fiscal year 2012 return, not the most current.

ORGANIZATION NAME ST YR FORM PP TOTAL ASSETS EIN
National Center for Juvenile Justice NV 2013 990 43 $3,493,170.00 36-2486896
National Center for Juvenile Justice NV 2012 990 45 $2,505,992.00 36-2486896

From “2013” return (to see, click!) page 1, it’s clear the main revenue is contributions and the main expense is Compensation/ Salaries.  Look at the summary columns:  Took in $10.0M “contributions and grants” (that’s non-government and government, basically) and spent over 3/4 of it, $7.8M on salaries, there being 119 stated employees.  Go to Part VIII (Statement of Revenues), Line 1, and notice that $8.1 of that $10.0M is “Government grants.”  This organization as to funding is essentially a government operation — except for it being a nonprofit, nonstock corporation based in Reno, Nevada!  By being a private, nonprofit, nonstock corporation (what’s more, a membership association also), it allows private donors to weigh in and order specific funded projects — as obviously, many have.

Also, on page 2 (Program Service Accomplishments, Part III, which has Lines 4a,b,c,d to describe what they actually do), in the tiny print, squished in, here’s  section 4c, referring to this NCJJ.  I am giving you the evidence that NCJFCJ considers this Pittsburgh group’s operations, its own — and shows expenses to (minimal) revenues, and gives description:

(Code ) (Expenses $ 2,942,588 including grants of $ 0 ) (Revenue $ 411,179 )

Crime Control & Prevention Programs Research and statistics are vital components of NCJFCJ’s efforts to improve the lives of children and families Since its inception, NCJFCJ’s research division, National Center for Juvenile Justice (NCJJ), has been a resource for independent and original research on topics related directly and indirectly to the field of juvenile justice NCJJ’s work looks at the nature of juvenile justice in the U S including trends on juvenile offending and victimization, as well as the response of the justice system to these matters Through empirical research, program evaluations, and technical assistance, NCJJ’s efforts help to improve the effectiveness and fairness of juvenile justice system processing, improve the outcomes of prevention and intervention programs, and guide policy development.   NCJJ projects provided direct training/technical assistance or other services for more  than 173 judges, other court professionals and data providers through dozens of in-person trainings, on-site technical assistance visits and client/provider meetings NCJJ continues to be centrally involved in state juvenile justice reform efforts under the MacArthur Foundation’s Models for Change Initiative, providing resources and guidance to state reform efforts NCJJ also responded to hundreds of other information requests and provided information to “virtual audiences” through webinars NCJJ is the nation’s source for data on juvenile court case processing and disseminates not only court information but information on all aspects of the juvenile justice system through its website, ncjj org, and the Statistical Briefing Book site at http //www ojjdp gov/ojstatbb/ which logged more than 400,000 visits and more than two million page views during 2013 Each of the eight tools in the Easy Access family of online data analysis tools on the Statistical Briefing Book are updated every year when data become available, as are the hundreds of Frequently Asked Questions and publication resources on the site NCJJ published numerous publications throughout the year including Delinquency Cases in Juvenile Court, 2010, Delinquency Cases Waived to Criminal Court, 2010, Juvenile Court Statistics 2010, Juveniles in Residential Placement, 2010, Juvenile Residential Facility Census, 2010 Selected Findings, Juvenile Arrests 2010, Juvenile Arrests 2011, a series of briefs on Continuous Quality Improvement What is Continuous Quality Improvement?, Preparing for Continuous Quality Improvement, A Closer Look at the CQI Process, A Vision for the Future of the Program and Practice Effectiveness Toolkit (Prepared for the Pennsylvania Commission on Crime and Delinquency), and New York Juvenile Justice System Continuum Resource Mapping Final Report

In addition, NCJJ jointly publishes Criminological Highlights Children & Youth with the University of Toronto## These research summaries, released quarterly, are designed to provide an accessible look at some of the more interesting criminological research that is currently being published for those people especially interested in matters related to children and youth NCJJ staff also contributed to the following reports Sustaining Juvenile Justice System Reform A Report to the Louisiana Juvenile Justice Implementation Commission, Improving Outcomes for Dually Involved Youth in Middlesex Vicinage (the final report of the Multi-System Reform Initiative Different Roles-Common Goals**), and Benton/Franklin Counties Juvenile Justice Center Data Warehouse Grant-Final Report

## NCJJ is not an entity, so it’s NCJFCJ actually publishing jointly with the University of Toronto.  For anyone who pays attention to AFCC, it should be no secret that the overall intention is to align and standardize the justice system (anything, again, dealing with “families” which is to say, most people alive — who hasn’t got a family member, and didn’t have parents, even though all did not have children…?) that the USA is supposed to operate in synche with Canada, although Canada has a different form of government, not to mention by Commonwealth association, a monarch, and by THAT association, also a national religion…  This aligning can’t be legally done, for those who want it done, the “vehicle of choice” is through the corporate sector, specifically tax-exempt organizations.

NCJFCJ.org/Donors (notice: no years or amounts are shown on lists like this, just names, making the data less than useful on cross-checking any single tax return).

Presumably, for whatever years donations occurred, they would be recorded as “private” contributions.  At $10,000 a pop, it may look like NCJFCJ had more grassroots support than it actually does, if “private” contributions are in fact from interested parties, or their own membership.

Along with several other judges, at least one a known AFCC judge, he shows as a lifetime “Champion for Families” for having given more than $10,000.  You should see that list! (it’s in such small, light-gray font, it may not be that the powers that be actually want to call attention to who their donors are, despite posting them):

Honorable Karen S. Adam

Bradley-Turner Foundation

The Bretzlaff Foundation
Honorable Bobbe J. Bridge  [Washington State, searchable on this blog]
Honorable Susan B. Carbon [who also served recently as director of the USDOJ/OVW]
Honorable Kim Berkeley Clark
E.L. Cord Foundation
Cheryl and Steven Davidek
Deyo Family Charitable Fund
Honorable Leonard Edwards [Retired, consulting judge to California Judicial Council AOC?, and promotes AFCC policy]
The Thomas P. and Thelma B. Hart Foundation
E. Hunter Hurst, III
Roxie and Azad Joseph Foundation
Jeanne Karadanis
Honorable R. Michael Key
Honorable Michael Nash
Honorable Janice Rosa
Honorable James Seals
John Shaw Field Foundation
Maureen Sheeran
John Ben Snow Memorial Trust
Transforming Youth Recovery*
Honorable Peggy Walker

*as this is obviously some sort of nonprofit (most likely) I took a quick look and found a foundation behind a nonprofit they created only in 2013, with the theme “Transforming Youth Recovery:  One Community, One School, One Student at a Time.”

The Stacie Mathewson Foundation creates and brings together innovative and sustainable scholastic recovery communities.

We work with these communities to increase recovery success for students struggling with addiction. We use the real world experiences of students in recovery to educate the public about addiction and recovery and to erase the social stigma that blocks students and their families from seeking help.

In 2013 we created the non-profit charity, Transforming Youth Recovery.

[From a detail page, can see her interest; I’m interested, however, in the source of wealth, especially after just learning that this foundation itself was only created in 2011, as EIN# 46-1054996]]

“Stacie is both professionally and personally connected to the cause, witnessing since childhood how addiction disease can tear families apart and span generations. With the loss of a son who first faced the disease of addiction in his early adolescence, Stacie’s commitment to preventing addiction and protecting the health of our youth is unrelenting.”

Stacie Mathewson (Foundation) donates $1.9 Million to (Northern Nevada) HOPES

Northern Nevada HOPES will receive a donation of $1.9 million from Stacie Mathewson to go toward the construction of its new community health center in downtown Reno.

In recognition of this generous gift from donor Stacie Mathewson, HOPES will name its new Wellness Center, “The Stacie Mathewson Community Wellness Center.” The new Wellness Center will provide complimentary wellness services with a focus on prevention rather than treatment. The new building will expand its services to addiction treatment and recovery support with the partnership and efforts of Stacie Mathewson. …

HOPES began construction on its new three-story, 37,400 square foot medical facility in October 2014. The new community health center, expected to open in late 2015, will allow HOPES to continue its recent expansion of services, aimed at improving access to healthcare for the medically underserved in our community.

Zoominfo says Stacie Mathewson is an Alaska native but resides in Reno with her (unnamed) husband — however the foundation is registered in Solana Beach, California.

In a 2013 interview (promotion) by William L. White called “A Passion for Youth Recovery: An Interview with Stacie Mathewson,” he asked what are the sources of funding for this foundation and Transforming Youth Recovery, and got this “answer” (and no mention of her husband’s name):

Bill White: Stacie, what are the sources of money that the Foundation and TYR grant to these local efforts?

Stacie Mathewson: My husband has been very successful in business and has been involved in all kinds of philanthropic support of various charities. He has donated most of the money that we have distributed through the Foundation and TYR, but we envision a day when this effort will draw many contributors. My husband and I attend a lot of charity functions, and there are two organizations that really impress me. One is Andre Agassi’s charity for developing an inner- city school in Las Vegas.  …

Acknowledgement: Support for this interview series is provided by the Great Lakes Addiction Technology Transfer Center (ATTC) through a cooperative agreement from the Substance Abuse and Mental Health Services Administration’s (SAMHSA) Center for Substance Abuse Treatment (CSAT). The opinions expressed herein are the view of the authors and do not reflect the official position of the Department of Health and Human Services (DHHS), SAMHSA, or CSAT.

(The interview describes how, while they’re focusing on colleges for now, the intent is still to also do recovery high-schools and recovery and/or prevention K-8 schools…)

Well, I see we are dealing with the wife of professional gamer, and “chairman emeritus, investor” of “International Game Technology,” Charles N. Mathewson.  8/29/2012, “Charles N. Mathewson supports Entrepreneurship with $1 million gift.” (to University Nevada-Reno, where NCJFCJ is also located) (Nevada Today News, by Claudia Wharton):

This week, Mathewson presented a $1 million check to the University of Nevada, Reno Foundation to establish the Charles N. Mathewson Endowed Professorship in Entrepreneurship and lend additional support to expand the Entrepreneurship Program in the University’s College of Business. …

Mathewson was appointed to the IGT Board of Directors in 1985, named chairman of the board in 1986, and appointed president and chief executive officer in December that year. He led the organization until retiring as chairman of the board in October 2003. He also served as chairman of the American Gaming Association from 1994 to 2002.

Mathewson, his wife Stacie and their foundation, the Charles N. Mathewson Foundation, have been longtime supporters of the University. They contributed to the Philip G. Satre Chair in Gaming Studies in the College of Business in 2004, and in 2003, they donated $5 million for the construction of the Mathewson-IGT Knowledge Center on campus, one of the most technologically advanced libraries in the country. They continued to support the Knowledge Center with a $500,000 gift in 2008, and have also supported the University’s Davidson Mathematics and Science Center, the Division of Health Sciences and Intercollegiate Athletics

**Examined more, probably on a separate post, further on a “FOOTNOTE, NCJFCJ-featured Donor, the Stacie-Mathewson Foundation’s “Transforming Youth Recovery” as I want to reference the E. Hunter Hurst III/NCJFCJ/NASDAQ-traded public company he runs, which NCJFCJ “forgot” to mention in a recent obituary…

However, I DID just look up several tax returns associated with this “Transforming Youth Recovery” major NCJFCJ donor, came across the wife of a man who made his millions, apparently, in gaming (the state being Nevada — think about it) and came again to the conclusion that people with lots of money

  • #1, obviously wish to reduce individual income, or their company’s private corporate taxes and as such need to have tax-exempt foundations (sometimes lots of them) to store it in, and
  • #2 in exchange for “you scratch my back, I’ll scratch yours” philanthropy, are expecting to have a larger-than-lifesized voice in running public institutions (including the courts) than those who do not make enough, really, to need to warehouse in tax-exempt foundations, and have major constructions, or university centers, or community health centers, named after themselves.

My sarcastic tone might be better understood if you also look at some of those tax returns, at least ones that looks like those who filled it out might have been stoned, high, or simply just didn’t care, in submitting them to the IRS as representative of where the donations came from and went to (reference is to a TYR donee “Association of Recovery Schools” in Pennsylvania).



PROVIDENCE:

  • The company website is “prsholdings.com”  http://www.prscholdings.com/ “Creating Healthy Communities” (from the main page details):
  • Providence Service Corporation was founded in 1997 in response to increasing government initiatives to privatize human services. We specialize in providing direct services  adults, families and the elderly with medical health needs, as well as those supervised by government subsidized programs like Managed Medicaid and Medicare Advantage members, in their homes or through community-based resources.
  • From a  statement to shareholders found on the web, a proxy statement to shareholders, in advance an upcoming meeting (vote on board of directors) [“PROVIDENCE SERVICE CORP filed this Form PREC14A on 04/17/2009, that is, “UNITED STATES SECURITIES AND EXCHANGE COMMISSION… SCHEDULE 14A INFORMATION, Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934.”]]
  • The following is a brief summary of the background of each director and director nominee:
    • Hunter Hurst, III (1)(2)(3)
    • Fletcher Jay McCusker
    • Kristi L. Meints (1)(2)(3)(5)
    • Craig A. Norris
    • Warren S. Rustand (1)(2)(3)(4)
    • Richard Singleton

    Hunter Hurst, III has served as our director since December 1996 and chairperson of the nominating and corporate governance committee of our board of directors since May 2005. Mr. Hurst has served as Director of the National Center for Juvenile Justice from its founding in 1973 until his retirement in May 2008. The Center (NCJJ) is the leading resource for juvenile justice research and statistics in the western hemisphere. He has directed over thirty applied research studies and has authored numerous publications relating to juvenile issues. He received his bachelor’s degree in psychology and master’s degree in social work from Louisiana State University in 1960 and 1965, respectively.

    Fletcher Jay McCusker has served as our chairman of the board of directors and chief executive officer since our company was founded in December 1996. Prior to founding our company, Mr. McCusker served as executive vice president of Youth Services International, Inc., a Nasdaq listed company that provided private institutional care for at-risk youth, from July 1995 until December 1996. From September 1992 until July 1995, he served as chief executive officer of Introspect Healthcare Corporation, a large multi-state behavioral health provider. In 1983, Mr. McCusker co-founded a mental health care company, Century Healthcare, which was sold to New York Stock Exchange listed Columbia Healthcare in 1992. Mr. McCusker received a bachelor’s degree in rehabilitation from the University of Arizona in 1974 and completed the public programs graduate program without a terminal degree at Arizona State University in 1982.

  • and, another one, Craig A. Norris is involved with a group probably taking HHS fatherhood funding:
  • Craig A. Norris has served as our director since November 2008 and as our chief operating officer since April 2004 and as president, eastern division, from May 1998 to March 2004. Prior to joining our company, Mr. Norris served as the chief operating officer of Parents and Children Together, Inc., a home based counseling provider from June 1994 until April 1998, which we acquired in February 1997. Mr. Norris was employed as a psychotherapist for the Arizona Department of Health from December 1992 until June 1994. Mr. Norris was a treatment coordinator for the Arizona Center for Clinical Management, a managed care behavioral health care provider for southern Arizona, from May 1992 until December 1992. Mr. Norris received a bachelor’s degree in psychology from the University of Arizona in 1989 and dual master’s degrees in counseling and organizational management from the University of Phoenix in 1993 and 1996, respectively.
  • From the company’s website, “Investors” we see that stock is trading (at least today) at $43+/common share.
  • From the company’s recent press releases, here is a new board of directors with direct Bush Administration connection to Centers for Medicare/Medicaid Services, and an Ivy League undergraduate,
    George Mason University (Virginia) J.D., etc.
Providence Service Corporation Announces Appointment of Leslie V. Norwalk to its Board of Directors (November 15, 2015)
TUCSON, Ariz., Nov. 5, 2015 /PRNewswire/ — The Providence Service Corporation (Nasdaq: PRSC) today announced the appointment of Leslie V. Norwalk to the Company’s Board of Directors …Ms. Norwalk, age 49, is currently Strategic Counsel to Epstein Becker & Green, P.C.

Previously, Ms. Norwalk served the Bush Administration as the Acting Administrator for the Centers for Medicare & Medicaid Services (CMS), where she managed the operations of federal health care programs, including Medicare and Medicaid.  For the four years prior to that, she was the agency’s Deputy Administrator.

Prior to serving the Bush Administration, Ms. Norwalk practiced law with Epstein Becker & Green, P.C. where she advised clients on a variety of healthcare policy matters.  She also served the first Bush administration in the White House Office of Presidential Personnel and the Office of the U.S. Trade Representative.

Ms. Norwalk is currently a director on the public company boards of NuVasive Inc., Press Ganey Holdings, Inc. andEndologix, Inc.  She also serves as an Advisor to Warburg Pincus, Enhanced Equity and Peloton Equity.  She earned a J.D. from George Mason University School of Law and a bachelor’s degree from Wellesley College.

The addition of Ms. Norwalk to the Providence Board of Directors increases the number of directors to five.  Ms. Norwalk will serve on the audit, compensation, and nominating and governance committees….

  • From, again, same website, “Press Releases,” in fall 2015, two wholly-owned subsidiaries involving “Behavioral Health” were sold off to a group in Long Beach, California (Long Beach is right near or next to Los Angeles, i.e., Southern Cal):
Molina Healthcare to Acquire Providence Human Services and Providence Community Services, the Behavioral and Mental Health Subsidiaries of the Providence Service Corporation
LONG BEACH, Calif. & TUCSON, Ariz.–(BUSINESS WIRE)–Molina Healthcare, Inc. (NYSE: MOH) and The Providence Service Corporation (NASDAQ: PRSC) together announced today that the parties have entered into a definitive agreement whereby Molina Healthcare will acquire all the outstanding ownership interests of Providence Human Services, LLC (PHS) and Providence Community Services, LLC (PCS), both wholly owned subsidiaries of The Providence Service Corporation. Under the terms of the acquisition agreement, Molina will pay The Providence Service Corporation approximately $200 million upon the closing of the transaction, which will be subject to customary working capital adjustments. Molina intends to fund the transaction with available cash on its balance sheet. The transaction is expected to close during the fourth quarter of 2015, subject to regulatory approvals and the satisfaction of other closing conditions.

PHS is one of the largest national providers of accessible, outcome-based behavioral and mental health services and operates in 23 states and the District of Columbia. PHS’ broad national footprint is deployed on a local level enabling it to effectively target specific needs in diverse geographies. PHS generated revenue of approximately $346 million for 2014.

Providence intends to use 50% of the net cash proceeds from the transaction to prepay certain loans under its existing credit facility. Subject to additional management evaluation of market and business conditions, share price and other factors and evaluation and approval by Providence’s Board of Directors, the remaining net proceeds of the transaction may be used for acquisitions, investments in the long-term development of the Company’s other segments and the return of capital to stockholders through a share buyback program, among other uses.



Molina Healthcare’s financial advisor is UBS Investment Bank and its legal advisor is Sheppard Mullin Richter & Hampton LLP. The Providence Service Corporation’s financial advisor is Moelis & Company LLC and its legal advisor is Paul Hastings LLP.

About Molina Healthcare, Inc.

Molina Healthcare, Inc., a FORTUNE 500 company, provides managed health care services under the Medicaid and Medicare programs and through the state insurance marketplaces. Through our locally operated health plans in 11 states across the nation and in the Commonwealth of Puerto Rico, Molina serves approximately 3.4 million members. Dr. C. David Molina founded our company in 1980 as a provider organization serving low-income families in Southern California. Today, we continue his mission of providing high quality and cost-effective health care to those who need it most. For more information about Molina Healthcare, please visit our website at molinahealthcare.com.

About Providence Human Services, LLC

Providence Human Services provides accessible, high-quality, outcome-based behavioral/mental health and social services predominately through Medicaid programs and serves as an alternative to traditional higher-cost institutional care. The Company is dedicated to ensuring that all clients have access to professional community-based care, proven treatment methods and comprehensive service planning.

 

Below here, “Gratuitous Posting” (not essential to the post) and some more Food for Thought on Moelis & Company (Providence’s Financial Advisor for latest Subsidiary sell-off):

I took a quick look at “Moelis & Company” Financial Advisors. Good Grief, this is an (international) investment bank formed only in 2007 and in part starting to remind me of BCCI!

Look at Moelis Background, and have some “clickable fun” with this Wikipedia!!  Realizing that Wiki may not be the most reliable source of information, it does at least provide some identifying (searchable) phrases for most organizations:

Moelis & Company is an American multinational investment bank that provides financial advisory services to corporations, governments and financial sponsors. The firm advises on strategic decisions such as mergers and acquisitionsrecapitalizations and restructurings and other corporate finance matters.[2]

It was founded in 2007 and is headquartered in New York, with 17 offices in North and South America, Europe, the Middle East, Asia and Australia.[3] It has 650 employees including 450 investment bankers. Of the 100 managing directors, averaging more than 20 years of experience each, 66 are former sector and product heads.[2]


Moelis operates from 17 offices globally across North and South America, Europe, the Middle East, Asia and Australia:[13]

ChinaBeijing
United StatesBoston
United StatesChicago
United Arab EmiratesDubai
GermanyFrankfurt
Hong KongHong Kong
United StatesHouston
JapanJapan*
United KingdomLondon
United StatesLos Angeles
AustraliaMelbourne
IndiaMumbai
United StatesNew York
United StatesPalo Alto
FranceParis
BrazilSão Paulo
AustraliaSydney
United StatesWashington D.C.

*Strategic Alliance with SMBC and SMBC Nikko

History[edit]

Moelis was founded in July 2007 by Ken Moelis and partners including Navid Mahmoodzadegan and Jeffrey Raich.[14] The firm opened in New York and Los Angeles, and became a top 10 ranked M&A advisor in the US in its first full year of operations,[15] advising on transactions such as Anheuser-Busch‘s $61.2 billion sale to InBev, Yahoo‘s defense from Microsoft‘s $44.6 billion unsolicited proposal, and Hilton Hotels‘ $26.5 billion sale to The Blackstone Group.[12]

In July 2008, Moelis opened its restructuring practice by hiring the co-heads of Jefferies‘ restructuring[16] and advising on the $22.2 billion reorganization of Delphi Automotive, and the $29.6 billion reorganization of AMR Corp and $17.0 billion merger with US Airways Group. Matthew Prest, the restructuring head of European corporate finance firm Close Brothers,[17][18] soon followed with his team to join Moelis in London.[19]Early European restructuring mandates included the £1.5 billion recapitalization of the Co-operative Bank and the €15.4 billion restructuring of Glitnir.[20] The firm also advised the Hellenic Financial Stability Fund on the €29.0 billion recapitalization of the Greek banking system.[12]

In June 2009 Mark Aedy joined Moelis as head of EMEA Investment Banking based in the London office.[21] Early mandates in Europe included advising Natixis on the £30.0 billion disposal of most of its complex credit derivative portfolio.[12] In August 2009 Moelis opened an office in Sydney, Australia, led by a team from JP Morgan.[22] …


<style=”background-color: yellow;”>By September 2014, they have former Congressman Eric Cantor on board and open a Washington D.C. office.  Just take a look at the 2012, 2013, 2014, and 2015 activities, then ask how is it that an NCJFCJ-affiliated (so to speak) NASDAQ-traded corporation that hired entities like Moelis & Company to advise as to its sell-offs of some subsidiaries — didn’t rate a passing mention on E. Hunter Hurst III’s NCJFCJ obituary.  And, there’s a son working for “NCJJ” also, it says…

The firm opened a Dubai office in January 2011[24] while advising the Government of Dubai on the $24.9 billion restructuring of its investment holding company, Dubai World.[12] The firm also expanded into Asia by opening a Hong Kong office.[25] In June 2011, the Global Advisory Board was formed with the appointment of five members.[26] The advisory chairman is Lord Charles Allen.[14] In January 2011, the firm advised Hugh Hefner on the buyout of Playboy Enterprises.[12]

In January 2012, Moelis announced a strategic alliance agreement with the second largest Japanese bank, SMBC and its subsidiary SMBC Nikko; SMBC also invested approximately $93 million in Moelis.[27] Together they have advised on significant cross-border M&A, including Osaka Securities Exchange‘s ¥278.4 billion combination with the Tokyo Stock Exchange, a deal led by Caroline Silver.

For 2013, Moelis entered India’s top 10 M&A league tables with a 6% market share, overtaking established players such as Goldman Sachs and Rothschild in the first full year of operations.[28] The Indian office is headed by Manisha Girotra and focuses on cross-border M&A such as the $1.8 billion sale of Agila Specialties to Mylan.[29][30][31]In early 2013, Moelis advised Omnicom on the $35.1 billion merger with Publicis to form Publicis Omnicom; the deal was conspicuous due to the total absence of a bulge bracket investment bank (due to the lack of financing requirements) and being kept secret despite being highly transformative, with credit given to Moelis’ Geoffrey Austin.[32][33]

In March 2014, the firm expanded into South America, opening an office in São Paulo, Brazil.[34] Soon after, Moelis advised Brazilian oil giant Petrobras on $127.0 billion in capital markets and debt markets strategies.[35]In April 2014, the firm completed its initial public offering and began trading on the New York Stock Exchange.[36] Moelis had advised on over $1 trillion in transactions by the time of its IPO.[37] Employees maintain ownership of the majority of the company.[8] In June 2014, Moelis established a private funds advisory business with four hires, including Dave Brown.[38]

In February 2015, the firm opened its Washington DC office, following the hire of Eric Cantor, former House Majority Leader, in September 2014.[39] It was reported in November 2015 that Cantor had helped the firm land an advisory role on Pfizer’s $160.0 billion combination with Allergan, the largest healthcare deal ever and the largest deal of 2015.[40] Other notable deals in 2015 included advising the British government’s UK Financial Investments on UK Asset Resolution‘s £13.0 billion sale of an asset portfolio to affiliates of Cerberus Capital Management, advising EMC Corporation on the $67.0 billion acquisition by Dell, and advising on Hutchison Whampoa‘s £10.3 billion acquisition of O2 UK.[12]

<style=”background-color: yellow;”>GOOD GRIEF.  Here’s Moelis’ background:  He’s University of Pennsylvania Wharton School of Business and it looks like at least 2nd generation corporate wealth, and obviously knows it:

His first major employment at Drexel Burnham Lambert, well, they were involved in junk bonds ca. 1990s and  went into bankruptcy…Notice also on the post, his sister’s ties to the White House (Obama), and so forth:

Early life and education[edit]

Moelis was born in 1958,[2] the son of Gaye (née Gross) and Herbert I. Moelis, president of Equity Leasing Corporation, an office equipment company in New York, of which his grandfather, Paul I. Gross was its retired president.[3]

Put another way, his father married into the Gross family wealth.  However, no question his father was plenty smart, and had his own fine sense of business — Grduated Wharton, 1953, NYU School of law, 1956 (Ken Moelis born 1958), 30 years as tax lawyer and CPA, investing in thoroughbreds with his wife.  Notice from this bio they teach their family grantmaking from an early age, and grandchildren (!!) are eligible to become Moelis Family Foundation Board Members at the age of 8:

http://www.tca.org/articles/herb-moelis.html
Originally from New York, Herb Moelis graduated from the Wharton School of the University of Pennsylvania in 1953. He then earned a Law degree and graduate degree (LL.M) in Taxation from New York University Law School in 1956. With this education he established a career as a CPA and Tax Attorney for approximately 30 years, retiring from practice and relocating to Delaware in 1986.


A long-time dream, at CandyLand Farm in Delaware, Herb, together with his wife Ellen, began to breed thoroughbreds from a broodmare band of about 20 mares. They breed for sale at auction and also to race. In 1988 on the advice of pedigree guru, Bob Fierro, they claimed a two year old filly named Redeemer for $20,000. The filly is a decendant of La Troienne and had earned $55,000 as a two year old. Unfortunately, when Redeemer was brought back to the farm she injured herself in a paddock accident and was retired. Shortly after, her half sister, Lite Light came on the scene and the rest is history. One of the first progeny from Redeemer was a colt by Houston who was the top selling colt in the 1993 Saratoga sale.


…In 1990 Herb and Ellen, together with their good friend, neighbor and renowned horsewoman, Allaire duPont, initiated the idea of a Stallion Season Auction as a way to raise money to benefit various thoroughbred charities, including horse rescue, education and research. The first auction in 1990 was for the sole benefit of the Thoroughbred Retirement Foundation and was attended by 20 people and raised $15,000. In 1997 Thoroughbred Charities of America (“TCA”) was formed to conduct the auction so the funds could be distributed to the many retirement and rescue groups operating throughout the country. To date, nearly $10,000,000 has been raised and distributed to more than 125 thoroughbred-related charities.

In addition to TCA, Herb and Ellen established The Moelis Family Foundation which is involved in granting funds to charities involved in medical research, animal welfare, and children’s causes including health and education. This is a family venture designed to introduce the concept of charity to the members of the Moelis family at a young age. The 10 Moelis grandchildren became eligible for the Junior Board of the Moelis Family Foundation at age eight and were then included in all discussions relating to grants.

An article in “Wharton Magazine” features four families loyal to Wharton — including the Moelis family. There are three generations (Ken, his wife Julie, his father, his sons) not to mention Ken’s sister Cindy. Take a read! Within first, second and third generations also — they are being trained in finances. Family Tree posted at the website:

Wharton magazine (UPennsylvania) shows three generations of graduates in the Moelis Family.

Their sons Jordan, W’09, WG’10, a research analyst for a hedge fund in New York, and Cory, W’11, an Internet entrepreneur, frequently engage their parents and grandfather, Herbert, W’53, in discussions about such memories—and how their collective Penn experiences span nearly 60 years. Like his father, Jordan says his parents didn’t expect him to attend Penn. He was already passionate about business, he says, but having “two enthusiastic Wharton fans living in my house certainly didn’t hurt.” …

 

His father is also a breeder of thoroughbred race horses at his CandyLand Stables in Middletown, Delaware.[4]Moelis holds a Bachelor of Science in Economics and a Masters of Business Administration from the Wharton School of the University of Pennsylvania.[5]

Career[edit]

Moelis began his career at Drexel Burnham Lambert in 1981 where he would ultimately serve as a managing director working for Michael Milken in the firm’s Los Angeles office. Following the collapse of Drexel, Moelis left with a portion of his team to join Donaldson Lufkin & Jenrette where he served as head of its corporate finance investment banking division.[6] Under Moelis, DLJ emerged as a prominent investment banking firm in Los Angeles in the 1990s.[7][8]

Following the acquisition of DLJ by Credit Suisse First Boston in 2000, Moelis was named head of US investment banking of the combined firm in September 2000.[9] However, his tenure at CSFB would be short, announcing his departure for UBS (then known as UBS Warburg) just months later taking the core of his team with him, including a number that would later join Moelis & Company.[10][11]Moelis recruited more than 70 senior investment bankers to UBS within three months of his arrival.[12]

In his six years at UBS, Moelis ultimately assumed the role of president of UBS Investment Bank and was credited with the build-out of UBS’s investment banking operation in the United States. By the end of 2006, UBS was ranked Top 4 in the global fee pool for the first time.[13]

Moelis founded Moelis & Company along with several fellow senior UBS investment bankers that included Navid Mahmoodzadegan, Jeff Raich, John Momtazee, Todd Wadler, Elizabeth Crain and Warren Woo.[14][15][16] Moelis’s departure was caused primarily by repeated conflict over the company’s inflexible bureaucracy.

THis article is on Moelis& Company’s IPO in December.  “Bloomberg.Com” “Ex-UBS Banker Moelis worth $386 Million if IPO Succeeds” 4/14/2014 by Zeke Faux and Laura Marcinek

Kenneth Moelis owns an apartment at New York’s Plaza Hotel, a 15,249-square-foot mansion in Beverly Hills and an investment bank that’s going to make him very rich later this month.

When Moelis & Co. sells shares to the public, the merger advisory firm’s founder will own stock worth about $386 million with another $100 million in trust for his family, according to a filing. Robert Greenhill, who started a rival firm, has built a net worth of at least $550 million since his firm went public a decade ago, data compiled by Bloomberg show.

While it’s not quite WhatsApp Inc. wealth, the fortunes show why top bankers leave Wall Street’s biggest firms to advise companies on their own. Moelis, 55, who worked for Carl Icahn, Donald Trump and Steve Wynn, is seeking a valuation as high as $1.58 billion for the firm he started seven years ago after leaving UBS AG. The initial public offering probably will be priced later this month. …

Companies pay the bankers for advice on mergers and acquisitions, with fees sometimes topping $10 million for a single deal. With just 317 bankers, Moelis & Co. took in $411.4 million of revenue in 2013. It advised HJ Heinz Co. on its $28.8 billion takeover by a group including Warren Buffett’s Berkshire Hathaway Inc.

IPO Price

The value of Kenneth Moelis’s holdings is based on the $29 a share price at the high end of the range specified in his firm’s prospectus. Navid Mahmoodzadegan, who quit his job as a media banker at UBS to join Moelis in 2007, has stock worth $119.2 million at that price.

LA Times Article in 2008 points out that Moelis’ first Wall Street job (and wealthy entrepreneurs using the firm) was under Drexel Burnham Lambert — and junk bond trader and under-writer.  h=He talks about the California “home-court”advantage” and building relationships:

Star banker shines as industry flags

L.A.-based Ken Moelis has had a storied career on Wall Street. Longtime ties help him thrive.

August 05, 2008|Tom Petruno | Times Staff Writer Wall Street’s most drastic upheaval in decades has become the opportunity of a lifetime for Ken Moelis.

Although he has kept a relatively low public profile, Moelis is one of the most successful U.S. investment bankers of the last 20 years. He has been financial consigliere to some of the nation’s wealthiest entrepreneurs, including Donald Trump, Steve Wynn, John Kluge and Ron Burkle.

But the 50-year-old Moelis, who has lived in Los Angeles since 1984, had always worked under someone else’s shingle: Drexel Burnham Lambert in the 1980s, Donaldson, Lufkin & Jenrette in the ’90s and Swiss giant UBS beginning in 2000.

Last year, he left UBS to open his own shop in L.A. His timing, it turned out, couldn’t have been better. …. As the financial services industry’s titans reel from disastrous losses on mortgage-related securities, Moelis’ new firm is booming.

While investment banking jobs have been axed by the thousands, Moelis has built a staff of 130 in a year, and he expects head count to rise to 160 by year’s end. Besides its headquarters in Century City, Moelis & Co. has opened offices in New York, Boston and Chicago, and is looking overseas.

The firm is flush with start-up capital, and business has been pouring in — in part reflecting the vast network of corporate heavyweights who have sought out Moelis for advice over the last two decades. Many have followed him to his own firm.

In the last year, such companies as Yahoo Inc., Hilton Hotels Corp., Anheuser-Busch Cos. and Invitrogen Corp. have tapped Moelis & Co. for guidance on merger …

He was working for (mentored by?) a guy that pled guilty to securities violations in the 1990s, leading to the downfall of that firm!

Moelis, who grew up in New Rochelle, N.Y., says he fell into investment banking by accident. “My mother wanted me to be a doctor,” he said.

He chose the University of Pennsylvania’s Wharton business school and got his MBA in 1981. With financial markets just coming out of their funk of the 1970s, Moelis began looking for work on Wall Street. He landed a job at Drexel Burnham Lambert, then a little-known boutique investment bank.

Drexel, of course, mushroomed into the leading underwriter and trader of junk bonds under Michael Milken. Moelis began to work on deals for the growing roster of entrepreneurs whose empires were built with Milken’s junk-bond financing: Ted Turner, Steve Wynn and Ron Burkle, among others.

Moelis transferred from Drexel’s New York office to Milken’s base on Wilshire Boulevard in 1984, although by then Milken was primarily focused on managing the firm’s huge trading operations.

After Milken’s guilty pleas to securities violations in 1990 led to Drexel’s collapse, Moelis and a cadre of other bankers moved to the Century City office of Donaldson, Lufkin & Jenrette, a New York-based banking firm that saw a chance to substantially boost its West Coast presence in one fell swoop.

By 2000, when DLJ merged with Credit Suisse, Moelis’ reputation for savvy deal-making and his client roster both were enormous. He said he considered launching his own shop but instead saw an opportunity at UBS, which had a relatively small footprint in the U.S. investment banking business.

Moelis took his core of bankers from DLJ and jumped to UBS. By 2005, after reaping the benefits of his rain-making, UBS named him head of its investment bank.

But Moelis chafed under UBS’ cumbersome corporate structure and resigned last year.

 

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