Report reveals Sheriff in Tennessee indicted for benefiting from inmate labor

A report has found that a sheriff from Tennessee has been indicted for profiting from inmate labor.

The location of the news story is Gibson County, Tennessee, as reported by WZTV.

An investigation has revealed that a sheriff from Gibson County has been indicted on multiple counts for benefiting from the labor and care of inmates in Tennessee.

According to a report released by the Tennessee Comptroller’s Office, Sheriff Paul Thomas, who has been serving as the sheriff since 2014, has been found guilty of exploiting the labor of inmates from Gibson County and the Tennessee Department of Correction (TDOC) for his own benefit as well as the benefit of a select group of investors.

The photo from the Tennessee Comptroller’s Office shows a sheriff who has been indicted for allegedly profiting from inmate labor.

According to the report, Thomas and a group of local investors established the Alliance Group in 2020 as a trio of for-profit businesses. The Alliance Group provided staffing assistance to nearby companies, offered transitional housing for current and former inmates, and organized transportation for work-release and former inmates commuting to and from work.

During the period spanning from February 2020 to October 2022, it was discovered by investigators that Thomas had directed a total of $1,417,204.06 in inmate wage fees and deductions towards benefiting the Alliance Group.

Furthermore, Alliance provided Thomas with $181,644.50 in compensation, payroll benefits, and legal representation services, as revealed by the investigation. This amount was obtained through inmate labor.

According to reports, it is claimed that he possessed a 20% stake in Alliance, however, state regulations forbid him from gaining any profits or advantages from the work of prisoners.

“Our investigators identified multiple deficiencies within the sheriff’s office that coincided with this scheme,” said Comptroller Mumpower. “We also learned that Sheriff Thomas failed to disclose his ownership interest in Alliance in his annual filings with the Tennessee Ethics Commission and violated his duty to secure and properly guard inmates until they were lawfully discharged.”

According to the report, Thomas had custody of a minimum of 170 inmates who were employed by the Alliance staffing agency during the investigation.

According to the report, Alliance Transportation received a payment of $18 per day for transporting the inmates to and from work. Furthermore, the investigation revealed that 82 inmates were residing at Orchard House, a transitional home, instead of the Gibson County jail. This was done without proper approval, and Orchard House charged them $40 per day.

Thomas stands accused of deceiving the TDOC by allowing 74 inmates from Gibson County jail to be housed at Orchard House without obtaining a judge’s necessary approval. The matter pertains to inmate housing and has brought allegations against Thomas.

The jail management system mistakenly believed that these inmates were still housed in the facility, which led to the county receiving a total of $507,273 in reimbursements from TDOC.

According to the report, Thomas compelled the county to release the funds to Orchard House without the knowledge or consent of TDOC. This was done despite the fact that the transitional home was not associated with the jail or operated by jail staff, and there was no contractual agreement between the county and Orchard House.

It was discovered during the investigation that Thomas had mishandled the wages earned by inmates who worked for Alliance. He had directed a sum of $448,637.09 to be deposited into a personal account that belonged to the Alliance Group, which was clearly an improper action.

In May 2024, Paul Thomas faced indictment from both the Davidson and Gibson County Grand Juries on a total of 22 charges, which include theft, forgery, computer crimes, and official misconduct. This investigation led to the charges being brought against him.

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