Invest in Private Prisons and Get Tough on Crime

By Anna Mercury

Thanks to one of our commenters, Frank Report has learned about and is pleased to offer our readers a unique opportunity: Invest in a private prison. And no, I do not mean a dungeon in the basement to lock your slaves in like Keith Raniere did. I mean a real, genuine prison, not unlike the one where Raniere is residing.

Mr. Dallas Liam is our investment guru.  His Twitter handle is @prisoninvestor1.

He can show you how to make crime pay. I  had the pleasure of interviewing him, and it was informative and inspiring.

Hello Dallas. Crime rates are skyrocketing along with inflation. Conservatives are promising more law and order. Would you agree that prisons seem to be a good investment over the next couple of years?

Private prisons are the single most outstanding real estate investment vehicle around. I’ve owned and operated private prisons for over two decades. Owning a prison gives an investor a recurring and predictable high-margin revenue stream. The government contracts are long-term in nature and very lucrative. I have managed to make over $35k per prisoner annually.

A little financial breakdown will help readers determine if this is a suitable investment.

I purchased the Eagle Nest Facility in 2008. The total cost was $30 million with 25% down ($7.5 million).

Buying used is better than building new?
Building a new prison is more than $150k per bed. However, the Eagle Nest facility has 1,200 beds implying a cost per bed of only $25,000.
How did you manage operations?

I entered into a perpetual contract with the United States Marshall Services at $20 million with 5% escalators per year. As a result, we generated $5 million in free cash flow in the first year, a 67% cash on cash return.

That’s a coup getting the US Marshal’s Office to run a state prison. Can you tell us about profit margins?

Prison owners get paid per person. The more people, the more money. Here are the economics per person:
– $100/day per person in revenues
– $25/day per person in variable cost
– $35/day per person fixed costs
– $40/day per person in straight margin

Do you factor in costs associated with lobbying and incentivizing legislators to pass laws and increase prison sentences?

To increase my cash flow, I spent a significant amount of money on lobbying efforts to win a judge who was hard on crime. This investment paid off by the end of year two. The judge sent most young men (higher margin than older men) to my facility to pay me back. As a result, cash flow went up 3x.

So your judge screened for and provided higher-margin long-term tenants with limited propensity to move?
It costs twice as much to incarcerate the elderly as it does for younger prisoners.
So how did your investment in the judge work out?

By year four, cash flows were $15 million at 95% occupancy. To maximize my investment, I started to market the facility to outside investors. We sold the facility to private equity for 10x cash flow or $150 million halfway through year four.

I turned $7.5 million into a clean $150 million in four years.

What did you do with the profits?

I reinvested in other prisons across the southern states. As a result, today, I manage an investment portfolio of over $1.5 billion in prison real estate.

What does one need to know when choosing a prison?

Focus on states that are “hard on crime.”

Are there any premiums for the death penalty? Or because death row prisoners can’t work, are they less profitable?

You have to utilize the prison labor force to generate ancillary revenues with incredibly high margins. Death row prisoners are inert. Costs are too high.

Have you ever thought about putting prisoners on treadmills and using the electricity to mine bitcoin?

If we could get a 110-125% of cost government grant, it might make sense as a low-risk, high reward enterprise.

What advice would you give someone looking to buy their first prison?  Other than don’t try before you buy.

Reduce overhead. Intelligent reduction of food costs combined with increasing margins in the commissary can be a real net line booster.
Bread and water?

All prisons get their mandated calories with refined carbohydrates and sugar. But when we took over one of our prisons, the old administration was spending $3 per person a day for meals, and the commissary was making less than $75,000 per month. Substitute soy for chicken. Five meals per week consisting of a bologna sandwich and a piece of fruit. Our costs went down to $1.75 per day and our commissary began to net over $100,000 per month.

But sometimes there is a tradeoff. In one of the southern cities where we had a prison, the local judge had an interest in a catering company and we arranged for his company to get the contract for food even though it increased our cost to more than $4 per day per prisoner. Yet convicts getting probation became non-existent in his court. Sentences went up 40 percent.  You are nothing if you do not work with judges and the local sheriff. It is amazing how many lazy deputies lag behind in arrests.

But everything is dependent on tenancy. What does one do to ensure they have a high occupancy rate? Get local radio stations to play gangster rap?

Become best friends with judges. For example, if a judge sentences 100 convicts a year and gives them just two more years each on their sentence, that’s 200 extra years of prison at $35,000 per prisoner. That’s $7 million.

Would you say prisons are an inflation hedge since rising costs often lead more people into poverty, and poverty increases crime?
A lot of factors increase crime.
I
But how do you future-proof the supply of inmates? What if crime went down? If wages rise too much versus the cost of living, I would think this would depress crime rates.  Is it possible to enhance profits by introducing, for instance, cheap fentanyl and unregistered firearms into the communities, with police and federal cooperation?
The profit margins for the prison-judicial industrial complex make it impossible for crime to diminish. Too much of our economy depends on the prison system, especially the slavery exemption, which provides nearly cost-free labor.
Antebellum slavery was an economic system for-profit, not a system of oppression. So when the USA made plantation-style, race-based slavery illegal with the ratification of the 13th Amendment, they carved out an exception that made judicial slavery legal.
“Neither slavery nor involuntary servitude, except as a punishment for crime whereof the party shall have been duly convicted, shall exist within the United States.”
It worked out that the same race of people who descended from slavery now make up the most incarcerated. so it is not like the south has anything to complain about really.
It is capitalism.

Still, some of the “woke” will say what you are doing is placing profits above everything else. What do you say to that?
You should see my bank account.
It is a recurring and predictable stream of high-margin revenue, which a savvy investor looks for. So what do you say about the woke people? They think you are immoral for making money by exploiting generational trauma and an antiquated criminal justice system.
We are built differently.
Have you ever spent a night at one of your prisons to see what it’s like and what might need fixing?
If it isn’t broken, it doesn’t need fixing. My for-profit prisons are more efficient than the prisons run by the federal government.
Environmental, social, and corporate governance or ESG is an approach to evaluating the extent to which a corporation works on behalf of social goals that go beyond the role of a corporation to maximize profits on behalf of the corporation’s shareholders.  Have you completed an ESG impact statement?
Only public companies that are trying to look good complete ESG impact statements.

You do help people get food and shelter.
The government saves money; the taxpayer saves money; the community stays safe; the judge gets appointed to higher courts, insurance and pension funds get a low risk, high yield place to put their money.
Outsourcing is a win-win for everyone!

Private prisons are one of the most overlooked and undervalued real estate vehicles. Yet, with a bit of sweat equity and American entrepreneurship, you can become extremely wealthy through this passive investment.

The greatest thing about this business is that I have never paid taxes on any of my millions because of the unique U.S. tax law of depreciation on real estate and 1031 gains. In addition, I received $35 million in PPP loans that were forgiven. Greatest business ever.

 

 

 

About the author

Anna Mercury

20 Comments

Click here to post a comment

Please leave a comment: Your opinion is important to us! (Email & username are optional)

  • I am still trying to discern whether this is satire, or if you are just really sick in the head. Profiting from, and incentivizing incarceration is disgusting.

    • Yeah i just found this site through seeing this twitter thread posted on a FB group i’m part of and the whole thing seemed sketchy so i googled it. like this is how private prisons function sure, but this guy called “prinsonvenstor1” publicly revealing this? I don’t buy that this guy is real, or this “interview” and this reads like satire to me also

  • What is wrong with you? Giving a tool like that joker Liam a forum is almost criminal. Make friends with judges to get longer sentences? If that doesn’t skirt an ethical line, what would? Shameful.

  • Love this article. This is what needs to be taught in school– how the world REALLY works– and how to make millions with government deals that serve to harm the American public. Deals that encourage punishment, brutality, and return of profit at the expense of humanity.

    Regrettably, we are so indoctrinated and do the same to our children, that a lifetime passes before the truth is seen. Examples like this would go a long way. Thanks for writing about it.

  • It’s interesting that “Anna Mercury” is both a defender of Nicki Clyne and a persona that posts about prisons.

  • I’d like to see how he feels and if he were locked up in one of his own prisons.

    Would he still put his profit above his health, safety and education?

    Would he ask to have 2 years added on to his sentence to increase his profit?

  • Anna:
    Here is your first inmate for your private prison.

    Ed Buck sentenced to 30 years in prison for abuses that led to men’s drug deaths

    Ed Buck, once a fixture of West Hollywood’s political scene, was sentenced Thursday to 30 years in prison for drug and sex crimes that included providing lethal doses of methamphetamine to two men.

    To the outside world, Buck was a champion of causes such as fur bans and AIDS awareness, and a donor to Democratic officeholders.

    But behind the walls of his Laurel Avenue apartment was a nightmare. For nearly a decade, the wealthy, white Buck lured young Black men at the lowest points in their lives — homeless, addicted, resorting to subsistence-level sex work — into what he called “party and play” sessions.

    Amid squalor that belied his reputation as a man who had achieved great wealth at a young age, Buck plied the men with drugs and then sexually assaulted them while they were unconscious or immobile. In two cases, he injected his victims with fatal amounts of methamphetamine.

    A jury convicted Buck last year of a host of felonies, including distributing methamphetamine resulting in death and enticement to cross state lines to engage in prostitution.

    In the lead-up to Thursday’s sentencing at the federal courthouse in downtown Los Angeles, Buck’s lawyers had asked that the 67-year-old receive a sentence that would one day allow him to return to society, while prosecutors urged U.S. District Judge Christina A. Snyder to send Buck to prison for the rest of his life. Such a sentence was needed not only to punish Buck, they argued, but to protect the public.

    “If Buck were ever released,” they wrote, “he would feed his compulsion to inject others until the day he died.”

    On Thursday, Chelsea Norell, an assistant U.S. attorney, reiterated the need to put Buck behind bars for good, telling Snyder: “One death is a tragedy, but two is a pattern.”

    Buck, speaking in a low, raspy voice, offered his “condolences” to the families of his victims but denied he had caused their deaths. Describing how he had spent much of his life advocating for political causes and gay and animal rights, he asked that Snyder “take a look at my life in total,” and not “the horrible caricature the government painted me as — a meth-fueled ax killer.”

    Before sentencing Buck, Snyder said his case was “one of the most difficult and tragic” she had ever presided over.

    “What has happened here is reprehensible,” she said.

    ::

    Drug abuse was at the heart of Buck’s sexual behavior, according to testimony and evidence presented at his 2021 trial, which opened a window into a dark subculture of Los Angeles’ gay community.

    Buck moved in a world steeped in drugs and defined by power imbalances between the solicitors of sex and the often destitute men who supply it. He advertised on Adam4Adam, a gay hookup site, that he was interested in “party and play” sessions, widely known to mean using methamphetamine during sex.

    A parade of men testified that Buck would offer them extra money if they “slammed,” or allowed him to inject them with the drug. In what prosecutors called a “carrot-and-stick approach,” he would sometimes withhold payment if they didn’t smoke enough methamphetamine or let him inject them.

    In his squalid apartment, which was littered with drug paraphernalia and sex toys, Buck treated the men “like lab rats in his twisted experiments,” Norell wrote in a sentencing memo.

    He drugged them to the limit of their bodies’ tolerance; once they were unconscious or immobile, he sexually assaulted them, choked them, slapped them. One man, injected with something that left him unable to move, managed to regain control of his body only when Buck revved a chain saw in front of him, sending adrenaline coursing.

    Buck filmed many of the episodes. In a video played at trial, he gave stage directions to a masked man who was smoking methamphetamine: “Stare directly into the camera, flare your nostrils and blow it out slowly. Now, if you add wide-open eyes to that, it would be a perfect shot.”

    One witness, Carlos, described learning from a friend that a man would pay him $200 to smoke methamphetamine and “prance around in underwear.” Living under an overpass at the time, shuffling between encampments in Hawthorne, West Athens and Gardena, “I had to fight to survive,” he testified. “I had to fight to do what I could to eat, to take care of myself, to still be a father.”

    To protect their privacy, The Times withheld the last names of witnesses who described being sexually abused.

    Carlos went to Buck’s apartment about 20 times over a six-month period. He’d use methamphetamine and GHB, a party drug; sometimes, Buck would spray an ethyl chloride cleaning solvent on a rag, hold it over Carlos’ mouth and watch him inhale.

    Buck “liked to see me where I was barely able to stand, barely conscious,” he recalled. “He wanted me to be falling around all over the place,” a state in which Buck “would be able to do whatever he liked as far as touching and everything of that sort.”

    Buck at times referred to Black men using the N-word, witnesses testified at trial.

    Two men died in Buck’s apartment, their bodies found in near-identical circumstances. Gemmel Moore, 26, flew in from Texas on July 27, 2017, on a ticket that Buck had purchased. Hours later, he was dead. A coroner’s investigator found Moore lying on a mattress with pornography playing on the television. Syringes, pipes, sex toys and methamphetamine were found throughout the apartment.

    “This is so dark,” Cory McLean, Moore’s friend, said as he addressed Buck at Thursday’s hearing. “No one could even fathom that this was real, this was true. And you created it.”
    https://news.yahoo.com/ed-buck-face-judgment-injecting-120014614.html

  • Is this Anna Mercury or just a namesake?

    Anna Mercury

    [ … ]
    Anna Mercury is a vinyl-clad, red-headed hero who travels between divergent worlds, fighting to keep advanced weaponry from being used by more primitive worlds.

    On Earth, in the modern day United Kingdom, Anna Mercury is actually Anna Louise Britton, an agent of the government, tasked with missions in the nine divergent worlds adjacent to our own. Anna’s travels through the space between worlds charges her equipment that lets her defy gravity, move through solid objects, and perform other feats, though the energy is limited and must be monitored closely.
    [ … ]

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

  • My blood began to get hot reading about Mr. Dallas Liam. When asked if he had spent the night in prison he never did say yes or no. This is a must read for everyone suffering in prison.

  • Dallas Liam would have been 15 or 10 years old when he started “managing and investing” in prisons.

    Is this the Jerry Springer masturbatory show or is it now something else? Like the Rectal Cum Dump Show?

    Or is it just another similar event that the US population finds educational when they don’t stare at religious sermons?

  • I am pleased that my information led to this article. I knew it was a topic and material that could be made into something. I am very pleased with the result.

    Tipster and the commenter mentioned in the article

  • Okay, good one. You almost had me fooled.

    prisoninvestor1 is a bot Twitter account. The picture of “Dallas Liam” is a deepfake GAN-generated image.

    The “interview” is just the tweets with “questions” spliced in ahead of them.

    The whole thing is one long shitpost.

    For those interested in reality, private prisons are in decline. https://www.pewresearch.org/fact-tank/2017/04/11/u-s-private-prison-population-has-declined-in-recent-years/

    U.S. private prison population has declined in recent years
    BY A.W. GEIGER

    After a period of steady growth, the number of inmates held in private prisons in the United States has declined modestly in recent years and continues to represent a small share of the nation’s total prison population.

    The private prison population has shrunk by 8% since its peak in 2012, while the overall prison population has fallen by 5% since its peak in 2009. 

  • I’m trying to figure out if this is real.

    If it’s real, then ‘Anna Mercury’ is a genius interviewer: She beautifully exposes the Dystopian/Orwellian/Totalitarian nightmare of private prisons.

    If it’s fake, it’s a genius way to expose the utter depravity of the idea that public justice can, and should, make a profit for private interests.

    Alanzo

  • ‘Have you ever thought about putting prisoners on treadmills and using the electricity to mine bitcoin? ‘

    just one of too many favourite lines…I’m crying with rofl…more like this…please…so dry…so thrilling—he made how much from this?!!..excellent piece…thoroughly informative..thank you !!!!

    Anna Mercury this is way old but you might enjoy it

Frank Parlato

About the Author

Frank Parlato is an investigative journalist.

His work has been cited in hundreds of news outlets, like The New York Times, The Daily Mail, VICE News, CBS News, Fox News, New York Post, New York Daily News, Oxygen, Rolling Stone, People Magazine, The Sun, The Times of London, CBS Inside Edition, among many others in all five continents.

His work to expose and take down NXIVM is featured in books like “Captive” by Catherine Oxenberg, “Scarred” by Sarah Edmonson, “The Program” by Toni Natalie, and “NXIVM. La Secta Que Sedujo al Poder en México” by Juan Alberto Vasquez.

Parlato has been prominently featured on HBO’s docuseries “The Vow” and was the lead investigator and coordinating producer for Investigation Discovery’s “The Lost Women of NXIVM.” In addition, he was credited in the Starz docuseries 'Seduced' for saving 'slave' women from being branded and escaping the sex-slave cult known as DOS.

Parlato appeared on the Nancy Grace Show, Beyond the Headlines with Gretchen Carlson, Dr. Oz, American Greed, Dateline NBC, and NBC Nightly News with Lester Holt, where Parlato conducted the first-ever interview with Keith Raniere after his arrest. This was ironic, as many credit Parlato as one of the primary architects of his arrest and the cratering of the cult he founded.

Parlato is a consulting producer and appears in TNT's The Heiress and the Sex Cult, which premieres on May 22, 2022.

IMDb — Frank Parlato

https://en.wikipedia.org/wiki/Frank_Parlato,_Jr.

Contact Frank with tips or for help.
Phone / Text: (305) 783-7083
Email: frankparlato@gmail.com

Archives