TIME justice

Oklahoma Changes Lethal Injection Protocol, But Keeps Controversial Drug

After an execution widely regarded as botched

The United States’ three executions this year widely considered botched all have at least one thing in common: they’ve all included the use of midazolam, a sedative previously unused in lethal injections.

In January, Ohio executed Dennis McGuire in a 25-minute lethal injection using a two-drug combination of midazolam and hydromorphone. In April, Oklahoma executed Clayton Lockett using midazolam as the first of three drugs in a process that took almost 45 minutes. And in July, Arizona used the same protocol as Ohio to execute Joseph Wood, another lethal injection that took close to two hours.

Late Tuesday, Oklahoma announced new lethal injection procedures requiring more training for executioners and contingency plans if any problems arise. The new protocol also reduces the number of media witnesses from 12 to five. On top of that, it provides the state with four different lethal injection drug combination options, two of which still involve midazolam in a dosage that is five times larger than what was used in Lockett’s execution.

The Oklahoma Department of Corrections released the new guidelines this week without comment. But the move appears to be a way for the state to continue executions while opening the door for more desirable and, possibly, effective drugs that have become difficult to obtain.

“I think this represents a tension between the drugs they would prefer to use and what’s available,” says Richard Dieter, executive director of the Death Penalty Information Center, an anti-capital punishment organization.

In April, Gov. Mary Fallin ordered an investigation into Lockett’s execution, which led to a report released in September by the Department of Public Safety that found that an IV line into Lockett’s groin had become dislodged and wasn’t immediately discovered. The agency made several recommendations for future executions, and the state’s department of corrections pledged to carry out most of them.

“This is in keeping with their position that the botched execution of Lockett was not due to the drugs used, but to the misplacement of the IV,” Dieter says. “To abandon midazolam might contradict this, and possibly leave them with no drugs to carry out the execution.”

Since pharmaceutical companies began denying states drugs like pentobarbital, a sedative that was widely used up until just a few years ago, midazolam has been easier for prison systems to get. And some states may fear that without it, they may not be able to carry out executions at all.

“I think states like Oklahoma are continuing to use midazolam because so far they can and they don’t know what else to do,” says Deborah Denno, a Fordham University professor who studies lethal injection.

TIME 2014 Election

Court Blocks Parts of North Carolina Voting Law

North Carolina's law has been fiercely criticized by voting rights advocates

Updated at 10:05 a.m., Oct. 2

A federal appeals court on Wednesday blocked parts of a sweeping North Carolina voting law from taking hold ahead of this year’s midterm elections.

The Fourth Circuit Court of Appeals reversed a lower court’s decision to allow provisions of the law that eliminate same-day-registration and the casting of out-of-precinct ballots. The appeals court on Wednesday still allowed other portions of the law to stand, including the cut of seven early voting days. But in a 69-page opinion Wednesday, the appeals court said an August decision by the lower district court to allow the full law was flawed.

The decision comes just weeks before the early voting period is set to begin in the Tar Heel State on Oct. 23. “The right to vote is fundamental,” Judge James Wynn wrote in the majority opinion. “And a tight timeframe before an election does not diminish that right.”

North Carolina Governor Pat McCrory issued a statement Wednesday saying though he was pleased most of the law will apply in November, the state plans to appeal to the U.S. Supreme Court. North Carolina’s law has been one of the most criticized by voting rights advocates since the Supreme Court ruled that parts of the landmark Voting Rights Act are unconstitutional, which opened the door for states to enact more voting restrictions.

TIME Tracy Morgan

Tracy Morgan Hits Back at Walmart

Tired Truck Drivers
In this image from video the limousine bus carrying Tracy Morgan and six other people lies on it's side early Saturday morning, June 7, 2014, on the New Jersey Turnpike. Will Vaultz—AP

"I can't believe Walmart is blaming me for an accident that they caused"

Comedian Tracy Morgan fired back at Walmart Tuesday after the retail giant suggested the 30 Rock star was responsible for injuries sustained in a serious accident with one of its trucks, because he hadn’t worn a seatbelt.

“After I heard what Walmart said in court I felt I had to speak out,” Morgan said in a statement Tuesday bthrough his spokesperson Lewis Ka. “I can’t believe Walmart is blaming me for an accident that they caused. My friends and I were doing nothing wrong. I want to thank my fans for sticking with me during this difficult time. I love you all. I’m fighting hard every day to get back.”

In a court filing Monday, Walmart claimed that the injuries sustained by Morgan and other survivors of the wreck were “caused, in whole or in part, by plaintiffs’ failure to properly wear an appropriate available seat belt restraint device.”

Morgan sued Walmart after a truck driver for the big box retailer struck the back of his limo in June. Morgan was badly injured in the collision, as were three other survivors. Comedian James “Jimmy Mack” McNair was killed.

TIME justice

Meet the Prison Bankers Who Profit From the Inmates

Pat Taylor
Pat Taylor holding a picture of her son, Eddie, who is serving 20-year prison sentence at Bland Correctional Center in Virginia. Eleanor Bell—Center for Public Integrity

With the ultimate captive markets, prison bankers and state jailers make money off high fees for financial services.

This story was published by The Center for Public Integrity, a nonprofit, nonpartisan investigative news organization in Washington, D.C.

Pat Taylor doesn’t believe in going into debt. She keeps her bills in a freezer bag under her bed, next to old photo albums, and believes in paying them on time religiously. For Taylor, living within your means is part of being a good Christian.

Lately, Taylor, 64, has felt torn between that commitment and her desire to be a loving, supportive mother for her son Eddie.

Eddie, 38, is serving 20-year prison sentence at Bland Correctional Center for armed robbery. He’s doing his time at a medium-security Virginia state prison located 137 miles northwest of Johnson City, across the dips and valleys of the Blue Ridge Mountains here in the heart of Appalachia. The cost of supporting and visiting Eddie keeps going up, so Pat makes trade-offs.

“I would send him money even if it broke me, because I do go without paying some bills sometimes to go see him,” Pat says.

Between gas to make the trip and overpriced sandwiches from the prison vending machine, visiting Bland costs about $50, a strain on her housekeeper’s wages. So she alternates, visiting Eddie one week and sending him money the next.

To get cash to her son, Pat used to purchase a money order at the post office for $1.25 and mail it to the prison, for a total cost of less than $2. But in March of last year, the Virginia Department of Corrections informed her that JPay Inc., a private company in Florida, would begin handling all deposits into inmates’ accounts.

Sending a money order through JPay takes too long, so Taylor started using her debit card to get him funds instead. To send Eddie $50, Taylor must pay $6.95 to JPay. Depending on how much she can afford to send, the fee can be as high as 35 percent. In other states, JPay’s fees approach 45 percent.

After the fee, the state takes out another 15 percent of her money for court fees and a mandatory savings account, which Eddie will receive upon his release in 2021, minus the interest, which goes to the Department of Corrections.

Eddie needs money to pay for basic needs like toothpaste, visits to the doctor and winter clothes. In some states families of inmates pay for toilet paper, electricity, even room and board, as governments increasingly shift the costs of imprisonment from taxpayers to the families of inmates.

“To give him $50, I have to send $70 off my card,” says Taylor, who moved to a smaller apartment on the outskirts of Johnson City in part because of the rising cost of supporting Eddie.

“They’re punishing the families, not the inmates.”

Price of prison

JPay and other prison bankers collect tens of millions of dollars every year from inmates’ families in fees for basic financial services. To make payments, some forego medical care, skip utility bills and limit contact with their imprisoned relatives, the Center for Public Integrity found in a six-month investigation.

Inmates earn as little as 12 cents per hour in many places, wages that have not increased for decades. The prices they pay for goods to meet their basic needs continue to increase.

By erecting a virtual tollbooth at the prison gate, JPay has become a critical financial conduit for an opaque constellation of vendors that profit from millions of poor families with incarcerated loved ones.

JPay streamlines the flow of cash into prisons, making it easier for corrections agencies to take a cut. Prisons do so directly, by deducting fees and charges before the money hits an inmate’s account. They also allow phone and commissary vendors to charge marked-up prices, then collect a share of the profits generated by these contractors.

Taken together, the costs imposed by JPay, phone companies, prison store operators and corrections agencies make it far more difficult for poor families to escape poverty so long as they have a loved one in the system.

Shifting costs to families

“It’s not just the money transfer that’s the problem, it’s the system it enables to shift costs onto families,” says Lee Petro, an attorney who helped litigate for a national cap on some prison phone rates. Without companies like JPay, he says, “it would be much harder to take money from families and make families of inmates pay their own keep.”

In 12 years, JPay says it has grown to provide money transfers to more than 1.7 million offenders in 32 states, or nearly 70 percent of the inmates in U.S. prisons.

For the families of nearly 40 percent of those prisoners, JPay is the only way to send money to a loved one. Others can choose between JPay and a handful of smaller companies, most of them created by phone and commissary vendors to compete with the industry leader. Western Union also serves some prisons.

JPay handled nearly 7 million transactions in 2013, generating well over $50 million in revenue. It expects to transfer more than $1 billion this year. (The company declined to provide any financial details; those included in this article are culled from public records and interviews with current and former employees.)

Ryan Shapiro
JPay CEO Ryan Shapiro in his office north of Miami, Florida. Eleanor Bell—Center for Public Integrity

“We invented this business,” said Ryan Shapiro, 37, the company’s founder and CEO, in a phone interview in June. “Everyone else tries to imitate what we did, and they don’t do it as well.”

Shapiro says working with corrections includes extra costs for security and software integration. He says he charges only as much as he must to maintain a razor-thin profit margin.

But others provide similar services for less.

NIC Inc., a competitor that helps states set up their websites, charges a flat fee of $2.40 in Maine to send money to inmates. Until recently, Arkansas charged 5 percent to send money through the state’s own Web portal. Floridians pay a fee of 3.5 percent to handle traffic tickets online.

Despite its kudzu-like growth, JPay so far has avoided scrutiny by consumer regulators.

In response to questions for this story, however, the New York Department of Financial Services’ consumer division is reviewing the company’s practices, according to a person familiar with the matter. The person spoke on condition of anonymity because he is not allowed to discuss active investigations.

JPay’s rapid rise stems in part from the generous deal it offers many prison systems. They pay nothing to have JPay take over handling financial transfers. And for every payment it accepts in these states — prisoners typically receive about one per month — the company sends between 50 cents and $2.50 back to the prison operator. These profit-sharing arrangements, which vendors offer as deal-sweeteners in contract negotiations, are known in the industry as “commissions.”

JPay’s payments to Illinois last year came to about $4,000 a month, according to documents obtained under the state’s open records law.

Jails often deduct intake fees, medical co-pays or the cost of basic toiletries first, leaving the account with a negative balance. This prevents inmates from buying “optional” supplies like stationery or sturdier shoes until they have paid down the debt.

Such charges levied by jails for common items are not new. The practice began prior to the rise of JPay, mainly with phone companies and operators of prison stores. But by automating the process, prison bankers make it a lot easier.

$100 underwear

Negative account balances discourage cash-strapped people from helping relatives, says Linda Dolan, 58, a manager for a defense contractor in California. Last year, when her son was sentenced to 20 days in jail in St. Lucie County, Florida, for reckless driving, Linda wanted to buy him a second pair of underwear and socks. But the county’s intake fee and daily “rent” already had put the account about $70 in the red. Linda and her husband both were out of work and couldn’t afford to pay $100 for a pair of underwear.

“If relatives are putting money on somebody’s books while they’re an inmate, it’s to help them buy necessities,” Linda says. “I didn’t think it was right that the county was stealing the money.”

Capt. William Lawhorn of the St. Lucie County sheriff’s office said that inmates are charged a $25 initial booking fee, $3 a day for “subsistence” and medical co-pays, all of which can result in a negative balance. He said nobody is denied any type of needed service or care, and when inmates do have money, it’s used for candy and other junk food. Inmates in the county receive payments through Touchpay, a JPay competitor that often partners with foodservice giant Aramark.

Funding prisons out of the pockets of families and inmates has non-financial costs too, says Brian Nelson, who spent 28 years in an Illinois state prison for murder. Nelson says he has “become an asset to society” since he was released four years ago because he stayed in touch with family and priests even when he was in solitary confinement. When inmates can’t afford to maintain contact with the outside world, he says, they are less equipped to transition smoothly to civilian life.

The effect on poor families is especially harsh, Nelson says: “It’s a wife that has three children at home, and her husband is in jail, so now she has a choice: Do I send money to him so he can afford to stay in touch with the kids, or do I feed the kids?”

Inmates’ need for money is inescapable, Nelson says. Those in northern Illinois are not issued cold-weather clothes, he says, leaving them vulnerable to frostbite unless they can get money to pay for prison-approved long underwear and boots.

Razor thin margins

JPay founder Shapiro is eager to tell his company’s story and how he believes it helps families. It’s not just about faster payments. Once an inmate gains access to the money, JPay offers several ways to spend it, including pay-per-page e-messaging, music downloads and MP3 players. When inmates in some states are released, they receive their remaining money on JPay-branded payment cards that carry higher fees than those on most consumer payment cards.

Shapiro says that if his fees were any lower, his company would lose money. He declined to make the company’s financial details available and would not say how much he is paid.

Shapiro serves on the board of a foundation that advocates for inmates and carries full-page ads for JPay in its newsletters. The foundation received an $85,400 gift directly from JPay’s corporate treasury in 2009.

He lives on a tiny harbor island near the northern tip of Miami Beach in a home he bought for about a million dollars. Last year, through a company he controls called El Caballero LLC., Shapiro bought a custom powerboat, dubbed Sea Block, that retails for a half-million dollars.

Heading to the company’s headquarters one July morning, he stopped first for CrossFit, a military-style training regime that he enjoys because it brings out his competitive side, then for daily prayer.

Families who use JPay love the company, he says. He boasts of its well-trafficked Web forum and of the 174,000 “likes” on its Facebook page, where its marketers post cheery articles about incarceration. “The Jail Cats program at Gwinnett County Detention Center in Georgia is rescuing kittens and helping to rehabilitate incarcerated women,”one recent post read.

“We go out of our way to make sure that they feel comfortable — that, you know, you’re spending money with a company that cares about you,” Shapiro says.

If people don’t want to pay his fees, Shapiro says, they can always mail a money order, except in the “couple of states” that now charge fees for them.

Nearly 400,000 people are imprisoned in states where there is no free deposit option, a fact Shapiro was unaware of during a series of interviews this summer.

“When it’s up to us, it’s absolutely free,” he says.

Slow-moving money orders

For the first 14 years of Eddie’s sentence, Pat Taylor mailed money orders directly to the prison at no charge beyond the cost of the money order and a stamp. Then last year, she was instructed to make the money order out to JPay and send it to a Florida post office box. The company would credit it to Eddie’s account.

Under the new system, she says, it would take weeks for Eddie to see funds sent via money order. So Pat, like nearly everyone else she knows, gave in and began paying $6.95 to send the money from her debit card.

Across the country, delays and other obstacles make the “free option” inaccessible to many families, the Center found. More than a dozen families in five different states said that money orders have been credited much more slowly since JPay took over.

Shapiro says he is “absolutely shocked” by the complaints that money orders are delayed because he had never heard of such problems before. Most money orders are processed within two to three days, he said, unless the person sending money fails to fill out the form properly. He said Virginia is especially efficient and processes money orders within 24 to 48 hours.

“We are not slowing it down, there is no conspiracy,” he said.

He said JPay does “want people to convert from a money order customer to a digital customer, absolutely,” but only because electronic payments are more efficient. “We’re not trying to make an extra dollar everywhere we can,” Shapiro said.

Before JPay, Virginia prisons credited money orders to inmates’ accounts in roughly three days, families say. Today, money orders can take more than a month to reach an inmate’s account, Marvin Rodriguez-Barrera, an inmate at Virginia’s high-security Red Onion State Prison, wrote in a letter to prisoners’ rights advocates in February.

Faster to Guatemala

“I am from Central America, and it is cheaper for my family, and easier, to send money to Guatemala than for my family to send me money from this very state!” Rodriguez-Barrera wrote. “The old way of using money orders was cheaper, easier and in many instances faster.”

Those seeking to avoid the fees by sending a money order must print and fill out a JPay-provided form whose instructions are dwarfed by large print barking at them to “Put down your pen! Put away your car keys!” because “There’s a faster way to send money, go to JPay.com and sign up now!”

The aggressive marketing has worked. One former marketing director for the company lists as a key accomplishment on his LinkedIn profile that he “Converted 78 percent” of money order users to online users, boosting the company’s annual revenue by $985,000.

Shapiro said the information in the profile, including the former employee’s title, was inaccurate. He said he didn’t have data on how many money order users convert to electronic payments or how much revenue the company gains when they make the switch.

Inside JPay’s secure, fishbowl-like money order processing room, reams of envelopes sit in postal bins on the shelves. Signs around the room remind the handful of workers employed there which states allow them to deduct a fee and which offer the service for free.

In Pennsylvania, the first state where JPay accepted money orders by mail, executives were surprised to see the number of money orders plunge by two-thirds in the first two months, Chief Financial Officer Mark Silverman explained in a brief interview.

Shapiro said that Missouri used to process 30,000 money orders a month before JPay came in.

“With JPay, we drove that down to only 1,000 people sending money,” he says. “And that’s by choice.”

JPay’s marketing materials urge customers to choose the higher-cost option. During her twice-monthly visits to Bland, an isolated work camp nestled between rolling, green hills, Pat Taylor now sees JPay-branded fliers warning of the misery awaiting anyone who tries to use the “free option.”

On one side, a multi-ethnic lineup of models bury their faces in their hands and complain of what a “nightmare” it was to complete the money order, how it got lost or delayed.

“There’s a better way,” the flier promises on the reverse side, which depicts an attractive young woman seated with her laptop computer. For “Faster, Easier, Next-Day Delivery,” families can choose from a menu of high-fee options.

Tequila, cigars and lobbying

To impress state corrections officials and gain their business, JPay spends heavily on industry conventions attended by agency heads with contracting authority. During a 2012 convention of the American Correctional Association, the company threw what it called an “END OF THE WORLD PARTY” at a Denver wine bar that bills itself as “about you, and your inalienable right to the unbridled enjoyment of food and wine.”

The invitation, printed on a disposable beer coaster, promised “a bash, JPay-style: *fuerte* tequila, hand-rolled cigars, a live mariachi band.” Conventioneers could catch a JPay shuttle leaving from the hotel “ALL NIGHT LONG,” it said.

For years, JPay has sponsored an award for former state corrections directors presented by the Association of State Correctional Administrators, paying for the recipient’s trip and a Wexford crystal bowl inscribed with the honoree’s name.

JPay’s outreach extends to state legislatures as well, even though many of the company’s contracts forbid it from using fee revenue to lobby. The company has hired registered lobbyists in at least seven states. Shapiro says JPay’s lawyers approved the use of company funds for that purpose.

In Ohio, it tapped Thomas Needles, a former aide to President George H. W. Bush. Needles gives generously to Republican candidates and also lobbies for for-profit universities. In Maryland, JPay hired Bruce Bereano, one of the state’s best-paid lobbyists, who was disbarred after a 1994 conviction for overbilling his clients and using the money for campaign donations.

The company also sought to lobby Washington for access to the federal Bureau of Prisons’ 216,000 inmates — what Shapiro has called “the mother ship of all contracts,” which is now held by Bank of America.

It spent $20,000 in 2012 to hire Park Strategies, run by former U.S. Sen. Alfonse D’Amato of New York, in an effort to obtain the contract. That effort was not successful.

More inmates, smaller budgets

JPay was founded in 2002, just as the U.S. prison population neared the apex of a three-decade climb that more than quadrupled the number of inmates in state prisons. Shortly thereafter, as the economy went into recession, state budgets were squeezed and officials looked more aggressively for ways to cut spending on prisons.

Already, private vendors had stepped in with a solution: They would charge prisoners sky-high prices for phone services, snack foods, hygiene products and clothing, then return a large cut back to the prisons — often 40 percent or more.

Shapiro was the first entrepreneur to see how financial services might provide another stream of revenue. For a fee, he offered to deliver cash in ways that saved time and effort for corrections agencies, and often to give them a portion of the proceeds, just as the phone and commissary companies were doing.

“When we started, the states were very much saying to us, ‘There’s no need for procurement here because there’s no one else doing what you do,’ ” Shapiro said in a 2012 interview. Ten years later, he said, all of them were asking companies to submit bids for the work.

That doesn’t mean the door is open to competitors. Most states, including Virginia, now contract with JPay or its main competitor under a master agreement negotiated by Nevada in 2011 on behalf of a multi-state consortium. Participating states can simply sign on to the deal with one or both of the companies without the hassle of separately determining the best company for the job.

JPay is protected from other market forces, as well. When states offer its music players and tablet computers for sale to inmates, they often confiscate radios that people already own, according to inmates in Ohio. This leaves inmates dependent on JPay’s music downloads, which can cost 30 to 50 percent more than the same songs on iTunes, inmates say.

The profit-sharing arrangements are at the core of JPay’s origin story, Shapiro said in 2012. A couple of years out of college, he spent months driving around upstate New York, pitching JPay to “every sheriff, whether they had five inmates or 100 inmates” — without success.

Then someone in Passaic County, New Jersey, suggested that they offer the county 10 percent of their revenue, “so the jail would be less of a tax burden on the community.” The warden signed up on the spot.

Critics including Alex Friedmann, associate director of the Human Rights Defense Center, an inmates’ advocacy group, says the profit-sharing amounts to a legal kickback. “They charge exhorbitant fees then kick back a percentage of their revenue. … The company doesn’t need that for profit,” Friedmann said.

Shapiro says he prefers the term “commission” because “the word kickback has a negative connotation, and it seems like some person is making that money and pocketing it and buying a Chevrolet or something, when in fact it’s going to use for the benefit of inmates — basketball hoops, volleyball, whatever.”

Most states put their share of the cash in an “Inmate Welfare Fund” that is supposed to be used for inmate benefits beyond what is guaranteed to them by law. As incarceration rates climbed, however, the definition of “inmate benefit” drifted, says Justin Jones, who was director of the Oklahoma Department of Corrections until last year.

“The Legislature allowed us to broaden the definition of inmate welfare and it got to the point, almost anything they would fund through appropriations could now be paid for as inmate welfare,” he says. “It ended up where we started using that money if an inmate went out to medical on an emergency and medical was end-of-year short,” he says. “We bought air conditioners, ice machines, X-ray machines.”

Jones was not a fan of the system. If legislatures want to impose longer prison sentences or “if they create new crimes, then the legislature should appropriate dollars for that,” he says. “I should not have to go in and redefine and stretch the definition of inmate welfare accounts.”

Double dipping

Taken together, JPay and other prison vendors create a system in which families are paying to send the money, and inmates are paying again to spend it, says Keith Miller, who is serving 21 ½ years at Bland for a series of drug-related, violent crimes committed in his early 20s. The earliest he may be released is 2021, when his mother will be 87 years old.

“The fact that [my mother] has to pay the fees to send the money and then the fact that [prison agencies] make a certain cut off it seems to me that [the prisons are] double-dipping into the money they’re sending,” he said in an interview at the prison. “It really doesn’t make sense to me that this should be allowed.”

Shapiro is skeptical that JPay’s fees make much of a difference for inmates’ families. He says companies that provide other services to inmates, such as phones and commissary, are the real problem.

“Compared to the commissary or phone revenue, we’re just a drop in the bucket,” he says.

That may be changing.

Last year, the Federal Communications Commission dusted off a 12-year-old petition filed by inmates’ families who argued that prison phone rates were unfairly high, preventing them from maintaining contact with loved ones. The commission capped rates for many calls under its authority to ensure that pay-phone rates are just, fair and reasonable.

Mignon Clyburn, who was acting chairwoman of the FCC when it passed the rate cap and now serves as one of three commissioners, says the action was necessary because people are “making unspeakable sacrifices to stay in touch with their loved ones.”

Vincent Townsend, president of Pay-Tel Communications, a major provider of phones for inmates, said his industry “abused the public.”

‘Ethical, right, moral’

Other prison vendors “better pay attention to what’s ethical, right, moral,” he said. “Because if you don’t then some regulator’s going to step in, and you’re going to have to deal with it.”

There is a crucial difference: The telephone industry is closely regulated by the FCC, which has explicit authority to set rates for pay-phone calls. Financial and consumer protection regulators have less power over pricing.

The Consumer Financial Protection Bureau can sue companies for offering unfair, deceptive or abusive financial services. The bureau declined more than a dozen requests to discuss specific issues related to prison financial services.

The Federal Trade Commission, which has consumer-protection authority and the power to ensure that markets are competitive, declined to comment “on specific companies or conduct.”

Regulators in seven states have levied fines totaling $408,500 against JPay for operating without a license. The actions were not designed to disrupt its business, according to the Conference of State Bank Supervisors, a trade group that represents these regulators in Washington.

“State banking regulators are concerned with ensuring that businesses operating in their states are properly licensed and with enforcing applicable laws (including consumer protection laws),” the group’s spokeswoman said in an emailed statement.

‘Invent a better way’

Shapiro says he understands the challenges faced by poor families of inmates since JPay’s startup days, when he would spend “hours on the phone with a grandmother, talking about her day at Wal-Mart.”

He says he feels trapped by the structure of the industry he has come to dominate. He wishes the fees were lower, that states didn’t force him to charge more and give them a share and that he could “invent a better way” than asking people’s families to help pay for their imprisonment.

Yet Shapiro says he is satisfied to compete within what he admits is a broken system, even if the system may be punishing some innocent family members.

For many families, JPay has become that system. When Jewel Miller, 80, phoned JPay’s call center last month to ask why her payments are delayed, and why she must submit the same form every time she sends a money order to Keith, the operator hung up on her.

In a series of interviews it became clear that Shapiro was unaware of some of the fees related to his business. He said he did not know, for example, that Florida now charges its own fee for money order deposits after JPay processes the payments.

These fees are spelled out in JPay’s contracts with states, which Shapiro signed. Florida’s says it will charge a 50 cent “Money Order by Mail” fee.

As of July, Shapiro was unaware of JPay’s own $1.95 fee to deposit money orders in Indiana, declaring, “If someone sends $100 with a money order to an Indiana inmate, that inmate gets $100. … I am positive.”

Two days later, he called back to say, “We’re working with the states right now to get some of those fees taken off.”

So far, the fees remain in place.

Eleanor Bell contributed to this story.

Watch the accompanying web documentary “Time is Money” here

TIME environtment

Dutch Man Fined for Crashing Drone into Yellowstone Hot Spring

View of the 'Grand Prismatic' hot spring
View of the 'Grand Prismatic' hot spring with it's unique colors caused by brown, orange and yellow algae-like bacteria called Thermophiles, that thrive in the cooling water turning the vivid aqua-blue to a murkier greenish brown, in the Yellowstone National Park, Wyoming on June 1, 2011. MARK RALSTON—AFP/Getty Images

The unmanned aerial vehicle is still at the bottom of the famed hot spring

A U.S. federal judge has ordered a Dutch tourist to pay $3,200 in fines and restitution after the man crashed his drone into an iconic hot spring at Yellowstone National Park in Wyoming.

Theodorus Van Vilet pleaded guilty to crashing his drone into the Grand Prismatic Spring in August 2014. A judge ordered him to pay a $1,000 fine and $2,200 in restitution over the incident. Authorities have been unable to locate the exact location of the downed drone, which remains at the bottom of the hot spring.

The ruling is the second guilty verdict this year stemming from a violation of the National Park Service’s drone ban issued in June. A German man was ordered to pay $1,600 in fines and restitution after crashing his drone into Yellowstone Lake in July. A third case involving an Oregon man is pending.

TIME justice

Obama Mulls Replacements for Holder

Attorney General Eric Holder Announces Civil Rights Investigation Into Michael Brown Death
U.S. Attorney General Eric Holder announces a Justice Department 'patterns and practice' investigation of the Ferguson, Missouri, police department during a news conference at the department's headquarters Sept. 4, 2014 in Washington, DC. Chip Somodevilla—Getty Images

The President announced Eric Holder will remain in office until a successor is confirmed

The White House is already working with a narrow list of possible successors to outgoing Attorney General Eric Holder, Democratic sources familiar with the selection process tell TIME.

The candidates include former Homeland Security Secretary Janet Napolitano, U.S. Attorney for the Western District of Washington State Jenny Durkan, U.S. Attorney for the Southern District of New York Preet Bharara, Solicitor General Donald Verrilli, Labor Secretary Thomas Perez, Deputy Homeland Security Secretary Alejandro Mayorkas, and former Associate Attorney General Tony West, the Democratic sources say.

President Barack Obama has not yet decided whom he will choose to succeed Holder, White House officials say, and Holder will stay in office until a successor is confirmed by the Senate. The sources caution that the list of seven names is not exhaustive, and that some on it are being more seriously considered than others. The White House has initiated a formal selection process run by a team that will include White House Counsel Neil Eggleston and will involve interviews and background checks both for security and for political viability.

That latter consideration will be important as the Administration intends to bring the nominee up for Senate consideration during the lame-duck session after the midterm elections in November. Already Republicans, including the ranking minority member of the Senate Judiciary Committee, Sen. Charles Grassley (R-Iowa), have said the confirmation process should be put off until January, when a new, possibly Republican-led Senate convenes.

That is unlikely, though.

“This is a high-priority position; it’s important not just for the President in terms of offering some advice and counsel, it also is important to the country in terms of enforcing our laws,” White House Press Secretary Josh Earnest told reporters Thursday afternoon. “So this is something that will get a fair amount of attention and I’m confident that whoever is nominated to this position will be the kind of candidate that deserves bipartisan support in the Senate.”

But in a sign of how cold relations between the White House and Hill Republicans have become, an aide to Grassley said the senator was not informed of Holder’s imminent resignation before the announcement Thursday, and as of 6 p.m. that evening, he had not been contacted by the Administration. An aide to Senate Judiciary Committee’s Democratic chairman, Patrick Leahy of Vermont, said the senator and Holder had spoken “in the last couple of days.”

It is unclear whether the White House intends to consult Republicans as part of the process of selecting a nominee. Holder’s predecessor, Attorney General Michael Mukasey, was picked by then-President George W. Bush after lengthy discussions with Senate Democrats, though the circumstances were quite different. In the wake of the scandal surrounding the politically-motivated firing of federal prosecutors by then-Attorney General Alberto Gonzales, the Bush White House had secret conversations with powerful Democrats, who controlled the Senate. One Democratic aide then on the Judiciary Committee said Bush’s White House counsel Fred Fielding consulted Sen. Charles Schumer (D-N.Y.) over possible successors and that Sen. Harry Reid (R-Nev.) rejected one candidate, former Solicitor General Ted Olson. Both sides eventually settled on Mukasey.

The candidates this time represent a fairly broad cross section of legal backgrounds. Two have limited experience on national security matters. At least one has a rocky record of confirmation in the Senate.

Perez faced a tough battle in the Senate to become Labor Secretary, getting confirmed 54-46 on a party-line vote after overcoming a GOP filibuster. Mayorkas was confirmed as Homeland deputy last December after heading the U.S. Citizenship and Immigration Services; he was previously a U.S. attorney in California during the Clinton administration. Napolitano served as Obama’s Homeland Security secretary from 2009-13. Durkan has said she intends to step down as the top prosecutor in Seattle this month; she prosecuted financial and national security cases. Bharara has successfully pursued scores of insider trading cases on Wall Street and several high profile national security cases. Verrilli is the Administration’s top lawyer at the Supreme Court and argued high-profile cases including the successful defense of Obamacare. West stepped down Sept. 15 as the No. 3 Justice Department official after successfully winning more than $30 billion in settlements from Wall Street banks in the wake of the financial crisis.

TIME justice

President Obama Announces Eric Holder Will Step Down

President Obama Announces Resignation Of Eric Holder
President Barack Obama shakes hands with Attorney General Eric H. Holder Jr. who announced his resignation today, Sept. 25, 2014 in Washington, DC. Win McNamee—Getty Images

Pays tribute to "one of the longest-serving attorney generals in American history"

President Barack Obama paid tribute to Attorney General Eric Holder Thursday, as he announced the resignation of the country’s top law enforcement official.

Standing alongside Holder at a White House press conference, the president confirmed the “bittersweet” news that America’s first black attorney general’s would step down from his position as soon as a successor was confirmed by the Senate.

“Bobby Kennedy once said, ‘on this generation of Americans falls the full burden of proving to the world that we really mean it when we say all men are created free and equal before the law,'” said Obama. “As one of the longest-serving attorney generals in American history, Eric Holder has borne that burden.”

Obama credited Holder—who has a portrait of Kennedy on his office wall—as a civil rights defender who spent his career atop the Justice Department reforming the criminal justice code, defending voting rights and supporting the legal rights of same-sex marriage advocates.

The president also pushed back against criticism that the Justice Department had not done enough in the aftermath of the 2008 recession. “He’s helped safeguard our markets from manipulation and consumers from financial fraud. Since 2009, the Justice Department has brought more than 60 cases against financial institutions and won some of the largest settlements in history for practices related to the financial crisis, recovering $85 billion, much of it returned to ordinary Americans who were badly hurt.”

But Obama said that the AG’s “proudest achievement” might be his “reinvigorating and restoring the core mission” of the DoJ’s Civil Rights Division. “He has been relentless against attacks on the Voting Rights Act because no citizen, including our servicemembers, should have to jump through hoops to exercise their most fundamental right,” said Obama. “He’s challenged discriminatory state immigration laws that not only risked harassment of citizens and legal immigrants, but actually made it harder for law enforcement to do its job.”

Holder said he came to the end of six years leading the Justice Department “with very mixed emotions,” occasionally fighting back tears as he spoke. “I’m proud of what the men and women of the Justice Department have accomplished,” he added, but said he was “very sad” that he would serve alongside them no longer.

Addressing Obama, he said: “I hope that I have done honor to the faith that you have placed in me, Mr. President, and the legacy of all those who have served before me.”

TIME

LIVE: Obama Announces Eric Holder Retirement

Will step down once a successor has been confirmed

President Obama was expected to announce the impending retirement of Attorney General Eric Holder Thursday afternoon. Justice Department officials confirmed earlier in the day that the country’s first black attorney general would step down once a successor has been confirmed.

TIME Crime

NYPD Confrontation With Pregnant Woman is Latest Police Video to Go Viral

The recording of an NYPD officer shoving a pregnant woman to the ground belly first is part of a shift in the relationship between the public and police

It was another disturbing video of a heated police encounter: As New York Police Department officers attempted to arrest a suspect, a pregnant woman is taken down by one of them, her swollen stomach hitting the pavement. And like an increasing number of police incidents, it was recorded by bystanders and widely shared on social media.

This one began early in the morning on Sept. 20 in the Sunset Park section of Brooklyn, when police tried to arrest 17-year-old Jhohan Lemos for carrying a knife. The footage shows his mother, Sandra Amezquita, trying to intervene, then getting shoved to the ground belly first by an NYPD officer and later given a summons for disorderly conduct.

“The first thing I thought was they killed my baby and they’re going to kill my wife,” Ronel Lemos, Amezquita’s husband, told The New York Daily News.

Amezquita filed an excessive force complaint, prompting an investigation by the NYPD’s Internal Affairs Bureau. Her lawyer, Sanford Rubenstein, said in a news conference Wednesday that Amezquita was suffering from vaginal bleeding.

The significance of the footage goes far beyond the borders of this Brooklyn neighborhood. The video from Sunset Park is the latest in a string of recorded confrontations between the police and the public that have fundamentally changed the relationship between the two.

Since a bystander captured Los Angeles Police Department officers assaulting Rodney King on a camcorder in 1991, ever-more-accessible recording devices have added layers of eyes and evidence to encounters with law enforcement that were once unthinkable. The fatal shooting of Oscar Grant by Oakland police in 2009 was documented by commuters at the train station where it happened. The death of Eric Garner during an arrest on Staten Island, N.Y. launched a national debate on the use of force by police after cell phone video of the confrontation went viral. And in the tense aftermath of Michael Brown’s shooting death in Ferguson, Mo., an organization called We Copwatch has provided citizens with cameras to document the actions of local police.

“The police are often the only people at a scene without cameras,” says John DeCarlo, a professor at John Jay College of Criminal Justice.

That, too, is changing. Dozens of police departments are now testing or considering adopting body-worn cameras for officers. Police in Ferguson are now using cameras and the NYPD is testing two types of officer recording devices. Law enforcement agencies in Miami Beach, Washington, D.C., and Colorado Springs all plan to start wearing cameras by October.

The effect of all this surveillance can make it seem like the police are increasingly heavy-handed, but the numbers say otherwise. “There may be fewer incidents of abuse of force nowadays than there had been during the 1960s and ‘70s and earlier than that, but because we see them more commonly now because of the advent of cameras, people think they’re going up,” says DeCarlo.

Earlier this month, New York City Police Commissioner Bill Bratton released statistics showing that only 2% of the 400,000 arrests last year involved use of force by officers, a decrease of 8.5% from 20 years ago. The figures have been challenged by city council members who questioned the way the police department defined use of force, but the drop mirrors a similar decline in departments around the nation. In 2008, the most recent year for which statistics are available, 1.4% of people who had contact with police reported that an officer had used force or threatened to do so, according to the Bureau of Justice Statistics, down from 1.5% in 2002 and 1.6% in 2005.

But there is no doubt that recordings can elevate local incidents into national issues. And for many of the people behind the cameras, that’s just the point. The video of Amezquita was released by El Grito de Sunset Park, a community watch group. Its leader, Dennis Flores, has his own history with the NYPD: After filming police arresting a teenager in the neighborhood in 2002, Flores says the cops destroyed his camera, assaulted and arrested him. He says he later received a six-figure settlement that allowed him to form the group and buy dozens of cameras for neighborhood citizens to record officer incidents. One of those cameras, he says, was used to film Saturday’s altercation.

“We don’t interfere or obstruct,” Flores says. “We’re just trying to help prevent abuse. Citizens now with their cell phones are able to document and upload these videos for all the world to see. They’re balancing power.”

TIME justice

Congress Divided on Eric Holder’s Legacy

Democrats and Republicans quickly split on a divisive figure

Lawmakers were divided Thursday in their reaction to Attorney General Eric Holder’s impending resignation, underscoring his divisive tenure as the country’s top law enforcement official.

On TV, on Twitter and in public statements, Democrats were as quick to praise the nation’s outgoing top cop as Republicans were to vilify him.

“I hate to see Eric Holder leave,” Sen. Patrick Leahy (D-Vt.), the Judiciary Committee chairman, told NBC. “I remember the day he was sworn in and the huge cheers that echoed throughout the Department of Justice—throughout the building—because they were finally getting somebody who actually knew how the Justice Department worked, who cared about law enforcement, cared about the rule of law.”

“I’ve been here through a lot of attorneys general and nobody has done it better than he has,” added Leahy, who was elected to the Senate in 1974.

Sen. Bill Nelson (D-Fla.) said Holder has “led the fight to protect the right to vote for all citizens.”

And Rep. John Lewis (D-Ga.), a civil rights hero who gave a glowing tribute to Holder for the TIME 100 this year, was taken aback when House Minority Leader Nancy Pelosi announced the news at a Congressional Black Caucus Foundation event.

“Oh wow,” said Lewis. “Why? That is so bad. … That is so sad.”

“His resignation is a great loss for any American seeking justice in our society,” Lewis said in a statement later. “He became the symbol of fairness, an embodiment of the best in the federal government. He has been a persistent and consistent leader in the struggle for civil and human rights. That legacy is in his bones. It is written on his heart, and his intelligence and committed leadership will be hard to replace.”

Republicans didn’t share in the Democrats’ grief.

Rep. Darrell Isssa (R-Calif.), chairman of the House Oversight Committee and perhaps Capitol Hill’s most vocal Holder antagonist, cheered the news, tweeting that Holder has the “dubious distinction” of being the first Attorney General held in contempt of Congress. Issa led the drive for that 2012 House vote after Holder declined to hand over documents related to the so-called Fast and Furious scandal, in which federal law enforcement agents allowed the sale of weapons so they could track the flow of them to Mexican drug cartels. One of the weapons was found at the scene of the shooting death of an American border patrol agent in 2010.

“Eric Holder is the most divisive U.S. Attorney General in modern history,” Issa tweeted. “By needlessly injecting politics into law enforcement, Holder’s legacy has eroded more confidence in our legal system than any AG before him.”

Rep. Kevin Brady (R-Texas) said in a statement that Holder had “repeatedly refused” to enforce U.S. law and that his resignation is “great news” and long overdue. Brady said his record includes the following: “Ignoring the clearly unlawful behavior of IRS employee Lois Lerner, illegal gun-running to Mexican drug cartels and being held in contempt by the U.S. House of Representatives.”

Sen. David Vitter (R-La.) said in a statement no other Attorneys General had “attacked Louisiana more than Holder.”

“He’s tried to defund a Louisiana youth program because students prayed, sued to block voucher scholarships going to poor kids in failing schools, and threatened the release of Louisiana voters’ personal information,” Vitter said. “I’m proud to have voted against this Senate confirmation.”

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