CoreCivic, Geo Group fall after House oversight committee targets ICE contracts

Rep. Elijah Cummings, the Chairman of the Committee on Oversight and Reform, and Rep. Jamie Raskin, the Chairman of the Subcommittee on Civil Rights and Civil Liberties, sent letters to three for-profit contractors, including CoreCivic (CXW) and Geo Group (GEO), "after reports detailing the grave conditions at immigrant detention centers and facilities for immigrant children." The Chairmen sent letters to CoreCivic, GEO Group, and DC Capital Partners, whose subsidiary, Comprehensive Health Services, runs the nation's largest shelter for immigrant children. The Chairmen "expressed concern that the value of the contracts increased significantly under the Trump Administration and resulted in massive profits." GEO Group received $300M new ICE contract awards in fiscal year 2017, an increase of over $100M over the prior year, Cummings notes. And CoreCivic received approximately $135M in new ICE contract awards in fiscal year 2017, an increase of $36M over the prior year, he added. Shares of CoreCivic and GEO Group are both down 3% in morning trading. Reference Link