The Tennessee Sheriff has been indicted for making a profit from inmate labor, according to a recent report. The photo released by the Tennessee Comptroller’s Office serves as evidence of the accusation.
According to the report of 2020, Thomas and a group of local investors established the Alliance Group, a trio of profitable businesses. The Alliance Group provided staffing assistance to local businesses, facilitated a transitional home for current and former inmates, and organized transportation for work release inmates and former inmates commuting to and from work.
During the period spanning February 2020 to October 2022, Thomas was found to have channeled a total of $1,417,204.06 in inmate wage fees and deductions to benefit the Alliance Group, according to investigators.
Furthermore, it was discovered that Thomas was compensated a total of $181,644.50 by Alliance, which included payroll benefits, legal representation services, and compensation from inmate labor.
According to reports, it is said that he held a 20% ownership stake in Alliance. However, state law prohibits him from benefiting or profiting from the labor of inmates.
“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.”
The report revealed that Alliance staffing agency had entrusted Thomas with the responsibility of overseeing at least 170 inmates under his custody during the investigation.
According to the report, Alliance Transportation received a payment of $18 per day for transporting the inmates to and from work. Moreover, the investigation discovered that Orchard House, a transitional home, allowed 82 inmates to reside there without proper approval from the Gibson County jail. These inmates were charged $40 per day by Orchard House for their stay.
Thomas stands accused of deceiving the TDOC by allowing 74 inmates, who were being held at the Gibson County jail, to reside at Orchard House without obtaining the necessary approval from a judge. The allegations pertain to the inmate housing situation.
The jail management system maintained the belief that the inmates were still housed in the jail, leading to the county receiving $507,273 in reimbursements from TDOC.
According to the report, Thomas compelled the county to allocate the funds to Orchard House without the knowledge or consent of TDOC. This was done even though Orchard House, a transitional home, was not affiliated with the jail or managed by jail personnel. Furthermore, there was no contractual agreement between the county and Orchard House.
During the investigation, it was discovered that Thomas mishandled the wages of inmates who were working for Alliance. Specifically, he directed $448,637.09 to be deposited into a personal account that was owned and controlled by the Alliance Group. This action was deemed improper and went against standard protocol.
In May 2024, Paul Thomas faced a combined total of 22 counts, including theft, forgery, computer crimes, and official misconduct, after being indicted by both the Davidson and Gibson County Grand Juries. The investigation led to these charges being brought against him.