Lawmakers to SEC: Investigate Private ICE Contractors for Securities Violations
Four House Democrats say publicly traded prison firms may have misled investors about no-bid ICE contracts, whistleblower suppression, and potential insider trading.
WASHINGTON — Four House Democrats are calling on the Securities and Exchange Commission to investigate whether publicly traded companies that operate immigration detention centers have violated federal securities laws through no-bid contracts with Immigration and Customs Enforcement.
In a letter sent Friday, July 25th to SEC Chairman Paul Atkins, Reps. Joe Neguse (D-CO), Pramila Jayapal (D-WA), Bennie G. Thompson (D-MS), and Jamie Raskin (D-MD) request that the agency examine potential failures by detention corporations to disclose material information to investors, potential insider trading, and whether employee whistleblowing has been unlawfully restricted.
“We believe that it is imperative for the SEC to adequately oversee the timely and accurate disclosure of material information from these companies,” the lawmakers wrote.
The letter cites mounting concerns over the rapid expansion of private detention contracts under the Trump administration, many of which have been awarded without competitive bidding. “Given the speed and opaque nature of these contracts,” the lawmakers wrote, “there is a heightened need to monitor and oversee the release of material information related to these no-bid contracts.”
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The lawmakers also raised questions about whistleblower protections under SEC Rule 21F-17(a), which prohibits companies from barring employees from reporting misconduct to the Commission. The letter references “numerous claims of civil rights violations, inadequate care, and misuse of resources” at facilities operated by these companies.
The push comes amid broader concerns that traditional oversight mechanisms within the Department of Homeland Security have been weakened. The letter points to the Trump administration’s cuts to the DHS Office for Civil Rights and Civil Liberties and the Office of the Immigration Detention Ombudsman, citing reporting from NPR.
“Without these Congressionally-mandated offices available to do necessary oversight work, and with ICE illegally restricting oversight by Members of Congress at detention facilities, oversight from the SEC is now more important than ever,” the lawmakers wrote.
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The request follows a recent incident in which two members of Congress were denied entry to the ICE detention center in Adelanto, California, as they attempted to conduct an oversight visit, as first reported by ABC7 Los Angeles.
While the letter stops short of alleging specific violations, it urges the SEC to consider whether any companies “engaged in any securities laws violations, including failing to disclose material information,” and whether “any such company or their personnel engaged in any insider trading.”
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