Author: CCRC Staff

Editorial staff of the Collateral Consequences Resource Center

Insurance companies undermine fair hiring efforts

An investigation by the Wall Street Journal reveals the little-known role that insurance companies play in shaping employer policies on hiring people with a criminal record.  Joe Palazzolo reports in “Criminal Records Haunt Hiring Initiative” that the “unseen hand of commercial insurers” frustrates efforts by some employers to implement fair hiring policies, and gives others an excuse for maintaining broad prohibitions on hiring convicted individuals.  “An employee is typically excluded from standard insurance policy against fraud, theft, embezzlement and other crimes—known as a fidelity bond—as soon as the employer discovers that he or she has committed a dishonest act, whether recently or in the past.” The extent of the problem is illustrated by the story of Louis Henry, an Alabama man who lost a sales-management position at a medical-technology company after one day on the job, when a background check revealed a dated conviction for misreporting the status of a loan on the books of a bank where he worked.   “A May 1 letter from the employer, reviewed by The Wall Street Journal, said Mr. Henry’s record placed the company in violation of its insurance policies.”

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Glenn Martin’s “prison-like” White House experience

The Crime Report published this report about Glenn Martin’s recent experience as an invited guest at the White House, described in Glenn’s open letter to the President, giving further details of the treatment he received and describing the Administration’s response. Glenn Martin’s “prison-like” White House experience July 2, 2015 09:01:56 am By Graham Kates Two weeks after criminal justice advocate Glenn Martin was nearly denied access to a White House event he was invited to, he’s still waiting for an explanation. In a widely distributed “open letter” to President Barack Obama last week, Martin revealed that he was required to have a special escort in order to enter the White House complex for a discussion with senior officials on breaking down barriers facing ex-prisoners. Martin, who is one of the country’s leading advocates for ending those barriers, is an ex-inmate himself. Now head of JustLeadershipUSA, he served time for a robbery conviction 20 years ago—and has since achieved national prominence for his work with former prisoners. Although he was invited to the meeting, along with a select group of advocates, scholars, elected officials and law enforcement authorities, he was treated as a security risk. “The staggering symbolism of the ordeal was […]

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SBA relaxes rule against business loans to probationers, while other federal agencies keep collateral consequences unchanged

The U.S. Small Business Administration (SBA) last week published a final rule for its federal Microloan Program that will for the first time allow microloans to small businesses owned by someone currently on probation or parole. In its announcement, the SBA noted that this will “aid[] individuals with the highest barriers to traditional employment to reenter the workforce.”  The change was evidently prompted by a review of agency regulations requested by the Cabinet-level Federal Reentry Council established in 2010 by former Attorney General Eric Holder. While the change is welcome, it leaves in place substantial restrictions for people under sentence in other SBA loan programs, discussed at length in a post on this site last December. It is also striking for being the only relaxation of federal collateral consequences since the Reentry Council was established five years ago.  As reported on this site, federal agencies are said to be “mostly satisfied” with their the way their regulations address the situation of people with a criminal record.

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DOJ on the fence about appealing federal judge’s expungement order

On June 23, the U.S. Attorney wrote to Judge Gleeson informing him that the government had not yet finally decided whether to appeal his May 21 expungement order in Doe v. United States, and requesting an opportunity to address the scope of the order in the event the appeal is withdrawn.  The government’s letter, reproduced in its entirety below, indicates that the government has been discussing with the FBI how the order might be modified to “effectuate the Court’s intention of precluding the petitioner’s prospective employers from learning of her health care fraud conviction” while also allowing the government “to pursue legitimate law enforcement objectives.”  Those objectives appear to relate to the arrest and prosecution of two of Ms. Doe’s codefendants who remain in fugitive status after more than a decade.  On June 24, in an order granting the government’s request, Judge Gleeson suggested that the government bring any concerns about the scope of the order to the court’s attention even while the appeal is pending. Here is the text of the government’s June 23 letter: 

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Hip-hop mogul’s arrest highlights liquor license consequences

  The June 22 arrest of  Sean “Diddy” Combs on three counts of assault with a deadly weapon has spotlighted the severe consequences of conviction for liquor licensees.  An article in The Observer reports that, if convicted, the legendary hip-hop artist may be forced to divest his holdings in Diageo, the world’s largest producer of spirits.   In almost every U.S. jurisdiction, principals in the manufacture or sale of alcohol are required to hold licenses that are generally not available to people who have a felony conviction. While Combs has had a number of high-profile brushes with the law, he’s never been convicted of a felony.

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