Former Federal Prison Official and Factory manager at USP-Marion Sentenced to Prison

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Former Federal Prison Official and Factory manager at USP-Marion Sentenced to Prison

The following press release was published by the U.S. Department of Justice, Office of the United States Attorneys on March 12, 2021. It is reproduced in full below.

Benton, Ill. - Shawn E. Whitecotton, 50, of Herrin, Illinois, was sentenced to 16 months

confinement today, consisting of 8 months in federal prison and 8 months of home confinement after

his release. At his sentencing, United States District Court Judge Staci M. Yandle agreed with

federal prosecutors that Whitecotton knowingly obtained thousands of dollars by abusing

his management position at the federal penitentiary at Marion, Illinois (USP-Marion), lied about

it, and then obstructed justice while trying to cover up his scheme.

“It is important for the community to have faith in our institutions, including our federal

prisons," U.S. Attorney Steven D. Weinhoeft said. “We will always hold public officials

accountable if they abuse positions of public trust for their own financial benefit."

“Whitecotton failed to inform the government that, while he was a UNICOR factory

manager, he was also being paid directly by a contractor he oversaw; and he doubled down when he

thought he’d get caught. Today’s sentencing shows that there is no place for lying and deceit among

federal employees," said William J. Hannah, Special Agent in Charge of the Department of Justice

Office of the Inspector General Chicago Field Office.

Whitecotton was a career federal corrections officer and served as the factory manager of the

UNICOR manufacturing facility operating within USP-Marion. ¹ In 2014, USP-Marion’s UNICOR

facility contracted with a private company, PGB Hanger, Inc. (“PGB"), to manufacture wire clothing

hangers. As factory manager, Whitecotton was directly responsible for the PGB contract.

Shortly after the work began, Whitecotton approached PGB’s owner and offered to work for PGB as a

salesperson - in direct violation of government ethics rules. PGB agreed and they signed a

written contract setting Whitecotton’s compensation at $1,500.00 a month, plus a

commission for each hanger sold on new accounts and a monthly phone allowance. He

then accepted over $20,000.00 in payments from PGB during the following year.

¹ UNICOR is a wholly-owned government corporation administered by the Bureau of Prisons (BOP) that

operates manufacturing facilities in certain BOP facilities. The goal is to prepare federal inmates

for successful reentry into society by providing them with job training and work skills. UNICOR

hires BOP inmates to work in its factories,

at different locations. In some circumstances, UNICOR contracts with private vide product

manufacturing services.

In 2015, while Whitecotton was continuing to work for PGB as a salesperson, he became aware that

federal investigators were interviewing staff and inmates working in his factory. Worried

that his prohibited job with PGB might be exposed, Whitecotton concocted a cover-up. He amended

documents to make it appear that his son had been working for PGB, as opposed to Whitecotton. He

also instructed PGB’s owner not to cooperate with investigators if anyone asked for an interview.

Whitecotton further told PGB’s owner that if he did agree to speak to investigators,

the owner should say that Whitecotton’s son, not Whitecotton, had been working with PGB as a

salesperson and receiving payments for the past year.

Whitecotton further attempted to conceal his prohibited job with PGB by making false statements on

certified government forms. As a supervisory employee in the executive branch of the United States,

Whitecotton was required to annually report his financial interests, any outside employment

activities, and any positions held outside his role at the prison. The purpose of this requirement

was to uncover any possible conflicts of interest a supervisory employee may have in the

performance of his or her duties. The forms specifically required Whitecotton to disclose any

sources of income over $200. At the time, Whitecotton had received over $20,000 in payments from

PGB, but he knowingly failed to disclose that information, to prevent federal investigators from

discovering the truth.

In December 2020, Whitecotton pled guilty to two counts of making materially false

statements related to those government forms.

Along with 8 months in prison and 8 months of home confinement, Judge Yandle ordered Whitecotton to

pay restitution in the amount of $23,475.25 - the total amount he earned from PGB. As part of his

sentence, Whitecotton was also ordered to serve 10 months on supervised release after his home

confinement ends.

This case was investigated by the FBI and Department of Justice Office of the Inspector

General. The case was prosecuted by Assistant United States Attorney Luke J. Weissler.

Source: U.S. Department of Justice, Office of the United States Attorneys

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