Tennessee Officials Charged with Conspiracy in $123 Million Contract Bid-Rigging Scandal

Former State Official and Executive Face Federal Charges

A former Tennessee Department of Correction official and a former executive of a private contractor have been indicted on charges of conspiracy to obstruct justice and commit perjury in connection with a bid-rigging scheme involving a $123 million state contract. Federal prosecutors announced Tuesday that the two men, Wesley Landers and Jeffrey Wells, allegedly colluded to manipulate the bidding process for a behavioral health care contract.

Accusations of Collusion and Job Favoritism

The charges stem from a 2020 lawsuit filed by Corizon, a Tennessee-based prison contractor. The lawsuit accused Landers, the former chief financial officer of the Tennessee Department of Correction, of leaking internal emails to Wells, who was then the vice president of Centurion of Tennessee, a rival prison contractor. According to the lawsuit, Landers provided Wells with confidential details about the contract’s request for proposals, giving Centurion an unfair advantage in securing the bid.

The contract, valued at $123 million, included behavioral health services such as psychiatric and addiction treatment. Corizon, which had won previous bids, was effectively edged out when the state significantly raised the performance bond from $1 million to $118 million, putting it out of Corizon’s reach.

Lawsuit Details and Contract Manipulation

Corizon’s lawsuit also alleged that the state awarded Centurion the contract and then inflated the contract amount to $123 million to offset the cost of obtaining the exorbitant performance bond. After securing the contract, Landers reportedly accepted a high-level position with an affiliate of Centurion in Georgia, further fueling suspicions of corruption.

Both Landers and Wells were fired by Centurion in February 2021, but the controversy didn’t end there.

Efforts to Cover Up the Scheme

According to federal prosecutors, Landers and Wells conspired to cover their tracks after Corizon issued subpoenas for communication between the two men during the lawsuit. The pair allegedly deleted emails and used new cellphones to avoid detection. Prosecutors also accuse them of lying during depositions to conceal their collusion.

In a statement released Tuesday, the U.S. Attorney’s Office for the Middle District of Tennessee confirmed criminal charges against Landers and Wells. If convicted, both men face up to five years in federal prison.

Settlement of Corizon’s Lawsuit

Although Centurion and Corizon settled the civil lawsuit in 2022, the criminal investigation has continued, culminating in this week’s announcement of charges. Federal authorities are continuing to investigate the full extent of the bid-rigging and corruption within the Tennessee Department of Correction and its dealings with private contractors.