Friday, June 4, 2010

District Attorney Guest operates collection agency for court fines while D.A.

Michael Guest, the District Attorney for Madison and Rankin Counties, has been operating a collections agency since 2002. Mr. Guest owns Mississippi Court Collections. Mr. Guest is listed as the President, registered agent, and director of the company according to the Secretary of State's website.

MCC specializes in collecting unpaid fines and fees for various courts around Mississippi. JJ has determined MCC has contracts with Alcorn, Atalla, Harrison, Simpson, Winston, Webster, and Yazoo Counties. JJ obtained through public records requests the following contracts: Winston County, Simpson County, Harrison County, and Alcorn County. JJ verified the Yazoo County contract in a phone call to county officials.

The Webster Progress-Times reported two years ago the Board of Supervisors voted to "sign a contract with Mississippi Court Collections. MCC's Scooter Culpepper presented the contract for collection of past-due Justice Court fines." The Choctaw Plains-Dealer reported the Winston County Board of Supervisors "Approved a contract with Mississippi Court Collections to collect all mobile home and personal property taxes that are delinquent. "This is the last resort," said Tax Assessor Brenda Miles. "This is after our office has done everything it can to collect."

The Daily Corinthian also reported "Alcorn County Supervisors voted Tuesday to seek a renewed contract with a firm providing collection services for old justice court fines. Supervisors voted to move ahead with establishing a new contract with Mississippi Court Collections Inc. allowing the company to attempt to collect unpaid fines for justice court. The company has been providing the service to the county since August 2007 and receives a portion of the funds it collects on the old, unpaid fines while forwarding the remainder to the county. The service does not cost the county any money directly and allows the county to receive funds owed on fines that might otherwise simply languish in the files. Court officials report the company has returned more than $22,000 to the county since the service began."

The Simpson County contract is representative of the other agreements. The contract is between the county and Mississippi Court Collections, Inc. for "the collection of delinquent indebtedness to the Justice Court of Simpson County, Mississippi." Delinquency is defined in (2)(a): "any debt, whether originating from a fine, an assessment of court costs, or both, or any other assessment of money, owed by any individual to the Justice Court of Simpson County, Mississippi, that remains unpaid, either in whole or in part, more than ninety (90) days past the date by which payment was to be made under the terms of the order of the Justice Court Judge or after the date the last payment was made."

The contract was signed on January 18, 2008 and expires on December 31, 2011. All contracts were signed by Michael Guest as President of MCC. MCC collects the money and remits it to the court. The county then pays MCC each month its fee for collecting the unpaid fines. MCC receives a share of all monies collected. The Simpson County contract specifies the county will pay MCC 30% of the amount collected. This feature is included in all contracts obtained by JJ. The percentage given to MCC ranges from 25% to 35% (depending on the contract.). The other contracts were signed after Mr. Guest became District Attorney: Winston (July 21, 2008), Harrison (January 5, 2009), and Alcorn (July 26, 2007 but it is currently being renewed.). There are no contracts between MCC and Rankin and Madison counties.

Mr. Guest became District Attorney in January 2008 and was a prosecutor in the same office for several years. It is unknown how much money has been paid to Mississippi Court Collections by the counties listed or how they were obtained. Such contracts are not illegal and do not appear to violate the code of ethics. It is also unknown if MCC has contracts with other counties. The company has no website and is located at 26 Eastgate Drive in Brandon.

Efforts to contact Mr. Guest were unsuccessful.

39 comments:

Anonymous said...

I wonder if it is kosher for a state employee, engaged in the prosecution of individuals within the state, to personally profit from fines that are adjudicated by the state.

This is a pretty fine line by cutting it across the county lines.

Anonymous said...

While living in the Washington, DC area, I received multiple letters from this company attempting to collect Webster County fines for hunting from a moving vehicle. Problem was, the fines were assessed against someone else I didn't know and who, as far as I know, had never lived at my address. Always thought it was quite a coincidence since I am from Mississippi and have travelled through Webster Co. numerous times - though never while hunting from a moving vehicle.

Pete said...

If these contracts are NOT illegal, and do not appear to violate the code of ethics, what's the issue here EXCEPT that JJ doesn't like Michael Guest. I cannot see anything wrong with a public official owning a company that does business with public bodies not related to his office, as long as the work is being done by others - not taking up the work time the public official is being paid for.

As to 2:02, that problem is not with MCC, but with Webster County. I've had similar problems (other county) but it is the result of the County issuing a violation in error - not the collecting agency error.

I don't have an issue with Mr. Guest either way - pro or con. But I don't see the value in trying to make an issue where one doesn't exist - especially when you note that there is nothing illegal or unethical about the action.

your highness said...

It seems like a conflict of interest to me. I am glad that KF brought this up. The taxpayers deserve to know what their D.A. is doing outside of his job. He is a "public servant" after all.

Anonymous said...

We don't know that he is NOT working his business on public time. When else would he do it? DA's are supposed to spend 100% of their time on their DA job. Also, is it ethical to accept payment from the adjudications of other counties?

Anonymous said...

At UMMC this would be a conflict of interest for a state employee, and a waiver would need to be obtained from an administrator for an employee to do business with the state. I don't know if state policies apply to elected officials, or if the DA can grant himself such a waiver.

Anonymous said...

Lets consider this....

I'm a collection agency and an Assistant DA...

I have influence over quid pro quo prosecutions...

I have influence over who gets filed against in two counties (large ones at that)...

I am sure that citizens from both counties potentially own property in some of these counties under contract...

A state employee is conflicted if the prosecution of a Madison/Rankin citizen owns property in those other counties...

It looks like a loophole argument on ethics and legality, and frankly, why can't he do like others who go into public service? I mean even Cheney resigned from Haliburton.

Kingfish said...

1. Was this business disclosed to the voters when he ran for election?

2. Could Kaptain Kangaroo and I form our own collection agency and have the same chance at obtaining those contracts? You don't think those neighboring counties didn't know who he was, do you?

3. Who said I had a bias against Guest? Aside from criticizing him on the Alford case (staying silent) and mentioning a prosecutor who got suspended by the bar, where have I gone after him? I do wish he would prosecute the Evans case because the biggest real estate fraud case in Mississippi ever happened in his county but that is just my being picky. I don't have anything for or against Mr. Guest.

Anonymous said...

I don't care if the business is collections or selling trinkets, I would prefer to know what elected officials, particularly FULL TIME law enforcement officials, are doing on the side. Legal, ethical, whatever - I want to know.

Anonymous said...

This looks mighty shady, but I can say that I was present when this company pitched their services to the Yazoo County Board of Supervisors and they never mentioned Mr. Guest's name.

Anonymous said...

what does his Ethics filings show? don't you have to declare all income other than your public salary?

does he sign collection letters? collecting debts, especially fines that are in effect already judgments, could be said to be practicing law depending on how its done.

DAs and ADAs are forbidden to engage in the private practice of law. however, it should be noted, DAs are elected officials, not state employees. ADAs are just that, ADAs, not "state employees" even though most of them are paid by the state and get state benefits. I know it sounds funny, but trust me, that's the way it is.

Kingfish said...

They are mentioned in the ethics filings.

Before anyone accuses me of singling him out, I thought Tyrone Lewis should've been fired for letting his son make money off of the academy and didn't like it he pimped himself out as chief as an expert witness.

I didn't say he went before the board but he signed every contract and his name is in the contracts. I find it hard to believe a lawyer or supervisor reading the contract wouldnl't recognize the name of the Rankin/Madison DA.

Then there is the matter of law enforcment. Should our leaders in law enforcment engage in side businesses such as this one? Does it give an appearance of anything? I have problems with this one.

Anonymous said...

there's a real problem with counties contracting out collection agencies to collect fines. fines are judgments that are entered and enforceable. those that don't pay fines may be jailed for contempt; or, compelled to show cause why they shouldn't be jailed because they are indigent. why the hell would a county use a damn collection agency to write letters saying "pay up" when they can simply have constables serve warrants to enforce the judgment of the court.

it smells like rotten eggs and Guest should answer the damn phone and provide his side of the story.

Anonymous said...

It is rotten eggs. Most of our officials are elected by the same people who owe these fines, and the GOB network has and is just taking another turn to assure the fines are paid and no one working for the County has to be involved. The Justice Court Lobby has done what it was hired to do.

Don't know Guest or his company but this has been in the works for several years and the Judges had to be aware of it when they began to allow so much to be put on the books. Been told the Judges volunteer to put the fines on weekly or monthly payouts, before the defendent states he doesn't have the ready money. Don't know the answer, but someone is making money off the Justice System of MS.

Anonymous said...

Guest needs to talk and explain. Let's hold judgment until or unless he does.

He does look like a white rat though. We'll see.

Anonymous said...

Mr. Fish, do you know whether Mr. Guest is acting as an attorney in his position with/as the named collection agency? If so, there appears to be a serious problem. When I was an assistant D.A I was prohibited from practicing law in any other capacity. Suppose the State finds itself in a position wherin it is reqired to prosecute the said busines?

KaptKangaroo said...

I wonder, as a businessman in private business, who would support formation with private dollars to collect the State's collections? I do not believe I need anything other than an attorney residing in my office and to follow the law. Now, if I had the influence over other smaller counties with a "lets give a favor by not rocking the boat" attitude with the DA, and got the contract for 1/3 of collections plus expenses, then, KF, consider me in. I got plenty, plenty of heart, and, I have no stake other than "you did the crime, lets settle." Of course, I would be sanctioned by a licensed attorney and would not have any other interest but the STATE and the DEBTOR. My fees are but a 20% bottom line profit. I can run the numbers if you like.

Ironghost said...

You'd think this would have come up sooner.

Anonymous said...

Additionally, does this not violate MCA section 25-21-35, as ameded?

Anonymous said...

Once those "cases" are turned over to a collection agency any warrant or criminal or civil contempt action involving them becomes INVALID.

Anonymous said...

Where is soulgurl on this one?

Anonymous said...

10:40 that is incorrect. once a warrant is issued, the only way its made invalid if is a Judge enters an order recalling, or canceling, the warrant.

wouldn't you like to collect credit card debts if you could inform the debtor that failure to pay would result in a court appearance and possibly a trip to the county jail until the debt is paid? pretty motivating argument to pay up.

Anonymous said...

What happens when someone from Rankin or Madison county gets fined in one these counties he serve? Can he not pursue those fines? That is illegal.

Anonymous said...

9:09 explain your comment; most of us are not fluent in gobbley-gook.

Kingfish said...

He doesn't have any contracts in Rankin or Madison.

Anonymous said...

wonder if he's giving legal advice to this "collection entity". if so, that's illegal.

Anonymous said...

The Sect. of State's webpage lists the type if agency owned and operated by Mr. Guest as " LEGAL". Collection agencies do that, sue people, in this case to collecct the monies for the counties and courts with whom they have contracts. This is an ethical mire and could easily engulf Mr. Guest; the way that it appears to me Mr. Fish.

Anonymous said...

Sorry if I typed it wrong. Didn't major in English. What I meant what if (from Madison) get a ticket in Webster county and don't pay. Can Guest legally harass me since he represents the county I live in.

Anonymous said...

Anon 1:33, Mr. Guest also represents "you" as a citizen of the State Of Mississippi. He has a really serious conflict of interest, just ask any second year law student who has taken legal ethics.

Anonymous said...

1:33 he doesn't "represent" Madison and Rankin, he is the elected DA. IF his contracts are legal and pass ethical muster, the answer would be yes, he could collect your fine for Webster. But that's the entire debate, whether his being a licensed attorney engaged in debt collection practice while being the full time DA prohibited from private practice IS legal and ethical. For my money, it is not and he should be sanctioned.

His DA office manager/bad check unit manager was at one time another employee of the debt collection business. Don't know if she still is, but was.

Anonymous said...

Sweet deal?!?

Any sort of bidding process?

Is there a problem that current emoployees are not collecting these fines and fees properly? Perhaps a little supervision might collect these monies at lesser cost to the taxpayer?

This offer was a better deal for the taxpayers IF the reporter got the details right.

From the Koscuisko Star Herald March 19, 2008
Supes agree to look into court fine collection service

By Leslie N. Dees

"The Attala County Board of Supervisors agreed to take under advisement the use of Mississippi Court Collections to help retrieve past due Justice Court fines during their Monday morning board meeting.

Scooter Culpepper, a MCC marketing representative, spoke to the board about the program.
Culpepper said they would not add to the work of the court clerks because they would also have access to the Justice Court computer files.

MCC would charge a collection fee to the fine holder and would only take three to four percent of the actual fine, Culpepper said."

According to a later story MCC did replace the previous collector.

The Star Herald-
April 9, 2008
Supes to hire new collection company

By Leslie N. Dees

"The Attala County Board of Supervisors agreed to hire Mississippi Court Collections to aid in the collecting of past due fines, pending a 30-day notification of Mississippi Warrant Network.

The board met with Scooter Culpepper, a MCC marketing representative, during a March meeting.

Currently, Attala County has more than $1 million in unpaid fines."

What is the actual percentage of fees MCC is collecting from Attala county?
If it is different from the proposal reported by the Star Herald reporter, what is the explanation for the difference?

Anonymous said...

MCC also doing business in Scott County Miss. From the Scott County Times on March 3, 2010 payment of $4,000 to MCC for justice court fine collections.

MCC also doing business in Refugio County Texas.

The Webster Progress-Times

"Scooter Culpepper with Mississippi Court Collections, who first met with the board last June about collecting past-due Justice Court fines, met with supervisors again......
He said the company would add a 25 percent surcharge to the original fine, which it would collect when a past-due fine was paid in addition to 35 percent of the original fine up because it provides more administration. "

$200.00 fine.
Pay MCC $250.00, Refugio County gets $130.00 and MCC gets $120.00.

Anonymous said...

There is a REAL PROBLEM here but I will bet that nobody files a bar complaint. I wouldn't, no not me, no sir, no way, no how, nope!

skisgirl said...

You already know how I feel about Guest!

Anonymous said...

How much of an opportunity did he have to respond? Sounds like he would have wanted to respond.

Kingfish said...

He could still respond but has chosen not to do so. As if I would refuse any statement or comment from him. But he seemed to have no problem getting in front of a camera today for that hearing involving the teacher.

By the way, about that case, sources at the "kid's" school tell me ever since she was busted, he's been real cocky about the whole thing. You know, like the geek who bags the head cheerleader.

Anonymous said...

Guest's tv apperances aren't all that helpful since he appears to be about 12 and not very smart. Of course, those same attributes don't seem to harm Richard Schwartz.

Kingfish said...

By the way, Guest had a little meeting with his top people last week about about my MCC and Buckley stories. Yet he couldn''t call me back.

Anonymous said...

You think they discussed some of those transparency facts in dispute earlier that had to do with "how much you paid for your refrigerator"?


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