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Thu July 31, 2014
Judge Appoints Wyatt Detention Center Receiver
A Rhode Island superior court judge has named a long-term receiver for the financially troubled Wyatt Detention Center. Lawyer Jonathan Savage will take the reins at the Central Falls prison, which has been losing money and facing declining inmate populations. Savage’s task will be to find a way to help dig the detention center out of the red.
The facility entered a form of bankruptcy in June after losing millions a year for years. It also owes nearly $100 million dollars in outstanding bond debt.
Wyatt Detention Center opened in 1993 to provide more prison beds and, ostensibly, to boost Central Falls’ economy. But after an immigrant detainee died in custody in 2008, the federal government pulled its business, and Wyatt lost a quarter of its revenue. The City of Central Falls went broke in 2010, in part because of a drop in revenues from Wyatt.