Tennessee Department of Children's Services Commisioner James M. Henry may have made millions of dollars from the sale of his stock in a major provider of services to his current agency when he went to work for the Haslam administration four years ago.
Financial records for Omni Visions, which has a $55 million a year contract with the state, show the company paid some $4 million in 2011 to buy back stock from departing employees. Omni, a for profit employee owned company, began work for DCS prior to Henry's appointment as commissioner, but that contract has been renewed annually since he took over.
Though Henry insisted the Omni contracts were not granted on a no-bid basis, submissions of the contract to the state General Assembly specifically state that no other providers were considered.In a 2013 submission to the General Assembly, DCS officials wrote, "It is in the best interests of the state to continue non-competitive procurement of these services to maintain stability... DCS cannot risk the possible displacement of hundreds of children through the utilization of a competitive procurement process."
Henry, in an email response to questions, wrote, "The contracts are approved and administered under strict state rules and procedures. To be precise, these are not “no-bid” contracts."
" It is a
competitive process and is overseen by the Department of General
Services and the Tennessee Comptroller’s Office," he said, adding that a request for qualifications process was used.
Eric Strickland, who took over as the top Omni official after Henry's departure, said in an email response to questions that the amount paid to Henry for his stock was considered confidential. He did say that Henry redeemed all of his stock in March of 2011 and no longer has any financial interest in the company.
Though footnotes to the financial records refer to only one unnamed official of the company redeeming stock, Strickland said Henry was one of several departing employees whose stock was bought back that year. He declined to say how many others were paid.
Henry, in response to a question about whether he received the $4 million or some lesser amount, said he considered the details of his stock cash-out to be "a private financial matter."
He noted that he first went to work for the Haslam administration in 2011 as the head of the Department of Developmental and Intellectual Disabilities not DCS. He took over as DCS commissioner in 2013 following the resignation of Kathryn O'Day.
Henry said he had fully complied with state financial disclosure requirements.
"I have made all required disclosures in my state ethics forms – including listing the fact that I received income from Omni Visions," he wrote in the email.
"Since I left Omni Visions, I have no financial stake in the company whatsoever. I take my position as a public servant very seriously, and I have no conflict of interest," Henry added.
Henry did file a disclosure for 2010 in early 2011 noting that he was selling his stock and in a notation wrote that details were included in an attachment.
"Pending sales-info enclosed," the filing states.
That 2-page attachment, however, does not disclose the price paid to Henry for his stock or the number of shares he redeemed.
"Pending sales-info enclosed," the filing states.
That 2-page attachment, however, does not disclose the price paid to Henry for his stock or the number of shares he redeemed.
Henry's disclosure for calendar 2011, the year the company says he redeemed his stock, lists no income from Omni Visions.
In his email Henry defended Omni, calling it "one of the largest private foster-care providers in the state Like our other providers, it specializes in foster care for children who often have therapeutic needs."
"To be clear," Henry wrote, "Omni Visions gets no special treatment from me or our staff."
A former state legislator and one time gubernatorial candidate, Henry spent 13 years at Omni Vision before joining the Haslam administration.
Campaign finance records show that Henry contributed $1,000 to Haslam's re-election campaign in mid-October. The filing lists his occupation as president of Omni Visions.
Asked about the campaign filing, DCS spokesman Rob Johnson said, "Regardless of what the Haslam campaign records may show, Jim Henry is the DCS Commissioner. He is not employed at Omni Visions.
wfrochejr999@gmail.com
"To be clear," Henry wrote, "Omni Visions gets no special treatment from me or our staff."
A former state legislator and one time gubernatorial candidate, Henry spent 13 years at Omni Vision before joining the Haslam administration.
Campaign finance records show that Henry contributed $1,000 to Haslam's re-election campaign in mid-October. The filing lists his occupation as president of Omni Visions.
Asked about the campaign filing, DCS spokesman Rob Johnson said, "Regardless of what the Haslam campaign records may show, Jim Henry is the DCS Commissioner. He is not employed at Omni Visions.
wfrochejr999@gmail.com
