Search Captions & Ask AI

No Place Like Home | Criminal Podcast

November 03, 2022 / 23:30

This episode covers Neil White's financial crimes, his experience in a minimum security prison at Carville, Louisiana, and the unique environment of the leprosy colony.

Neil White owned Coast Magazine Corporate in Gulfport, Mississippi, during the early '90s. He led a seemingly affluent lifestyle while engaging in check kiting, a form of bank fraud. White explains how he manipulated bank accounts to appear financially stable until an audit exposed his actions.

After being caught, White faced significant legal consequences, resulting in an 18-month prison sentence. He recounts the emotional impact on his family, particularly his wife, Linda, who felt humiliated and hurt by his actions.

White served his sentence in a prison located within the last remaining leprosy colony in the continental United States. He describes the initial panic he felt upon realizing the nature of the facility and his interactions with the leprosy patients, including a woman named Ella Bounds.

The episode highlights the unique dynamics between inmates and leprosy patients, the history of the Carville facility, and the eventual closure of the prison. White reflects on how his time there changed his perspective on life and his own problems.

TLDR

Neil White shares his story of bank fraud and serving time in a prison within a leprosy colony, revealing unique interactions and perspectives.

Episode

23:30
00:00:00
Neil White: I mean, we weren't driving  $100,000 sports cars and snorting cocaine,
00:00:06
which was the drug of the day, but we had  a boat, we had three cars, we had a 4,000
00:00:13
square foot house. I mean, we were leading what  I would consider an upper middle class life.
00:00:19
Phoebe Judge: In the early '90s, Neil White  owned Coast Magazine Corporate, a magazine
00:00:24
publishing company in Gulfport, Mississippi. Neil White: We had lots of perks from the
00:00:29
magazine that don't really go into any account.  It's, "Oh, we'd love for you to wear our suits,
00:00:37
because people pay attention to what you wear."  And, "Oh, we'd love for you to drive our cars,
00:00:42
and we'd love for you to come eat at our  restaurant, it's on us." And so there are
00:00:45
all these benefits. Business people would  say, "We're flying to Jackson, or Memphis,
00:00:52
or whatever. If you need a ride, let us know,  you're welcome on our plane anytime." And so we
00:00:57
led a lifestyle that we didn't even have to spend  money for because we owned these media companies,
00:01:03
and nobody really was paying attention. Phoebe Judge: No one was paying attention,
00:01:06
and so for a few years, no one noticed that Neil  White was kiting checks. He had two corporate
00:01:13
bank accounts, and he'd transfer large sums  of money back and forth constantly, so that
00:01:19
both accounts always appeared flush with cash Neil White: Because the way it used to work is you
00:01:24
could write a check from yourself to yourself  from one bank, deposit it in another bank,
00:01:29
and that money would be there. But the next  day the check would bounce because there was
00:01:33
a 24-hour float. So you would write a check to  yourself from yourself, from a secondary account,
00:01:39
and deposit it in the original bank to cover it. Phoebe Judge: So you're just buying time.
00:01:43
Neil White: Yeah, I was cheating  time, is what I was doing. Phoebe Judge: It's sometimes called circular  kiting, and you can't do it that easily anymore.
00:01:51
Banks have changed the way they operate. Checks  are now cleared with electronic imaging that
00:01:56
takes much less time to process. But back in  the early '90s, Neil was able to pull it off,
00:02:02
and he wasn't even that stressed about it. Neil White: I remember that I was doing this
00:02:06
during a period before Christmas, and our  family was planning this five-day vacation,
00:02:10
and you can't leave town if you're doing this  unless you have somebody who's going to make
00:02:14
these transfers for you. And I was $200,000 in  the hole on December 21st, and on December 23rd,
00:02:21
we were leaving town for five days, and I was in  a panic, but the money came in, a guy came through
00:02:27
with the loan that we had been talking to. I made  the $200,000 deposit on the 23rd and left town.
00:02:32
Phoebe Judge: How did you get caught? Neil White: The FDIC came in and did an audit,
00:02:36
and pointed it out to both banks, and  they called me to the bank and said, "We will not accept any deposits that aren't cash  or money orders, we're closing your accounts,
00:02:49
I sure hope you have money to cover this." [Music.] I called my dad and said, "Dad, I just  need to let you know, because you'll hear
00:02:59
through the grapevine, I've been caught  short, I was kiting checks." And he said,
00:03:03
"Well, the first thing we need to do is  cover it. How much do you need?" He was
00:03:06
ready to write the check. And I said,  "Dad, you can't cover this." He said, "No." I mean, my dad's a judge and a lawyer,  he's middle-class. I think he was thinking 30,
00:03:15
$40,000, we'll mortgage the house, we'll take care  of it. I said "$750,000." And he said, "Oh, well,
00:03:24
we need to get you a lawyer." Phoebe Judge: And the lawyer couldn't get you out of it? Neil White:
00:03:31
Oh God, no. I mean, the only way you can get out  of it is if you cover the loss, and then it's
00:03:37
still a crime, you just, the federal government  sentences you based on how much — in bank fraud
00:03:43
anyway — how much a financial institution lost. So  had I been able to cover it, I probably would've
00:03:48
gotten home confinement, or probation, or a fine,  or something like that. But because I couldn't
00:03:54
cover the amount, and ultimately they lost that  money, the sentencing guidelines said I should
00:04:00
be sentenced to between 18 months and 24 months.  And the judge took the lower recommendation and
00:04:05
gave me an 18 month sentence. Phoebe Judge: On May 3rd, 1993, Neil White self-surrendered at a minimum security  prison in Carville, Louisiana. His wife, Linda,
00:04:15
dropped him there 45 minutes early. Neil White: Well first of all, I took my children to school that morning, to first grade  and to preschool, and hugged them and reminded
00:04:26
them that, as the psychologist suggested, that daddy was going to camp, and that I would see them
00:04:30
in a week when they could come visit. And  Linda and I got in our blue Ford Explorer
00:04:36
and drove the hour and 10 minute drive to  Carville, and it was deafening silence.
00:04:44
Phoebe Judge: Was she mad at you? Neil White: She was mad at me, but more than that,
00:04:48
she was hurt. She lost everything, too. She had  believed my story, that I was going to take care
00:04:54
of everything, and so in the overall scheme of  life, what these things I'm about to say are not
00:05:01
awful, because there are people who are homeless  and can't afford food, but we were members of
00:05:07
all these country clubs and yacht clubs, and we  got banished from there, and all of her places
00:05:12
that she shopped and had charge accounts, they  closed them, and her friends who were still in
00:05:16
this elite social area with very few exceptions  were shunning, at some level. I mean, she was
00:05:25
humiliated and mortified at all sorts of levels,  and the father of her children, who were 6 and 3,
00:05:32
were about to be away for a year. They would  miss every significant event in their life,
00:05:36
and if she wanted to keep us all in touch, she was  faced with driving that distance every weekend,
00:05:44
spending her weekends in a prison visiting room. Phoebe Judge: Here's the thing. It wasn't just a
00:05:50
prison visiting room she'd be bringing her  kids to. White collar criminals weren't
00:05:55
the only ones who'd been locked up in the  enormous old facility in Carville, Louisiana.
00:06:00
And the other people living there, they were  all but forgotten by the outside world.
00:06:04
I'm Phoebe Judge, this is Criminal. Neil White: I showed up with my leather bag with books and  racquetball rackets and tennis shoes and shorts
00:06:23
like I was going to camp, and as I waited for the  guard to come collect me, I saw a man limping down
00:06:28
the hallway. And when he got to the window closest  to me, he waved and had no fingers, and that
00:06:33
was the first time I knew anything was awry. Phoebe Judge: Neil went inside and checked in,
00:06:38
and immediately asked the prison  guard about the man with no fingers. Neil White: And he said, "That's a patient."  And I said, "What kind of patient?" And he said,
00:06:45
"A Hansen's disease patient." And I said,  "What is Hansen's disease?" And he said,
00:06:50
"It used to be called leprosy." Phoebe Judge: What was your thought? Neil White: And that's when I began to  panic. I knew that I could survive a
00:06:58
one-year prison sentence, but I thought if  I contracted a disease that disfigured me,
00:07:02
that I would never be able to touch my children  again. I thought, my life will be over.
00:07:06
Phoebe Judge: Neil White was to serve his sentence  at a minimum security prison located inside the
00:07:14
last remaining leprosy colony in the continental  United States. An LA Times article from 1993 said
00:07:21
prisoners are being brought in to, "Use the  spaces left empty when older patients die."
00:07:26
Everyone we asked credited the idea of putting the  prison inside the leprosy colony back to one man,
00:07:33
Dr. John Duffy. He was the Director of  Carville at the time, but he was also the
00:07:39
former director of the Bureau of Prisons. He knew  that Carville's patient population was dwindling,
00:07:44
and he saw a business opportunity. Neil White: There were all these empty rooms,
00:07:48
and he was fiscally responsible and said,  instead of spending money building a new
00:07:53
prison, let's put invalid inmates,  people who need healthcare, here, because there was a hospital for the leprosy  patients, and non-violent offenders who can
00:08:03
maintain the grounds. It sounded like a decent  financial decision, but what he didn't realize
00:08:10
is you would have the last 130 Americans who are  in prison for a disease, 500 federal inmates,
00:08:16
including Jimmy Hoffa's lawyer and the man who  gave Arnold Schwarzenegger his first steroids,
00:08:21
100 prison guards, all thrown together  in this colony, a convergence of cultures
00:08:25
like there's never been before or after. Phoebe Judge: When Neil White says that the
00:08:29
leprosy patients were imprisoned, he's not  kidding. The facility opened in 1894 as the
00:08:35
Louisiana Leper Home. By 1921, leprosy was  thought to be so contagious that the federal
00:08:42
government began moving patients to Carville from  all over the country. If people refused to go,
00:08:47
the police, or bounty hunters, would put them  in shackles and bring them against their will.
00:08:53
Mr. Pete: See this here, this is the shackle. Phoebe Judge: Shackles, what were they used for?
00:09:01
Mr. Pete: When the patient here,  if you don't come voluntary, then they put the shackle and bring you here. Phoebe Judge: This is Mr. Pete. He was
00:09:14
the first person I met when I flew to  Louisiana to see Carville for myself, and he told me to call him Mr. Pete. He's  a short man with glasses that seem just a
00:09:23
little too big for his face. He was dressed in a  flannel shirt with suspenders and a khaki jacket.
00:09:30
It wasn't until he reached out to shake my  hand that I realized he was missing fingers,
00:09:34
part of his ear. He's the guy who waved at Neil  White. He showed me the shackles that are now
00:09:41
part of a small museum at Carville, and he also  showed me a collection of former patients' shoes,
00:09:46
specially made because the loss of toes is one of  the biggest challenges leprosy patients deal with.
00:09:53
Mr. Pete told me he was born in the Virgin  Islands, and when he was 6 he was diagnosed
00:09:58
with leprosy and quarantined in a hospital  there. He had no idea what was happening.
00:10:02
Mr. Pete: They never tell me anything. They  just tell my mother, and not me. Phoebe Judge:
00:10:10
Why did you think you were in the hospital? Mr. Pete: Well, because I had a little mark on
00:10:17
my side of my face, and when they take  test they find it was Hansen's disease. And at that time, people are very scared of the  disease, so they just bring me to the hospital.
00:10:36
My mother used to come visit me. She couldn't  touch me, I couldn't touch her. She stay outside
00:10:45
the fence, I stay inside the fence. Phoebe Judge: Was that confusing to you when you were a little  boy, that you couldn't touch your mother?
00:10:52
Mr. Pete: Well, yes, it was confusing. She's  on the outside, and now I'm in the inside, and
00:11:01
I still didn't know what's going on. I couldn't  touch her, and she couldn't touch me either.
00:11:08
Phoebe Judge: He stayed in that hospital until  he was 21 years old, when his family packed him
00:11:14
aboard an army plane to Carville. Mr. Pete  never saw any members of his family again.
00:11:20
When a patient like Mr. Pete got to Carville, he  or she could not leave, but they weren't legally
00:11:26
prisoners either. It was this strange limbo where  you hadn't done anything wrong, but the outside
00:11:32
world saw you as a danger. For a long time,  patients couldn't even vote or get married.
00:11:38
Mr. Pete: Some of the family didn't want  them no more, and the friends didn't want
00:11:43
to have anything to do with them. So they  just came back and stay until they die.
00:11:48
Phoebe Judge: And when you got here, you did  realize that this disease people were scared of,
00:11:56
would you talk about it with other people  here, about how you were kind of kept away?
00:11:59
Mr. Pete: No, they didn't, they wasn't  interested, like now. You came here, that's it.
00:12:09
Nobody, even the patient, we never speak about  it. We never — see when we — that's it.
00:12:16
Phoebe Judge: You wouldn't talk about it with  your friends, about being outcast or away from
00:12:20
society, you were just here? Mr. Pete: Yeah, I was just here. They were the same thing, you know? They was  outcast from society — outcast like me. So,
00:12:32
they didn't interested in all that. Phoebe Judge: In 1941, doctors began testing a drug that could slowly reverse some  of the symptoms of leprosy. They made progress.
00:12:43
By the early '50s, doctors recognized that with  treatment, the disease was not contagious, and
00:12:49
they lifted the strict quarantine. Some patients  were discharged, and others were encouraged to
00:12:55
own cars and come and go as they pleased. But  most of them didn't want to go anywhere. They'd
00:13:02
been locked away for so long that the prospect  of leaving terrified them. As one patient wrote,
00:13:07
"We belong with the secret people." Jim Krahenbhul: Pete, for example, if you look at his hands, his  hands are greatly deformed,
00:13:14
and his face and ears show the ravages of the  disease, and he just doesn't want to face what
00:13:20
he would have to face in the outside world. Phoebe Judge: This is Dr. Jim Krahenbhul,
00:13:24
former director of the National  Hansen's Disease Programs, which is the official name for Carville. Jim Krahenbhul: Basically patients have to
00:13:33
lie about their deformities — an industrial plant  accident, or something like that — and he just was
00:13:40
not willing to face that. I guess the parallel  is you've heard all the stories about a prisoner
00:13:46
being released from prison after 20 years,  and the first thing he does is he goes and
00:13:50
robs a bank so he can go back in again,  because they just can't deal with the outside world. Phoebe Judge:
00:14:00
It's hard to imagine what the patients  must have thought when, after so long, the outside world was thrown at them in the form  of 500 convicted bankers, doctors, and lawyers.
00:14:10
The inmates were not supposed to interact with  the patients at any time, but Neil White worked
00:14:15
in the cafeteria, so there was no way around it. Neil White: And I helped them with their trays,
00:14:20
and pushed their wheelchairs, and wrote their  menu board. You have to remember, in addition to
00:14:25
this weird convergence, the leprosy patients were  older, and nobody, they hadn't seen new residents
00:14:31
there in ages, and most of them looked on us as  children or grandchildren. They would talk to us,
00:14:37
and the guards would say, "You're not  supposed to talk to him." And they would say,
00:14:41
"You can't tell me what to do." Because they  weren't under the Bureau of Prisons. So it
00:14:46
really was something that got dropped as the  experiment went on, and we talked all the time,
00:14:51
and were friendly, and exchanged hellos. And when  guards weren't around, we talked all the time.
00:14:55
Phoebe Judge: Neil became especially  close with one patient in particular, an elderly woman named Ella Bounds. Neil White: Well, the first time I saw her,
00:15:03
I was in the hallway, and I was trying to find  my room. It was the first day, first hour I was
00:15:07
there, and I saw her wobbling in a wheelchair.  Cranking those handles coming toward me, and I
00:15:14
knew she wasn't an inmate — it was an all-male  prison — I assumed she wasn't a prison guard,
00:15:18
so assuming she had leprosy. She had no legs,  her dress was hanging over the edge of her
00:15:24
wheelchair. I stood to the side and I held my  breath. And as she passed me, she cut her eyes
00:15:31
over and smiled and said, "There's no place  like home." And she went around the corner,
00:15:36
and an inmate came up behind me and said,  "That girl's father dropped her off here
00:15:41
when she was 12, and he never came back." And she  was about 80 at the time. And then he asked me if
00:15:46
I was still feeling sorry for myself. Phoebe Judge: It didn't take Neil long to understand that it was basically  impossible for him to catch leprosy,
00:15:54
and with that fear gone, he was just trying to  keep himself occupied and finish out his time.
00:15:59
He remembers one night in the spring when the  leprosy patients were getting ready for a dance.
00:16:04
Neil White: Four of us inmates were setting up  the bandstands and the tables and the chairs,
00:16:08
and as the band was about to start, there were  no guards around, so Ella asked me if I wanted
00:16:13
to stick around for the first song. And so I did,  and so did the other inmates. And I pushed Ella
00:16:18
around the edge of the dance floor to the music  in her wheelchair. Two of the other inmates, big,
00:16:25
strong bodybuilders who were the steroid guru's  guinea pigs, went into the middle of the patients
00:16:31
and broke in on one of their dates during this  dance. And it really made the leprosy patient
00:16:37
mad. This woman he was with, we don't know, but  we think she may have been a prostitute. Anyway,
00:16:41
she was rather attractive, and at the end of the  song, the leprosy patient pointed what was left
00:16:47
of his index finger and said, "You're not invited,  no inmates at our dance." And it was very quiet,
00:16:54
and the four of us slowly walked out of the  ballroom. And as we were walking back toward
00:16:59
the inmate side of the colony, my roommate said,  "Did we just get kicked out of a leper dance?"
00:17:04
Phoebe Judge: If you ask him  now, Neil says he feels pretty lucky that he served his time at Carville. Neil White: I was there for 18 months — actually
00:17:15
only spent a year — for mishandling close to a  million dollars, and I was standing in front of
00:17:21
people who had been quarantined for 68 years  because they were susceptible to a bacterial
00:17:27
infection. And it was almost impossible to muster  up self-pity in the face of that. They were such
00:17:36
remarkable people, and it put my problems,  albeit self-made, in such perspective.
00:17:43
Phoebe Judge: He was let out on April  25th, 1994. The prison experiment ended about four months later, and all of the  remaining inmates were reassigned.
00:17:53
Why was it so short-lived? Neil White: The Bureau of Prisons wanted to turn the facility into this huge prison  with a couple of thousand inmates, and when they
00:18:05
became a tenant of the leprosy patients,  which is really Public Health Services,
00:18:09
they assumed that those 130 patients would be  dying off in a year or two. What they didn't
00:18:15
realize is that leprosy doesn't kill you. And  so there became this battle for the Bureau of
00:18:22
Prisons trying to evict the leprosy patients.  It was just horrible. The inmates and
00:18:28
the leprosy patients got along fine, you would  think that's where the problem was — it was
00:18:32
these two government bureaucracies. And what  happened was Public Health Services and the
00:18:37
leprosy patients, and the Carville Historic  Society, clandestinely got the facility on the
00:18:44
National Registry of Historic Places, and so the  Bureau of Prisons could not make the modifications
00:18:50
they needed to make the building secure, and  they abandoned the prison and went home.
00:18:54
Phoebe Judge: But Ella and Mr. Pete and other  patients continued their lives at Carville,
00:18:59
many of them entering their seventh or eighth  decade there. In 1998, about four years after
00:19:05
Neil left, the remaining patients were offered  an annual stipend of $33,000 to leave Carville
00:19:12
and move to a nursing home. Mr. Pete declined.  He chose to stay. When I met him two years ago,
00:19:18
he was one of six patients left. They had the  whole place to themselves. Mr. Pete rode around
00:19:24
the giant empty hallways on his bicycle. He'd  been there for 63 years. I asked him whether
00:19:30
he'd ever consider leaving, even for a night. Mr. Pete: Sometimes I wish I was out on the
00:19:37
outside, and I could get out, but when I look,  I say, well, people are going to ask me a lot
00:19:43
of questions. "What happened to your fingers? Why  you got this spot? Why this?" I say, well, I don't
00:19:51
want to go through all that. I stay here. Phoebe Judge: It was easier to stay here.
00:19:57
Mr. Pete: It was easier, because we're all the  same patient, you know what I mean? When you go
00:20:05
out there, some people [inaudible],  most people wouldn't, even now. Phoebe Judge: Will you stay here  for the rest of your life?
00:20:15
Mr. Pete: Oh yeah. I'm supposed to be getting out  now. I'm almost 85 years old, so this is it. I got
00:20:27
my spot over there in the pecan tree. Phoebe Judge: This spot he showed me under the pecan tree was part of the  cemetery at Carville. The cemetery is
00:20:35
a big one. There are a lot of graves there. Mr. Pete: I told them, put me in a nice shady
00:20:42
pecan tree. Phoebe Judge: You plan to be buried at Carville here. Mr. Pete: Yeah. You have your choice,
00:20:50
and I know my family are not going to take me  home. It costs too much money to ship the body.
00:20:59
Phoebe Judge: Have you ever left  Louisiana since you got here? Mr. Pete: No, never left Louisiana. I went to  Mississippi, but I come back the same night.
00:21:14
But I never been up to New York and all  them places, if that's what you mean. Phoebe Judge: Would you like to? Mr. Pete: So much people, I might get lost.
00:21:26
I know in New York people ain't going to turn  to look at you, they're just busy, busy doing
00:21:30
nothing, but they're busy. Phoebe Judge: It's unclear whether Mr. Pete will get his  wish to be buried at Carville. Last month,
00:21:41
the remaining patients were finally forced to  move to a nursing home in Baton Rouge, so
00:21:46
Carville now sits empty. Neil White still talks  to Mr. Pete on the phone sometimes. They spoke
00:21:52
last week. [Music.] Criminal is produced by Lauren Spohrer, and  me. Audio engineering help from Rob Byers.
00:22:10
Julienne Alexander makes original illustrations  for each episode of Criminal. You can find
00:22:15
them at thisiscriminal.com. Criminal is recorded in the studios of North Carolina Public Radio, WUNC. Criminal is a proud member of Radiotopia from PRX,
00:22:26
a collective of the 13 best podcasts around.  If you're interested in supporting us,
00:22:31
and shows like ours, email [email protected]. You can find out more about Neil White's time
00:22:38
at Carville in his book, In  the Sanctuary of Outcasts. This month, the show Reveal is doing a four-part  investigative series called Left for Dead,
00:22:46
which examines the national phenomenon of missing  and unidentified persons, the John and Jane Does
00:22:52
of America. They've also created a new tool,  which allows anyone to view cases and try to
00:22:59
match the missing to the unidentified by comparing  characteristics and case information side-by-side.
00:23:05
You can find out more at revealnews.org. Radiotopia from PRX is supported by the Knight
00:23:11
Foundation and MailChimp, celebrating  creativity, chaos, and teamwork. I'm Phoebe Judge, this is Criminal. Jingle: Radiotopia, from PRX.

Badges

This episode stands out for the following:

  • 80
    Most shocking
  • 80
    Best concept / idea
  • 75
    Most heartbreaking
  • 75
    Best overall

Episode Highlights

  • Neil White's Fraud Scheme
    Neil White engaged in check kiting, manipulating bank accounts to appear wealthy.
    “I was cheating time, is what I was doing.”
    @ 01m 43s
    November 03, 2022
  • Life at Carville
    Neil White served his sentence in a prison located within a leprosy colony, encountering unique challenges.
    “I showed up with my leather bag with books and racquetball rackets... like I was going to camp.”
    @ 06m 16s
    November 03, 2022
  • Mr. Pete's Life Story
    Mr. Pete shares his experience of being diagnosed with leprosy and quarantined from his family.
    “It was easier to stay here.”
    @ 19m 57s
    November 03, 2022

Episode Quotes

  • I was cheating time, is what I was doing.
    No Place Like Home | Criminal Podcast
  • There's no place like home.
    No Place Like Home | Criminal Podcast
  • It was easier to stay here.
    No Place Like Home | Criminal Podcast

Key Moments

  • Living the High Life00:13
  • Kiting Checks01:06
  • Caught in the Act02:32
  • Prison Arrival04:09
  • Unexpected Company07:14
  • Dance Disruption16:41
  • Reflections on Time17:09
  • Mr. Pete's Choice20:15

Words per Minute Over Time

Vibes Breakdown