The report criticizes the DSH’s role in dealing with sexually violent predator programs

SACRAMENTO — A report released this week by the California State Auditor criticized the conditional release program for sexually violent predators overseen by the Department of State Hospitals.

The audit highlighted DSH’s failures in managing its federal contractor, Liberty Healthcare, despite paying the contractor more than $90 million since the program began.

After numerous complaints about the release of sexually violent predators into communities, Senate Minority Leader Brian W. Jones (R-San Diego) called for the review last year.

“On average, each conditionally released SVP costs taxpayers $1.66 million. At that price, the recidivism rate should be zero!” Jones said, pointing to a portion of the audit that says only 4 percent of offenders in the program reoffend. “Californians deserve real safety guarantees, but the audit reveals alarming gaps in oversight and even repeat offenses by fired SVPs. It is clear that this dangerous SVP release program is failing and needs to be reformed. I look forward to working with the Legislature to fix this program, rein in Liberty Healthcare, and ensure that DSH provides the public safety that Californians expect and deserve.”

This statewide problem became a local problem this summer when convicted SVP Kevin Scott Gray, 72, was set to be released just outside Turlock city limits after being denied release in rural Merced County last February.

In both cases, Gray’s planned release location was too close to a residential school, and his planned release was put on hold.

At the time, Stanislaus County District Attorney Jeff Laugero admitted it was like kicking a can down the road.

“It’s a cause worth following in,” Laugero said. “And if not us, then who? I’m going to keep kicking and kicking and kicking.”

Part of Laugero’s concern was Liberty Healthcare’s role in the overall process.

At a news conference in June, prosecutors mentioned a site assessment report from Liberty Healthcare, which, according to court documents, favored the release of Gray and Timothy Roger Weathers, 61, a convicted SVP who was scheduled to be released at the same Turlock residence as Gray.

“I have asked our Bureau of Investigation to conduct our own investigation and conduct our own site assessment,” Laugero said at the time. “This quickly identified several disqualifying factors simply by speaking to neighbors, which Liberty Healthcare appears not to have done.

“Based on these facts, we believe that firing an IVP to this location would violate the law, and we have brought this disqualifying information to Liberty Healthcare’s attention.”

Conflicts with Liberty were not limited to Stanislaus and Merced counties, prompting Jones to call for the audit.

“Over the past 20 years without a competitive bid agreement, DSH has paid Liberty Healthcare nearly $93 million to care for just 56 people,” Jones said. “This long-standing contract has caused Liberty Healthcare’s performance to decline while DSH fails to hold them accountable.”

Harry Goldberg, a consulting psychologist for the state, reported in February 2020 that Gray was likely to become sexually violent again, court documents show. Also in 2020, Gray was discovered to be in possession of a flash drive containing approximately 1,000 deleted – and later recovered – images of children posing erotically.

In May 2022 and again in March of this year, Goldberg confirmed his previous diagnosis. However, Liberty supported Gray’s release.

“This is a dangerous situation that has allowed Liberty Healthcare to make these decisions about housing sexually violent predators for decades,” Alvarado-Gil said. “They made the decision, chose the location and entered into a lease without having discussions with neighbors in the community…there is a moral obligation.”