Mysterious Private Security Firm Gets Control Of Empty Jail In Small Montana Town
TPM Muckraker- Justin Elliott | September 30, 2009, 3:16PM
A shadowy private security company that has no known clients but claims to have helped foreign governments combat terrorism and will protect anything from cruise ships to Pakistani convoys has taken over a jail in a small Montana town, with plans to build a law enforcement training facility on the property.
The state legislature is looking into the matter and residents of Hardin, MT, were alarmed last week when executives from the firm, American Police Force, showed up in the town, which does not have its own police department, with Mercedes SUVs bearing “City Of Hardin Police Department” decals.
And the town has had to tamp down reports on conspiracy Web sites that APF plans to impose experimental H1N1 vaccines on residents under threat of quarantine in the jail.
Under a lease signed with Hardin, APF, based in Santa Ana, California, and incorporated just six months ago, is now in control of a 400-bed detention facility the town built a few years ago but never used, a town official confirmed to TPMmuckraker today. The town reportedly stands to make over $2 million per year.
Just what American Police Force plans to do with the detention facility, which comes with 50 acres of land in the small south-central Montana town, is unclear. Also not clear is who, if anyone, APF plans to put in the jail. (Watch a video tour of the jail here.)
Hardin, which is in default on the bonds it used to build the jail, recently undertook an unsuccessful campaign to make the jail a new home for Gitmo detainees. When that failed, the town turned to APF
The 10-year contract that is now awaiting final approval of lawyers gives APF the option of building a training facility, said Al Peterson, spokesman for the Hardin economic development authority. APF has said it plans to invest $30 million in the site, including $17M in the training facility, where law enforcement will get sniper training and learn “DNA analysis” skills.
And where is American Police Force getting the money for this venture? Company spokeswoman Becky Shay — until about a week ago the Billings Gazette reporter covering APF — says they are no plans to answer that question. She did not respond to a request for comment.
The matter has attracted the attention of the Montana state legislature, which is seeking more information about the arrangement between Hardin and APF. The committee that deals with legal matters will send a letter to Hardin officials to get more details on the deal, Representative Bob Ebinger (D) tells TPMmuckraker.
“Because of the apparent secretiveness of this, it gives the far right and far left to come up with all kinds of ideas. That’s why I’d like to see some clarification,” Ebinger says.
Peterson, the Hardin official, says the controversy sparked last week when APF executives appeared in black SUVs marked “City Of Hardin Police Department” was a misunderstanding of an act of goodwill by the company. The decals were taken off within the day, he says.
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TOUR JAIL IN THIS VIDEO:
Suzie-Que's Truth and Justice Blog 
Something is “fishy” in Montana….
Calif. jail entrepreneur has checkered past
By MATTHEW BROWN (AP) – 2 hours ago
BILLINGS, Mont. — Michael Hilton pitched himself to officials in Hardin, Mont. as a military veteran turned private sector entrepreneur, a California defense contractor with extensive government contracts who promised to turn the rural city’s empty jail into a cash cow.
Hardin’s leaders were desperate to fill the $27 million jail, which has sat empty since its 2007 completion.
So when Hilton came to town last week — wearing a military-style uniform and offering three Mercedes SUVs for use by local law enforcement — he was greeted with hugs by some grateful residents. The promise of more than 200 new jobs for a community struggling long before the recession hit had won them over.
But public documents and interviews with Hilton’s associates and legal adversaries offer a different picture, that of a convicted felon with a number of aliases, a string of legal judgments against him, two bankruptcies and a decades-long reputation for deals gone bad.
American Police Force is the company Hilton formed in March to take over the Hardin jail.
“Such schemes you cannot believe,” said Joseph Carella, an Orange County, Calif. doctor and co-defendant with Hilton in a real estate fraud case that resulted in a civil judgment against Hilton and several others.
“The guy’s brilliant. If he had been able to do honest work, he probably would have been a gazillionaire,” Carella said.
Court documents show Hilton has outstanding judgments against him in three civil cases totaling more than $1.1 million.
As for Hilton’s military expertise, including his claim to have advised forces in Iraq and Afghanistan, those interviewed knew of no such feats. Instead, Hilton was described alternately by those who know him as an arts dealer, cook, restaurant owner, land developer, loan broker and car salesman — always with a moneymaking scheme in the works.
Hilton did not return several calls seeking comment. American Police Force attorney Maziar Mafi referred questions to company spokeswoman Becky Shay.
When asked about court records detailing Hilton’s past, Shay replied, “The documents speak for themselves. If anyone has found public documents, the documents are what they are.”
Shay declined comment on Hilton’s military experience.
Al Peterson, vice president of Hardin’s Two Rivers Authority, which built the jail, declined to comment on Hilton’s legal troubles. He refused to say if he knew about Hilton’s past when the authority reached a 10-year agreement with American Police Force last month.
The deal is worth more than $2.6 million a year, according to city leaders.
Hilton has also pledged to build a $17 million military and law enforcement training center. And he’s promised to dispatch security to patrol Hardin’s streets, build an animal shelter and a homeless shelter and offer free health care to city resident’s out of the jail’s clinic.
Those additional promises were not included in the jail agreement, which remains in limbo because US Bank has so far declined to sign off on the contract. The bank is the trustee for the bonds used to fund the jail.
A US Bank spokeswoman declined to comment, but Peterson was adamant the deal would be approved.
“It’s a solid deal. That’s all I’ll say,” he said.
But a representative of a corrections advocacy group that has been critical of Hardin’s jail and has investigated Hilton’s past said city leaders dropped the ball.
“I’m amazed that city officials didn’t do basic research that would have raised significant questions about American Private Police Force and Mr. Hilton’s background,” said Alex Friedmann, vice president of the Private Corrections Institute.
Hilton, 55, uses the title “captain” when introducing himself and on his business cards. But he acknowledged it was not a military rank.
He said he is naturalized U.S. citizen and native of Montenegro. Aliases for Hilton that appear in court documents include Miodrag Dokovich, Michael Hamilton, Hristian Djokich and Michael Djokovich.
One attorney who dealt with Hilton in a fraud lawsuit referred to him as a “chameleon” and he has a reputation for winning people over with his charm.
His criminal record goes back to at least 1988, when Hilton was arrested in Santa Ana, Calif. for writing bad checks.
Beginning in 1993, Hilton spent six years in prison in California on a dozen counts of grand theft and other charges including illegal diversion of construction funds.
The charges included stealing $20,000 in a real estate swindle in which Hilton convinced an associate to give him a deed on property in Long Beach, Calif., ostensibly as collateral on a loan. Hilton turned around and sold the property to another party but was caught when the buyer contacted the original owner.
After his release, he got entangled in at least three civil lawsuits alleging fraud or misrepresentation. Those included luring investors to sink money into gold and silver collectible coins; posing as a fine arts dealer in Utah in order to convince a co uple to give him a $100,000 silver statue; and, in the case involving co-defendant Carella, seeking investors for an assisted living complex in Southern California that was never built.
Carella said he was duped into becoming a partner in the development project and that Hilton used Carella’s status as a physician to lure others into the scheme. He was described in court testimony as a “pawn” used by Hilton to lure investors.
Those involved with Hilton say he is an accomplished cook with a flair for the extravagant — wining and dining potential partners, showing up at the Utah couple’s house to negotiate for the silver statue in a chauffeur-driven Mercedes.
“This is the way we got taken,” said Carolyn Call of Provo, Utah, who said she gave Hilton her family’s silver statue to sell on the open market.
According to court documents, Hilton turned around and gave the statue to an attorney to pay for his services.
Two California attorneys said Wednesday that after learning of Hilton’s latest activities they planned to follow him to Montana to seek payment on the outstanding judgments against him.
“Once I know that there is an asset or some sort of funds to go after, we’ll go after it,” said Call’s attorney, Roger Naghash.
Associated Press writers Amy Taxin in Santa Ana and Greg Risling in Los Angeles and researcher Barbara Sambriski in New York contributed to this story.
http://www.google.com/hostednews/ap/article/ALeqM5ifOx0LPKy5B_0KAyPHyNTEqdQz6QD9B206QG3
Yep, the whole thing had a very bad aroma. All it took was a little internet buzz and the evil doers ware exposed… unless he was working for the shadow gubmint. False websites, Mercedes cop cars, and news reporters gone bad. All the makings for a James Bond Movie… 😉
Yep, Geezer, I would expect the guys in black suits are at his door or will be soon.. with a few questions. And, they aren’t making a Bond movie…
😆
Yup, according to Infowars, APF is a front for XE… :cool
Hi Suzie. I’m back blogging here and there. A few weeks ago there was a story on XE/Balckwater offer to train “Religious” groups.
Peace.
Without a doubt, Herr Prince has his Nazi fingers in this. Whether or not we will be told about it, who knows?
Hey Human & Jolly!
Great to see you guys…
Yep- Blackwater & it’s leader Eric Prince are rotten to the core- that’s why they changed their name to XE.. Blackwater is entangled in Lawsuits Baby!