What is Going On in Hardin, Montana?

Recently, there were some strange developments coming out of Hardin, Montana. A small town with a population of slightly over 3,000 residents, Hardin has gotten involved a mysterious case of private prison ownership. In 2007, the city was scheduled to open their $26 million, 464 bed prison; however, they ran in to one little problem—they had no agency who would draft a contract with them to fill their prison. Even worse, the Montana Attorney General ruled that the city could not legally house out-of-state prisoners, a question one would assume would be asked before construction started. "Montana Department of Corrections spokesman Bob Anez says a decline in the prison system population, combined with an emphasis on treatment versus incarceration, has lowered the need for bed space in correctional facilities across the state. Anez says the prison population declined 3.1 percent over the last fiscal year" (KTVQ). This story of this facility is a textbook example of the dangers of speculative prison building, that is, building prisons without a need and assuming that they will fill themselves. Since the facility has remained empty, the city used reserve funds to make payments on the facility.

Fast forward two years later to September 2009, and the facility still remains empty and unused. The reserve funds have dried up, and the project is quickly going belly up (KECI). Anyone who follows the private prison industry knows this is prime time for a company to swoop in and offer to take over the defaulted facility. Cue the American Private Police Force (APPF or APF). Late last month, the relatively unknown new California company was forming talks about taking over the empty Hardin jail and calling it their own. Their plan was to house former Guantanamo Bay prisoners by contract, and take over the management of the facility. But that wasn't the only thing APPF wanted to take over—they also wanted a stake in the Hardin police force. In 1979, Hardin's policing was consolidated with Big Horn County's, and the city coughs up $300,000 a year to contract out their police needs to the larger County police force (FHB). Hearing this, APPF decided to get in on the action, "They had shown up earlier in the week with three darkened out Mercedes SUV’s with Hardin Police decals on their side doors. She quickly debunked the fact that they were taking over policing the town and the decals have been removed. The decals included a crest that closely resembles the Serbian-Montenegro national crest making the vehicles look even more official" (MWK). However, Hardin officials quickly voted against the idea of contracting out their police force to a private company, and instead decided to spend $1 million to start their own city police with a police chief and seven officers (FHB). 

To go on a slight aside, the decals are an interesting subject. I was intrigued when I heard about their logo, and I decided to look for myself. What I found was shocking. Not only did their logo "closely resemble" the Serbian coat of arms, it was copied wholesale:

Within just a few days of my seeing this, APPF changed their logo. This time they copied the Russian coat of arms and added their own flair. Look closely and you will see that the same sceptre is held by the griffins, but reversed. The griffins also have the same number of wing and tail feathers, and the same crown is above their heads. The only thing different, in both logos, is the removal of the crucifix. Whereas the Serbian and Russian crowns in the coat of arms both have crosses on top, the APPF logos do not. To make matters worse, Russian law strictly prohibits imitation or copying of their coat of arms under Federal Constitutional Law. "The usage of seals similar to the Coat of Arms of the Russian Federation is prohibited. The Coat of Arms cannot be used as a heraldic basis for other Emblems. The Law provides for the responsibility for illegal use of the Coat of Arms" (GLIN). I am unsure as to whether or not the APPF logo has been edited enough to still hold as blatant of a copyright infringement as the Serbian coat of arms, what the penalties under Russian law are (and if Russian law can hold up for private American companies), or if APPF has explicit permission from Serbian and Russian officials to use their coat of arms. The point is: let's hire them a graphic designer. At least CCA and The GEO Group were creative enough to make their own logos.

To return to the soap opera of Hardin: APPF was denied the right to form a Hardin police force, but they still had their eyes on the original prize—the empty Two Rivers Detention Facility. Desperate to find a solution, the city gave APF the keys to the facility before even signing a contract, essentially giving away their defaulted prison before ever checking the credentials of the newly formed company or the company's executives. Al Peterson, a Hardin official, stated, "I have no idea who gave [the keys] to them or what day" (TPM). However, APPF would only have the keys in their possession for a few days when the Montana Attorney General began to vet APPF's director Michael Hilton. What he found was astounding, and effectively ended the deal with the company to take over the failed facility:

"We won't move forward. I don't think any of us want to be on the chopping block," said Gary Arneson, president of Hardin's Two Rivers Authority, which owns the jail. On Friday, a California judge ordered Hilton to appear in court Oct. 27 over an outstanding judgment in a fraud lawsuit. In that case, Hilton lured investors to sink money into an assisted living complex in Southern California that was never built. (TPM)

Not only does the founder of APPF have a history of less than ethical business practices, the bank that allowed Hardin to finance the facility never approved the September deal with APPF to take over management and begin housing out-of- state prisoners. Additionally, shortly after this debacle, the chief of Hardin's economic development agency resigned his post after aiding in the investigation into APPF and Mr. Hilton. He gave no explanation (TPM). 

Despite the fact that the company returned the keys to the prison, they still employ one person in the empty facility (who has to call the Hardin economic development agency to open the doors each morning since the company doesn't have the keys anymore) to talk to the media and explain what is going on. This video shows an interview with the lone employee, and gives an idea of what she does every day for the company. The woman, Becky Shay, told TPMmuckracker, "she had been setting up phones in the jail and doing other tasks to get it up and running. She said she plans to retrieve some personal items in the building. It's unclear whether Shay, who said 'there's still work to be done' in Montana, will continue working out of the jail" (TPM).

Why in the world, after being denied both their bids to take over the Hardin police force and the empty Hardin jail, would the company gives such perks to their single employee who works in a facility that isn't even owned or contracted out to APPF? Why would a writer from the Hardin newspaper quit her job to work for a business that has no business (literally) in Hardin? Why would the city still allow the company to function inside the empty and defaulted prison? What exactly is going on in Hardin, Montana?! I think TPM said it best: "if APF is still in the prison and won't leave, would Hardin need to hire another private army to roust them out?" (TPM). This story is just too bizarre and interesting to not try and follow. Check back here for developments in the Hardin drama.

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  • 9 October 2009, 8:58 AM Private Prison Watch wrote:
    Michael Hilton at the first APF press release. (LARRY MAYER/Billings Gazette)As usual, Private Corrections Institute has written the best investigative story in town. In a piece by Alex Friedmann and Frank Smith, PCI vets the American Police Force and it's president, Michael Hilton, and does work the city of Hardin should have. Friedmann's introduction on the home page of the PCI website states:"Within hours after the potential agreement between Hardin and American Police Force was announced, our preliminary research indicated something was very wrong. Subsequent checking confirmed that details related to American Private Police Force and "Captain" Michael Hilton simply ...
  • 4 November 2009, 10:04 PM Private Prison Watch wrote:
    APPF (and the Russian Federation) logo (APPF)To be honest, I am a little disappointed to report this news. I was enjoying my time laughing at the American Private Police Force stories and their copyright infringements. But, perhaps it is for the best. Some surprising news came from the Associated Press last Friday regarding Michael Hilton, the newest and sketchiest American prison industry opportunist. In a story by AP writer, Matthew Brown, Mr. Hilton admits what everyone suspected was already the case. "The California con man who failed in his bid to take over an empty Montana jail testified Friday that ...
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