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Anonymous APPF 'Investor' Comes Forward, Claims Jail Project Still Alive

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Just when we thought the American Private Police Force saga might be over, a putative APPF "investor" has come forward -- anonymously.

KULR in Montana reports on a "California man" who claims, under condition that his name not be used, that he is one of several private individuals who gave APPF money for the Hardin jail project.

There's no mention by the investor of that "major security firm" parent company APPF long claimed to have.

Apparently operating under the assumption that APPF is made up of more than just 'Captain' Michael Hilton, the man told KULR that several private individuals (yes, that's plural) who gave APPF money are now looking into opening the Hardin jail without Hilton.

And they are trying to verify "the source of prisoners Hilton claims to have." Which also strikes us as an odd claim, given that Hilton himself claimed last month -- to KULR, no less -- that the deal was primarily about a security training center: "We don't really want to get into the prison business."

Meanwhile, APPF is spreading a little oppo research on the man Hilton falsely claimed would be the director of operations at the Hardin jail. Michael Cohen, of Ohio-based International Security Associates, served over a year in prison after a 2004 felony conviction for stealing from his then-employer, the Secret Service, the AP reports.

Which raises the question: if you're going to all the trouble of fabricating a director of operations and sending his resume to town leaders, why pick the guy who just got out of prison for theft?

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20 comments

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October 8, 2009 12:05 PM   

They were probably cellmates.

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October 8, 2009 2:54 PM    in reply to KeithL

Of course, we should trust those investors who gave their hard earned money to a fraud like Hilton.

They have demonstrated how competent they are to do anything.
.

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October 8, 2009 12:12 PM   

Okay, this is the part that makes the least sense to me, and I don't think it has ever been fully addressed: How the hell does a private corporation "get" prisoners???

I mean, what the hell? The state has a monopoly on incarceration, as far as I know. Taking away people's freedom is not something that can be fully privatized within constitutional limits (I mean, prison operations can be run by subcontractors, but they don't "get" the prisoners). And it makes no difference whether you're talking about citizens or undocumented immigrants -- they get at least *some* due process of law and are not subject to arbitrary kidnapping and imprisonment by a for-profit enterprise.

If we're talking about federal, state, or local governments transferring prisoners to the site and paying for that service, then it makes sense -- but it also means APPF isn't offering Hardin anything "special" in that regard.

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EH

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October 8, 2009 12:23 PM    in reply to Cool Blue Reason

They're probably just referring to the acquisition of state/fed/whatever contracts to house existing convicts. I don't think they're talking about creating them in the first place.

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October 8, 2009 12:25 PM   

I can't stop looking for that parent company. Worth checking into:

Managment and Training Corporation, Utah

Office in Youth Corps building at:
2830 North Ramshorn Dr
Mt. Laurel MT 59044
406-628-7850

They are the largest contractor for the Department of Labor. Specialty: Training and employment, but they got into the prison business in the 1980's. It LOOKS as though the MTC (has?) had a contract to run the Southwest Detention Center (Riverside County CA), which I THINK was on the list of early private detention centerss(sorry I don't have my notes with me right now). Having a really hard time figuring out when the Southwest Detention Center was established, but it was one of the original illegal immigration facilities.

How I found them: That would make this comment too long, BUT! Suffice it to say I looked up the original owners of privatepoliceforce.com (now defunct, but the registration showed some Oct 1 2009 activity, don't know if it's meaningful), saw the county they were from (Riverside) and through some windy road ended up with MTC.

Why MTC is an interesting candidate: One of their top executives, Lane McCotter., Lt. Col (Ret), Military Police, ran Leavenworth and a few state prison systems, and was appointed by Ashcroft to design a prison system in Iraq (aka Abu Graib). His involvement might be controversial enough to make the TRA keep mum about the parent company.

MTC doesn't have any Homeland Security contracts directly, (that I can tell, at least) but indirectly though partnerships with other entities.

I'll check this particular rabbit hole later this evening. I'll let you know if it's empty.

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October 8, 2009 1:19 PM    in reply to The Hedonistic Pleasureseeker

Oh, forgot the Serbia connection:

McCotter's bosses while serving on the Iraq prison project (ICITAP) were the Chief of Staff (Michael Turner) and the Deputy Director (Carr Trevellian V) of the Kosovo Police Service School during the UN peacekeeping mission. Trevellian also served in a coordinating capacity on behalf of the Macedonian National Police. Interesting, given the whole Serbian crest flap.

FWIW McCotter was cleared of any wrongdoing during the Abu Graib torture scandal

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October 8, 2009 1:31 PM    in reply to The Hedonistic Pleasureseeker

You are ascribing to Michael Hilton's assertions about his company a degree of veracity that is in no way supported by any evidence.

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October 8, 2009 1:44 PM    in reply to NitPicker1

I mean to say, there is no parent company. My suspicion is that Hilton hinted (or fraudulently demonstrated) that he was a front for some national-security outfit, the CIA or whatever, and hence it was a matter of patriotic duty for Peterson et alia to keep their mouths shut about just who they were convinced was backing this sham operation up.

Otherwise, I'm just plain mystified about why the TRA board would have any reason not to say who they think the "parent company" is. (Well, maybe profound embarrassment if they just let it go at that without asking why a legitimate operator would be working through this guy in the first place.)

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October 8, 2009 2:26 PM    in reply to NitPicker1

There is a parent company. You will see.

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October 8, 2009 3:06 PM    in reply to The Hedonistic Pleasureseeker

As long as he can get someone to believe his con he'll continue pocketing money.

Guys like this can be very convincing. Just google Robert Hendy-Freegard http://en.wikipedia.org/wiki/Robert_Hendy-Freegard

or Michael Garveigh

The FBI says that the British businessman and an American friend pretended to be part of a special counter-terrorism task force during meetings with two city police forces on the outskirts of Atlanta, Georgia. Mr Garveigh, who has an American wife, has lived in Georgia for the past four years.

The two men are alleged to have requested help from senior officers to recover terrorists’ money during raids at several locations scheduled for the week starting today, Independence Day.

The friend, [B]Louis Aprile, claimed to be a regional deputy director of the National Security Agency during at least five meetings with police officers[/B] in the cities of Alpharetta and Marietta. According to an affidavit by FBI Special Agent Matthew Carman, he was accompanied to at least three meetings by Mr Garveigh, who was portrayed as a British intelligence officer.

Mr Aprile, 49, told the police they were investigating a terrorist group with cells in Detroit, Michigan and Britain that planned to buy milk trucks in Florida and pack them with explosives, it is alleged. During one meeting Mr Garveigh left the room to receive phone calls. He returned from one saying that British officials, including himself, were being scrambled to deal with North Korea’s nuclear test.

Although the police officers were instructed not to contact anyone about the top-secret operation, someone consulted the FBI, which discovered that neither man was a secret agent. A final meeting between the pair and the police was recorded secretly by the FBI. During the meeting Mr Aprile revealed the locations of three addresses to be raided.

Katherine Hoffer, an assistant US attorney, said: “I’ve seen impersonating cases but this one is pretty elaborate. They’ve offered some explanations but nothing that really had any merit.”

An FBI agent involved in the investigation said: “I’ve never seen two such clever guys do something so stupid. It was a very bold attempt to scam a police department to help them carry out a crime.” He claimed that the men had told officers they wanted to recover large sums of money from the locations of the raids, while the police would have the glory of arresting dangerous terrorists.

http://www.timesonline.co.uk/tol/news/uk/crime/article6632578.ece

You see a pattern?

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October 8, 2009 3:29 PM    in reply to Douglas Simon

...oh wait theres more.

Klenczar's trail of deception began in March 2007 when the 36 year-old met a young woman from Birmingham on a train.

He couldn't resist telling her he was a barrister. She fell for it and they ended up moving into a plush five bedroom detached home.

Within two weeks of being together, he 'confided' to the woman, who is in her 20s, that he worked as a barrister for MI5, specialising in witness protection work for the Home Office.

Using a series of elaborate lies, Derbyshire-born Klenczar defrauded one financial adviser out of £270,000, which the bogus barrister claimed was for a not-to-miss property investment deal.


Klenczar later said the deal had fallen through and made off with the cash.

The effects on the victim of losing his life savings have been "catastrophic" leaving his career is in tatters and being forced to enter into bankruptcy.

Not content with bogus investments, Klenczar switched his attention to the elderly and vulnerable, saying he could write their wills in his role as a barrister.

Klenczar signed the wills as a 'barrister-at-law', which instantly rendered them invalid.

He also took several thousand pounds from vulnerable women in the process of divorces, telling one he could arrange a meeting with a High court judge sitting in chambers within a week.

But the trickster's bogus deals and bogus identity were finally exposed after he selected the wife of a Birmingham millionaire as his next victim, offering to look after £46,000 left to the woman by relatives.

The victim's husband said: "He persuaded my wife that he could look after the money until she could get to the bank. He could do it because he was the 'law', whereas she might be accused of theft.

"It was all rubbish but such was the trust between Klenczar and my wife and the rest of the community that she agreed. When my wife asked for the money back, Klenczar made excuses and never seemed to be at home."

http://www.telegraph.co.uk/news/newstopics/politics/lawandorder/4339320/Conman-who-pretended-to-be-MI5-agent-tricked-victims-out-of-300000.html

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November 10, 2009 8:14 AM    in reply to Douglas Simon

What you will not hear in a follow up story is that Michael Garveigh has been exonerated of all charges. Garveigh was set up by the other man involved. The media has a way of dramatizing these situations and almost convicting people before all the facts are displayed. It also seems that follow up stories never arrive with the true facts.

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October 8, 2009 1:21 PM   

From that Gazette article:

... a banquet for several hundred members of the Montana Association of Student Councils, meeting for their state convention in Hardin on Oct. 19-21, is still scheduled in the empty jail on Oct. 20.

Hmmmm.... this joint is never going to operate as a jail.

But a convention center, hmmmm. Maybe operate a boutique theme hotel - "Jailhouse Rock". Looks like Hardin's students have a ready-made theme for the prom.

Are those kids attending the banquet going to spend the night in the pokey too?

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October 8, 2009 7:06 PM   

Sep.16 "After Tuesday's meeting, Peterson said he had talked to APF representatives and has seen documentation of the parent company's work."
http://www.google.com/hostednews/ap/article/ALeqM5ifOx0LPKy5B_0KAyPHyNTEqdQz6QD9AOHIIO1

So is he saying that documentation included the name of the parent company?

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October 8, 2009 7:13 PM   

Sep.20, betting on mystery company, BG, Becky Shay
> Shay says, in effect, APF will be the Hardin PD
> City Council to meet [Sep24].
"That hearing... ...is to gauge public opinion on the city breaking from the county for law enforcement services. The city and county have been at odds for years about the law enforcement presence provided by the Sheriff's Office."
> Hilton says if Hardin creates PD then APF will "provide" chief of police, police cars, "training center" officers "to support the city", and "Hilton said that during a trip to Hardin... ...he was shocked to see people selling and using drugs, so he wants to have two narcotics agents in Hardin".
http://www.billingsgazette.com/news/state-and-regional/montana/article_babd814e-a591-11de-8891-001cc4c002e0.html

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October 8, 2009 7:44 PM   

BG, Kimmerick, Oct.6
> Peterson and Bond Brokers indicate if APPF gives financial info, then deal proceeds.
"Peterson... ...spoke with Michael Harling, the vice president of Municipal Capital Markets Group in Texas, who brokered the sale of bonds to finance the jail. He said Harling has asked Hilton... ...to produce a detailed income statement and a statement of financial activities. If Hilton does not produce that information, Peterson said, he will consider discussions with APF at an end. If we get that, we'll continue discussions," he said."
http://www.billingsgazette.com/news/state-and-regional/montana/article_906384fa-b303-11de-9381-001cc4c002e0.html

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October 8, 2009 8:10 PM   

October 8, 2009 7:55 PM


We broke the story on Hilton as a fraud on the 10th, four weeks ago.

We broke the story on his criminal record and regular losses as a defendant in fraud, breach of contract and eviction proceedings, and bogus bankruptcy filings on the 25th, two weeks ago tomorrow.

The media has followed in our path.

We have seen nothing to date to convince us that he was anything but a one-man sting operation, with a few extras in the cast as needed. Becky Shay passed her screen test by failing her intelligence test.

I wonder if he had someone call posing as an "investor?" He had the lawyer whom he gulled in Santa Ana meet with dullards from Hardin and introduced him as a "Major," in the "APF." He had a "Sgt. Martin" with him as well, in Orange county as well as Hardin. He tosses out "commissions" like cheap beads at Mardi Gras, including creating himself as a "Captain."

So was this mysterious "investor" "Hilton's" two-bit thespian doing "Daddy Warbucks," playing his role to the wretched and hopeless officials in Hardin, or just some prankster adding fuel to the fire?

For-profit prison get their prisoners from states and municipalities, and from Federal agencies. They have been frequently convicted of corruption, as it is a pervasively corrupt enterprise. Dozens of executives, legislators, lobbyists and other elected and appointed officials languish in jails and prisons.

Selling these prisons as "economic development" to desperate cities with naive or corrupt officials' cooperation is where the real fraud is at. "Hilton" is but a sideshow.

More material than anyplace in the world on this sordid industry can be found at: www.privateci.org

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October 8, 2009 8:27 PM    in reply to Kropotkin

Regarding "Sgt.Martin"...

Oct.6, BG
> Man answers call to David Gilberts phone #, as "Sgt.Martin". [Hiltons refered to his lawyer as Mr. Martin also?]
"Convery... ...said afterward that she remembers meeting Hilton [in California], one other person who may have been associated with APF but seems to have specialized in wind power, and a man named David Gilberts, whose business card identified him as APF's communications director. A call to the California number on Gilberts' business card was answered by a man who identified himself only as Sgt. Martin, who said he was with APF. At first he said no one named David Gilberts worked there, but, when told about Gilberts' purported position with the company, Sgt. Martin said, "He's not here," and then referred all further questions to Shay."
http://www.billingsgazette.com/news/state-and-regional/montana/article_3819f80a-b23c-11de-9b80-001cc4c03286.html

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October 9, 2009 9:17 AM    in reply to Kropotkin

"I wonder if he had someone call posing as an "investor?""

Why would he need anyone else? He could have made that call himself - posing as an investor.
.

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October 8, 2009 8:37 PM   

Sep.24, BG -Becky Shay
> They are trying to say Hilton is/was not the owner? Becky Shay said he was.
"As part of the offer, APF owner Michael Hilton said he'd help launch the police force by helping with hiring and providing the first vehicles."
http://www.billingsgazette.com/news/state-and-regional/montana/article_9215c76a-a98d-11de-8127-001cc4c03286.html

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