One of the abiding mysteries of the American Private Police Force story is who, if anyone, provided the financial backing the private security company claims to have.
As the project unravels and more of APPF's claims are shown to be dubious, it seems like the key question is not who the parent company is, but: does it actually exist?
Back in early September, after the initial deal was brokered between Hardin, MT, and APPF -- worth over $2 million per year for the town -- the AP profiled the company. It was incorporated earlier this year in California right after Hardin was in the news for offering its empty jail up for Guantanamo inmates.
Here's what APPF's now ex-lawyer, Maziar Mafi, told the AP about the company's background:
An attorney for American Police Force, Maziar Mafi, describes the Santa Ana, Calif., company as a fledgling spin-off of a major security firm founded in 1984. But Mafi declined to name the parent firm or provide details on how the company will finance its jail operations."It will gradually be more clear as things go along," said Mafi, a personal injury and medical malpractice lawyer in Santa Ana who was only hired by American Police Force a month ago. "The nature of this entity is private security and for security purposes, as well as for the interest of their clientele, that's why they prefer not to be upfront." ...
[Michael Hilton] said his boss is a retired U.S. Army colonel named Richard Culver who is currently overseas.
And Becky Shay, too, the Billings Gazette reporter turned APPF spokeswoman, seemed confident that firm's backers had deep pockets. When she signed on, she said she got a $60,000 salary, a signing bonus, a company car, and was promised help on a down payment on a new house.
"She said she vetted the company and was told things they will not tell the media," KULR reported.
Asked by TPMmuckraker today if she had been told the identity of the parent company, Shay wouldn't say. But she remains "very comfortable" that APPF's backers are legitimate, she said.
Through the last month of intense media coverage, Shay and APPF have refused to answer repeated inquires about the company's putative financial backers.
Some Internet chatterers proposed that the parent company was Xe/Blackwater, or International SOS, or GEO Group. Each of those companies has denied to TPMmuckraker any affiliation with APPF.
A California-based security company called Applied Signal Technology was founded in 1984 and employs an Air Force (not Army) veteran named Rich Culver. But responding to inquires from TPMmuckraker, two company officials denied any affiliation to APPF.
It should be noted that APPF official Michael Hilton has a pattern of claiming that companies he has had perfunctory contact with are playing big roles in APPF.
As for APPF's financial status, it emerged that the purchase of two of APPF's three Mercedes SUVs was guaranteed by its ex-lawyer, Mafi. And payments on one of the vehicles was late, as of last week. APPF has also done unspecified work on the physical plant of the jail.
Al Peterson of the Hardin economic development agency, which brokered the deal with APPF, said today that, on a trip to California, he had seen documents showing that APPF was working with a major contractor. But citing new doubts about APPF's cover story, he declined to name the firm, lest it be unfairly tarred by association.
Additional reporting by Zachary Roth.

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jolly ranchero
October 6, 2009 1:18 PM
I'm just shocked that a city--albeit a rural, yokel-like one--would be stunningly naive as to employ an ex-con with a history of fraud to take over a jail and day-to-day ops of law enforcement. In America, this either stupidity or blantant fraud (take your pick) can be this obvious?
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Douglas Simon
October 6, 2009 2:21 PM
Yesterday Al Peterson claimed that he met with up to 15 people affiliated with APF in Los Angeles so either hes lying or...
Then there is another issue with Weapons, since they signed a contract with Michael Hilton (a felon) to not only take over the prison but provide police services does this mean they could be charged with providing a felon with weapons.
Do we know if the prison had weapons?
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Rcon1
October 6, 2009 10:44 PM in reply to Douglas Simon
Good point. Also it reads during the trip to California for the meeting expressly to discuse the contract..low and behold the lawyer denies gong to that very meeting. WTF!
The township pays for the travel orf the retained lawyer NOT to attend the meeting? No way Jose.
Also, all the resignation's smell very very bad at a time the AG of Montana sticks his nose in. A grand jury should be impaneled now. I smell indicments coming down for all involved.
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Johann
October 6, 2009 2:43 PM
Al Peterson:
" ...declined to name the (parent) firm, lest it be unfairly tarred by association.
Unfairly? What could possibly be unfair about exposing any firm that is associated with a con job like this one is turning out to be?
.
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NitPicker1
October 6, 2009 4:25 PM in reply to Johann
It would be unfair if the "parent firm" was unaware they had any association APF. Which does seem to be the pattern...
But that wasn't Peterson's excuse for not being forthright with the information earlier about either the name of the purported parent company or the rational for keeping its identity secret - he basically just told everyone to trust him. He must have been given some reason for keeping it a secret. My totally unsubstantiated guess is that he was led to believe it was a national security issue.
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Lestatdelc
October 6, 2009 3:21 PM
To be iled under 'famous last words':
But he appeared to think that unlikely. "Has [Hilton] conned us or deceived us?" he (Peterson) asked. "No. He's been pretty up front with us."
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The Hedonistic Pleasureseeker
October 6, 2009 5:33 PM
Never forget: The people closest to the APF deal said they knew the name of the company, that it was big, and that YES they had done their due diligence and were VERY satisfied.
They also implied that they knew about "Captain Hiltons" shady past. So it wasn't the Captain's organization they were happy about, it was another one.
There are a few academic papers on the internet telling of the history of private prisons. There were only a handful operating as 1988, and a few of them were rehab centers we can ignore.
****************
1988 CORPORATIONS THAT PROVIDE PRISON SERVICES http://www.heritage.org/research/crime/bg650.cfm
American Correctional Systems, Inc., Fort Collins, Colorado
Harvey Prickett
(303) 4843888
Behavioral Systems Southwest, Inc., Pomona, California
Ted Nissen
(714) 6230604
Best Western International, Arizona Center for Women, Phoenix, Arizona
Harvey Applegate
(602) 9575786
Buckingham Security Ltd., Lewisburg, Pennsylvania http://books.google.com/books?id=LHJIfV8L6NIC&pg=PA34&lpg=PA34&dq=%22buckingham+security%22+lewisburg&source=bl&ots=MGl6IY8j5H&sig=q6vyydDrVfR3F0HUFmtVuawSFhI&hl=en&ei=kaXLSu2aKo20lAfU7N3cBQ&sa=X&oi=book_result&ct=result&resnum=1#v=onepage&q=%22buckingham%20security%22%20lewisburg&f=false
Joseph Fenton
(717) 5233210
Corrections Corporation of America (CCA), Nashville, Tennessee
Tom Beasley
(615) 3561885
Corrections Development Corporation, St. Louis, Missouri
Bruce Rich
(314) 9684709
Eckerd Family Youth Alternatives, Inc., Clearwater, Florida
Dwight Lord
(813) 4612990
Eclectic Communications, Inc. (ECI), Ventura, California
Art McDonald
(805) 6448700
Pricor Corp., Nashville, Tennessee
Hubert McCullough
(615) 8343030
Prison Rehabilitation Industries & Diversified Enterprises, Inc., Clearwater, Florida
(PRIDE)
Doug Watkins
(813) 4411950
Private Corrections Corp., Denver, Colorado
J. David Huskins
(303) 8300628
General Electric Government Operations, Cherry Hill, New Jersey
James Becker
(609) 4865042
Trans World Airlines, Ventura Reservation Center, Ventura, California
Wilma Barclay
(805) 9880407
U.S. Corrections Corp., Frankfort, Kentucky J.
Clifford Todd
(502) 6929622
Volunteers of America, Roseville, Minnesota
Bill Nelson
(612) 4882073
Wackenhut Services, Inc., Coral Gables, Florida
Mike Norris
(305) 6665656
1-800-922-6488
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The Hedonistic Pleasureseeker
October 6, 2009 5:49 PM in reply to The Hedonistic Pleasureseeker
Oh and that contact info is probably 20 years old, so don't rely on it!
Interesting:
http://en.wikipedia.org/wiki/Corrections_Corporation_of_America
The Corrections Corporation of America is the oldest and largest. Although it was incorporated in 1983, their first detention center was not operational until 1984. Their chief competitor is Wackenhut.
Look at the Friendster, specifically at Cheney's son in law Philip (one L) Perry. Oh, and Lehman. And Goldman. Oh heck, look at it all.
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The Hedonistic Pleasureseeker
October 6, 2009 6:34 PM in reply to The Hedonistic Pleasureseeker
I suppose it would help if I included the link.
http://www.politicalfriendster.com/showPerson.php?id=1415&name=Corrections-Corporation-of-America
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The Hedonistic Pleasureseeker
October 6, 2009 6:29 PM
http://www.privateci.org/montana.htm
Well this is useful: Montana Hall of Shame has (inadvertently) turned into a mini-history of the Two Rivers Detention Center. Newspaper articles going back as far as 2005.
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The Hedonistic Pleasureseeker
October 6, 2009 8:19 PM
From a blog! A mention that CCA won the Two Rivers contract two years ago, during the time of the flap about out-of-state prisoners.
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