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Did Hardin Official Benefit Personally From APPF Deal?


Fmr. TRA Director Greg Smith

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How did American Private Police Force convince the town of Hardin to put it in charge of a 464-bed prison, despite having essentially no proven track record with such projects? The complete answer isn't yet clear. But could the mysterious private contractor have dangled a job for the wife of a top city official to seal the deal?

Let's lay out the evidence...

Greg Smith, the one-time director of the Two Rivers Authority (TRA), Hardin's economic development agency, played a major role in putting together the APPF agreement -- including traveling to California to meet with company officials, and conducting a background check on APPF official Michael Hilton, Hardin officials have said. Smith strongly touted the deal in public comments last month.

But three days after it was announced, Smith was placed on paid administrative leave. The TRA has never publicly explained why.

A few weeks later, as the story was beginning to get national attention, Hilton told the AP that he had asked Smith's wife, Kerri to call him about a possible job with APPF if she fell short in her bid to be Hardin's mayor. It's unclear when Hilton reached out to Kerri Smith, if indeed he did.

Kerri Smith, like her husband, has been a staunch supporter of the controversial deal.
"It probably is [mysterious] to those that don't know what's going on," she told a local TV station around the same time. But she added a piece of advice for worried Hardin residents: "Don't panic, just go with the flow and everything will be fine."

Last week, the state attorney general sent letters to APPF and the TRA asking for more information about the deal. One request from AG Steve Bullock was for documents relating to "[a]ll direct or indirect interests Authority board members or their immediate families have in American Police Force (including without limitation its officers, affiliates, or agents)." Bullock's office told TPMmuckraker last night that the document speaks for itself.

Then yesterday, at a public meeting about the deal held by the TRA, an audience member asked whether Greg Smith had been suspended because Kerri Smith had used TRA funds to fly to California with her husband to meet with Hilton. In response, TRA director Gary Arneson acknowledged that Kerri Smith had been on the trip, but said her ticket was paid for by her husband. Arneson said the trip itself had nothing to do with Greg Smith's suspension.

But at that same meeting, at which it was announced that Hardin was putting the deal on hold, amid questions about the veracity of many of APPF's claims, Smith formally resigned from the TRA board.

The Smiths' phone number is not publicly listed. Becky Shay of APPF declined to comment to TPMmuckraker on whether a job offer had been made by APPF to Kerri Smith. Al Peterson of the TRA told TPMmuckraker he couldn't comment on the reasons for Greg Smith's suspension and subsequent resignation. Peterson also said he was unable to get a message to Smith, adding that he'd been trying to contact him himself.

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19 comments

Recommend Recommend (5)

October 6, 2009 2:06 PM   

Wow, how far TPM has fallen. The Chairman of the House Ways and Means Committee is shown to be a serial tax cheat and TPM treats us to a series of obsessive posts about county government in Montana. I'm beginning to think Z. Roth could use Adderall

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October 6, 2009 2:24 PM    in reply to Campesino

This goes far beyond Montana.

In Pennsylvania, at least two judges are now serving time for incarcerating juveniles in a for-profit detention center in return for kickbacks from the operators of that detention center.

This modus-operandi is becomming more general than most people realize and should be nipped in the bud.

Jails and detention centers run for profit are a breeding ground for some of the worst kinds of corruption.
.

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October 6, 2009 2:59 PM    in reply to Campesino

what's newsworthy about rangel besides the fact that the republicans are desperately trying to make him newsworthy??

swing. and a miss.

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October 6, 2009 7:15 PM    in reply to fkaZk0sm0


what's newsworthy about rangel besides the fact that the republicans are desperately trying to make him newsworthy??

swing. and a miss.

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Well, TPM must have read my comment, cause they finally posted on his ethics investigation. Nothing newsworthy about a congressman that cheats on his taxes and lies on his financial disclosure forms

http://tpmmuckraker.talkingpointsmemo.com/2009/10/hoyer_well_fight_resolution_to_oust_rangel.php

And I have to agree with you, you really did swing and miss

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October 6, 2009 3:34 PM    in reply to Campesino

I find this story fascinating.

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October 6, 2009 4:51 PM    in reply to Campesino

Yawn .... acorn acorn acorn.

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October 6, 2009 2:22 PM   

Speaking of real muckraking, you haven't done anything on ACORN lately. Too busy chasing phantoms in Montana, I guess

http://www.nola.com/politics/index.ssf/2009/10/acorn_embezzlement_was_5_milli.html

ACORN embezzlement was $5 million, La. attorney general says

Louisiana's attorney general has broadened the scope of an investigation of ACORN to include a possible embezzlement of $5 million a decade ago within the community organization, five times more than previously reported.

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October 6, 2009 2:33 PM    in reply to Campesino

Get serious - ACORN is extremely small time. How about going after Halliburton, KBR, and XE (BlackWater) whose activities have resulted in individuals dying, or the Defense Industries who have admitted to ripping off over 1000 times the amount that ACORN is accused of keeping illegally.

Could the difference possibly be that ACORN is perceived as helping Democrats and the common man while these others are perceived as helping Republicans and the corporate establishment?

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October 6, 2009 2:49 PM    in reply to Johann

How about going after Halliburton, KBR, and XE (BlackWater) whose activities have resulted in individuals dying, or the Defense Industries who have admitted to ripping off over 1000 times the amount that ACORN is accused of keeping illegally.
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I think you need to talk to TPM about that. But they're too busy chasing phantoms around Montana. Or busy obsessing about the sex life of an ex-FBI agent no one has ever heard of.

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October 6, 2009 2:54 PM    in reply to Campesino

how does a ten-year old INTERNAL imbezzlment case (where none of the monies were likely public funds) in which only the amount embezzled seems to be in question become newsworthy, let alone "real" muckraking?

oh my god!! an attorney general has filed a subpoena!! get glen beck on the phone!!!

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October 6, 2009 7:22 PM    in reply to fkaZk0sm0


how does a ten-year old INTERNAL imbezzlment case (where none of the monies were likely public funds) in which only the amount embezzled seems to be in question become newsworthy, let alone "real" muckraking?

oh my god!! an attorney general has filed a subpoena!! get glen beck on the phone!!!


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Actually, with all the money ACORN has taken from federal, state and local governments it's hard to imagine how some of the $5 million wouldn't be public funds. Hey, the brother of the CEO of a non-profit steals $5 million, and the CEO keeps it a secret and lets his brother keep his job. Why should anyone care?

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October 6, 2009 3:01 PM    in reply to Campesino

i count strike two.

maybe you should just wait until you've got a good point instead of continuing to swing furiously at the same old tired crap that politico keeps throwing to you...

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October 6, 2009 7:35 PM    in reply to fkaZk0sm0

Oops, there you go projecting again

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October 6, 2009 4:57 PM    in reply to Campesino

No fucking way! You really did go to Acorn ... very next comment!!!!! Priceless.

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October 6, 2009 4:17 PM   

hey Campesino,
If your not interested in this story how bout posting in a more appropriate thread and not spam this one. Makes one suspicious of your motives.

Now focus and lets get back to the American Police Force subject...

Roth's above article said "But three days after it was announced, Smith was placed on paid administrative leave. The TRA has never publicly explained why."

Actually the ex TRA attorney, Convery, recently claimed why Smith was suspened (now resigned)...
"TRA, also known as Two Rivers Port Authority, and specifically its now-suspended director, Greg Smith, exceeded its authority by suggesting to Hilton that American Police Force might want to take over policing for the city of Hardin, Convery said."
http://billingsgazette.com/news/state-and-regional/montana/article_48829de4-aef1-11de-8bfd-001cc4c002e0.html

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October 6, 2009 6:01 PM    in reply to pqowieur

correction: Convery herself isn't specifically claiming it, but if you read the article, it is strongly implied.

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October 6, 2009 7:32 PM    in reply to pqowieur

hey Campesino,
If your not interested in this story how bout posting in a more appropriate thread and not spam this one. Makes one suspicious of your motives.

Now focus and lets get back to the American Police Force subject...

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Actually, I just had to express my amazement at how far TPM has fallen. They used to cover stuff like Randy Cunningham and the Abramoff scandals. Josh used his success to hire professional staff, and here he has them covering a non-story in rural Montana. I mean I can understand it might be worth a post and a follow-up, but 6 or 7 posts a day?

All I can figure is that with Dems in charge of Congress and the Executive Branch, TPM has to self-censor all the embarrassing stories. So they have to fill their time with non-stories obsessing about county government in rural Montana, that poor deluded birther woman, and the sex life of an ex-FBI agent who gave a couple of speeches about terrorism (what was that about?)

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October 6, 2009 7:41 PM    in reply to Campesino

hey Campesino,
If your not interested in this story how bout posting in a more appropriate thread and not spam this one. Makes one suspicious of your motives.

Now focus and lets get back to the American Police Force subject...

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October 7, 2009 9:27 AM    in reply to pqowieur

More than suspicious.
It is a given that campesino wants to change the subject away from private, for profit, jails and away from the big stories of the phony "war on Terra", KBR killing American soldiers through faulty construction work, Halliburton getting a trillion dollars in no-bid contracts that have produced only profits for Halliburton, and the abuses of Guantanimo, Abu Ghraib, Diego Garcia, and the other CIA "black prisons".

She wants to prevent any discussion of exporting the concept of those foreign, for profit, prisons to America.
.

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