Private Prison Business

The Muni Bonds In The Hardin Jail Project: Who Lost Money?

Justin Elliott | October 16, 2009, 1:41PM

Two Rivers Detention Center

We posted an investigative piece Monday about the back story on the empty jail in Hardin, MT, explaining how a consortium of companies made millions on the project that has netted exactly nothing for the struggling town.

But what about the $27 million in high-risk municipal bonds that were issued to fund the construction of the speculative jail in 2006 and 2007?

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American Private Police Force

Montana AG Suspends Probe Of American Private Police Force

Justin Elliott | October 14, 2009, 10:56AM

Michael Hilton

The attorney general of Montana has suspended a short-lived probe of the American Private Police Force, saying that "Captain" Michael Hilton's failure to answer the AG's questions "speaks volumes about his company's legitimacy."

Attorney General Steve Bullock released this statement last night:

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American Police Force

American Private Police Force Faxes One Page Non-Response To AG's Request

Justin Elliott | October 13, 2009, 3:50PM

Michael Hilton

In the least surprising development of the day, American Private Police Force has declined to answer the Montana attorney general's questions seeking information about its (supposed) business and (supposed) past clients.

Attorney General Steve Bullock sent a letter two weeks ago demanding the information, before the deal for APPF to run a jail in Hardin fell apart.

KTVQ in Billings reports:

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Private Prison Business

Behind Montana Jail Fiasco: How Private Prison Developers Prey On Desperate Towns

Justin Elliott | October 12, 2009, 3:14PM

Two Rivers Authority parade float, 6/27/09

With the unraveling of the deal for the shadowy American Private Police Force to take over and populate an empty jail in Hardin, Montana, it's pretty clear that the small city got played by an ex-con and his (supposed) private security firm.

But an investigation by TPMmuckraker into how Hardin ended up with the 92,000 square foot facility in the first place suggests that, long before "low-level card shark" Michael Hilton ever came to town, Hardin officials had already been taken for a ride by a far more powerful set of players: a well-organized consortium of private companies headquartered around the country, which specializes in pitching speculative and risky prison projects to local governments desperate for jobs.

The projects have generated multi-million dollar profits for the companies involved, but often haven't created the anticipated payoff for the communities, and have left a string of failed or failing prisons in their wake.

"They look for an impoverished town that's desperate," says Frank Smith of the Private Corrections Institute, a Florida-based group that opposes prison privatization. "They come in looking very impressive, saying, 'We'll make money rain from the skies.' In fact, they don't care whether it works or not."

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