CA attorney cuts ties to Mont. jail project

By MATTHEW BROWN, The Associated Press
2:06 p.m. October 2, 2009

BILLINGS, Mont. — A California company's bid to take over an empty jail in rural Montana appears to be unraveling, with an attorney involved in the project cutting ties Friday and a second company, once named as a subcontractor, denying any involvement.

Those moves followed revelations earlier in the week that Michael Hilton – the lead figure of the company, American Police Force – is a convicted felon with a history of fraud and failed business dealings in California.

"We met with him and he asked us if we can support him," said Edward Angelino with Allied Defense Systems, an Irvine, Calif.-based defense contractor. "We checked his background, we checked his company. He's not an adequate person to do business with."

Hilton had said he had a contract with Allied Defense Systems to provide uniforms.

Santa Ana attorney Maziar Mafi had served as the legal affairs director for American Police Force. Mafi said he wanted to see the project begin to move forward before he could continue his involvement.

"For the time I'm pulling out," Mafi said Friday. "I need to see more concrete action before I can be involved."

American Police Force reached a deal last month with officials in Hardin, Mont., to operate the city's jail, which has never held an inmate since its 2007 completion.

Hilton has said he would bring more than 200 new jobs to the struggling community, through the jail and a military and law enforcement training center he pledged to build.

A spokeswoman for the company, Becky Shay, indicated the project remained on track. She said a job fair for prospective jail employees will still be held during the week of Oct. 12.

Shay said she was unaware of the move by Allied Defense Systems. As for Mafi, she said she hadn't spoken with him directly but was told he felt there was a conflict of interest.

Shay, who quit her job with the Billings Gazette to work for Hilton, said she remained confident in American Police Force.

She said Hilton told her when she was hired about his criminal record and several civil judgments against him totaling more than $1.1 million. Those judgments remain outstanding.

"A lot of people that know me, know about me have asked me if I've been duped," she said. "No."

Hilton, who returned to California after spending several days in Hardin, intends to return for the job fair, Shay said.

The contract on the jail agreed to by some city officials and the company, but never ratified by US Bank, which has a stake as trustee for $27 million in construction bonds used to pay for the 464-bed facility.

No money has changed hands between Hardin and American Police Force. Hardin Mayor Ron Adams said Friday that despite his reservations about the project, he would still like to see it go forward so the city can fill its jail.
Mafi's involvement began last month, when Hilton brought him on about the same time he reached an agreement with Hardin's Two Rivers Authority, which owns the jail.

Alex Friedmann with the Private Corrections Institute – a group that has long been critical of Hardin for building a jail that would be privately run – suggested Mafi's departure was a sign the project is doomed to failure.
"He sees the ship is going down and he wants to not be on that ship when it sinks," Friedmann said.

Hilton, who claims an extensive military background and calls himself "captain," initially described Mafi as a "major" in American Police Force. He later said Mafi was the company's president – although Mafi denied the role and said he had no military or security background.

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