LOS ANGELES, CALIFORNIA - The leader of the group that was in negotiations with Two Rivers Authority to fill the vacant Hardin jail appeared in a California courtroom Friday where he revealed that APF has no parent company or current employees.

He was ordered to appear for a judgment debtors examination. About 10 years ago a court ordered Hilton to pay Richard Earnhart, a former investor about $340,000 dollars.

With interest that judgment is now worth about $700,000 dollars. The hearing was called to determine what assets Hilton had and how he could pay Earnhart back. But while under oath, Hilton revealed some shocking information about this company.

Tensions were running high as Michael Hilton appeared at a Los Angeles Superior court in Torrance Friday. Earnhart confronted Hilton while he walked in and began asking him about the money a court said Hilton owed him.

"Talk to me like a human being," Earhnart said. "Don't act stupid."
Hilton claimed he has no knowledge of the ruling. He was asked to appear Friday with several documents demonstrating his assets. All he brought was a deposit slip from U.S. Bank, the contract with TRA that was never finalized, and a few other documents that did not provide much more information.

Chirs Armenta, Earnhart's attorney questioned Hilton for about 45 minutes to determine what assets he has. He testified that APF's bank account, largely funded by Hilton's father, is now $2,000 dollars overdrawn and Hilton has not been able to pay rent for four months.

"If I didn't know better I'd say it's a very sad situation," Armenta said.
Hilton testified that he collected $100,000 dollars in investments for APF and that that money was used to pay for trips to and from Montana and for business expenses. He added that he paid for Kerri Smith's trip to California. Smith is running for Mayor of Hardin and is married to Greg Smith, TRA's former Executive Director. Hilton said he is left with nothing.

"According to his testimony the man is completely destitute," Armenta said.

But Earnhart's not convinced. "That's his front," he said. "That's what he wants you to think. You can't feel sorry for a guy like that."

Armenta was able to determine that Hilton has done some paintings that could be sold to make money for her client. "Apparently Hilton is something of an artist," she said. "He testified he has four pieces of artwork, which he will bring to my office on Monday and my client intends to auction them to the highest bidder."

Hilton said he served in the armed forces in Cypress in the 1970s, but since then has not had any military experience.

But this story is far from over. KULR-8 spoke to Hilton outside the courtroom Friday and he told us repeatedly that he plans to return to Montana. He added that he did not have the land to build anything yet.