Suit accuses company of not paying for lobbying

Published: Monday, Oct. 16 2006 9:25 a.m. MDT

Sen. Orrin Hatch, holding the TrackerPAL, talks with John Walsh and Elizabeth and Ed Smart.

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The former chairman of the Utah Board of Pardons says he successfully lobbied Republican Sen. Orrin Hatch to land a Sandy-based company potentially billions of federal dollars, according to a breach of contract lawsuit the man filed against the company.

Michael Sibbett, now a lobbyist, said the company unlawfully terminated its contract after Congress appropriated the money and won't compensate Sibbett's firm according to the contract.

The suit filed a month ago in 3rd District Court says Sibbett and two other former state officials were hired by Secure Alert to attempt to lobby criminal justice authorities and to assist in drafting legislation that would increase the chances that Secure Alert's product would be chosen over its rivals.

Sibbett said he, Robin Riggs, former legal counsel for Gov. Mike Leavitt, and Kevin Howard, outside general counsel for the Utah State Retirement Board and Systems and a former legislative attorney, formed the lobbying group HGR Enterprises to capitalize on their extensive contacts in Utah and Washington, D.C.

The suit states the three were "instrumental in assisting Senator Orrin G. Hatch in sponsoring and drafting of the Adam Walsh Child Safety Act of 2006," which passed Congress last July. The bill included a "single-source provision that only the TrackerPAL device can satisfy."

Secure Alert's TrackerPAL uses GPS and cellular technology to keep track of parolees. It also includes a two-way radio feature that allows a parole officer to communicate with a parolee by voice.

The language of the bill calls for electronic monitoring units that contain "global positioning system and cellular technology in a single unit and provides two- and three-way voice communication." The bill didn't specifically mention the Secure Alert product by name.

Sibbett says in the suit that the language pretty much ensured Secure Alert would get the federal funds, to the tune of $2.5 billion to $2.8 billion over the next five years.

In exchange for their efforts the suit says Sibbett, Riggs and Howard were contracted to receive 50 to 75 cents per day for each individual who wears the TrackerPAL device over the next five years. Secure Alert also agreed to allow HGR Enterprises to receive up to 50 percent of its compensation in stock at 60 cents per share.

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