May 2, 2025 7:34 am

Bill Williams

Wayward Cop Turned Mayor of Prescott Valley, part 2

Kell Palguta, Mayor of Prescott Valley Arizona

By Investigative Reporter Bill Williams

The following story is straight from three investigations into Kell Palguta being a bad Prescott Valley cop where his commander said, more than once, “his lack of sound judgment as a supervisor is a misconduct of a police employee, and supports the fact Sergeant Palguta is not representing himself to a caliber required to be a supervisor of this agency. And, Palguta’s lack of supervisory abilities stands on its own.”

One paragraph in the investigation says “It should be noted that this Administrative Review has identified by name; current and former PANT and CRT (crisis response team) informants and could cause serious ramifications for those named to include officer safety factors and may jeopardize pending and current investigation(s) if this Administrative Review is not sealed and identified; “not for release”. Because this reporter is an honorable man, he will not reveal sensitive information, including names and some factors.

Prescott Valley police officers used to go into Dusty’s Hookah Bar in the 3000 block of Windsong Drive to meet informants and ask questions, mostly about drugs and drug use and illegal marijuana grows in town. “Black lights and glowing hookahs, with outstanding shisha” one former patron said. Shisha is a combination of tobacco, molasses and fruit flavors, and contains large amounts of nicotine, carbon monoxide, tar and other toxins.

One customer described bringing a bachelorette party to Dusty’s all the way from Gilbert, AZ. But other  customers complained of bad service. The ‘good service’ was narcotics trading and Palguta and Corporal Matt Hepperle soon found they could set up sting operations there.  It was in Dusty’s where Kell Palguta, as a PV cop, used to meet confidential informants. When he told his supervisors who were investigating him (Kell) that an informant told Kell he was wanted by the DEA, the interview of Kell took a dramatic turn because PV command staff wanted to know why a cop wouldn’t tell supervisors (or the DEA or PANT) about a wanted man, seen in a hookah bar. PANT is of course Partners Against Narcotics Trafficking.

Officer Matt Hepperle – real estate broker, and husband of ex-councilwoman April Hepperle, who votes often in favor of new real estate developments (Palguta is a realtor) – was simultaneously Palguta’s partner and subordinate and unfortunately for Matt, he was drawn into numerous investigations of Palguta, conducted by high-ranking officers within PVPD, including information coming out of Dusty’s Hookah Bar.

Some reports I have obtained are redacted but it appears the dude wanted by the FBI was a case that Hepperle caught; he arrested the suspect for drug paraphernalia – he was let go with a citation – but ironically the next day, the suspect shows up in another report… Possession for Sale of Dangerous Drugs (eight ball) which is an eighth of an ounce of cocaine, crack or heroin. During one escapade, Hepperle told Palguta to meet at Sandie’s, a convenience store in the 3900 block of Robert Rd in PV but they changed the drug sting to Dusty’s at the last moment. Various discussions about “drug bust set ups’ are described in Palguta’s investigation files but he told higher ups the bust at Dusty’s was not a set up dope deal because “all the guys (PANT members) would have been there” but they weren’t. Commander Fessler was not buying the ruse.

Commander Fessler’s narrative reads like a bad crime movie script, especially since a March 17, 2010 directive to Palguta from Fessler told Palguta not to engage in drug stings involving informants. Fessler pointed out his concerns as to the safety of others in this particular sting; e.g. meeting the suspect at a location (Dusty’s); making a phone call to Officer Hepperle from inside suspect vehicle, while two additional subjects were seated in the vehicle, including the main suspect; calling Officer Hepperle by his first name, “Matt” or “bro”; describing the tan truck they are seated in on the phone, and telling Hepperle that he will call him when the suspect goes inside.

Commander Fessler questioned Palguta about the wimpy drug bust saying, “you both thought it was supposed to be fat (street slang for possessing quantities of drugs), and Fessler asked him how he knew that. Sergeant Palguta said, “because someone called Hepperle and told him that it was fat on dope.”

Fessler asked Sergeant Palguta (now Mayor Palguta) if he knew that Officer Hepperle called someone right after the Dusty’s bust and told him; “good job, I still need one more case, then I will get you some cash. “Sergeant Palguta said that he was not aware of that call. But at times did acknowledge they were paying for information even after the March 17 memo that said “discontinue.”

Fessler, who seems like an upstanding cop supervisor, questioned Palguta about obvious safety issues when being in a car of suspects, prior to a bust and revealing sensitive and personal information and that Sergeant Palguta did not acknowledge the safety / liability issues as a supervisor of the department related to the bust.

This behavior is at the core of Palguta’s human resource file (which this reporter has) with numerous questions of Palguta’s lack of leadership and lack of judgment comments in the file. Does this lack of judgment carry over into the town business and personnel? And inquiring residents throughout town want to know, does the mayor have mind control over the (former) six women council members, and if ‘yes’ should  they distance themselves from being sullied by him? They voted for Palguta’s favored development projects 95% of the time. Then Palguta (a realtor) has the option to stick his real estate sign into the new ground. All of these actions have created the out-of-control explosive growth in town, which some town department directors happily endorse.

At the end of the Dusty’s Hookah Bar investigation, Commander Fessler found Palguta violated 8 police department general orders. Fessler’s stinging commentary included: I recommend that Sergeant Palguta be removed from supervisory status with this agency and returned to patrol status, and not be allowed to lecture at the police academy! ‘The expectations of a supervisor’s responsibilities are clear to the supervisory members of the Prescott Valley Police Department and Sergeant Palguta continues to work outside those expected norms’. Palguta received a disciplinary memo, demotion, letter of reprimand and six months’ probation.

This reporter gets the impression Hepperle and Palguta wanted to create an image of the cops from French Connection but ultimately came across as the cast from Lady Killers. Upcoming articles include officers who questioned working with Palguta and Hepperle on their drug busts including a canine officer who said he refused to bring his dog to the two, AND comments about Palguta written into reports by our current Assistant Police Chief who was then a lieutenant.  Stay tuned. Part three is coming.

Facebook Like
Scroll to Top