Overseas Civilian Contractors

News and issues relating to Civilian Contractors working Overseas

The Bomb Plant: America’s Three A.M. Nightmare

The private contractor guard force is owned by a foreign company with a long record of botched security operations from Afghanistan to London to Oak Ridge, Tennessee

The company is now wholly-owned by foreign security firm G4S, the same company that won notoriety on 9/11 when its Argenbright Security division ran passenger checkpoints at Dulles and Newark airports where hijackers boarded planes. Its performance on 9/11 was the major political impetus Congress used to federalize all airline security and create the Transportation Security Administration.

G4S was involved in a major scandal when its employees took part in bizarre hazing rituals when supposedly guarding State Department employees in Afghanistan. More recently, the company so botched security preparations for the London Olympics, the British government was forced to call in the army at the last minute.

by Joseph Trento at The DC Bureau  November 14, 2012

Aiken, S.C. – Tons of weapons grade plutonium and other nuclear materials, a target for terrorists, are not being properly protected by the National Nuclear Security Administration at the Department of Energy’s sprawling Savannah River Site, according to security consultants and U.S. counterintelligence officials.

A secret security review underway at DOE and other government agencies after an elderly nun last summer breached a NNSA bomb-grade-uranium facility at the Oak Ridge Tennessee Y12 area reveals “harrowing problems in site management and control at other DOE sites,” said a Homeland Security official who requested anonymity. The official said that the Savannah River Site was of concern because “SRS does not have the staffing or the facilities to protect the huge amounts of plutonium that have been brought to SRS in recent years.”

SRS has one of the greatest concentrations in the world of radioactive material. In one old reactor building – the K Area Material Storage (KAMS) facility – protected by the same contractors that botched security at Oakridge, there is enough weapons grade plutonium to destroy the world multiple times. Here plutonium in its purest form can be found by the ton.

Please read this entire article at The DC Bureau

November 14, 2012 Posted by | Afghanistan, ArmorGroup, Civilian Contractors, Contractor Oversight, G4S, Government Contractor, Private Security Contractor, Ronco, Ronco Consulting Corporation, Safety and Security Issues, Vetting Employees, Wackenhut | , , , , , , , , , , , , , , , , , , | Leave a comment

The Ronco Riff

October 25, 2012

Voluntary Today, Involuntary Tomorrow

Another Successful Flush by Wackenhut G4S

Will the last Ronco Consulting Corporation Employee out please close the lid ?

October 25, 2012 Posted by | Afghanistan, ArmorGroup, Bomb Disposal, Civilian Contractors, Contractor Casualties, Contractor Oversight, Demining, ERW, Explosive Ordnance Disposal, Explosive Remnants of War, Follow the Money, Friendly Fire, G4S, Government Contractor, Iraq, Landmines, Lawsuits, Mine Clearance, Ronco, Ronco Consulting Corporation, State Department, Sudan, Taxes, United Nations, United Nations Board of Inquiry, Vetting Employees, Wackenhut | , , , , , , , , , , , , , , | 1 Comment

Wackenhut, WSI, fired after nuke plant break-in

NASHVILLE, Tenn. (AP) –  October 1, 2012

The security contractor at the Y-12 nuclear weapons plant in Tennessee was fired Monday after authorities said three protesters cut through fences and vandalized a building in an unprecedented break-in.

Security contractor WSI Oak Ridge said it has started winding down operations and will transfer its protective force functions to B&W Y-12, the managing contractor at the plant, over the next several weeks. The Department of Energy had earlier recommended that WSI’s contract be terminated.

The security contractor was criticized for its poor response when the protesters, including an 82-year-old Roman Catholic nun, cut through fences on July 28 and defaced a building that stores the plant’s weapons grade uranium

Please read the entire article here

October 2, 2012 Posted by | Civilian Contractors, Contractor Oversight, G4S, Private Security Contractor, Ronco, Ronco Consulting Corporation, Safety and Security Issues, Vetting Employees, Wackenhut | , , , , , , , | Leave a comment

Will ArmorGroup, AGNA, G4S, finally be held accountable for the deaths of Paul McGuigan and Darren Hoare??

The programme-makers heard stories of contractors being forced to work on dangerous missions with inadequate equipment, incident reports sanitised to protect company reputations and numerous deaths of former soldiers.

One security contractor, Bob Shepherd, said: “We know when a soldier dies it’s all over the newspapers, it’s on the TV. But we never know when security contractors die.

“For the companies it’s bad for business, for the government it’s hiding the true cost of these conflicts.

“If the British taxpayers knew the total numbers of people that have died on behalf of British security companies in places like Iraq and Afghanistan they would be shocked.”

BBC News Oct 1, 2012

Security firm G4S was sent warnings not to employ an armed guard in Iraq just days before he murdered two colleagues, a BBC investigation has found.

Private security guard Paul McGuigan, from the Scottish Borders, was shot dead by Danny Fitzsimons in 2009 in Baghdad while on a protection contract.

Another man, Australian Darren Hoare, was also killed.

All were working for UK contractor G4S, which was operating under the name ArmorGroup in the region.

Violent criminal

In a BBC documentary, it is revealed that a G4S worker sent a series of emails to the company in London, warning them about Fitzsimons’s previous convictions and unstable behaviour.

The anonymous whistleblower signed one email “a concerned member of the public and father”.

The worker warned G4S: “I am alarmed that he will shortly be allowed to handle a weapon and be exposed to members of the public.

“I am speaking out because I feel that people should not be put at risk.”

Another email, sent as Fitzsimons was due to start work in Baghdad, said: “Having made you aware of the issues regarding the violent criminal Danny Fitzsimons, it has been noted that you have not taken my advice and still choose to employ him in a position of trust.

“I have told you that he remains a threat and you have done nothing.”

Within 36 hours of arriving in Iraq in August 2009, Fitzsimons – a former paratrooper – had shot and killed the two men after what he claimed was a drunken brawl.

Paul McGuigan Paul McGuigan was killed by Fitzsimons

An Iraqi colleague was also wounded as Fitzsimons tried to flee the scene.

Fitzsimons had worked as a private security contractor before in Iraq, but he had been sacked for punching a client.

At the time he was taken on by G4S, Fitzsimons also had a criminal record, was facing outstanding charges of assault and a firearms offence, and had been diagnosed by doctors as having PTSD (post-traumatic stress disorder).

In the documentary, the parents of Paul McGuigan call for the company to face criminal charges over the killing.

His mother Corinne Boyd-Russell, from Innerleithen in the Borders, said: “[Fitzsimons] fired the bullets. But the gun was put in his hand by G4S ArmorGroup. They put the gun in that man’s hand.

“I want G4S to be charged with corporate manslaughter and be held accountable for what they did.”

Corinne Boyd-Russell Corinne Boyd-Russell wants G4S charged with corporate manslaughter

The parents of Danny Fitzsimons, who is serving 20 years in a Baghdad prison after being sentenced for the murders in February 2011, were also shocked to hear about the existence of the emails.

Liz Fitzsimons, from Manchester, said: “And they still took him out there? They [G4S] need to be taken to task for that.

“The people who we feel are responsible, who we hold responsible for putting that gun in Danny’s hand, are without a shadow of a doubt G4S.”

A G4S spokesman admitted that its screening of Danny Fitzsimons “was not completed in line with the company’s procedures”.

It said vetting had been tightened since the incident.

Regarding the email warnings, the spokesman G4S told the BBC it was aware of the allegations but that an internal investigation showed “no such emails were received by any member of our HR department”.

He did not say whether anyone else in the company had seen them.

An inquest into the death of Paul McGuigan, a former Royal Marine, is due to begin in December.

The revelations in the Fitzsimons case come just weeks after G4S found itself at the centre of a crisis over its inability to meet its commitment to recruit security staff for the Olympics in London.

It is the biggest security company in the world in an industry that is worth about £400bn globally

WARNINGS ABOUT KILLER OF SCOT WENT UNHEEDED  October 1, 2012

Danny Fitzsimons was sentenced to at least 20 years in an Iraqi prison last year

CONTROVERSIAL security firm G4S ignored warnings not to employ an armed guard in Iraq who went on to murder two of his colleagues, it has been claimed.

Danny Fitzsimons was sentenced to at least 20 years in an Iraqi prison last year for killing Scot Paul McGuigan and Australian Darren Hoare in Baghdad in 2009.The parents of Paul McGuigan, 37, have now called for G4S ArmorGroup to face criminal charges for failing to heed the warnings and sending Fitzsimons to Iraq.Now a new BBC Scotland documentary has revealed that G4S was warned not to employ Fitzsimons, who was suffering from Post-Traumatic Stress Disorder, and had been fired by a previous security contractor for punching a client.

It emerged that a whistleblower sent two e-mails to the London-based company, which operates as Armorgroup in Iraq, expressing concerns that Fitzsimons’ unstable behaviour made him unsuitable to be handling weapons in a war zone.

The first e-mail, revealed in tonight’s BBC Scotland Investigates: Britain’s Private War programme, reads: “I am alarmed that he will shortly be allowed to handle a weapon and be exposed to members of the public. I am speaking out because I feel that people should not be put at risk.”And in a second e-mail, sent as 32-year-old Fitzsimons was about to start work in Baghdad, the whistleblower adds:“Having made you aware of the issues regarding the violent criminal Danny Fitzsimons, it has been noted that you have not taken my advice and still choose to employ him in a position of trust.

“I have told you that he remains a threat and you have done nothing.”Paul McGuigan’s mother, Corinne Boyd-Russell, from Innerleithen, in Peebleshire, said: “Fitzsimons fired the bullets. But the gun was put in his hand by G4S ArmorGroup.“I want G4S to be charged with corporate manslaughter and be held accountable for what they did.”

The parents of Fitzsimons were also shocked to hear about the existence of the e-mails.

Mother Liz Fitzsimons, from Manchester, said: “The people who we feel are responsible, who we hold responsible for putting that gun in Danny’s hand, are without a shadow of a doubt G4S.”

The news comes just months after the UK Government was forced to call in 1,200 troops to police the Olympic Games venues after G4S failed to provide enough staff.

The firm recently won a £20million contract to manage the electronic tagging of Scottish offenders.

A spokesman for G4S said: “Although there was evidence that Mr Fitzsimons falsified and apparently withheld material information during the recruitment process, his screening was not completed in line with the company’s procedures.

“Our screening processes should have been better implemented in this situation, but it is a matter of speculation what, if any, role this may have played in the incident.”

September 30, 2012 Posted by | ArmorGroup, Civilian Contractors, Contractor Casualties, Contractor Oversight, Defense Base Act, Follow the Money, G4S, Lawsuits, Legal Jurisdictions, Post Traumatic Stress Disorder, Private Security Contractor, Ronco, Ronco Consulting Corporation, Safety and Security Issues, Security Clearances, State Department, Vetting Employees, Wackenhut | , , , , , , , , , , , , , , , , , | Leave a comment

Will No One Rid Me of This Turbulent Company?

by David Isenberg at Huffington Post

also see at Davids Blog

Now that the London Olympics are receding into memory and the world has moved on to other pressing sports issues, like substitute NFL referees, the time is right to look back and ask one very important question; namely, just how badly did G4S screw up?

You remember G4S, don’t you? That is the British private security company that was unable to provide enough guards for the Summer Games and failed to disclose its problems in the buildup to the event. Its performance was so bad that the British got mad at Mitt Romney back in July when he, in one of his rare absolutely honest statements, indirectly mentioned its obvious lack of readiness.

As it turns out, the most charitable thing one can say is that G4 did badly, very badly. Others, such as British Members of Parliament would be much harsher. As evidence, consider the newly released report put out by the British Parliament’s Home Affairs Committee. In the conclusion the report states:

Reports commissioned by LOCOG [London Organising Committee of the Olympic and Paralympic Games] in the months preceding the Games indicated clearly that there were problems with G4S’s recruitment, training and communications. They also found that the management information presented to LOCOG by G4S were fundamentally unreliable. G4S, meanwhile, continued to insist that it was in a position to deliver its contract. Although Mr Buckles [G4 CEO] claims to have acted on all the relevant recommendations, the final outcome suggests that the changes to the data G4S were reporting to LOCOG were more presentational than substantial. The data were at best unreliable, if not downright misleading, and the most senior personnel in the company must take full responsibility for this.

To paraphrase what King Henry the Young said of Thomas Becket, Archbishop of Canterbury in the 12th century, will no one rid me of this turbulent company?

This, by the way, was not some unfortunate confluence of events that nobody could anticipate; a perfect storm, as it were. There were many warning signs. For example:

It seems that the penny finally dropped with G4S management on 3 July, when Mr Taylor-Smith [Chief Operating Officer of G4] telephoned Mr Buckles to inform him there would be a shortfall of staff. Mr Buckles was on holiday at the time, which suggests that this was something more than a routine call. But Mr Buckles did not mention the scale of the problem to the Home Secretary when he spoke to her on 6 July, the same day on which Mr Horseman-Sewell was boasting recklessly in the press that G4S would have been more than capable of simultaneously delivering multiple Olympic security projects around the world. Neither did Mr Buckles disclose the scale of the problem when he met the Home Secretary on 10 July. It is clear that by this stage the Home Office had realised that something might be seriously amiss, as Charles Farr [Director-General of the Office for Security and Counter-Terrorism at the Home Office and Chair of the Olympic Security Board] had already begun to put contingency plans into place. But it is astonishing that G4S took a further week to tell its partners how bad things were.

G4S’s debacle was far more than a black eye just for G4S. It set back the entire security industry in the United Kingdom.

Please read the entire post here

September 28, 2012 Posted by | Civilian Contractors, Contractor Oversight, Follow the Money, G4S, Private Security Contractor, Ronco, Ronco Consulting Corporation, Wackenhut | , , , , , | 1 Comment

Goldman Sachs downgrades G4S

StockMarketWire.com  September 27, 2012

Goldman Sachs downgrades G4S from sell to conviction sell, target price cut from 264p to 231p

September 27, 2012 Posted by | ArmorGroup, Contractor Corruption, Contractor Oversight, Follow the Money, G4S, Government Contractor, Ronco, Ronco Consulting Corporation, Wackenhut | , , , , , , | Leave a comment

War Profiteer of the Month-G4S

30 Aug 2012 — javier at War Resistors International

G4S plc (formerly Group 4 Securicor) is a British multinational security services company headquartered in Crawley, United Kingdom. It is the world’s largest security company measured by revenues and has operations in around 125 countries. G4S was founded in 2004 by the merger of the UK-based Securicor plc with the Denmark-based Group 4 Falck.

In 2004 G4S bought private military and security company (PMSC) ArmorGroup and in doing so joined the shadowy world of privatised war. PMSCs have been accused of profiting from war, conflict, and political instability at the expense of security and human rights.

The British government has already played a large role in the growth of this industry by endorsing its widespread use in Iraq and Afghanistan. In the three years 2007-2009 the industry earned £62.8 million in contracts from the UK government. Almost all of the Foreign Office’s contracts have gone to ArmorGroup, now part of G4S. In June this year, defence secretary Philip Hammond, announced 30,000 Army jobs would go amid spending cuts, citing the need to use “more systematically the skills available in the reserve and from our contractors”.

Please read the history of G4S and more here

August 31, 2012 Posted by | ArmorGroup, Civilian Contractors, Contractor Corruption, Contractor Oversight, Follow the Money, G4S, Ronco, Wackenhut | , , , , , , | 2 Comments

Ronco Consulting, Wackenhut, G4S named in Contractor Lawsuit for EEOC violations

Ronco Consulting was named in the Defense Base Act Class Action Lawsuit against Defense Base Act Insurance Companies and some Overseas Civilian Contractor Companies.

The EEOC granted a former Ronco Consulting Employee and American Injured War Zone Contractor the Right to Sue under the Americans with Disabilities Act after investigating the complaint.

The Americans with Disabilities Act prohibits discrimination against persons with disabilities.

Even those who were disabled due to the negligence of the company in question.

June 28, 2012 Posted by | Civilian Contractors, Contractor Casualties, Contractor Oversight, Demining, Explosive Remnants of War, G4S, Government Contractor, Landmines, Lawsuits, Private Military Contractors, Ronco, Ronco Consulting Corporation, State Department, Veterans, Wackenhut | , , , , , , , , , , , , , , | Leave a comment

Ronco Consulting named in Contractor Lawsuit for EEOC violations

Ronco Consulting was named in the Defense Base Act Class Action Lawsuit against Defense Base Act Insurance Companies and some Overseas Civilian Contractor Companies.

The EEOC granted a former Ronco Consulting Employee and American Injured War Zone Contractor the Right to Sue under the Americans with Disabilities Act after investigating the complaint.

The Americans with Disabilities Act prohibits discrimination against persons with disabilities.

Even those who were disabled due to the negligence of the company in question.

May 22, 2012 Posted by | Civilian Contractors, Contractor Casualties, Defense Base Act, Government Contractor, Ronco, Ronco Consulting Corporation, Taxes | , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

United Nations board of inquiry finds Ronco Consulting failed to find mines

Careful who you follow….

Fartham vs Ronco Consulting

A United Nations Mine Action Employee has filed a lawsuit against Ronco Consulting Corporation for negligence after stepping on a landmine resulting in an immediate below the knee amputation in an area previously cleared by and certified clear of landmines by Ronco Consulting.

The United Nations board of inquiry found that Ronco failed to find the mine that injured Mr Fartham as well as three other mines.

The complaint states that Ronco Consulting, acting through it’s agents and/or employee’s, breached it’s professional duty of care to Fantham and did not exercise the reasonable care and skill expected of professional mine clearance companies.

Fartham vs Ronco Consulting

May 10, 2012 Posted by | Africa, Bomb Disposal, Civilian Contractors, Contractor Oversight, Demining, Explosive Ordnance Disposal, Explosive Remnants of War, Government Contractor, Landmines, Lawsuits, Mine Clearance, Ronco, Ronco Consulting Corporation, Safety and Security Issues, United Nations, Vetting Employees | , , , , , , , , , , , , , , , , , , , | Leave a comment

Tim Eysselinck Contractor Casualty Eight Years Ago Today

Tim Eysselinck

You and your family in our thoughts today and everyday

April 23, 2012 Posted by | AIG and CNA, Civilian Contractors, Contractor Casualties, Defense Base Act, Explosive Remnants of War, Iran, Post Traumatic Stress Disorder, Ronco, Ronco Consulting Corporation, State Department | , , , | Leave a comment

War Risks Shift to Contractors

Even dying is being outsourced here.

by Rod Nordland The New York Times   February 11, 2012

This is a war where traditional military jobs, from mess hall cooks to base guards and convoy drivers, have increasingly been shifted to the private sector. Many American generals and diplomats have private contractors for their personal bodyguards. And along with the risks have come the consequences: More civilian contractors working for American companies than American soldiers died in Afghanistan last year for the first time during the war.

American employers here are under no obligation to publicly report the deaths of their employees and frequently do not. While the military announces the names of all its war dead, private companies routinely notify only family members. Most of the contractors die unheralded and uncounted — and in some cases, leave their survivors uncompensated.

“By continuing to outsource high-risk jobs that were previously performed by soldiers, the military, in effect, is privatizing the ultimate sacrifice,” said Steven L. Schooner, a law professor at George Washington University who has studied the civilian casualties issue.

Last year, at least 430 employees of American contractors were reported killed in Afghanistan: 386 working for the Defense Department, 43 for the United States Agency for International Development and one for the State Department, according to data provided by the American Embassy in Kabul and publicly available in part from the United States Department of Labor.

By comparison, 418 American soldiers died in Afghanistan last year, according to Defense Department statistics compiled by icasualties.org, an independent organization that monitors war deaths.

That trend has been growing for the past several years in Afghanistan, and it parallels a similar trend in Iraq, where contractor deaths exceeded military deaths as long ago as 2009. In Iraq, however, that took place as the number of American troops was being drastically reduced until their complete withdrawal at the end of last year. And last year, more soldiers than private contractors died in Iraq (54 compared with 41, according to Labor Department figures).

Experts who have studied the phenomenon say that because many contractors do not comply with even the current, scanty reporting requirements, the true number of private contractor deaths may be far higher. “No one believes we’re underreporting military deaths,” Mr. Schooner said. “Everyone believes we’re underreporting contractor deaths.”

Qais Mansoori, 20, may have been among the uncounted. An Afghan interpreter employed by Mission Essential Personnel, a leading provider of interpreters in Afghanistan, Mr. Mansoori was killed along with five other interpreters when Taliban insurgents overran the military base where the interpreters were staying in the Mirwais district of Kandahar Province in July 2010.

That attack, typically, was scantily reported, since no soldiers died — although the death toll was 17, including an unidentified American civilian, according to Afghan officials and Mr. Mansoori’s friends and family.

Under the federal Defense Base Act, American defense contractors are obliged to report the war zone deaths and injuries of their employees — including subcontractors and foreign workers — to the Department of Labor, and to carry insurance that will provide the employees with medical care and compensation. In the case of foreign employees, which many of the dead were, survivors generally receive a death benefit equal to half of the employee’s salary for life; American employees get even more.

Mr. Mansoori’s brother, Mohammad, 35, an employee of a mine-removal charity in Afghanistan, said his brother’s employer, Mission Essential Personnel, promptly contacted the family and made a lump sum payment of $10,004, never mentioning the lifetime annuity to which they were entitled — which given Mr. Mansoori’s salary of $800 a month would have been closer to $150,000 over his survivors’ lifetimes. “I wish he was still here to look after my father and mother,” Mohammad Mansoori said. Their father is blind, and Qais Mansoori was his parents’ sole support, he said.

A spokesman for Mission Essential Personnel, Sean Rushton, disputed that, saying that his company has been making biweekly payments of $190 to Mr. Mansoori’s family and will continue doing so for 29 years. The $10,004 lump sum payment was a voluntary death gratuity paid by the company, Mr. Rushton said.

There were 113,491 employees of defense contractors in Afghanistan as of January 2012, compared with about 90,000 American soldiers, according to Defense Department statistics. Of those, 25,287, or about 22 percent of the employees, were American citizens, with 47 percent Afghans and 31 percent from other countries.

The bulk of the known contractor deaths are concentrated among a handful of major companies, particularly those providing interpreters, drivers, security guards and other support personnel who are particularly vulnerable to attacks.

The biggest contractor in terms of war zone deaths is apparently the defense giant L-3 Communications. If L-3 were a country, it would have the third highest loss of life in Afghanistan as well as in Iraq; only the United States and Britain would exceed it in fatalities.

Over the past 10 years, L-3 and its subsidiaries, including Titan Corporation and MPRI Inc., had at least 370 workers killed and 1,789 seriously wounded or injured through the end of 2011 in Iraq and Afghanistan, records show. In a statement, a spokeswoman for L-3, Jennifer Barton, said: “L-3 is proud to have the opportunity to support the U.S. and coalition efforts in Iraq and Afghanistan. We mourn the loss of life of these dedicated men and women.”

Other American companies with a high number of fatalities are Supreme Group, a catering company, with 241 dead through the end of 2011; Service Employees International, another catering company, with 125 dead; and security companies like DynCorps (101 dead), Aegis (86 dead) and Hart Group (63 dead). In all, according to Labor Department data, 64 American companies have lost more than seven employees each in the past 10 years.

The American dead have included people like James McLaughlin, 55, who trained pilots on a contract for MPRI and was killed by a rogue Afghan pilot who also killed eight American soldiers last April; and Todd Walker, Michael Clawson and James Scott Ozier, employees of AAR Airlift, who were killed in a helicopter crash in Helmand Province last month for which Taliban insurgents claimed responsibility.

For every contractor who is killed, many more are seriously wounded. According to the Labor Department’s statistics, 1,777 American contractors in Afghanistan were injured or wounded seriously enough to miss more than four days of work last year.

Marcie Hascall Clark began the Defense Base Act Compensation Blog after her husband, Merlin, a former Navy explosives ordnance disposal expert, was injured in 2003 while working for an American contractor. She and her husband have spent the past seven years fighting for hundreds of thousands of dollars in disability payments and medical compensation. “It was quite a shock to learn how little my husband’s body, mind and future were worth,” she said.

Taimoor Shah contributed reporting from Kandahar, Afghanistan.

Please see the original here

See also US Insurance Firm CNA Neglects Survivors of Iraqi Translators May Face Criminal Charges

February 11, 2012 Posted by | Afghanistan, Civilian Contractors, Contractor Casualties, Defense Base Act, Iraq, KBR, L-3, Mission Essential Personnel, Private Military Contractors, Private Security Contractor, Ronco, Ronco Consulting Corporation, State Department | , , , , , , , , , , | Leave a comment

IRS Targets US ExPats

Updates to our ExPat Tax Page

For years companies like Blackwater and Ronco Consulting  have Misrepresented their employees as Consultants or Independent Contractors to the IRS to escape having to pay Social Security and Medicare payroll taxes.

Thank you Blackwater and Ronco Consulting

At the same time these same companies represented these same consultants and Independent Contractors to be employees for the purpose of purchasing the mandated Defense Base Act Worker’s Comp Insurance.  Even going so far as to have contractors sign new backdated employment contracts AFTER they were injured.

Fraudulent activity of this nature has garnered the full attention of the IRS to the Contract Employee much more so than it has the Contract Company.  Blackwater even continued to do this after the IRS busted them.

Bob Powers of Power Tax sends us this and asks that we warn all ExPats to be prepared.

Pursuant to an IRS internal memo Memorandum Number: AM2009-0003

This link IRS  has an important note regarding the definition of a foreign tax home (which is necessary to claim the Sec 911 benefit).

The IRS has been using this in somewhat of a distorted way to deny the FEIE to contractors working in Iraq and Afghanistan,, not only those who have families in the U.S., but also single people who left home, joined the military and then were hired as contractors.

If they did not plan in advance and take all the steps necessary to show that their abode was in a foreign country and not in the U.S. they are disallowing the exclusion.

Many have had inexperienced tax preparers or did their own tax return and the case dragged on so long that they lost their administrative appeals rights and facing a substantial tax bill plus penalties cannot afford a good tax attorney to take it to Tax Court.

As a result, the IRS is using their muscle to claim that these workers were living on a base and had no contact with the local community and therefore their “abode-which is not clearly defined anywhere) was in the U.S.

This is the quote from the IRS page:

Tax Home
Your tax home is the general area of your main place of business, employment, or post of duty, regardless of where you maintain your family home.
Your tax home is the place where you are permanently or indefinitely engaged to work as an employee or self-employed individual. Having a “tax home” in a given location does not necessarily mean that the given location is your residence or domicile for tax purposes.

If you do not have a regular or main place of business because of the nature of your work, your tax home may be the place where you regularly live. If you have neither a regular or main place of business nor a place where you regularly live, you are considered an itinerant and your tax home is wherever you work.

You are not considered to have a tax home in a foreign country for any period in which your abode is in the United States . However, your abode is not necessarily in the States while you are temporarily in the United States .

Your abode is also not necessarily in the United States merely because you maintain a dwelling in the United
States , whether or not your spouse or dependents use the dwelling.

“Abode” has been variously defined as one’s home, habitation, residence, domicile, or place of dwelling. It does not mean your principal place of business. “Abode” has a domestic rather than a vocational meaning and does not mean the same as “tax home.”
The location of your abode often will depend on where you maintain your economic,
family, and personal ties.

Example 1.
You are employed on an offshore oil rig in the territorial waters of a foreign country and work a 28-day on/28-day off schedule. You return to your family residence in the United States during your off periods. You are considered to have an abode in the United States and do not satisfy the tax home test in the foreign country. You cannot claim
either of the exclusions or the housing deduction.

Example 2.
For several years, you were a marketing executive with a producer of machine tools in Toledo , Ohio . In November of last year, your employer transferred you to London , England , for a minimum of 18 months to set up a sales operation for Europe . Before you left, you distributed business cards showing your business and home addresses in London .

You kept ownership of your home in Toledo but rented it to another family. You placed your car in storage. In November of last year, you moved your spouse, children, furniture, and family pets to a home your employer rented for you in London .

Shortly after moving, you leased a car and you and your spouse got British driving licenses. Your entire family got library cards for the local public library. You and your spouse opened bank accounts with a London bank and secured consumer credit. You joined a local business league and both you and your spouse became active in the
neighborhood civic association and worked with a local charity.

Your abode is in London for the time you live there. You satisfy the tax home test in the foreign country.

Note that the IRS agents examining these returns are not seasoned international agents and their internal directive is to disallow the exclusion regardless of the taxpayer’s defenses and force it to go to Tax Court.

We recommend you check out Power Taxes pages before you deploy.

U.S. Expatriate Tax & Business Solutions

January 12, 2012 Posted by | Blackwater, Civilian Contractors, Defense Base Act, ExPats, Follow the Money, Legal Jurisdictions, Ronco, Ronco Consulting Corporation, Taxes, Uncategorized, War Hazards Act | , , , , , , , , , , , | 2 Comments

Ronco Consulting settles Fantham Lawsuit before bothering to respond

What a disappointment that this lawsuit never made it to discovery. 

The history of how this contract was managed deserved to be exposed. 

Another day…..

Ronco made this lawsuit go away, but this United Nations Board of Inquiries Report and others stand.

And no matter how big a settlement, Stephan will not be growing any body parts back

Careful who you follow

Substantial Settlement Achieved in Personal Injury Suit:

In August 2011, Blake Hannafan and Jim McGuinness settled a Personal Injury lawsuit on behalf of Stephen Fantham, arising from a traumatic leg amputation as a result of a land mine explosion in Sudan, Africa, against Ronco Consulting Corporation pending in the U.S. District Court for the District of Columbia.

In addition, the settlement also included claims for loss of consortium to Mr. Fantham’s wife. The settlement was reached before Ronco even responded to the complaint.

The terms of the settlement agreement are confidential.

Ronco Consulting Sued for Negligence by United Nations Mine Action Employee

Fantham vs Ronco Consulting

January 10, 2012 Posted by | Africa, Civilian Contractors, Contractor Casualties, Contractor Oversight, Demining, Explosive Ordnance Disposal, Explosive Remnants of War, Follow the Money, Landmines, Lawsuits, Legal Jurisdictions, Mine Clearance, Ronco, Ronco Consulting Corporation, Safety and Security Issues, Sudan, Uncategorized, United Nations, United Nations Board of Inquiry | , , , , , , , , , , , , , , , , , | 1 Comment

Injured War Contractors Sue Over Health Care, Disability Payments

T Christian Miller ProPublica September 27, 2011

Private contractors injured while working for the U.S. government in Iraq and Afghanistan filed a class action lawsuit [1] in federal court on Monday, claiming that corporations and insurance companies had unfairly denied them medical treatment and disability payments.

The suit, filed in district court in Washington, D.C., claims that private contracting firms and their insurers routinely lied, cheated and threatened injured workers, while ignoring a federal law requiring compensation for such employees. Attorneys for the workers are seeking $2 billion in damages.

The suit is largely based on the Defense Base Act, an obscure law that creates a workers compensation system for federal contract employees working overseas. Financed by taxpayers, the system was rarely used until the wars in Iraq and Afghanistan, the most privatized conflicts in American history.

Hundreds of thousands of civilians working for federal contractors have been deployed to war zones to deliver mail, cook meals and act as security guards for U.S. soldiers and diplomats. As of June 2011, more than 53,000 civilians have filed claims for injuries in the war zones. Almost 2,500 contract employees have been killed, according to figures [2]kept by the Department of Labor, which oversees the system.

An investigation by ProPublica, the Los Angeles Times and ABC’s 20/20 [3] into the Defense Base Act system found major flaws, including private contractors left without medical care and lax federal oversight. Some Afghan, Iraqi and other foreign workers for U.S. companies were provided with no care at all.

The lawsuit, believed to be the first of its kind, charges that major insurance corporations such as AIG and large federal contractors such as Houston-based KBR deliberately flouted the law, thereby defrauding taxpayers and boosting their profits. In interviews and at Congressional hearings, AIG and KBR have denied such allegations and said they fully complied with the law. They blamed problems in the delivery of care and benefits on the chaos of the war zones

September 27, 2011 Posted by | AIG and CNA, Blackwater, Civilian Casualties, Civilian Contractors, Civilian Police, Contractor Casualties, Contractor Corruption, Defense Base Act, DynCorp, Follow the Money, Government Contractor, Interpreters, KBR, Legal Jurisdictions, Private Military Contractors, Private Security Contractor, Ronco, Ronco Consulting Corporation, State Department, Traumatic Brain Injury, Veterans, Wackenhut, War Hazards Act, Whistleblower | , , , , , , , , , , , , , , , , , , | 1 Comment