Overseas Civilian Contractors

News and issues relating to Civilian Contractors working Overseas

ACADEMI / BLACKWATER CHARGED AND ENTERS DEFERRED PROSECUTION AGREEMENT

TUESDAY, AUGUST 7, 2012  FBI Version

_WWW.JUSTICE.GOV/USAO/NCE/ <http://WWW.JUSTICE.GOV/USAO/NCE/>_

*_ACADEMI / BLACKWATER CHARGED AND ENTERS_*

*_DEFERRED PROSECUTION AGREEMENT_*__

RALEIGH, N.C. — U.S. Attorney Thomas G. Walker announced the unsealingof a bill of information and deferred prosecution agreement (DPA) involving Academi LLC, formerly known as Blackwater Worldwide and Xe Services, LLC (Academi / Blackwater). The bill of information and DPA were unsealed today in U.S. District Court in New Bern, N.C., during proceedings before the Honorable Louise W. Flanagan, U.S. District Judge. In the agreement, the company admits certain facts set forth in a bill of information and agrees to a $7.5 million fine. The agreement also acknowledges and references a $42 million settlement between the company and the Department of State as part of a settlement of
violations of the Arms Export Control Act and the International Trafficking in Arms Regulations.

“Today’s proceedings conclude a lengthy and complex investigation into a company which has provided valuable services to the United States Government, but which, at times, and in many ways, failed to comply with important laws and regulations concerning how we as a country interact with our international allies and adversaries,” said U.S. Attorney Walker. “Compliance with these laws is critical to the proper conduct of our defense efforts and to international diplomatic relations. This prosecution is an important step to ensuring that our corporate citizens comply with these rules in every circumstance.”

IRS-Criminal Investigation Special Agent in Charge Jeannine A. Hammett stated, “High-ranking corporate officials hold positions of trust not only in their companies but also in the eyes of the public. That trust is broken when such officials abuse their power and commit crimes to line their own pockets. An international fraud of this magnitude requires a coordinated effort among law enforcement agencies to stop those involved from profiting from their wrongdoing.”

“Compliance with the firearms laws of the United States in both domestic and international commerce is essential to maintaining order and accountability,” stated ATF Special Agent in Charge Wayne L. Dixie. “Whether it is an individual or a corporation, we will enforce the provisions of the federal gun laws equally. If violations are discovered, we will move to hold those responsible for the violations accountable for their actions.”

“Blackwater profited substantially from Department of Defense (DoD) contracts in support of overseas contingency operations over the past decade,” commented Special Agent in Charge John F. Khin, Southeast Field Office, Defense Criminal Investigative Service (DCIS). “This investigation showed that no contractor is above the law, and that all who do business with the DoD will be held accountable. With this agreement, Blackwater acknowledged their wrongdoing, and took steps to remedy and mitigate the damage they caused to the United States and the public trust.”

“For an extended period of time, Academi / Blackwater operated in a manner which demonstrated systemic disregard for U.S. Government laws and regulations. Today’s announcement should serve as a warning to others that allegations of wrongdoing will be aggressively investigated,” said Chris Briese, Special Agent in Charge of the Charlotte Division of the FBI.

“This company clearly violated U.S. laws by exporting sensitive technical data and unauthorized defense services to a host of countries around the world,” said Brock D. Nicholson, Special Agent in Charge of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Atlanta. “In doing so, company employees were frequently in possession of illegal firearms and aided other foreign nationals in the acquisition of illegal firearms. HSI is proud to have played a role in assisting the investigation to call this company to account for its actions.” Nicholson oversees HSI activities in Georgia and the Carolinas.

See BILL OF INFORMATION

August 8, 2012 Posted by | Blackwater, Civilian Contractors, Contractor Corruption, Contractor Oversight, Department of Defense, Lawsuits | , , , , , , , , , | Leave a comment

Blackwater admits to facts behind 17 federal charges

By JOSH GERSTEIN  Politico  August 7, 2012

The government security contractor formerly known as Blackwater Worldwide has admitted to the key facts behind 17 federal criminal charges, including illegal exports and unauthorized possession of automatic weapons, as part of an effort to end a long-running investigation into the firm’s conduct.

Blackwater, now known as Academi LLC, agreed to pay a $7.5 million fine on top of a $42 million settlement it reached earlier regarding civil arms export violations.

“Today’s proceedings conclude a lengthy and complex investigation into a company which has provided valuable services to the United States Government, but which, at times, and in many ways, failed to comply with important laws and regulations concerning how we as a country interact with our international allies and adversaries,” U.S. Attorney Thomas Walker said in a statement. “Compliance with these laws is critical to the proper conduct of our defense efforts and to international diplomatic relations. This prosecution is an important step to ensuring that our corporate citizens comply with these rules in every circumstance.”

Some of the charges relate to Blackwater’s possession of machine guns at a training compound in North Carolina.

“ACADEMI is pleased to reach this important agreement on this legacy matter. It is yet another step in our commitment to fairly resolve past issues and become the industry leader in governance, compliance, and regulatory matters,” Academi spokesman John Procter said in a statement. “The agreement, which does not involve any guilty plea or admit to any violations, reflects the significant and tangible efforts that ACADEMI’s new ownership and leadership team have made in achieving that goal. The company is fully committed to this agreement and looks forward to successfully fulfilling its obligations on this legacy matter.”

More on the company’s deferred prosecution agreement here from the Associated Press.

Please see the original and read more here

August 8, 2012 Posted by | Blackwater, Civilian Contractors, Contractor Corruption, Contractor Oversight, Lawsuits | , , , , | Leave a comment

DOJ to seek new indictment in Blackwater shooting

WASHINGTON AP  

The Justice Department plans to bring a new indictment against four Blackwater Worldwide guards involved in a 2007 shooting that killed 17 Iraqis.

U.S. District Judge Ricardo Urbina had thrown out the case in 2009, but an appeals court reinstated the charges last year.

Urbina, who has since retired, said prosecutors built their case on sworn statements the guards had given under a promise of immunity.

A Justice Department attorney told Judge Royce Lamberth on Wednesday that a special team will ensure that prosecutors working on the new indictment don’t have access to “privileged statements.” Prosecutors say they will seek a superseding indictment after gathering additional evidence.

The guards are accused of opening fire in a crowded Baghdad intersection in 2007.

 

July 26, 2012 Posted by | Blackwater, Civilian Contractors, Contractor Oversight, Iraq, Lawsuits, Legal Jurisdictions, Private Security Contractor | , , , , , , , , , | 2 Comments