Xe Services, the private security company formerly known as Blackwater, has reached a settlement with the State Department in which the company will pay $42 million in fines for hundreds of violations of U.S. export control regulations, the New York Times reported.
Company and government officials familiar with the fines said they are for violations which included illegal weapons exports to Afghanistan, proposals to train troops in south Sudan that were unauthorized and sniper training for Taiwanese police officers, according to the New York Times.
By paying the fines instead of facing criminal charges on the export violations, Blackwater will be able to continue to obtain government contracts, according to the newspaper.
The company is for sale, and company founder Erik Prince has moved to Abu Dhabi, where he was scheduled to be deposed over the weekend by a lawyer suing the company. Former top managers at the company are facing criminal charges on weapons violations, as announced by federal prosecutors in April.
Earlier this year, the Senate Armed Services’ committee investigation revealed that a Blackwater employee signed out 200 AK-47s meant for Afghan police under the name “Eric Cartman.” Investigators found evidence that Blackwater took possession of hundreds of weapons meant for Afghan police forces for personal use.
(ed. note: this story has been corrected.)
Ryan J. Reilly
Ryan J. Reilly is a D.C.-based reporter for TPM. Prior to joining TPM, he worked for a news website covering the Justice Department and was a researcher for Bloomberg News. His email address is ryan(at)talkingpointsmemo.com.
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