Blackwater really really screwed up...

[RevDisk]

Xe Services, formerly Blackwater, just settled 288 ITAR violations.   Some of them are exceedingly stunning in their stupidity.  They engaged in defense services and unlicensed brokering with the Sudan, which is a proscribed country (legally same as providing services to say, Cuba or North Korea).  The insanely stupid part?  They admitted to breaking US law in their application to ask for permission to do business in said proscribed country.  So, State sends them a letter basically stating "You just admitted to breaking the law.  Kindly explain what you actually did."   What's the smart thing to do when caught breaking the law?   Lie!  And then blatantly lie some more!   Because the US government loves when you do that.

They had 16 directed disclosures, which I think is a new record.   A directed disclosure is when the State Department says, "I *KNOW* you did this.  You will fess up, explain how you screwed up, and how you intend on fixing it."

Also on the list is missing firearms (overseas, well over a hundred), which they failed to report.  Giving foreign nationals access to ITAR technical data without a license.  Providing defense services (firearms training) to foreign nationals without a license.  Failing to adher to provisios on Agreements that were issued.  Example?   They provided training to the Taiwan National Security Bureau.  One proviso on the defense services agreement was that they had to provide biographical information on the persons being trained to US Special Operations Command.   They declined to do so.   The list is breathtaking in its stupidity.

Here's the list of proposed charges:  http://www.pmddtc.state.gov/compliance/consent_agreements/pdf/Xe_PCL.pdf


Total fine?  $42 million.   Not so bad, right?   Yeah, and loss of all export privileges unless related to a US government program.  Each and every US government program will be reviewed by the Director of DDTC (State Department agency that handles this) on a case by case basis.  

http://www.pmddtc.state.gov/compliance/consent_agreements/pdf/Xe_ConsentAgreement.pdf
http://www.pmddtc.state.gov/compliance/consent_agreements/pdf/Xe_Order.pdf


They're done.  And they admit it, the company is for sale and no one wants to buy it as they'd absorb all liability.  

I was briefed in on this situation earlier in the week.  A room full of us were visibly wincing as the lawyer went charge by charge.  Considering how many contracts we have signed with Xe Services and all their shell corporations, this is gonna make my life very friggin fun for weeks.

[Fitz]

Blackwater has always been a company full of criminals and dolts.

Most of the contractors are people who couldn't handle the discipline and "doing what you're told" aspects of the military, but still wanted to be badasses with guns.

*expletive deleted*ck blackwater, and mercenaries like them.

[RevDisk]

I don't make personal judgments of clients*.  So I wouldn't particularly care, except now I have to read a couple hundred pages of legal papers and figure out how they apply to any contracts we have signed with Blackwater shell companies.





(Well, unless it involves blatant criminal acts.  That can be problematic.)

[Jocassee]

Blackwater has always been a company full of criminals and dolts.

Most of the contractors are people who couldn't handle the discipline and "doing what you're told" aspects of the military, but still wanted to be badasses with guns.

*expletive deleted* blackwater, and mercenaries like them.

I understand your sentiment but my understanding is that Xe is almost entirely comprised of former US military and many former SF types.

[Fitz]

The ones i've met were cowboys and individuals, not quiet professionals. Lots of people who left the military after one/two terms and joined up with them

YMMV

[cassandra and sara's daddy]

if you are gonna screw up go big or don't go at all

[RevDisk]

I understand your sentiment but my understanding is that Xe is almost entirely comprised of former US military and many former SF types.

I'm a vet, and I like to think I run a pretty decent export control compliance program.  Has a long way to go, of course, but it's progressing nicely.   I spoke with a number of folks at DDTC who do compliance and quite a number of them are veterans as well.   I'll admit that export control laws can be cumbersome (as an understatement), but any company that is nearly exclusively engaged in defense services should be familiar with the rules.  That was also DDTC's point. 

[RevDisk]

Oh, forgot.  Their CEO has uh, relocated his primary residence to Abu Dhabi

[Jamisjockey]

Oh, forgot.  Their CEO has uh, relocated his primary residence to Abu Dhabi

Let me guess...no extradition?

[Hawkmoon]

Let me guess...no extradition?

Jamis beat me to the keyboard on that one. What other reason might he have for "wanting" to live there?

[MillCreek]

Jamis beat me to the keyboard on that one. What other reason might he have for "wanting" to live there?

Probably he saw "Sex in the City 2 Movie', fell in love with the place, and decided to move there.  What other reason could there possibly be?

[Fly320s]

the company is for sale

Time to open the APS gun club! 

[MicroBalrog]

Jamis beat me to the keyboard on that one. What other reason might he have for "wanting" to live there?

I am told the country is ... interesting if you are very wealthy.

[Angel Eyes]

I am told the country is ... interesting if you are very wealthy.

Define "interesting".














O God, O God, we're all gonna die?

[MicroBalrog]

Define "interesting".

As in, most of the restrictions/problems that apply to the average citizen don't really matter.











O God, O God, we're all gonna die?

[/quote]

[Dannyboy]

Erik Prince hasn't been CEO for almost 2 years now.  He's still the Chairman, and owner, of course.

I'm pretty sure this is old news, though.  I remember reading this in the WSJ some time in August.

[seeker_two]

It's stuff like this that makes me long for the days of the Hessians and the Swiss Guard....they knew how to run a mercenary outfit.... 

[roo_ster]

After doing some reading on the financial side of warfare in Europe from the fall of Rome until the 18th century, I have determined national armies have been the exception, rather then the rule.

[French G.]

Kinda sucks, I met some of the principals and shot there a lot before the place went hugely bigtime, I think the original folks were generally okay guys. A case of reach exceeding grasp and growing too fast if there ever was one. Hopely someone with guns will buy the Moyock portion, insane facility.

[RevDisk]

Kinda sucks, I met some of the principals and shot there a lot before the place went hugely bigtime, I think the original folks were generally okay guys. A case of reach exceeding grasp and growing too fast if there ever was one. Hopely someone with guns will buy the Moyock portion, insane facility.

Wouldn't be surprised if they started auctioning off assets in the semi-near future.

[AJ Dual]

It's stuff like this that makes me long for the days of the Hessians and the Swiss Guard....they knew how to run a mercenary outfit....  

Well... In Blackwater/Xe's defense, the Prussian/English versions of the ITAR rules were pretty easy to follow back then. The Americans had better technology than they did. (rilfles)  

Blackwater has always been a company full of criminals and dolts.

Most of the contractors are people who couldn't handle the discipline and "doing what you're told" aspects of the military, but still wanted to be badasses with guns.

*expletive deleted* blackwater, and mercenaries like them.

I suspect that there are other companies out there who do follow the rules, and as such you just don't hear much about them.

[Jocassee]

Define "interesting".

"Interesting" = "Sex-positive."

[lupinus]

After doing some reading on the financial side of warfare in Europe from the fall of Rome until the 18th century, I have determined national armies have been the exception, rather then the rule.

Not that far off actually. Aside from a very small force, unless you were actively engaged in war a standing army was expensive and provided little or no benefit.

And you could make a lot better money being good with a sword or a spear than you could in the field.

[lee n. field]

Wouldn't be surprised if they started auctioning off assets in the semi-near future.

Their midwest training facility is in someone else's hands now.  No idea how that's related to Blackwater's problems.

[Zardozimo Oprah Bannedalas]

Interesting thread about Blackwater from a forum with a lot of current/former SF guys:
http://www.professionalsoldiers.com/forums/archive/index.php/t-15027.html