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Friday, August 20, 2010

Blackwater Reaches $42 Million Settlement With U.S. - NYTimes.com

Blackwater Reaches $42 Million Settlement With U.S. - NYTimes.com
WASHINGTON — The private security company formerly called Blackwater Worldwide, long plagued by accusations of impropriety, has reached an agreement with the State Department for the company to pay $42 million in fines for hundreds of violations of United States export control regulations.
The violations included illegal weapons exports to Afghanistan, making unauthorized proposals to train troops in south Sudan and providing sniper training for Taiwanese police officers, according to company and government officials familiar with the deal.
The settlement, which has not yet been publicly announced, follows lengthy talks between Blackwater, now called Xe Services, and the State Department that dealt with the violations as an administrative matter, allowing the firm to avoid criminal charges. A company spokeswoman confirmed Friday that a settlement had been reached. The State Department spokesman, Philip J. Crowley, said he could not immediately comment.
The settlement with the State Department does not resolve other legal troubles still facing Blackwater and its former executives and other personnel. Those include the indictments of five former executives, including Blackwater’s former president, on weapons and obstruction charges; a federal investigation into evidence that Blackwater officials sought to bribe Iraqi government officials; and the arrest of two former Blackwater guards on federal murder charges stemming from the killing of two Afghans last year.

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