Blackwater Indictments Are Like Al Capone Going Down for Tax Evasion

by Jeremy Scahill

From the first days of the launch of the so-called “war on terror,” Blackwater has been at the epicenter of some of the most secretive operations conducted by US forces globally. It has worked on government assassination programs and drone bombings, operated covertly in Pakistan for both the CIA and the Joint Special Operations Command, assisted secret raids inside of Syria, trained foreign militaries and continues to bodyguard senior US officials in Afghanistan. The company also has a bloody track record of killing civilians in Iraq and Afghanistan. Many seasoned observers believe that the extent of the dark acts committed by Blackwater have yet to come to light.

While Congressional committees, the IRS, the FBI and lawyers representing foreign victims of the company have fought for years to hold Blackwater and its forces accountable for their alleged crimes, the company has proved to be Teflon. Not a single case against the company has resulted in any significant action. Following last December’s dismissal of the high-profile criminal case against the Blackwater operatives allegedly responsible for the 2007 Nisour Square shootings that left seventeen Iraqis dead and more than twenty others wounded, federal prosecutors have now launched another salvo.

Last week, the Justice Department announced that a federal grand jury had returned a fifteen-count indictment against five current and former Blackwater officials, charging them with conspiracy to violate a series of federal gun laws, obstruction of justice and making false statements to the Bureau of Alcohol, Tobacco and Firearms. Among those indicted were Blackwater owner Erik Prince’s longtime right-hand man, former company president Gary Jackson, Blackwater’s former legal counsel Andrew Howell and two former company vice presidents. Given Blackwater’s track record and the severity of other allegations against the company–including killing unarmed civilians–if the charges in this case stick, it would be somewhat akin to Al Capone going down for tax evasion. The one major difference being, the number-one man at Blackwater, Erik Prince, is evading prosecution and jail. Prince, who remains the Blackwater empire’s sole owner, was not indicted.

The weapons charges stem from Blackwater’s purchase of 227 “short barrels” for use with the company’s government-issued M4 rifles in Iraq and Afghanistan, a violation of State Department weapons guidelines for contractors. Former Blackwater employees have alleged in sworn affidavits that Prince had used his personal planes to smuggle banned weapons into Iraq, sometimes wrapping them in large shipments of dog food for the company’s K-9 teams in Iraq. Prince, however, is not named in the indictment.

The indictment also charges that the Blackwater officials “arranged straw purchases” of Romanian AK-47s and fully automatic M-4 rifles for use inside the United States. According to the indictment, the local sheriff’s department in Blackwater’s home base of Moyock, North Carolina, provided Blackwater with blank stationery that “was used to prepare letters claiming the sheriff’s office wanted” the weapons. “The weapons were paid for by Blackwater, were immediately delivered to Blackwater upon their arrival, and were locked in Blackwater’s armory to which the sheriff’s office had no direct access,” according to federal prosecutors.

In March 2009, the ATF informed Blackwater that it would be coming to the company’s compound for an inspection of the armory of Blackwater subsidiary XPG. Former Blackwater officials told The Nation that XPG was created in part as a successor to Blackwater SELECT and Blackwater PTC, the divisions of the company that did sensitive covert work for the CIA and JSOC.

When Blackwater was informed of the impending ATF investigation, according to the Justice Department:

Allegedly, [Blackwater lawyer Andrew] Howell did not want any more SBRs [Short Barrel Rifles] to be found and told a subordinate that disclosing the SBRs was “not an option.” He and [Blackwater vice president Ana] Bundy subsequently ordered the short-barreled guns in XPG’s armory to be moved to Blackwater’s armory where the barrels could be switched out. Only the long-barreled guns were returned to XPG. Howell then prepared a letter for the company president’s signature and attached it to an e-mail. The letter was intended to be back-dated and would have given a false impression that the President had ordered the alteration of the guns–which had already been accomplished by direction of Howell and Bundy.

The Justice Department also alleges that Blackwater officials, in an attempt to win a lucrative contract with the Kingdom of Jordan, presented several guns as gifts to Jordanian officials who came to tour Blackwater’s private military base in North Carolina. According to the indictment, “the officials were presented with one M4, three Glocks, and a Remington shotgun. Each was inscribed with the Blackwater logo and presented in a case. Subsequently, the company realized it could not account for the guns in its required records.” Blackwater president Gary Jackson, prosecutors allege, “then organized the false completion” of federal documents that “were designed to give the appearance that employees had bought the guns for their own use.”

Until recently, Blackwater had a partnership with Sig Sauer to manufacture a Blackwater-brand 9 millimeter pistol. For years the company has done a multimillion-dollar business with Jordan, training the company’s special-forces helicopter pilots and advising the kingdom on intelligence matters. Blackwater also has a headquarters in Jordan. Last year the New York Times reported that Gary Jackson was involved in a scheme to bribe Iraqi officials to stay quiet on the company’s alleged massacre of seventeen Iraqi civilians in Baghdad’s Nisour Square in September 2007 and to allow Blackwater to continue operating in the country despite the public outrage in Iraq. That alleged plot, according to the Times, involved the transfer of $1 million into Jordan for ultimate use in Iraq.

Each of the charges against the Blackwater officials potentially carries a penalty of three to twenty years in prison and hundreds of thousands of dollars in fines. Lawyers for the accused have said their clients are not guilty of the charges and will fight them. There are two other pending criminal cases against Blackwater. Prosecutors have apealed the dismissal of the Nisour Square case, and two Blackwater operatives have been indicted on charges they killed innocent Afghan civilians. In a recent interview, Prince estimated his monthly legal bills to be between $2-3 million.

Meanwhile, as Blackwater officials face another round of attempted criminal prosecutions, the company continues to fight off the remaining civil lawsuits stemming from the Nisour Square shooting. Last year Blackwater settled with most of the victims, reportedly for a total of $5 million. The only remaining suit against the company over Nisour Square was brought by a small group of Iraqis, most prominent among them Mohammed Kinani, the father of the youngest known victim of the shooting. His 9-year-old son, Ali, was shot in the head that day and died shortly after from his injuries. Kinani originally sued Blackwater in state court in North Carolina, but last week a federal judge sided with Blackwater and took control over the case. That judge, Terrence Boyle, was a former legislative aide to the late Republican Senator Jesse Helms, who urged President Ronald Reagan to appoint Boyle, which Reagan did. For more than a decade, Democrats blocked Boyle’s nomination to the appelate court, characterizing him as an ultraconservative who opposed civil rights and was often over-ruled on appeal. It is hard to imagine a better judge for Blackwater to draw in this case.

As it has done in other cases, Blackwater has asked the Obama Justice Department to intervene in Kinani’s case and to make the US government–not Blackwater and the individual shooters in the case–the defendant. Legal experts have told The Nation that if the Justice Department did that, the case would be dead in the water. The Justice Department has not responded to Blackwater’s request. Blackwater, however, is not wasting any time seeking out alternatives.

On April 7, lawyers for the six alleged shooters and Blackwater asked Judge Boyle to replace Blackwater and the shooters with the “United States” in the case, citing the Westfall Act, which was passed in 1988 “to protect federal employees from personal liability for common law torts committed within the scope of their employment, while providing persons injured by the common law torts of federal employees with an appropriate remedy against the United States.” If Boyle were to do this, the case would likely be immediately dismissed.

In its filing, Blackwater’s lawyers argued that the actions taken by the alleged Blackwater shooters at Nisour Square “indisputably fall within the scope” of their State Department employment. But Kinani’s lawyers and federal prosecutors have alleged that the men disobeyed orders from their superiors not to proceed to Nisour Square that day, leading to the shooting. One of the Blackwater guards, Jeremy Ridgeway, pled guilty to killing an unarmed Iraqi in the square. In his sworn proffer that accompanied his guilty plea, Ridgeway admitted that he and the other five accused shooters “opened fire with automatic weapons and grenade launchers on unarmed civilians…killing at least fourteen people” and wounding at least twenty others. “None of these victims was an insurgent, and many were shot while inside of civilian vehicles that were attempting to flee” the Blackwater forces, the proffer stated. Ridgeway also admitted that his team had “not been authorized” to leave the Green Zone and that after they departed, they “had been specifically ordered” by US Embassy officials to return. “In contravention of that order,” they proceeded to Nisour Square, according to Ridgeway.

The Justice Department could intervene in the Kinani case at any point and produce evidence showing that Blackwater does not equal the US government and therefore should not be allowed to shift the burden of responsibility for the shooting onto the US government. To date, that has not happened, and it is currently a decision for one man: Judge Terrence Boyle.

© 2010 The Nation

Biden: US To Appeal Dismissal Of Blackwater Case

BAGHDAD — The U.S. will appeal a court decision dismissing manslaughter charges against five Blackwater Worldwide guards involved in a deadly 2007 Baghdad shooting, U.S. Vice President Joe Biden said Saturday.

Biden’s announcement after a meeting with Iraqi President Jalal Talabani shows just how diplomatically sensitive the incident remains nearly three years later. A lawyer for one guard, noting that word of the intended appeal came in Iraq, accused the Obama administration of political expediency and said the U.S. was pursuing an innocent man, rather than justice.

Blackwater security contractors were guarding U.S. diplomats when the guards opened fire in Nisoor Square, a crowded Baghdad intersection, on Sept. 16, 2007. Seventeen people were killed, including women and children, in a shooting that inflamed anti-American sentiment in Iraq.

Biden expressed his “personal regret” for the shooting and said the Obama administration was disappointed by the dismissal. “A dismissal is not an acquittal,” he said.

The U.S. rebuffed Iraqi demands that the U.S. contractors face trial in Iraqi courts. After a lengthy investigation, U.S. prosecutors charged five of the contractors with manslaughter and took a guilty plea from a sixth.

But the case fell apart when a federal trial judge in Washington, Ricardo Urbina, said in a Dec. 31 ruling that the Justice Department mishandled evidence and violated the guards’ constitutional rights. Prosecutors now face difficult odds getting an appeals court to reinstate the case.

The dismissal outraged many Iraqis, who said it showed the Americans considered themselves above the law. The Iraqi government began collecting signatures for a class-action lawsuit from victims who were wounded or lost relatives.

Continue reading: ASSOCIATED PRESS

Ex-Blackwater Guards Arrested In Afghan Murders: Journalist Jeremy Scahill Predicts More Violence (VIDEO)

Two former employees of a subsidiary to the security company formerly known as Blackwater were arrested Thursday for the murder of two Afghan civilians last May.

The accused, Justin Cannon, 27, and Chris Dortleff, 29, were employees of Paravant LLC, a subsidiary to Xe Services, the company formerly known as Blackwater. Cannon and Dortleff were in Afghanistan to train the Afghan National Army. They have since been terminated by Xe. Both men have told the Associated Press that they believe they were justified in opening fire on a vehicle that caused an accident in front of their vehicle, then turned and sped towards them. The contractors were carrying weapons despite a U.S. military documents prohibiting them from carrying firearms. A third Paravant contractor who was there when the shooting occurred was terminated after the incident and accused by the company of drinking before the shooting.

The Nation’s Jeremy Scahill, author of Blackwater: The Rise of the World’s Most Powerful Mercenary Army believes that as President Obama escalates the Afghanistan War, “we are going to see more of these incidents with more of these trainers when they engage with the Afghan civilians.”

Brave New Foundation interviewed Scahill for their video series “Rethink Afghanistan”

Continue reading: HUFFINGTON POST

Blackwater Guards Tied to Secret Raids by the C.I.A.

WASHINGTON — Private security guards from Blackwater Worldwide participated in some of the C.I.A.’s most sensitive activities — clandestine raids with agency officers against people suspected of being insurgents in Iraq and Afghanistan and the transporting of detainees, according to former company employees and intelligence officials.

Several former Blackwater guards said that their involvement in the operations became so routine that the lines supposedly dividing the Central Intelligence Agency, the military and Blackwater became blurred. Instead of simply providing security for C.I.A. officers, they say, Blackwater personnel at times became partners in missions to capture or kill militants in Iraq and Afghanistan, a practice that raises questions about the use of guns for hire on the battlefield.

Separately, former Blackwater employees said they helped provide security on some C.I.A. flights transporting detainees in the years after the 2001 terror attacks in the United States.

The secret missions illuminate a far deeper relationship between the spy agency and the private security company than government officials had acknowledged. Blackwater’s partnership with the C.I.A. has been enormously profitable for the North Carolina-based company, and became even closer after several top agency officials joined Blackwater.

“It became a very brotherly relationship,” said one former top C.I.A. officer. “There was a feeling that Blackwater eventually became an extension of the agency.”

George Little, a C.I.A. spokesman, would not comment on Blackwater’s ties to the agency. But he said the C.I.A. employs contractors to “enhance the skills of our own work force, just as American law permits.”

“Contractors give you flexibility in shaping and managing your talent mix — especially in the short term — but the accountability’s still yours,” he said.

Mark Corallo, a spokesman for Blackwater, said Thursday that it was never under contract to participate in clandestine raids with the C.I.A. or with Special Operations personnel in Iraq, Afghanistan or anywhere else.

Blackwater’s role in the secret operations raises concerns about the extent to which private security companies, hired for defensive guard duty, have joined in offensive military and intelligence operations.

Representative Rush D. Holt, a New Jersey Democrat who is chairman of the House Select Intelligence Oversight Panel, said in an interview that “the use of contractors in intelligence and paramilitary operations is a scandal waiting to be examined.” While he declined to comment on specific operations, Mr. Holt said that the use of contractors in such operations “got way out of hand.” He added, “It’s been very troubling to a lot of people.”

Blackwater, now known as Xe Services, has come under intense criticism for what Iraqis have described as reckless conduct by its security guards, and the company lost its lucrative State Department contract to provide diplomatic security for the United States Embassy in Baghdad earlier this year after a 2007 shooting that left 17 Iraqi civilians dead.

Blackwater’s ties to the C.I.A. have emerged in recent months, beginning with disclosures in The New York Times that the agency had hired the company as part of a program to assassinate leaders of Al Qaeda and to assist in the C.I.A.’s Predator drone program in Afghanistan and Pakistan.

Leon E. Panetta, the C.I.A. director, recently initiated an internal review examining all Blackwater contracts with the agency to ensure that the company was performing no missions that were “operational in nature,” according to one government official.

Five former Blackwater employees and four current and former American intelligence officials interviewed for this article would speak only on condition of anonymity because Blackwater’s activities for the agency were secret and former employees feared repercussions from the company. The Blackwater employees said they participated in the raids or had direct knowledge of them.

Along with the former officials, they provided few details about the targets of the raids in Iraq and Afghanistan, although they said that many of the Iraq raids were directed against members of Al Qaeda in Mesopotamia. To corroborate the claims of the company’s involvement, a former Blackwater security guard provided photographs to The Times that he said he took during the raids. They showed detainees and armed men whom he and a former company official identified as Blackwater employees. The former intelligence officials said that Blackwater’s work with the C.I.A. in Iraq and Afghanistan had grown out of its early contracts with the spy agency to provide security for the C.I.A. stations in both countries.

In the spring of 2002, Erik Prince, the founder of Blackwater, offered to help the spy agency guard its makeshift Afghan station in the Ariana Hotel in Kabul. Not long after Mr. Prince signed the security contract with Alvin B. Krongard, then the C.I.A.’s third-ranking official, dozens of Blackwater personnel — many of them former members of units of the Navy Seals or Army Delta Force — were sent to provide perimeter security for the C.I.A. station.

But the company’s role soon changed as Blackwater operatives began accompanying C.I.A. case officers on missions, according to former employees and intelligence officials.

Continue reading: NEW YORK TIMES

U.S. extends Blackwater’s Baghdad work for one year

Source: Reuters

WASHINGTON – U.S. private security firm Blackwater’s deal to protect American diplomats in Baghdad will be extended for a year while the FBI investigates a 2007 incident in which the company’s guards are accused of killing 17 Iraqis, the State Department said on Friday.

“I have requested and received approval to have task order six — which Blackwater has to provide personal protective services in Baghdad — renewed … for one year,” the head of diplomatic security, Gregory Starr, told reporters.

The September 2005 shooting incident in Baghdad enraged the Iraqi government and triggered an investigation by the U.S. Federal Bureau of Investigation into what happened and whether any crimes might have been committed.

A measure issued by the U.S.-led Coalition Provisional Authority in 2004 prevents foreign security contractors from being prosecuted in local courts. It is unclear whether they could be prosecuted under U.S. law.

After the incident, the State Department changed several elements of the contract, including tightening up rules of engagement, putting cameras on all convoys and having a diplomatic security officer ride along with the detail.

Starr said Blackwater was operating with the agreement of the Iraqi government and he did not know when the FBI’s investigation of the incident would be completed.

Asked whether the Blackwater Baghdad deal could be scrapped if the FBI investigation found wrongdoing, Starr said: “We can terminate contracts at the convenience of the government if we have to.”

“I am not going to prejudge what the FBI is going to find in their investigation. I think really, it is complex. I think that the U.S. government needs protective services,” he said.

“Essentially I think they do a very good job. The September 16th incident was a tragedy. It has to be investigated carefully,” he added.

“I am concerned (about the Iraqi response) and yet at the same time there have only been about three incidents, three escalation of force incidents, since September 16,” he said.

Blackwater enters the campaign

Hillary Clinton has co-sponsored new legislation to ban the use of private military contractors in Iraq. This came just a day after the publication of an article by The Nation‘s Jeremy Scahill in which a senior advisor to Barack Obama said that the candidate “won’t rule out” the use of PMCs. Given how integral PMCs have become to U.S. operations at this point, Obama’s reservations about a blanket ban make some sense. Still, he can’t relish the idea of being on the “pro-Blackwater” side of this issue.

via//FP Passport
related//Clinton, Obama Tussle Over Blackwater

FBI finds Blackwater trucks patched

Repairs to Blackwater Convoy Vehicles Could Complicate Baghdad Shooting Inquiry

Blackwater Worldwide repaired and repainted its trucks immediately after a deadly September shooting in Baghdad, making it difficult to determine whether enemy gunfire provoked the attack, according to people familiar with the government’s investigation of the incident.

Damage to the vehicles in the convoy has been held up by Blackwater as proof that its security guards were defending themselves against an insurgent ambush when they fired into a busy intersection, leaving 17 Iraqi civilians dead.

U.S. military investigators initially found “no enemy activity involved” and the Iraqi government concluded the shootings were unprovoked.

The repairs essentially destroyed evidence that Justice Department investigators hoped to examine in a criminal case that has drawn worldwide attention. The Sept. 16 shooting has strained U.S. relations with the Iraqi government, which wants Blackwater expelled from the country. It also has become a flash point in the debate over whether contractors are immune from legal consequences for their actions in a war zone.

Blackwater’s four armored vehicles were repaired or repainted within days of the shooting, and before FBI teams went to Baghdad to collect evidence, people close to the case said. The work included repairs to a damaged radiator that Blackwater says is central to its defense.

The damage and subsequent repairs were described to The Associated Press by five people familiar with the case who discussed it in separate interviews over the past month. All spoke on condition of anonymity because of the sensitivity of the case.

The repair work creates a hurdle for prosecutors as they consider building a case against any of the 19 guards in the Sept. 16 convoy. It also makes it harder for Blackwater to prove its innocence as it faces a grand jury investigation and multiple lawsuits over the shooting. The company is the target, too, of an unrelated investigation into whether its contractors smuggled weapons into Iraq.

Blackwater spokeswoman Anne Tyrrell said any repairs “would have been done at the government’s direction.” Blackwater’s contract with the State Department requires that the company maintain its vehicles and keep them on the road.

The State Department would not comment on whether it ordered the repairs to the vehicles involved in the shooting.

Blackwater’s chief executive, Erik Prince, has pointed to the damaged trucks to counter accusations that his contractors acted improperly.

In interviews this fall, he said three of Blackwater’s armored vehicles were struck by gunfire and that the radiator from one was “shot out and disabled” during the shooting in Baghdad’s Nisoor Square. An early two-page State Department report supports Prince’s statements. The report noted the Blackwater command vehicle was “disabled during the attack” and had to be towed.

Prince has indicated he expects the FBI investigation to clear his company. Yet people close to the case say the vehicles and radiator alone probably will not be enough to do that because repairing the trucks made it difficult for investigators to say whether the convoy was fired on — or not.

As for the radiator, investigators have verified that it was damaged. But it, too, was repaired before the FBI arrived two weeks after the shooting.

No bullets were found inside the radiator to prove it had been shot, as opposed to being broken during routine use. That makes it hard for scientists to say for certain what caused the damage or when, according to those close to the case.

The preliminary State Department report noted “superficial damage” to the vehicles; and photographs exist showing bullet damage. People who have seen the photos said there are no time stamps or other indications of when and where that damage occurred.

One photo, obtained and broadcast by CBS News, bore no notations indicating when it was taken or even if the vehicle pictured was involved in the shooting.

The evidence gaps will force investigators to rely more heavily on testimony and other statements from witnesses. But even those efforts have been hampered by a State Department deal that gave Blackwater guards limited immunity for their statements following the incident. As a result, the Justice Department cannot use those interviews in its criminal investigation.

There were 19 security guards at the scene. Investigators believe only a few fired their weapons. Investigators are pushing ahead with the search for additional evidence and so far are focusing on as many four guards who could face criminal charges.

Over the past two months, prosecutors have brought several guards before a Washington grand jury to describe their recollection of the shooting. According to the initial State Department report, the shooting occurred as the Blackwater convoy was responding to a car bombing about a mile outside the U.S.-protected Green Zone, which houses the Iraqi government and several embassies.

James Sweeney, a lawyer representing several guards, would not discuss the forensic gaps or whether the grand jury investigation is helping authorities bridge them. He said Blackwater guards are patriots, not aggressors.

“They are good, solid intelligent Americans. They’re good people,” Sweeney said. “They’re protecting U.S. diplomats.”

North Carolina-based Blackwater is the largest private security company protecting U.S. officials in Iraq. It has been paid more than $1 billion from federal contracts since 2001. Despite criticism, Blackwater notes that no official under its protection has been killed or seriously injured.

Blackwater also strongly denies wrongdoing in a weapons smuggling investigation by federal officials in North Carolina. Two former employees, who prosecutors say are aiding the investigation, were sentenced to probation Thursday on gunrunning charges.

Blackwater and other contractors operate in a legal gray area. They are immune from prosecution in Iraqi courts. If the Justice Department wants to bring criminal charges such as assault, manslaughter or murder in a U.S. court, prosecutors would have to do so under the Military Extraterritorial Jurisdiction Act.

That would require the government to show that State Department contractors were “supporting the mission of the Department of Defense overseas.” Defense lawyers are expected to argue that guarding diplomats was a purely State Department function, one independent from the Pentagon.

The Justice Department has said it could be some time before it decides whether it will bring charges in the case.

via//Associated Press