Alt-Coin Trader

Blackwater’s Migraines Multiply

by William Fisher

Legal headaches are growing exponentially for the security firm formerly known as Blackwater – once the darling of the military-industrial community.
In separate developments, two former employees of the company charged that the security firm committed "systematic fraud" under its contracts with the U.S. State Department in Iraq and Afghanistan; the Iraqi government announced it would seize heavy weapons from foreign security firms and expel ex-Blackwater contractors still in the country; and a U.S. Senate hearing learned that Blackwater employees stole more than 500 assault rifles intended for the Afghan police force.
The accusations of fraud came from two former employees who filed a false claims lawsuit that allows the employees, acting as whistleblowers, to win a portion of any public money the government recovers as a result of the information.
The Washington Post reports that the former Blackwater (now known as Xe Services) employees Brad and Melan Davis accused the firm of over-billing for travel, charging for liquor and spa trips and for a having a fire pit built for Blackwater staff parties, and charging for the services of a Filipino prostitute who was kept on "staff" in Afghanistan as part of the company’s "Morale Welfare Recreation."