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About POGO's Federal Contractor Misconduct Database (FCMD)
The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »
Blackwater USA
Blackwater USA (renamed Xe in February 2009) is a North Carolina-based professional military, law enforcement, security and peacekeeping operations company. Blackwater was founded in 1997 by Erik Prince, a former U. S. Navy SEAL. The Blackwater family of businesses includes Blackwater Training Center (the largest private firearms and tactical training center in the U. S., according to Blackwater's Web site), Blackwater Target Systems, Blackwater Security Consulting, Blackwater Canine, and Raven Development Group.
Federal Contract $: $ 503.9m
Total Number of Instances: 5
Total Misconduct dollar amount: $ 0.0m
Instances of Misconduct
1. August 2007 Hilla, Iraq Shooting
Ali Kareem Fakhri and the family of Husain Salih Rabea sued Blackwater founder Erik Prince and several of the corporate entities he allegedly owns or manages (including Blackwater Worldwide, Xe, The Prince Group, EP Investments, and Greystone, Ltd.) for a shooting that took place on August 13, 2007 in Hilla, Iraq, in which Rabea was killed. The plaintiffs’ claims included war crimes and various torts, including assault and battery and wrongful death. This and six other lawsuits alleging abuses by Blackwater in Iraq were settled in January 2010. The terms of the settlement are confidential.... more»
2. Abtan v. Blackwater (Sept. 16, 2007 Baghdad Shooting)
Talib Mutlaq Deewan and the estates of Himoud Saed Abtan, Usama Fadil Abbass and Oday Ismail Ibraheem sued Blackwater for its alleged culpability in the September 16, 2007 firefight in Nisoor Square in Baghdad in which as many as 17 civilians, including Abtan, Abbass and Ibraheem, were killed and as many as 22, including Deewan, were injured. The lawsuit alleged Blackwater violated the federal Alien Tort Statute in committing extrajudicial killing and war crimes, and that the company was liable for assault and battery, wrongful death, intentional and negligent infliction of emotional distress, and negligent hiring, training and supervision. This and six other lawsuits alleging abuses by Blackwater in Iraq were settled in January 2010. The terms of the settlement are confidential.... more»
3. Employee Misclassification
In March 2007, the IRS issued a letter to Blackwater Security Consulting LLC ruling that the company misclassified one of its guards as an independent contractor and therefore would be responsible for withholding and paying employment taxes for the guard as required by federal law. Later in the year, after Blackwater personnel were involved in a fatal shooting in Iraq, Blackwater's owner, Erik Prince, testified before the United States House of Representatives Committee on Oversight and Government Reform. Committee Chairman Rep. Henry Waxman's subsequent discovery of the IRS letter and a nondisclosure agreement Blackwater allegedly used to keep the IRS matter secret led Waxman to issue a letter to Prince warning that his committee would investigate Blackwater for possible large-scale tax evasion and a corresponding cover-up. In March 2008, Rep. Waxman requested the IRS, the Small Business Administration, and the Department of Labor investigate Blackwater's compliance with federal tax, small business and labor laws vis-a-vis its classification of security guards as independent contractors rather than employees.... more»
4. Albazzaz v. Blackwater (Sept. 9, 2007 Baghdad Shooting)
The families of Ali Hussamaldeen Albazzaz, Kadhum Kayiz Aziz, and Sa’ad Raheem Jarallah, who were killed when Blackwater personnel fired on bystanders in and around Al Watahba Square in Baghdad on Sept. 9, 2007, filed a lawsuit against the company. The lawsuit, which was later joined by four other Iraqis who were injured in the incident, alleged Blackwater employees fired without justification, violating the federal Alien Tort Statute and the Racketeer Influenced and Corrupt Organizations Act (RICO), and were liable for assault and battery, wrongful death, intentional and negligent infliction of emotional distress, negligent hiring, training and supervision and and tortious spoliation of evidence. This and six other lawsuits alleging abuses by Blackwater in Iraq were settled in January 2010. The terms of the settlement are confidential.... more»
5. USA v. Ridgeway (Sept. 16, 2007 Baghdad Shooting)
In December 2008, former Blackwater Worldwide security guard Jeremy Ridgeway pleaded guilty to charges of voluntary manslaughter and attempt to commit manslaughter for his involvement in the deaths of 14 civilians and the wounding of 20 others in a firefight Baghdad on September 16, 2007.... more»
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