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Firearms Violations – State Department Settlement
Date: 08/18/2010 (Date of Settlement)
Misconduct Type: Import/Export
Enforcement Agency: State Dept.
Contracting Party: Multiple Agencies
Court Type: Civil
Synopsis: Xe Services LLC (formerly known as Blackwater) entered into a civil settlement with the U.S. State Department in which it agreed to pay a $42 million penalty ($12 million of which was suspended on the condition that it be applied toward remedial measures) for 288 alleged violations of the Arms Export Control Act (AECA) and the International Traffic in Arms Regulations (ITAR) between 2003 and 2009. The alleged violations included illegal weapon exports to Afghanistan, making unauthorized business proposals to the government of Southern Sudan, and providing unauthorized services to various foreign countries. See related Blackwater USA instances, “Firearms Violations – Employee Prosecutions” and “Firearms Violations – Deferred Prosecution Agreement”.