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Blackwater USA

Firearms Violations – Deferred Prosecution Agreement

Date: 08/07/2012 (Date of Agreement)

Misconduct Type: Other

Enforcement Agency: Multiple Agencies

Contracting Party: None

Court Type: Criminal

Amount: $7,500,000

Disposition: Deferred Prosecution Agreement

Synopsis: Academi LLC (formerly known as Blackwater Worldwide and Xe Services) entered into a deferred prosecution agreement with the federal government to settle 17 criminal charges. The charged violations included illegally exporting various weapons, equipment, and services to Sudan, Sweden, Denmark, Iraq, and Afghanistan; providing military training to Canadian military and law enforcement personnel without a required U.S. license; possessing unregistered automatic weapons at its North Carolina training facility; and making false statements to the government about weapons provided to the king of Jordan. Under the terms of the deferred prosecution agreement, the company accepted responsibility for the facts as alleged by the government and paid a $7.5 million fine (subject to a credit of up to $2.5 million for compliance-related costs). See related Blackwater USA instances, “Firearms Violations – Employee Prosecutions” and “Firearms Violations – State Department Settlement”.