Academi LLC, formerly known as Blackwater Worldwide and Xe Services, has entered into a deferred prosecution agreement to settle allegations that it violated the Arms Export Control Act and the International Trafficking in Arms Regulations.
The company will pay a $7.5 million fine. The company also entered a $42 million civil settlement with the Department of State. The company was represented by John S. Hahn and Lee H. Rubin, both partners at Mayer Brown.
“This company clearly violated U.S. laws by exporting sensitive technical data and unauthorized defense services to a host of countries around the world,” said Brock D. Nicholson, Special Agent in Charge of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Atlanta. “In doing so, company employees were frequently in possession of illegal firearms and aided other foreign nationals in the acquisition of illegal firearms.”
Federal officials alleged that Academi exported Iridium Satellite phones and Crypto Satellite phones to the Sudan in November of 2005, without the authorization of the U.S. Secretary of the Treasury as required by law.
The company was also charged with providing security services and a threat assessment, which included defense services as defined by U.S. law, to the government of the Sudan, without first having obtained a license from the U.S. Department of State.
Federal officials also alleged that the company provided military training related to overseas military operations to military and law enforcement personnel from Canada without first having obtained a license from the U.S. Department of State.
And the company provided technical and engineering data relating to the construction of armored personnel carriers to personnel from Sweden and Denmark without authorization from the U.S. Department of State as required by law.
The company also exported ammunition and body armor to Iraq and Afghanistan without first obtaining a license from the U.S. Department of State as required by law.
Under the deferred prosecution agreement and an attached statement of facts, the company admitted to wrongdoing and to the violations alleged in the complaint.