Academi

History

Origins as training center

Blackwater Lodge and Training Center, Inc. was formed on December 26, 1996, by Al Clark and Erik Prince in North Carolina, to provide training support to military and law enforcement organizations. In explaining its purpose, Prince stated: "We are trying to do for the national security apparatus what FedEx did for the Postal Service."

Prince purchased approximately 7,000 acres (28 km2) of the Great Dismal Swamp, a vast swamp on the North Carolina–Virginia border that is now mostly a national wildlife refuge. "We needed 3,000 acres to make it safe," Prince told reporter Robert Young Pelton. There he created his private training facility and his contracting company, Blackwater, which he named for the peat-colored water of the swamp.

The Blackwater Lodge and Training Center officially opened on May 15, 1998, with a 6,000-acre (2,400 ha), $6.5 million facility headed by Robert Anderson. It comprises several ranges: indoor, outdoor, urban reproductions; an artificial lake; and a driving track in Camden and Currituck counties. The company says it is the largest training facility in the country. The concept was not a financial success but was kept solvent by sales from sister company Blackwater Target Systems.

2002–2007: Blackwater Security Company

Jeremy Scahill has claimed that Blackwater Security Company (BSC) was the brainchild of Jamie Smith, a former CIA officer who became vice president of Blackwater USA and the founding director of Blackwater Security Company, holding both positions simultaneously. However, this claim is denied by Prince and Blackwater executive Gary Jackson, who describe firing Smith from his position as a low-level administrator for "non-performance" after a thirty-day contract. Smith has been accused of further embellishing his military and contracting record to defraud investors at SCG International Risk.

BSC's first assignment was to provide twenty men with top-secret clearance to protect the CIA headquarters and another base that was responsible for hunting Osama bin Laden. Blackwater was one of several private security firms employed following the U.S. invasion of Afghanistan. BSC was originally formed as a Delaware LLC and was one of over sixty private security firms employed during the Iraq War to guard officials and installations, train Iraq's new army and police, and provide other support for coalition forces.

Gulmurod Khalimov, former war minister of the Islamic State, trained with Blackwater and the U.S. Army five times between 2003 and 2015. Khalimov was an officer and sniper of the OMON special forces unit of Tajikistan at the time. The United States Department of State confirmed this in 2015. However, Khalimov was quoted as saying in Russian, “Listen, you American pigs: I’ve been to America three times. I saw how you train soldiers to kill Muslims. You taught your soldiers how to surround and attack, in order to exterminate Islam and Muslims”.

Blackwater was hired during the aftermath of Hurricane Katrina by the U.S. Department of Homeland Security to protect government facilities, as well as by private clients, including communications, petrochemical, and insurance companies. Overall, the company received over US$1 billion in U.S. government contracts. The company consisted of nine divisions and a subsidiary, Blackwater Vehicles.

In August 2003, Blackwater received its first Iraq contract, a $21 million contract for a personal security detachment and two helicopters for Paul Bremer, head of the U.S. occupation in Iraq.

2007–2009: Blackwater Worldwide

In October 2007, the month after the Nisour Square massacre, Blackwater USA began the process of changing its name to Blackwater Worldwide and unveiled a new logo. The change deemphasized the "cross hair" reticle theme, simplifying it slightly.

On July 21, 2008, Blackwater Worldwide stated that it would shift resources away from security contracting because of the extensive risks in that sector. Said company founder and CEO Erik Prince, "The experience we've had would certainly be a disincentive to any other companies that want to step in and put their entire business at risk."

2009–2010: Xe Services LLC

In February 2009, Blackwater announced that it would be once again renamed, this time to "Xe Services LLC", as part of a company-wide restructuring plan, intended to re-focus the company on its logistics, aviation and training aspects, rather than its security operations.

Prince announced his resignation as CEO on March 2, 2009. He remained as chairman of the board but was no longer involved in day-to-day operations. Joseph Yorio was named as the new president and CEO, replacing Gary Jackson as president and Prince as CEO. Danielle Esposito was named the new chief operating officer and executive vice president.

2010–2014: Academi

In 2010, Xe was acquired by USTC Holdings, an investor consortium, who sought to further re-brand the company. The sale formally ended Erik Prince's operational and management role in the company. Xe was officially renamed "Academi" in 2011. Academi's Board of Directors included former Attorney General John Ashcroft, former White House Counsel and Vice Presidential Chief of Staff Jack Quinn, retired Admiral and former NSA Director Bobby Ray Inman, and Texas businessman Red McCombs, who served as chairman of the board. Quinn and Ashcroft were independent directors, without other affiliations to Academi.

In May 2011, Academi named Ted Wright as CEO. Wright hired Suzanne Rich Folsom as Academi's chief regulatory and compliance officer and deputy general counsel. The Academi Regulatory and Compliance team won National Law Journal's 2012 Corporate Compliance Office of the Year Award.

In 2012, retired Brigadier General Craig Nixon was named the new CEO of Academi.

Former corporate units

Aviation Worldwide Services

Aviation Worldwide Services (AWS) was founded by Richard Pere and Tim Childrey, and was based at Melbourne, Florida, U.S. It owned and operated three subsidiaries: STI Aviation, Inc. Air Quest, Inc. and Presidential Airways, Inc. In April 2003 it was acquired by Blackwater USA.

Presidential Airways (PAW) is a Federal Aviation Administration (FAA) Regulations Part 135 charter cargo and passenger airline based at Melbourne Orlando International Airport. It operates aircraft owned by AWS. Presidential Airways holds a Secret Facility Clearance from the U.S. Department of Defense. It operates several CASA 212 aircraft in addition to a Boeing 767. Several of the MD-530 helicopters used by Blackwater Security Consulting in Iraq are also operated through AWS.

A CASA 212 aircraft, tail number N960BW, operated by Presidential Airways crashed on November 27, 2004, in Afghanistan; it had been a contract flight for the United States Air Force en route from Bagram to Farah. All aboard, three soldiers and three civilian crew members, were killed. Several of their surviving kin filed a wrongful death lawsuit against Presidential in October 2005.

In late September 2007, Presidential Airways received a $92m contract from the Department of Defense for air transportation in Afghanistan, Kyrgyzstan, Pakistan and Uzbekistan.

STI Aviation focuses on aircraft maintenance, and is a FAA/Joint Aviation Authorities 145 repair station. They specialize in Short 360, EMB 120, Saab 340, and CASA 212 maintenance. As of January 2008, STI Aviation appears to have been folded into AWS, along with Air Quest.

Many of Blackwater's tactical and training aircraft are registered to Blackwater affiliate EP Aviation LLC, named for Blackwater's owner, Erik Prince. These aircraft include fourteen Bell 412 helicopters, three Hughes/MD 369 "Little Bird" helicopters, four Bell 214ST medium-lift helicopters, three Fairchild Swearingen Merlin IIIC turboprop airliners, nine Aérospatiale Puma utility helicopters, a Maule Air MT-7-235 STOL aircraft, an Embraer EMB 314 Super Tucano counterinsurgency aircraft, and a Mooney M20E fixed wing aircraft.

Greystone Limited

In 2010, Greystone was acquired by current management. Greystone now operates as a standalone, management owned provider of protective support services and training.

A private security service, Greystone is registered in Barbados, and employs soldiers for off-shore security work through its affiliate Satelles Solutions, Inc. Their web site advertises their ability to provide "personnel from the best militaries throughout the world" for worldwide deployment. Tasks can be from very small scale up major operations to "facilitate large scale stability operations requiring large numbers of people to assist in securing a region".

Erik Prince intended Greystone to be used for peacekeeping missions in areas like Darfur where military operations would need to take place to establish peace.

Greystone had planned to open a training facility on the former grounds of the Subic Bay U.S. Naval Base, but those plans were later abandoned.

Former international services

According to a company press release, Blackwater provided airlift, security, logistics, and transportation services, as well as humanitarian support. Blackwater moved about 200 personnel into the area hit by Hurricane Katrina, most of whom (164 employees) were working under a contract with the Department of Homeland Security to protect government facilities, but the company held contracts with private clients as well. Overall, Blackwater had a "visible, and financially lucrative, presence in the immediate aftermath of Hurricane Katrina as the use of the company contractors cost U.S. taxpayers $240,000 a day."

Blackwater USA was one of five companies picked in September 2007 by the Department of Defense Counter-Narcotics Technology Program Office in a five-year contract for equipment, material and services in support of counter-narcotics activities. The contract is worth up to $15 billion. The other companies picked are Raytheon, Lockheed Martin, Northrop Grumman, OHI, and Arinc Inc. Blackwater USA has also been contracted by various foreign governments. The DEA and DoD counternarcotics program is supported by Blackwater Worldwide in Afghanistan as well. "Blackwater is involved on DoD side" of the counter-narcotics program in Afghanistan says Jeff Gibson, vice president for international training at Blackwater. "We interdict. The NIU surgically goes after shipments going to Iran or Pakistan. We provide training to set up roadblocks, identify where drug lords are, and act so as not to impact the community." In 2008, about 16 Blackwater personnel were in Afghanistan at any given time to support DoD and DEA efforts at training facilities around the country. Blackwater was also involved in mentoring former Islamic Republic of Afghanistan officials in drug interdiction and counter narcotics. As Richard Douglas, a deputy assistant secretary of defense, explained, "The fact is, we use Blackwater to do a lot of our training of counternarcotics police in Afghanistan. I have to say that Blackwater has done a very good job."

The Obama administration awarded Academi a $250 million contract to work for the U.S. State Department and the Central Intelligence Agency in Afghanistan.

In 2005, Blackwater worked to train the Naval Sea Commando regiment of Azerbaijan, enhancing their interdiction capabilities on the Caspian Sea. In Asia, Blackwater had contracts in Japan guarding AN/TPY-2 radar systems.

Role in the Iraq War

Contracts

Blackwater Worldwide played a substantial role during the Iraq War as a contractor for the United States government. In 2003, Blackwater attained its first high-profile contract when it received a $21 million no-bid contract for guarding the head of the Coalition Provisional Authority, L. Paul Bremer. Since June 2004, Blackwater has been paid more than $320 million out of a $1 billion, five-year State Department budget for the Worldwide Personal Protective Service, which protects U.S. officials and some foreign officials in conflict zones.

In 2006, Blackwater was awarded a contract to protect diplomats for the U.S. embassy in Iraq, the largest American embassy in the world. It is estimated by the Pentagon and company representatives that there are 20,000 to 30,000 armed security contractors working in Iraq, and some estimates are as high as 100,000, though no official figures exist. Of the State Department's dependence on private contractors like Blackwater for security purposes, U.S. ambassador to Iraq Ryan Crocker told the U.S. Senate: "There is simply no way at all that the State Department's Bureau of Diplomatic Security could ever have enough full-time personnel to staff the security function in Iraq. There is no alternative except through contracts."

For work in Iraq, the company has drawn contractors from their international pool of professionals, a database containing "21,000 former Special Forces operatives, soldiers, and retired law enforcement agents," overall. For instance, Gary Jackson, the firm's president, has confirmed that Bosnians, Filipinos, and Chileans "have been hired for tasks ranging from airport security to protecting Paul Bremer, the head of the Coalition Provisional Authority." Between 2005 and September 2007, Blackwater security staff were involved in 195 shooting incidents; in 163 of those cases, Blackwater personnel fired first. Erik Prince points out that the company followed the orders of United States government officials, who frequently put his men in harm's way. Many of the shootings occurred after drivers in vehicles failed to stop when ordered by Blackwater guards.

According to former CIA director Michael Hayden, Blackwater, among other security contractors, were allowed to perform waterboarding on suspects. Leaks in 2009 suggest CIA - Blackwater contracts to assassinate al-Qaeda leaders.

Fallujah and Najaf

On March 31, 2004, Iraqi insurgents in Fallujah ambushed two SUVs, killing the four armed Blackwater contractors inside. Local residents hung the charred bodies above a bridge across the Euphrates. In response, U.S. Marines attacked the city in Operation Vigilant Resolve, which became the first Battle of Fallujah. In the fall of 2007, a congressional report by the House Oversight Committee found that Blackwater intentionally "delayed and impeded" investigations into the contractors' deaths. The report also acknowledges that members of the now-defunct Iraqi Civil Defense Corps "led the team into the ambush, facilitated blocking positions to prevent the team's escape, and then disappeared." Intelligence reports concluded that Ahmad Hashim Abd al-Isawi was the mastermind behind the attack, and he was captured after a Navy SEAL special operation in 2009. al-Isawi was ultimately handed over to Iraqi authorities for trial and executed by hanging some time before November 2013.

In April 2004, at the U.S. government's headquarters in Najaf, hundreds of Shiite militia forces barraged Blackwater contractors, four MPs and a Marine gunner with rocket-propelled grenades and AK-47 fire for hours before U.S. Special Forces troops arrived. As supplies and ammunition ran low, a team of Blackwater contractors 70 miles (113 km) away flew to the compound to resupply and bring an injured U.S. Marine back to safety outside of the city.

Nisour Square Massacre

The Iraqi Government revoked Blackwater's license to operate in Iraq on September 17, 2007, after a massacre in Nisour Square, Baghdad in which Blackwater contractors were later convicted of killing 17 Iraqi civilians. The deaths occurred while a Blackwater Private Security Detail (PSD) was escorting a convoy of U.S. State Department vehicles en route to a meeting in western Baghdad with United States Agency for International Development officials. The license was reinstated by the American government in April 2008, but in early 2009 the Iraqis announced that they had refused to extend that license. In 2009, FBI investigators were unable to match the bullets from the shooting to those guns carried by Blackwater contractors, leaving open the possibility that insurgents also fired at the victims. In a 2010 interview, Erik Prince, the company's founder, said the government was looking for dirt to support what he dismissed as "baseless" accusations that ran the gamut from negligence, racial discrimination, prostitution, wrongful death, murder, and the smuggling of weapons into Iraq in dog-food containers. He pointed out that current and former executives had been regularly deposed by federal agencies.

Other incidents

On February 16, 2005, four Blackwater guards escorting a U.S. State Department convoy in Iraq fired 70 rounds into a car. The guards stated that they felt threatened when the driver ignored orders to stop as he approached the convoy. The fate of the car's driver was unknown because the convoy did not stop after the shooting. An investigation by the State Department's Diplomatic Security Service concluded that the shooting was not justified and that the Blackwater employees provided false statements to investigators. The statements claimed that one of the Blackwater vehicles had been hit by insurgent gunfire, but the investigation concluded that one of the Blackwater guards had actually fired into his own vehicle by accident. John Frese, the U.S. embassy in Iraq's top security official, declined to punish Blackwater or the security guards because he believed any disciplinary actions would lower the morale of the Blackwater contractors.

On February 6, 2006, a sniper employed by Blackwater Worldwide opened fire from the roof of the Iraqi Justice Ministry, killing three guards working for the state-funded Iraqi Media Network. Many Iraqis at the scene said that the guards had not fired on the Justice Ministry. The U.S. State Department said, however, that their actions "fell within approved rules governing the use of force" based on information obtained from Blackwater guards.

On April 21, 2005, six Blackwater USA independent contractors were killed in Iraq when their Mil Mi-8 Hip helicopter was shot down. Also killed were three Bulgarian crewmembers and two Fijian gunners. Initial reports indicated that the helicopter was shot down by rocket propelled grenades or missile fire.

In 2006, a car accident occurred in the Baghdad Green Zone when an SUV driven by Blackwater USA contractors crashed into a U.S. Army Humvee. "The colonel ... said the Blackwater guards disarmed the soldiers and forced them to lie on the ground at gunpoint until they could disentangle their vehicles."

On December 24, 2006, a security guard of the Iraqi vice president, Adel Abdul Mahdi, was shot and killed while on duty outside the Iraqi prime minister's compound. The Iraqi government has accused Andrew J. Moonen, a Blackwater employee at the time, of killing him while drunk. Moonen was subsequently fired by Blackwater for "violating alcohol and firearm policy", and travelled from Iraq to the United States days after the incident. The DOJ investigated and announced in 2010 that they were declining to prosecute Moonen, citing a likely affirmative defense of self-defense and high standards for initiating such a prosecution. The United States State Department and Blackwater USA had attempted to keep his identity secret for security reasons.

Prosecution

On October 2, 2007, Erik Prince attended a congressional hearing conducted by the Committee on Oversight and Government Reform following the controversy related to Blackwater's conduct in Iraq and Afghanistan. Blackwater hired the public relations firm BKSH & Associates Worldwide, a subsidiary of Burson-Marsteller, to help Prince prepare for his testimony at the hearing. Robert Tappan, a former U.S. State Department official who worked for the Coalition Provisional Authority in Baghdad, was one of the executives handling the account. Burson-Marsteller was brought aboard by McDermott Will & Emery and Crowell & Moring, the Washington law firms representing Blackwater. BKSH, a self-described "bipartisan" firm (Hillary Clinton, when pursuing the Democratic presidential nomination, was also a client), is headed by Charlie Black, a prominent Republican political strategist and former chief spokesman for the Republican National Committee, and Scott Pastrick, former treasurer of the Democratic National Committee.

In his testimony before Congress, Prince said his company lacked remedies to deal with employee misdeeds. When asked why Andrew Moonen had been "whisked out of the country" after the shooting death of the vice-presidential guard, he replied, "We can't flog him, we can't incarcerate him." When asked by a member of Congress for financial information about his company, Prince declined to provide documentation, saying, "we're a private company, and there's a key word there – private." Later he stated that the company could provide it at a future date if questions were submitted in writing. When the term "mercenaries" was used to describe Blackwater employees, Prince objected, characterizing them as "loyal Americans."

A staff report compiled by the House Committee on Oversight and Government Reform on behalf of Representative Henry Waxman questioned the cost-effectiveness of using Blackwater forces instead of U.S. troops. Blackwater charged the government $1,222 per day per guard, "equivalent to $445,000 per year, or six times more than the cost of an equivalent U.S. soldier," the report alleged. During his testimony on Capitol Hill, Erik Prince disputed this figure, saying that it costs money for the government to train a soldier, to house and feed them, they don't just come prepared to fight. "That sergeant doesn't show up naked and untrained," Prince stated. Moreover, he pointed out that Blackwater's employees were trained in special operations and exceeded the capabilities of the average soldier.

In the wake of Prince's testimony before Congress, the U.S. House amended the Military Extraterritorial Jurisdiction Act in October 2007. The new legislation, H.R.2740 - the MEJA Expansion and Enforcement Act of 2007, expanded the original scope to MEJA to encompass all security contractors working overseas, not only those working under the Department of Defense. This subsequently led to the prosecution by U.S. courts of some U.S. military contractors, but only for incidents involving attacks on U.S. nationals. The legal status of Blackwater and other security firms in Iraq was a subject of contention. Two days before he left Iraq, L. Paul Bremer signed "Order 17" giving all Americans associated with the CPA and the American government immunity from Iraqi law. A July 2007 report from the American Congressional Research Service indicates that the Iraqi government still has no authority over private security firms contracted by the U.S. government. On October 5, 2007, the State Department announced new rules for Blackwater's armed guards operating in Iraq. Under the new guidelines, State Department security agents will accompany all Blackwater units operating in and around Baghdad. The State Department will also install video surveillance equipment in all Blackwater armored vehicles, and will keep recordings of all radio communications between Blackwater convoys in Iraq and the military and civilian agencies that supervise their activities.