Blackwater (1997–2010)
Prince moved to Virginia Beach and personally financed the formation of Blackwater Worldwide in 1997. He bought 6,000 acres (24 km2) of the Great Dismal Swamp of North Carolina and set up a school for special operations. The name "Blackwater" comes from the peat-colored bogs in which the school is located.
Prince credits the 1994 Rwandan genocide with his decision to found Blackwater. He later said, "It really bothered me. It made me realize you can't sit back and pontificate. You have to act."
From 1997 to 2010, Blackwater was awarded $2 billion in government security contracts, more than $1.6 billion of which were unclassified federal contracts and an unknown amount of classified work. From 2001 to 2010, the Central Intelligence Agency (CIA) awarded up to $600 million in classified contracts to Blackwater and its affiliates. It became the largest of the State Department's three private security companies, providing 987 guards for embassies and bases abroad. Prince built a shooting range on his rural Virginia land as a nearby training facility to CIA headquarters in Langley, Virginia.
Blackwater came under increasing criticism after the Nisour Square massacre in September 2007, in which Blackwater employees opened fire in a crowded square in Baghdad, killing 17 Iraqi civilians and seriously wounding 20 more. Three guards were convicted in October 2014 of 14 manslaughter charges, and another of murder, in a U.S. court in 2019.
The criticism continued after president Barack Obama took office in 2009. Prince said he believes that much of this criticism stems from politics. "I put myself and my company at the CIA's disposal for some very risky missions", Prince told Vanity Fair for its January 2010 issue. "But when it became politically expedient to do so, someone threw me under the bus." Blackwater lost a $1 billion contract with the State Department to protect American diplomatic personnel in 2009, after the Iraqi government refused to renew the company's operating license. Nevertheless, in 2010 the Obama administration awarded the company a $120 million State Department security contract and about $100 million in new CIA work.
In 2012 Blackwater's successor company, Academi, paid a combined $49.5 million to settle charges of arms trafficking violations dating back to the period Prince was CEO and chairman of the company. In 2020 Prince again became the focus of an FBI investigation into arms trafficking violations related to the conversion of crop dusters into military aircraft. According to a UN report, Prince also violated a UN arms embargo by aiding a plot to arm a Libyan warlord attempting to overthrow the US and UN backed government in Libya.
Prince has defended Blackwater's work, pointing to the fact that during the course of 40,000 personal security missions, only 200 involved guards firing their weapons. He has said, "No one under our care was ever killed or injured. We kept them safe, all the while we had 30 of our men killed."
Prince, according to author Robert Young Pelton, reportedly thinks of Blackwater's relationship to the military as something similar to FedEx's relationship to the U.S. Post Office: "an efficient, privatized solution to sclerotic and wasteful government bureaucracy." He credits his father's competitive streak in the automotive business with the inspiration to design a lighter, faster army.
Prince resigned as CEO of Blackwater on March 2, 2009, and remained chairman of the board until he sold the company in late 2010 to a group of investors.