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Biodun@bbcnews.com

Wednesday, 21 April 2010

Feds: Blackwater president had 'scofflaw attitude'
Topic: blackwater, Gary Jackson, suzann

by Suzanne Gould, BBC News, for the BBC's Biodun Iginla

– 12 mins ago

RALEIGH, N.C. – Federal prosecutors launched a scathing assessment of Blackwater Worldwide's former president Wednesday, declaring in an initial court appearance that he operated the security firm with "sheer arrogance" and a "scofflaw attitude."

Gary Jackson and four past colleagues indicted last week appeared Wednesday morning before a judge who allowed them to go free as they await trial. A magistrate judge denied a government request to place a bond on each defendant but ordered them to turn over passports and refrain from possessing firearms.

The first court hearing offered a brief glimpse into the combative nature of a case that pits the federal government against former officials at a company that for years played a crucial role as a government contractor protecting U.S. officials in war zones.

Prosecutors slammed Jackson, arguing that he flouted federal regulations while building the lucrative security enterprise. As an example, assistant US attorney John Bowler said Jackson participated in an effort to falsify federal documents to hide that the company had provided guns as a gift to the king of Jordan.

"It is just another display of sheer arrogance and scofflaw attitude," Bowler said.

Ken Bell, an attorney for Jackson, said federal officials were frequently aware of Blackwater's activities and were on scene when the company provided weapons to Jordanian officials. He dismissed the charges as nothing more than "regulatory offenses."

"At most, certain forms were not filled out," he said.

The charges against Jackson, 52, include a conspiracy to violate firearms laws, false statements, possession of a machine gun and possession of an unregistered firearm. Also indicted were former Blackwater general counsel Andrew Howell, 44; former executive vice president Bill Mathews, 44; former procurement vice president Ana Bundy, 45; and former weapons manager Ronald Slezak, 65.

Each of the defendants was charged as part of a conspiracy to violate firearms laws. Mathews also was charged with possession of a machine gun and possession of an unregistered weapon. Howell was charged with two counts of obstruction of justice. Slezak was charged with false statements. Bundy was charged with obstruction of justice.

All five, wearing suits, quietly sat together in the first row of a cramped courtroom, talking only when a judge asked them brief questions. Next to them was a group of tattooed defendants who wore T-shirts and handcuffs during their first appearance on drug charges.

Jackson and other top officials at Blackwater left the Moyock-based firm last year during a management shake-up, around the time the company changed its name to Xe Services.

Blackwater has been trying to rehabilitate its image since a 2007 shooting in Baghdad that killed 17 people, outraged the Iraqi government and led to federal charges against several Blackwater guards. The accusations later were thrown out of court after a judge found prosecutors mishandled evidence.

In the current case, prosecutors cited several cases in which they say Blackwater bypassed federal rules. In one, they accused the company of setting up a straw purchase in which the firm acquired machine guns such as AK-47s by using a North Carolina sheriff's letterhead. In another, they said the company converted long-barrel rifles to short-barrel weapons for its contractors and didn't register the guns as federal rules require.

Bell said the automatic weapons were acquired in conjunction with the Camden County Sheriff's Office. He said Blackwater had all the licenses required to manufacture short-barrel weapons, something he said contractors needed to do their government work.

"They were not able to perform these functions — and keep themselves alive — with long-barrel weapons," he said.

The maximum penalty for each charge ranges from five to 10 years in prison and a fine of up to $250,000.

Posted by biginla at 8:18 PM BST

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Friday, 16 April 2010

APNewsBreak: Feds indict ex-Blackwater president
Topic: blackwater, Gary Jackson, suzann

AP – This undated handout photo provided by attorney James Sweeney, shows former Blackwater Worldwide vice …

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by Suzanne Gould, BBC News, for the BBC's Biodun Iginla

– 12 mins ago

RALEIGH, N.C. – The former president of Blackwater Worldwide was charged Friday with using straw purchases to stockpile automatic weapons at the security firm and filing false documents to cover up gifts given to the King of Jordan.

The federal indictment charges Gary Jackson, 52, who left the company last year in a management shakeup, along with four other former workers. The charges against Jackson include a conspiracy to violate firearms laws, false statements and possession of an unregistered firearm.

Also indicted were former general counsel Andrew Howell, 44; former executive vice president Bill Mathews, 44; former procurement vice president Ana Bundy, 45; and, 65-year-old Ronald Slezak, a former weapons manager.

The charges open a new front of the government's oversight of the sullied security company. Several of the company's contractors have previously been charged with federal crimes for their actions in war zones, but the company's executives have so far weathered a range of investigations.

The company has been trying to rehabilitate its image since a 2007 shooting in Baghdad left 17 people dead, outraged the Iraqi government and led to a federal charges against several Blackwater guards — accusations later thrown out of court after a judge found prosecutors mishandled evidence. Around the time that Jackson left the company, Blackwater changed its name to Xe Services.

The latest case stems from a raid conducted by federal agents at the company's headquarters in Moyock in 2008 that seized 22 weapons, including 17 AK-47s.

Blackwater signed agreements in 2005 in which the company financed the purchase of 34 automatic weapons for the Camden County sheriff's office. Sheriff Tony Perry became the official owner of the weapons, but Blackwater was allowed to keep most of the guns at its armory.

The indictment accuses Blackwater officials of enticing the local sheriff's office to pose as the purchaser of the weapons, something prosecutors called essentially a straw purchase. The office provided blank letterhead to the company, which then used the stationery to prepare letters ordering weapons.

Prosecutors said company officials, hoping to land a lucrative overseas contract, presented the king of Jordan with several firearms as gifts then realized that they were unable to account for where the weapons went. To cover it up, they falsified four federal documents "to give the appearance that the weapons had been purchased by them as individuals," according to the indictment.

Federal law prohibits licensed firearms dealers such as Blackwater to have more than two of the same style of weapon. Law enforcement agencies can have fully automatic weapons.

Kenneth Bell, an attorney for Jackson, said the former executive was a true American hero. Jackson spent two decades in the military as a Navy Seal.

"These charges are false," Bell said. "He will defend himself, as he defended this country, in what he calls the greatest justice system in the world."

Xe spokesman Mark Corallo said the company has fully cooperated with the federal investigation. He declined further comment. Jordanian officials could not be immediately reached for comment.

One of the 2005 agreements viewed later by the AP says the weapons will be kept under "lock and key" and doesn't describe whether Blackwater would use the guns. Perry said at the time that his department only used the AK-47s in shooting practice at Blackwater and that none of his 19 deputies were qualified to use them.

Blackwater has said federal authorities knew about the weapons for years and that investigators got a complete look at the company's cache in 2005 after two employees were fired.

In a 2008 interview with the AP, Jackson and other Blackwater executives said the company provided the local Camden County sheriff's office a place to store weapons, calling the gesture a "professional courtesy."

"We gave them a big safe so that they can store their own guns," Jackson said at the time. Added then-executive vice president Bill Mathews: "We give stuff to police departments all over the country, and we take particularly good care of our home police departments."

Company officials, including both Jackson and Howell, downplayed the raid during the interview. Jackson said some of the 16 uniformed officers who came to serve the warrant were embarrassed by the event and said agents had to stop at Blackwater's front gate to get passes to come onto the company's sprawling campus in northeastern North Carolina.

"As a hypothetical, one would think that, if you were going on a raid, you'd take your Kevlar and your weapon," Howell said to laughter from other executives.

___

Posted by biginla at 10:09 PM BST

Updated: Friday, 16 April 2010 10:12 PM BST

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