Security firm Xe Services, formerly known as Blackwater, to pay export fines

By Associated Press
Saturday, August 21, 2010

The security firm formerly known as Blackwater will pay $42 million in fines to settle thousands of violations of U.S. export-control regulations, according to a published report Friday night.

The settlement agreement covers alleged sniper training for Taiwanese police officers, illegal weapons exports to Afghanistan and making unauthorized proposals to train troops in south Sudan, the New York Times reported. The State Department requires government approval before certain types of military technology or knowledge is transferred to other countries.

The settlement involves practices from before Blackwater was rebranded as Xe Services.

A spokeswoman for the Moyock, N.C.-based company confirmed the deal to the Associated Press but did not immediately know the amount. A State Department spokesman said he was unaware of the settlement.

Blackwater provided guards and services to the U.S. government in Iraq, Afghanistan and elsewhere. The defense contractor has been trying to rehabilitate its image since a 2007 shooting in Baghdad that killed 17 people.

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