Former security firm Blackwater settles with criminal prosecutors

August 9, 2012
Blackwater
“A special police SWAT team from Blackwater. Credits: Blackwater/Police Times”

Examiner.com on August 8, 2012 released the following:

“BY: JIM KOURI

The liberal-left’s least favorite company, security contractor Blackwater, through it’s new corporate name Acadmi LLC, agreed on Tuesday to pay more than $7 million in fines in order to settle federal charges regarding alleged arms smuggling and other crimes.

The documents. which were unsealed Tuesday in U.S. District Court in Raleigh, North Carolina, stated that the company’s executives agreed to pay the fine as part of a deferred prosecution agreement to settle all 17 violations of law.

The agreement also acknowledges and references a $42 million settlement between the company and the Department of State as part of a settlement of violations of the Arms Export Control Act and the International Trafficking in Arms Regulations, according to officials at Justice Department.

According to Justice Department documents, list of violations includes the possession automatic weapons in the United States without registration, deceptive statements made to government firearms officials about weapons tranferred to the Kingdom of Jordan, and passing secret plans for armored personnel carriers to Sweden and Denmark without U.S. government approval.

A separate violation entailed illegally shipping body armor to nations overseas.

“Compliance with the firearms laws of the United States in both domestic and international commerce is essential to maintaining order and accountability,” stated ATF Special Agent in Charge Wayne L. Dixie. “Whether it is an individual or a corporation, we will enforce the provisions of the federal gun laws equally. If violations are discovered, we will move to hold those responsible for the violations accountable for their actions.”

Federal prosecutors and law enforcement officials said Blackwater, which has held billions in U.S. security contracts in Iraq and Afghanistan, repeatedly flouted U.S. laws.

Blackwater was founded in North Carolina in 1997 by a former Navy SEAL officer, Erik Prince, and the company became well-known working for the U.S. government during the Iraq War. Prince is said to be worth over one billion dollars.

IRS-Criminal Investigation Special Agent in Charge Jeannine A. Hammett stated, “High-ranking corporate officials hold positions of trust not only in their companies but also in the eyes of the public. That trust is broken when such officials abuse their power and commit crimes to line their own pockets. An international fraud of this magnitude requires a coordinated effort among law enforcement agencies to stop those involved from profiting from their wrongdoing.”

A provision in Academi-United States settlement prohibits the company executives from making any public statements “contradicting any aspect” of the agreement. Any such statement opens the door to nullification of the settlement by the U.S. Justice Department.

“Blackwater profited substantially from Department of Defense (DoD) contracts in support of overseas contingency operations over the past decade,” commented Special Agent in Charge John F. Khin, Southeast Field Office, Defense Criminal Investigative Service (DCIS). “This investigation showed that no contractor is above the law and that all who do business with the DoD will be held accountable. With this agreement, Blackwater acknowledged their wrongdoing and took steps to remedy and mitigate the damage they caused to the United States and the public trust.”

“For an extended period of time, Academi/Blackwater operated in a manner which demonstrated systemic disregard for U.S. government laws and regulations. Today’s announcement should serve as a warning to others that allegations of wrongdoing will be aggressively investigated,” said Chris Briese, Special Agent in Charge of the Charlotte Division of the FBI.

The agreement also acknowledges and references a $42 million settlement between the company and the Department of State as part of a civil administrative settlement of violations of the Arms Export Control Act and the International Trafficking in Arms Regulations, according to the Justice Department.

“The left-wing media and political activists hate the military and police but fear being fingered as anti-Americans, so all their hatred for soldiers and cops is transferred to private firms that offer military and law enforcement services,” said Sid Franes, a former Marine, police detective and security firm owner.

“Now that we have an administration that shares the views of the radical left, you will see more and more cases against private security, military and intelligence firms,” Franes predicted.”

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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

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To find additional federal criminal news, please read Federal Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.


Hollenbeck attorney up for sentencing Wednesday

April 4, 2012

Winston-Salem Journal on April 4, 2012 released the following:

“By: WESLEY YOUNG

Federal prosecutors are recommending a 90-year sentence for Atlanta securities lawyer Gregory Bartko, who was convicted in 2010 of securities fraud in a case that involved the testimony of convicted Kernersville investment counselor Scott Hollenbeck.

Bartko’s attorneys are arguing in federal court that Bartko instead should have a “reasonable” sentence that would free him immediately. They say Bartko would still be barred from law and the securities industry, and that court-ordered restitution would, “for all intents and purposes, impoverish him.”

Bartko has been in jail since his conviction, awaiting sentencing. Sentencing is scheduled for 9 a.m. today in Courtroom 1 on the seventh floor of the Terry Sanford Federal Building at 310 New Bern Ave. in Raleigh.

Bartko is best known here for his role in representing a court-appointed receiver in a successful effort to obtain the return of millions of dollars raised by Hollenbeck from mom-and-pop investors and placed with a Montana coal mine. Bartko negotiated the return of $20 million from the mine operators, though he and another lawyer received criticism for taking $4 million in legal fees from that amount.

Bartko’s conviction relates to two investment plans that involved Hollenbeck raising money in a fraudulent way. Prosecutors say Bartko involved the Hollenbeck investors in losses of $3.4 million and knew about Hollenbeck’s fraudulent sales methods.

They also fault Bartko’s role in the coal mine recovery, saying that Bartko was actually defrauding the coal mine investors because he never repaid the part of the money that went toward a Bartko investment, not the coal mine.

Bartko’s lawyers say Bartko did not know that any of the money in either of his two investment funds had been raised illegally.

The defense attorneys say giving Bartko a 90-year sentence would be out of proportion to the crime, pointing out statistics that show that Bartko’s sentence would be longer than those handed out to convicted murderers, kidnappers and other criminals.

Hollenbeck, sentenced in 2008 to 14 years in prison, received a reduced sentence for testifying against Bartko and John Colvin, another Hollenbeck associate convicted in 2010 of fraud. Hollenbeck is slated for release in October 2015.”

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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Appeal

————————————————————–

To find additional federal criminal news, please read Federal Crimes Watch Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.