DDTC Published Details of Consent Agreement with Xe Services LLC

08/23/10: Today, the U.S. Department of State posted the details of the Consent Agreement with Xe Services LLC (aka Blackwater Worldwide).  This information can be found at the PMDDTC Website.

Available on the website are:

• A Draft (proposed) Charging letter that provides insight on disclosures, violations and charges  listed by the U.S. Government against Blackwater in this matter and steps to be taken should Blackwater receive a formal charging letter should the matter not be settled through a consent agreement pursuant to § 128.11 of the ITAR.;
• The Consent Agreement, detailing remedial and strengthened compliance measures that Blackwater will implement during the four (4) year period the agreement is in effect; and
• The Order that details the payment of the fines, the timeframe for payment and the disposition and potential suspension of a portion of the fine based on remedial compliance performance.

Summary:

• 288 charges for violations of the ITAR occurring over the course of several years, beginning in 2005 that were either voluntarily disclosed (15) or the result of State Department directed disclosures (16) including the unauthorized shipment of controlled items, technical data and provision of defense services and training.
• A Consent Agreement that will be in force for four (4) years requiring Xe Services (Blackwater) to appoint a Special Compliance Official to provide oversight of compliance activities, implement specific policies and procedures to meet compliance criteria and report to DDTC an accounting of such measures, provide for training of staff on a regular basis, implement an Automated Export Compliance System, audit and potentially adjust the compliance activities, and meet the proscribed penalties according to a specific timetable. 
• Pay:
• $6 million to the U.S. Department of State within 15 days;
• $6 million each year  to the U.S. Department of State over the next four years for a total of $24 million;
• Suspend $6 million in recognition of funds already applied to pre-Consent Agreement compliance activities; and 
• Suspend $6 million in recognition that Xe will apply these funds to post-Consent Agreement remedial compliance measures over a period of 48 months.