As Military Contractors Face Scrutiny; A Look at Erik Prince's Controversial 'Blackwater Worldwide'

Blackwater was awarded $1.6B in federal contracts and $600M in CIA deals since 2001.

PUBLISHED DEC 3, 2023

Founder and CEO of Blackwater Erik Prince participates in a session during the annual Conservative Political Action Conference (CPAC) at Gaylord National Resort & Convention Center on March 4, 2023 in National Harbor, Maryland. Conservatives gathered at t

Erik Prince is an American businessman and former US Navy SEAL whose net worth is estimated at a substantial $2 billion dollars. He is known for founding and owning the military contractor XE, widely recognized as Blackwater Worldwide, a company that engaged in covert government operations. However, this enterprise faced intense scrutiny for human rights violations in 2007, leading to Erik's decision to step down as its leader in 2009. But even before Blackwater, a significant portion of Prince's wealth is derived from his family's automotive accessory empire, established by his father.

Erik Prince, chairman of the Prince Group, LLC and Blackwater USA, testifies during a House Oversight and Government Reform Committee hearing on Capitol Hill October 2, 2007 in Washington DC. The committee is hearing testimony from officials regarding private security contracting in Iraq and Afghanistan. Getty Images | Photo by Mark Wilson

Blackwater in the theatre of war

Established in 1997, Blackwater holds the distinction of being the largest private military company globally. Notably, it has been awarded more than $1.6 billion in federal contracts. Moreover, the company is reported to have secured classified contracts from the Central Intelligence Agency (CIA) amounting to a staggering $600 million since 2001. Following Erik's departure, Blackwater underwent a change in ownership, with a group of investors acquiring it in 2010, before rebranding it as Academi in 2011. In 2013, Erik Prince authored the book "Civilian Warriors: The Inside Story of Blackwater and the Unsung Heroes of the War on Terror," shedding light on the company's inner workings.

Shadows of the Iraq War

Blackwater, a private military and security company founded by Erik Prince in 1997, emerged as a major player during the Iraq war. The company secured contracts to provide security services to various U.S. government agencies, making it an essential part of the U.S. military presence in Iraq. Blackwater's involvement in the Iraq war, including the killing of civilians, brought it to the forefront of public scrutiny and controversy.

Allegations of war crimes

Blackwater and Erik Prince faced numerous allegations of war crimes and misconduct during the Iraq war. The most infamous incident was the Nisour Square massacre in 2007, where Blackwater personnel were involved in a shooting that resulted in the deaths of seventeen Iraqi civilians.

The Nisour Square incident was a turning point, as it raised questions about the behavior of private military contractors in a war zone. It prompted further investigations into the conduct of Blackwater and its personnel, ultimately contributing to a tarnished reputation.

Erik Prince's resignation

Amid mounting legal challenges and heightened scrutiny, Erik Prince chose to step down from his role as the CEO of Blackwater in 2009. The controversy surrounding Blackwater's activities in Iraq and its reputation became increasingly untenable, and Prince sold the company.

Prince's resignation was seen as a strategic move to distance himself from the crimes at Blackwater. While it marked his exit from the company he founded, it did not shield him from ongoing legal battles and public attention.

Erik Prince, chairman of the Prince Group, LLC and Blackwater USA, is sworn in during a House Oversight and Government Reform Committee hearing on Capitol Hill October 2, 2007 in Washington DC. The committee is hearing testimony from officials regarding private security contracting in Iraq and Afghanistan. Getty Images | Photo by Mark Wilson

Fraud case and allegations

In sworn statements submitted as part of the case, former Blackwater employees made explosive allegations, including claims that Prince may have been involved in the murder of individuals cooperating with federal authorities investigating the company.

These individuals also alleged that Blackwater was engaged in smuggling weapons into Iraq and that Erik Prince, in their view, perceived himself as a "Christian crusader" with a mission to eliminate Muslims and Islam. These allegations fueled the already raging controversy surrounding Prince and his companies.

The fraud case and the allegations against Erik Prince and Blackwater have continued to generate public and legal scrutiny. This ongoing legal battle has kept the controversies alive, ensuring that Prince remains a figure of interest and concern.