Xe Services LLC, the private security firm formerly known as Blackwater, reached an agreement with the State Department to pay a multi-million-dollar fine over alleged violations of U.S. export-control law. The agreement spares the firm from possible criminal charges over allegations that it violated arms export restrictions, and allows the company to continue doing business with the U.S. government. Among other things, the company was said to have proposed a package to train and equip the armed forces of southern Sudan, which emerged as an autonomous region after a U.S.-brokered peace deal in 2005. McClatchy newspapers reported details of Xe's Sudan business aspirations, which were said to include a proposal to train a security detail for south Sudanese leadership and a more ambitious deal worth $100 million to train and equip the south's army. Xe was under scrutiny for other alleged export violations. The company said in a statement that most of the alleged violations occurred while it was providing support for U.S. government programs, and that all but a few of the exports under investigation were eventually authorized. "Consistent with Xe Services' core mission of supporting U.S. interests, the State Department did not find that any of the alleged violations harmed U.S. national security or foreign policy interests," the company said. Xe Chief Executive Joseph Yorio said the agreement "reflects another step forward for Xe Services LLC on the path we started over 18 months ago to improve the internal compliance infrastructure while equally maintaining our focus on supporting the missions of our government and commercial customers." The company had a major deal to provide protective services to U.S. government officials in Iraq, but the firm lost its operating license there after a deadly shootout in Baghdad in 2007 claimed the lives of Iraqi civilians. The incident was a major political headache for the U.S. government, and put the company under intense scrutiny in Washington.
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