Blackwater (company)

Constellis Holdings, Inc.
Company type	Private
Industry	Private military contractor, security services
Founded	December 26, 1997; 28 years ago
Founder	Erik Prince
Headquarters	United States
Area served	United States federal government, international security contracts
Products	Contracted security services, training, logistics support, aviation services
Owner	Private investors (USTC Holdings consortium)

Constellis, previously known as Blackwater, is a U.S.-based private military contractor established on December 26, 1997, by former Navy SEAL officer Erik Prince. The company underwent rebranding to Xe Services in 2009 and was renamed Academi in 2011 following acquisition by private investors. In 2014, Academi merged with Triple Canopy, resulting in the creation of Constellis Holdings.

Throughout its history, Constellis and its antecedents have delivered contracted security services to the United States federal government, including providing support to the Central Intelligence Agency since 2003.

Blackwater attracted significant attention in 2007 due to the Nisour Square massacre in Baghdad, where its personnel were responsible for the deaths of 17 Iraqi civilians and injuries to 20 others. Four employees were convicted in U.S. courts but subsequently received pardons on December 22, 2020, granted by President Donald Trump.

Foundation as a training facility

Blackwater USA was launched on December 26, 1996, by Al Clark and Erik Prince in North Carolina with the objective of offering training services for military and law enforcement agencies. Prince envisioned the company’s mission as transforming national security support in a manner comparable to how FedEx revolutionized postal services.

Prince purchased approximately 7,000 acres of land within the Great Dismal Swamp situated along the North Carolina–Virginia boundary to develop a private training ground and contracting enterprise named Blackwater, inspired by the dark peat waters of the swamp. He indicated that securing 3,000 acres was essential for safety measures.

The Blackwater Lodge and Training Center officially opened on May 15, 1998. This $6.5 million investment covered a 6,000-acre site managed by Robert Anderson and featured indoor and outdoor shooting ranges, urban combat simulation areas, an artificial lake, and a driving course spanning Camden and Currituck counties. The company asserts this is the largest facility of its kind in the United States. Although initially operating at a loss, Blackwater maintained financial viability through revenue generated by its affiliate, Blackwater Target Systems.

2002–2007: Blackwater Security Company era

Investigative journalist Jeremy Scahill stated that Blackwater Security Company (BSC) was established by Jamie Smith, a former CIA officer who served as vice president of Blackwater USA and founding director of BSC. However, this account is contested by Erik Prince and executive Gary Jackson, who claim Smith was dismissed after a 30-day contract citing "non-performance." Additionally, Smith has faced allegations of exaggerating his military background to mislead investors associated with SCG International Risk.

2003–2006: Early contracts

BSC’s first assignment entailed deploying 20 personnel with top-secret clearances to safeguard CIA headquarters and a facility targeting Osama bin Laden. Organized as a Delaware LLC, Blackwater was among more than sixty private security companies contracted during the Iraq conflict to protect officials, train Iraqi security forces, and support coalition operations.

Significantly, Gulmurod Khalimov—a former Tajik OMON sniper who later became an Islamic State war minister—underwent multiple training sessions with both Blackwater and the U.S. Army from 2003 through 2015, as confirmed by the U.S. State Department.

Following Hurricane Katrina, Blackwater was engaged by the U.S. Department of Homeland Security to secure government properties and also provided services to private sector clients in communications, petrochemical industries, and insurance. During this timeframe, the company secured government contracts exceeding $1 billion. Its operations included nine divisions alongside a subsidiary named Blackwater Vehicles.

In August 2003, Blackwater obtained a $21 million contract to deliver personal security details and helicopter support for Paul Bremer, then head of the U.S. occupation authority in Iraq.

By July 2004, the U.S. State Department approved Blackwater under the Worldwide Personal Protective Services (WPPS I) contract framework. The company’s inaugural WPPS task was securing the provisional U.S. Embassy in Baghdad. Although Triple Canopy and DynCorp were also certified under WPPS I, Blackwater received most diplomatic security assignments within Iraq and had authorization to deploy up to 482 personnel (excluding subcontractors) over two years. The full extent of its non-diplomatic missions in Iraq or potential deployments in Afghanistan, Bosnia, and Israel remains less documented.

Between July 2004 and June 2006 alone, Blackwater earned $488 million from WPPS I contracts—surpassing the five-year contract ceiling estimated at around $332 million. This substantial expenditure prompted an investigation by a House Committee and led to implementation of competitive bidding procedures for the subsequent WPPS II contract.

In response to Hurricane Katrina in September 2005, Blackwater deployed roughly 200 staff members along with a rescue helicopter for disaster relief operations—164 personnel contracted through the Federal Protective Service—to protect federal facilities at an approximate daily cost of $240,000 borne by the government.

The WPPS II contract commenced in July 2005 introduced competitive bidding with a strict cap of $1.2 billion per contractor. Blackwater qualified alongside Triple Canopy and DynCorp for deployments in challenging environments such as Jerusalem, Afghanistan, Bosnia, and Iraq. By May 2006, WPPS II authorized Blackwater to field up to 1,020 personnel in Iraq including embassy security teams.

Operating as a privately held entity with limited public disclosure requirements at that time, Blackwater received payments exceeding $832 million for work performed under WPPS I and II contracts from 2001 through 2006.

Leadership

From 2006 to 2008, Cofer Black held the position of vice-chairman. He previously directed the CIA's Counterterrorist Center during the events of the September 11 attacks and served as the State Department's Ambassador-at-Large and coordinator for counterterrorism between 2002 and 2004. After his government tenure, he chaired Total Intelligence Solutions, Inc., an intelligence firm, and also served as vice-chairman of Blackwater.

Robert Richer, who was vice president of intelligence until 2007 before founding Total Intelligence Solutions, had earlier overseen the CIA's Near East Division.

2006–2007: Establishment of New Training Facilities

In November 2006, Blackwater purchased a training site located west of Chicago in Mount Carroll, Illinois, which was named Impact Training Center. This facility became operational in April 2007 and caters to law enforcement agencies throughout the Midwest.

Blackwater sought to establish another training center near Potrero, California, east of San Diego, aimed at serving military and law enforcement personnel. However, this plan encountered significant resistance from local communities, environmental advocates, Congressman Bob Filner, and anti-war activists. Their concerns included wildfire hazards, the site's closeness to Cleveland National Forest, noise disturbances, and opposition related to Blackwater’s activities in Iraq. The company assured stakeholders that no explosives or tracer rounds would be employed at the facility.

During the October 2007 wildfires in California, Blackwater assisted roughly 300 residents trapped nearby by supplying food, water, hygiene items, and fuel. They also set up a temporary shelter for those evacuated. On March 7, 2008, Blackwater officially withdrew its application for the San Diego County training facility.

2007–2009: Transition to Blackwater Worldwide

Following the Nisour Square massacre in October 2007, Blackwater USA rebranded itself as Blackwater Worldwide. Along with adopting a new logo that minimized the "cross hair" reticle design, this change aimed to present a more corporate and professional image.

On July 21, 2008, Blackwater Worldwide announced a strategic pivot away from high-risk security contracting. Founder and CEO Erik Prince remarked that their experiences would serve as a deterrent for other firms considering full commitment to this sector.

2009–2010: Rebranding as Xe Services LLC

In February 2009, the company underwent restructuring and changed its name to "Xe Services LLC," shifting focus toward logistics support, aviation services, and training rather than direct security operations.

Erik Prince stepped down as CEO on March 2, 2009; he retained his role as chairman but withdrew from daily operational management. Joseph Yorio was appointed president and CEO, succeeding Gary Jackson as president and Prince as CEO. Danielle Esposito assumed the role of chief operating officer and executive vice president.

2010–2014: Emergence of Academi

In 2010, USTC Holdings—a consortium of investors—acquired Xe Services, concluding Erik Prince's management involvement. The company was renamed "Academi" in 2011. Its Board of Directors featured prominent individuals such as former Attorney General John Ashcroft, former White House Counsel Jack Quinn, retired Admiral and former NSA Director Bobby Ray Inman, and Texas entrepreneur Red McCombs (chairman). Both Quinn and Ashcroft served as independent board members.

In May 2011, Ted Wright was appointed CEO and brought on Suzanne Rich Folsom as chief regulatory and compliance officer. The Regulatory and Compliance team at Academi earned the National Law Journal’s Corporate Compliance Office of the Year Award in 2012. That same year, retired Brigadier General Craig Nixon took over as CEO.

2014–present: Constellis Holdings

Academi combined with Triple Canopy and several other firms to form Constellis Holdings, Inc., bringing together companies such as Strategic Social, Tidewater Global Services, National Strategic Protective Services, and the Academi Training Center under one umbrella.

In 2015, six Colombian contractors working for Academi lost their lives in Yemen during operations connected to the United Arab Emirates’ campaign against the Houthi rebels. The following year, Houthi sources claimed missile attacks resulted in over 120 mercenary casualties within coalition forces, including foreign Blackwater officers.

Apollo Global Management acquired Constellis in September 2016. By early 2020, after a reduction in international contracts and rising domestic startup expenses, Constellis began negotiations for debt restructuring following a missed payment obligation exceeding $1 billion. In February 2020, the company moved its worldwide headquarters to Herndon, Virginia.

Board of directors

Red McCombs (chairman)
John Ashcroft
Dean Bosacki
Jason DeYonker
Bobby Ray Inman
Jack Quinn
Russ Robinson

Services and products

Academi delivers a broad range of security-related training and consultancy services.

United States Training Center

The United States Training Center (USTC), previously known as the Blackwater Training Center, offers comprehensive instruction in tactics and firearms for military personnel, government agencies, and law enforcement. Training programs include close-quarters combat, precision rifle shooting, and tactical off-road driving. The main campus covers roughly 7,000 acres in northeastern North Carolina, featuring extensive shooting ranges and urban simulation facilities. Additionally, a secondary site called Hollow Training Center near Chicago caters to law enforcement agencies across the Midwest.

In 2011, USTC was awarded a Pentagon contract to provide intelligence analyst support for NATO missions addressing the Afghan narcotics trade.

Maritime security service

Academi provides maritime force protection training to naval units globally. Previous clients include Greek security teams during the 2004 Olympic Games, Azerbaijan Naval Sea Commandos, and Afghanistan’s Ministry of Interior. The training infrastructure includes an artificial lake equipped with mock ship environments designed for maritime assault exercises. After the USS Cole bombing, Blackwater conducted training for U.S. Navy personnel under the direction of Jamie Smith. The company also operates the M/V McArthur vessel, outfitted with state-of-the-art navigation and communication technology for disaster response and training purposes; this ship is based in Norfolk, Virginia.

Canine training

The firm specializes in training dogs for patrol roles such as explosives detection and narcotics identification tailored for military and law enforcement use.

Security consulting

Blackwater Security Consulting (BSC), established in 2001 by former CIA officer Jamie Smith, offers private security solutions including protection of dignitaries and facilities, training Iraqi military and police forces during the Iraq conflict, and supporting coalition operations. Initially concentrating on SEAL combat training post-9/11, BSC expanded substantially following government demands for increased contractor deployment overseas.

Academi’s most prominent public contract is with the U.S. State Department’s Bureau of Diplomatic Security through Worldwide Personal Protective Services (WPPS) agreements encompassing Iraq, Afghanistan, Bosnia, and Israel.

Target systems

Academi has engineered proprietary "shoot house" training setups, including the patented BEAR multi-target system, designed to significantly improve firearms training outcomes.

Armored vehicles

The company offers its own armored personnel carrier, known as the Grizzly APC, and has also employed Cougar MRAP vehicles supplied by Force Protection Inc. to ensure secure transport operations.

Aviation Worldwide Services

Established by Richard Pere and Tim Childrey in Melbourne, Florida, Aviation Worldwide Services (AWS) encompassed subsidiaries such as STI Aviation, Air Quest, and Presidential Airways. Blackwater USA acquired AWS in April 2003 for $200 million before selling it to AAR Corp. in 2010. AWS conducted FAA Part 135 charter cargo and passenger flights primarily supporting U.S. military contracts in Afghanistan and Central Asia. Presidential Airways maintains a Secret Facility Clearance granted by the Department of Defense.

AWS operated a diverse fleet including CASA 212 aircraft—one of which was involved in a fatal accident in Afghanistan in 2004—MD-530 helicopters utilized by Blackwater Security Consulting in Iraq, Bell helicopters, and fixed-wing aircraft like the Embraer EMB 314 Super Tucano counterinsurgency planes.

Greystone Limited

Since its acquisition by current leadership in 2010, Greystone functions autonomously, delivering protective services and training worldwide. The company is registered in Barbados with affiliates such as Satelles Solutions Inc., employing former military personnel for offshore security tasks. Initially envisioned by Erik Prince for peacekeeping missions like those planned for Darfur, Greystone’s proposed Subic Bay training center was ultimately discontinued.

Former international services

Blackwater provided a range of global services including airlift, security logistics, transportation, and humanitarian assistance. This included post-Hurricane Katrina relief efforts under Department of Homeland Security contracts that protected government facilities at a daily cost of $240,000 to taxpayers.

In September 2007, Blackwater secured a potential $15 billion contract from the Department of Defense to support counter-narcotics operations alongside major defense contractors such as Raytheon, Lockheed Martin, and Northrop Grumman. The company assisted DEA and DoD counternarcotics initiatives in Afghanistan by offering interdiction training and mentoring Afghan personnel.

Under the Obama administration, Academi received a $250 million contract to aid U.S. State Department and CIA missions in Afghanistan.

Blackwater has also trained foreign military forces, including Azerbaijan’s Naval Sea Commando regiment to enhance interdiction capabilities on the Caspian Sea, and held contracts protecting Japanese missile defense radar installations.

At an international conference held in Amman, Jordan in March 2006, Blackwater indicated willingness to deploy security personnel at brigade strength for humanitarian missions; however, the company publicly refuted these assertions.

There were reports linking Blackwater to CIA-run covert operations targeting Al Qaeda abroad; some sources claimed involvement in "snatch-and-grab" actions within Pakistan under Obama-era contracts—allegations that Blackwater representatives denied, emphasizing their limited operational footprint.

Contracts

During the Iraq conflict, Blackwater Worldwide obtained substantial contracts from the U.S. government, beginning with a $21 million no-bid agreement in 2003 to provide security for Coalition Provisional Authority leader L. Paul Bremer. From June 2004 onward, the company received more than $320 million through a five-year State Department program for Worldwide Personal Protective Service contracts, tasked with safeguarding U.S. officials around the globe.

In 2006, Blackwater was assigned protection responsibilities at the U.S. embassy in Baghdad—the largest American diplomatic mission worldwide—where estimates suggest that at peak periods as many as 30,000 armed private security personnel operated.

The firm sourced personnel internationally from a database exceeding 21,000 former special forces operatives worldwide, including individuals from Bosnia, the Philippines, Chile, and other countries, filling diverse roles such as airport security and protection of high-ranking officials.

Between 2005 and September 2007, Blackwater staff were involved in multiple shooting events; company executives asserted these incidents complied with government orders and were frequently triggered by vehicles failing to adhere to established security procedures.

Michael Hayden, former CIA director, confirmed that contractors like Blackwater were authorized by the government to carry out enhanced interrogation methods, including waterboarding.

Fallujah and Najaf

On March 31, 2004, Iraqi insurgents ambushed two Blackwater SUVs near Fallujah, killing four contractors. Their bodies were publicly displayed, sparking a U.S. Marine Corps counter-operation known as Operation Vigilant Resolve (the First Battle of Fallujah). A congressional investigation later determined that members of the Iraqi Civil Defense Corps assisted in the ambush, while probes into the contractors’ deaths were hindered by Blackwater personnel.

In April 2004, during an assault on U.S. headquarters in Najaf by Shiite militia using RPGs and small arms over several hours until Special Forces arrived for relief, Blackwater contractors played a crucial role in resupplying under heavy enemy fire.

Nisour Square Incident

On September 16, 2007, Blackwater contractors opened fire while escorting a U.S. State Department convoy in Baghdad’s Nisour Square, resulting in the deaths of 17 Iraqi civilians. Following this event, Iraqi authorities revoked Blackwater’s operating license. Although the U.S. government temporarily reinstated it, Iraq declined to renew the license again in early 2009 amid ongoing disputes.

Investigations uncovered contradictory forensic findings concerning bullet trajectories and matches; founder Erik Prince refuted accusations ranging from negligence to intentional killing as unfounded despite widespread condemnation.

Additional Incidents

Significant occurrences include:

February 16, 2005: Unprovoked firing into a civilian vehicle during convoy escort; a State Department inquiry revealed falsehoods in guards’ statements.
February 6, 2006: Sniper shots from the Iraqi Justice Ministry rooftop killed three Iraqi media security personnel; this was ruled consistent with authorized use-of-force protocols.
April 21, 2005: Six contractors perished when their Mil Mi-8 helicopter was downed.
An incident within Baghdad’s Green Zone involved Blackwater operatives disarming U.S. soldiers at gunpoint following a car accident.
December 24, 2006: The fatal shooting of an Iraqi vice president’s guard allegedly involved intoxicated Blackwater employee Andrew J. Moonen who was subsequently dismissed; the Department of Justice declined prosecution citing self-defense.
Investigations into arms trafficking accusations did not result in charges.
January 23, 2007: Five contractors killed when their helicopter was shot down; some victims were reportedly executed after the crash.
Multiple episodes in May 2007 where Blackwater personnel discharged weapons at civilians or vehicles perceived as threats.
August 21, 2007: Internal records documented intimidating conduct toward a State Department investigator prior to the Nisour Square shooting.
WikiLeaks Iraq War logs exposed serious contractor abuses including civilian fatalities.

U.S. Congress

On October 2, 2007, Erik Prince appeared before Congress amid investigations into contractor behavior. He declined to disclose financial documents, citing the private nature of his company, but defended his employees' conduct, noting that disciplinary measures were limited to termination or dismissal.

A report from a House Committee raised concerns about cost efficiency, pointing out that contractor fees were six times greater than those for comparable military personnel. Prince responded by emphasizing the specialized training costs that justified these higher rates.

Legislative amendments broadened the scope of the Military Extraterritorial Jurisdiction Act to encompass all security contractors operating overseas. This led to a few prosecutions, primarily involving attacks on U.S. citizens; however, legal uncertainties remained due to immunity provisions under CPA Order 17, signed by L. Paul Bremer, which shielded American contractors from Iraqi law enforcement during the occupation.

In response to public criticism over contractor conduct, new State Department regulations required increased oversight measures, including video monitoring of armored vehicles. Despite this, political influences resulted in announcements by early 2009 that contracts would not be renewed, although operational activities continued through subsidiaries such as Presidential Airways.

By August 2010, Academi agreed to pay $42 million in fines to resolve export violation charges without admitting wrongdoing while maintaining eligibility for future government contracts.

Iraqi courts

Iraq pursued criminal charges against Blackwater personnel following several shooting incidents but encountered delays due to immunity protections. These immunities were only lifted after diplomatic efforts failed to secure enforceable prosecutions either domestically or internationally, compounded by challenges related to the credibility of Iraqi investigators as questioned by U.S. officials.

Multiple Iraqi families initiated lawsuits alleging unlawful killings; however, trials were improbable because of jurisdictional complications. Federal prosecution attempts faced hurdles linked to evidentiary requirements necessary for convictions under the Military Extraterritorial Jurisdiction Act, which governs civilian contractors supporting military missions abroad.

Lawsuits

Relatives of contractors killed during the Fallujah ambush filed suits against Blackwater seeking disclosure regarding the circumstances of their deaths but were met with countersuits invoking contractual clauses barring litigation. After lengthy legal proceedings, courts dismissed these claims without delivering significant relief to the plaintiffs.

Wrongful death claims also emerged from aviation incidents involving company-operated aircraft contracted by the U.S. Air Force, resulting in fatalities during overseas logistical support missions.

Civil litigation under the Alien Tort Claims Act accused Blackwater of war crimes connected to the Nisour Square shootings, alleging widespread lawlessness including employee use of performance-enhancing drugs. Revised complaints broadened accusations to include murder and other grave offenses, culminating in confidential settlements where plaintiffs received compensation without any admission of liability.

Federal legal actions

In August 2012, Academi consented to pay $7.5 million in penalties to settle allegations related to misconduct by personnel prior to the company's rebranding, without admitting any wrongdoing; later case dismissals occurred after evidence confirmed that the conduct was consistent with government directives during conflict operations, highlighting the distinct separation between former Blackwater leadership and the current ownership.

After five security contractors were convicted for their roles in the Nisour Square incident—including manslaughter sentences reaching up to thirty years—appeals prompted reviews of their resentencing, while one murder conviction was overturned pending additional judicial examination.

In December 2020, President Donald Trump granted pardons to four ex-contractors imprisoned for offenses connected to the Nisour Square event, sparking both national and international backlash as many viewed it as a tacit approval of impunity amid ongoing concerns about accountability for civilian casualties during private military operations in the Iraq War.

External links

Official website

Media

Shadow Company: documentary featuring footage of contractor operations
"Private Warriors" Frontline episode featuring private security firms