Blackwater accused of charging taxpayers for prostitutesSubmitted by pseudonym on Thu, 02/11/2010 - 11:10
2 Ex-Workers Accuse Blackwater Security Company of Defrauding the U.S. for Years
WASHINGTON — Two former employees of Blackwater Worldwide have accused the private security company of defrauding the government for years by filing bogus receipts, double billing for the same services and charging government agencies for strippers and prostitutes, according to court documents unsealed this week.
In a December 2008 lawsuit, the former employees said top Blackwater officials had engaged in a pattern of deception as they carried out government contracts in Iraq and Afghanistan, and in Louisiana in the aftermath of Hurricane Katrina.
The lawsuit, filed under the False Claims Act, also asserts that Blackwater officials turned a blind eye to “excessive and unjustified” force against Iraqi civilians by several Blackwater guards.