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We Paid for What?? Fraudulent Billing Suit Filed Against Blackwater

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By Tanya Roth, Esq. on February 12, 2010 11:50 AM

Maybe the U.S. government should put a revolving door on the nearest federal courthouse specifically for use by the company formerly known as Blackwater. A report by the Washington Post today, reveals yet another suit against the embattled company (now known as Xe Services, LLC) by two former employees who filed a false claims lawsuit which allows the employees, acting as whistleblowers, to win a portion of any public money that the government recovers as a result of the information.

According to the suit by Melan and Brad Davis, Blackwater allegedly committed "systematic fraud" through double billing, fraudulent billing practices, and adding inappropriate charges to their invoices under the security contracts between the company and the State Department for services in both Iraq and Afghanistan. 

According to the Post's report, both Brad and Melan Davis were employed by Blackwater. Brad Davis was a former Marine and served as a team leader and security guard, including in a posting in Iraq. Melan Davis worked as a finance and payroll employee, beginning in Louisiana, where she claims she had ample opportunity to observe the alleged fraud. Among the fraudulent activities the Davises allege in their suit, was over-billing for travel through a hotel in Amman, Jordan, and extra charges for a having a fire pit built for Blackwater staff parties. And that's not all.

The claim that will make most taxpayers see a truly vibrant shade of red is the allegation made by the Davises that the government was charged for the services of a prostitute kept on "staff" in Afghanistan. Her services were supposedly listed as part of the company's "Morale Welfare Recreation." Finally, the Post writes that the Davises' claims included the company charging the government for liquor and spa trips. Which one of these gun-totin' rough and tough Blackwater boys do you suppose needed a spa day?

The Post was unable to reach a company spokesperson for comment on this story.

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