Lawyer quizzes Blackwater founder in UAE over fraud case
W.G. Dunlop
ABU DHABI, W.G. Dunlop- Blackwater private security firm founder Erik Prince was questioned on Monday in Abu Dhabi in connection with a fraud lawsuit filed by former employees that seeks millions of dollars in damages.
"Mr Prince did appear for his deposition", or questioning under oath, Susan Burke, the lawyer who questioned him, told AFP.
Burke represents two former Blackwater employees who filed the lawsuit in a US district court in Virginia, alleging that Prince and companies he controlled defrauded the US government.
"We had to go to court to compel the deposition," Burke said.
Court documents show that Prince was ordered to appear for the deposition in the United Arab Emirates after it emerged that he planned to move to the Gulf country.
Burke said it was too early to say exactly how much money the lawsuit is seeking. "My analysis is that by the time we reach the jury, we will be seeking hundreds of millions of dollars."
Most would go to the US government, she said, adding that former Blackwater employees Brad and Melan Davis, who filed the suit in December 2008, would also receive a percentage.
Citing the Davis' experiences, the suit alleges that Prince and companies he controlled defrauded the US State Department and Department of Homeland Security via "false records, statements, claims, and omissions," according to court documents.
Prince's lead attorney, Richard Beizer, did not respond to requests for comment. Burke said he was present at the deposition.
Blackwater gained notoriety in Iraq after guards protecting a convoy opened fire in a busy Baghdad square in September 2007, killing as many as 17 civilians.
The defendants in the suit are Prince, Blackwater Security Consulting LLC, Xe Services LLC, US Training Center Inc., Greystone Limited, and The Prince Group LLC, according to the second amended complaint in the case, which was filed on July 26.
Court documents show that soon after the complaint was filed, a dispute began over when and where Prince would be questioned, in light of his stated plans to move to Abu Dhabi.
Burke expressed fears that the move might allow him to avoid questioning and requested earlier this month that the court order Prince to appear for a deposition in the UAE.
"Prince may well change those visiting plans if he is indicted on weapons smuggling charges or other matters," Burke argued, noting that "his top management team already has been indicted."
Prince's lawyer insisted in a filed response that there was "no basis" for speculation that Prince might not return, and said a motion he had filed to dismiss the case could be granted, "obviating the need for Mr Prince's deposition."
On August 13, Magistrate Judge Thomas Jones ordered that the deposition be held in Abu Dhabi.
According to the lawsuit, Prince and his companies defrauded the US government on several counts between June 2005 and May 2009.
Prince and the companies allegedly inflated expenses, faked records of how many staff they employed, and billed the government for "worthless services" in Iraq and Afghanistan and in the aftermath of Hurricane Katrina which hit Gulf of Mexico states in 2005.
Brad Davis also said in a statement that he "personally observed three incidents (in Iraq) in which Blackwater personnel intentionally used excessive and unjustified force... to kill or seriously injure Iraqi civilians," and also witnessed possible weapons smuggling, court records show.
Melan Davis alleged that Blackwater billed the US government for strippers in Louisiana and for travel expenses, and a monthly salary for a prostitute in Afghanistan, according to court records.
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"We had to go to court to compel the deposition," Burke said.
Court documents show that Prince was ordered to appear for the deposition in the United Arab Emirates after it emerged that he planned to move to the Gulf country.
Burke said it was too early to say exactly how much money the lawsuit is seeking. "My analysis is that by the time we reach the jury, we will be seeking hundreds of millions of dollars."
Most would go to the US government, she said, adding that former Blackwater employees Brad and Melan Davis, who filed the suit in December 2008, would also receive a percentage.
Citing the Davis' experiences, the suit alleges that Prince and companies he controlled defrauded the US State Department and Department of Homeland Security via "false records, statements, claims, and omissions," according to court documents.
Prince's lead attorney, Richard Beizer, did not respond to requests for comment. Burke said he was present at the deposition.
Blackwater gained notoriety in Iraq after guards protecting a convoy opened fire in a busy Baghdad square in September 2007, killing as many as 17 civilians.
The defendants in the suit are Prince, Blackwater Security Consulting LLC, Xe Services LLC, US Training Center Inc., Greystone Limited, and The Prince Group LLC, according to the second amended complaint in the case, which was filed on July 26.
Court documents show that soon after the complaint was filed, a dispute began over when and where Prince would be questioned, in light of his stated plans to move to Abu Dhabi.
Burke expressed fears that the move might allow him to avoid questioning and requested earlier this month that the court order Prince to appear for a deposition in the UAE.
"Prince may well change those visiting plans if he is indicted on weapons smuggling charges or other matters," Burke argued, noting that "his top management team already has been indicted."
Prince's lawyer insisted in a filed response that there was "no basis" for speculation that Prince might not return, and said a motion he had filed to dismiss the case could be granted, "obviating the need for Mr Prince's deposition."
On August 13, Magistrate Judge Thomas Jones ordered that the deposition be held in Abu Dhabi.
According to the lawsuit, Prince and his companies defrauded the US government on several counts between June 2005 and May 2009.
Prince and the companies allegedly inflated expenses, faked records of how many staff they employed, and billed the government for "worthless services" in Iraq and Afghanistan and in the aftermath of Hurricane Katrina which hit Gulf of Mexico states in 2005.
Brad Davis also said in a statement that he "personally observed three incidents (in Iraq) in which Blackwater personnel intentionally used excessive and unjustified force... to kill or seriously injure Iraqi civilians," and also witnessed possible weapons smuggling, court records show.
Melan Davis alleged that Blackwater billed the US government for strippers in Louisiana and for travel expenses, and a monthly salary for a prostitute in Afghanistan, according to court records.
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