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Claim: Blackwater Billed US for ‘Morale Welfare Recreation’ Provided by Prostitute

Two former employees have accused Blackwater Worldwide of defrauding the government for years with phony billing, including charging for a prostitute, alcohol and spa trips.

February 11, 2010 |

The world’s oldest profession may have been subsidized by the US government during the war on terror.

“Two former employees of Blackwater Worldwide have accused the private security contractor of defrauding the government for years with phony billing, including charging for a prostitute, alcohol and spa trips,” Carol D. Leonnig reports for the Washington Post.

The article continues, “In newly unsealed court records, a husband and wife who once worked for Blackwater said they had personal knowledge of the company falsifying invoices, double-billing federal agencies and charging the government for personal and inappropriate items whose real purpose was hidden. They said they witnessed ‘systematic’ fraud on the company’s security contracts with the Department of State in Iraq and Afghanistan, and with the Department of Homeland Security and Federal Emergency Management Agency in Louisiana after Hurricane Katrina.”

Brad and Melan Davis worked in various Blackwater locations. Brad Davis, a former Marine, served as a team leader and security guard, including in Iraq. His wife, Melan Davis, worked as a finance and payroll employee, starting in Louisiana. They have filed their allegations that Blackwater defrauded the government as part of a false claims lawsuit, which allows the whistleblowers to win a portion of any public money that the government recovers as a result of the information. However, the Justice Department has chosen not to join them in pursuing their civil suit, a decision that led to the Davises’ claims being unsealed this week in a Virginia federal court.

The Davises assert that Blackwater officials kept a Filipino prostitute on the company payroll for a State Department contract in Afghanistan, and billed the government for her time working for Blackwater male employees in Kabul. The alleged prostitute’s salary was categorized as part of the company’s “Morale Welfare Recreation” expenses, they said.

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