Blackwater/Xe Front Companies Chart

The following information is taken from a hearing of the Senate Armed Services Committee on February 25, 2010.  For more information on the subject, please read Blackwater Used More Than 30 Front Companies to Obtain Government Contracts.  Thanks to Corey Pein of War Is Business for transcribing all the information contained in the practically illegible SASC-014704.

Blackwater/Xe Services LLC Front Companies Chart

List of Front Companies

Prince Group LLC
Michigan LLC
President: Erik D. Prince
Description of Services: Manager of Xe Services LLC, and the parent company of Total Intelligence Solutions LLC and its affiliated companies

Xe Services LLC
(f/k/a EP Investments, L.L.C.)
Delaware LLC
Member: Erik D. Prince
Manager: Prince Group, LLC
President: Joseph Yorio
Ex. VP/COO: Danielle Esposito
Ex. VP/CSO: Fred Roitz
Sr. VP/Facility Svcs & Logistics: Todd Shaw
CFO: Mike Taylor
VP Facility Services: Jim Dehart
VP Export Compliance: Karen Jones
VP Risk Manager: Bryan Salek
VP of Budgets and Analysis: John Altizer
VP of WPPS Programs: Tony Valusek
Acting General Counsel: David Hammond
Secretary: Fred Roitz
Description of Services: Provides private sector solutions to US Government and Non-US Government clients

Total Intelligence Solutions LLC
Chairman: Erik D. Prince
Acting Pres: Victor Esposito
Acting COO: Melinda Redman
Secretary: Melinda Redman
Description of Services: Provides risk management and security services to Fortune 500 and Government clients

Technical Defense, Inc.
Chairman: Erik D. Prince
Acting Pres: Victor Esposito
Acting COO: Melinda Redman
Secretary: Melinda Redman
Description of Services: Provides information technology security assessments

Terrorism Research Center, Inc.
Chairman: Erik D.Prince
Acting Pres: Victor Esposito
Acting COO: Melinda Redman
Secretary: Melinda Redman
Description of Services: Provides training services to US and foreign military, intelligence communities, and law enforcement clients

Apex Management Solutions LLC
Delaware LLC
Member: XeServices LLC
Manager: Xe Services LLC
President/Secretary/Treasurer: Pending
Description of Services: Provides management services to Samarus-owned companies

Aviation Worldwide Services LLC
Florida LLC
Member: Xe Services LLC
Manager: Richard Pere
Description of Services: Holding company that owns subordinate operating companies, some aircraft utilized by its subordinates

Air Quest, Inc.
Florida Corp.
Shareholder: AWS
President: Richard Pere
VP: Timothy Childrey
Secretary: John Hight
Treasurer: Richard Pere
Description of Services: FAA Part 125 aircraft carrier [check for planes]

Backup Training LLC
Delaware LLC
Member: Xe Services LLC
Manager: Xe Services LLC
President: Richard Gallia
Description of Services: Creates instructional videos and DVD’s

EP Aviation LLC
Delaware LLC
Member: Xe Services LLC
Managers: Chris Burgess & Robert Tanenholt
Description of Services: Owns and leases aircraft [check planes]

Presidential Airways Inc.
Florida Corp.
Shareholder: AWS
President: Richard Pere
VP: Timothy Childrey
Secretary: John Hight
Treasurer: Richard Pere
Description of Services: FAA Part 135 aircraft carrier [check planes]

Blackwater Proshop LLC
Delaware LLC
Member: Xe Services LLC
Manager: Michele Bogo
Description of Services: Retail shop for Blackwater, US Training Center and Xe items

EP Management Services LLC
Delaware LLC
Member: Xe Services LLC
Managers: Xe Services LLC
Description of Services: Provides management and general and administrative services to all Xe companies

Guardian Flight Systems LLC
(f/k/a Blackwater Airships LLC)
Delaware LLC
Member: AWS
Manager: Richard Pere
Description of Services: Unmanned airships [check planes]

BWT Services LLC
Delaware LLC
Member: Xe Services LLC
Manager: Xe Services LLC
President: Carol Bruce
Description of Services: Supports travel all Xe companies

GSD Manaufacturing LLC
(f/k/a Blackwater Target Systems LLC)
Delaware LLC
Member: Xe Services LLC
Manager: Xe Servcies LLC
Description of Services: Builds target systems

STI Aviation Inc.
Florida Corp.
Shareholder: AWS
President: Richard Pere
VP: Timothy Childrey
Secretary: John Hight
Treasurer: Richard Pere
Description of Services: FAA Part 145 repair station [check planes]

E & J Holdings LLC
Delaware LLC
Member: Xe Services LLC
Manager: Xe Services LLC
Description of Services: Real Estate holding company

Samarus CO LTD
Cyprus
Member: Xe Services LLC
Director: Chris Burgess
Description of Services: Foreign holding company

Greystone LTD
Barbados
Chris Burgess, Managing Director
Robert Tanenholt, Director
Description of Services: Provides training, security services, and aviation-related training and personnel

E & J Leasing LLC
Delaware LLC
Member: Xe Services LLC
Manager: Xe Services LLC
Description of Services: Real Estate leasing company

XPG LLC
Delaware LLC
Member: Xe Services LLC
Acting Manager: Victor Esposito
Description of Services: Provides classified services

Greystone SRL
Barbados
Chris Burgess, Manager
Robert Tanenholt, Manager
Description of Services: Provides training and security services

Paravant LLC
Delaware LLC
Member: Xe Services LLC
Manager: Hugh Middleton
Description of Services: Provides training services

Pelagian Maritime LLC
Delaware LLC
Member: Xe Services LLC
Manager: Xe Services LLC
Description of Services: Holding company/owner of the McArthur ship

Salamis Aviation LLC
Bahamas
Chris Burgess, President
Description of Services: Aviation asset holding company [check planes]

Al-Zulama Company
Iraq
Chris Burgess, Managing Director
Description of Services: Provides security services within the country of Iraq

Raven Development Group LLC
Delaware LLC
Member: Xe Services LLC
Manager: Xe Services LLC
Description of Services: Provides construction and facilities maintenance

U.S.Training Center, Inc.
(f/k/a Blackwater Lodge and Training Center, Inc.)
Delaware Corp
President: Jim Sierawski
VP: John LaDelfa
Secretary: Fred Roitz
Treasurer: Adam Burke
Description of Services: Provides security, training, and logistics services

Blackwater West LLC
Delaware LLC
Member: U.S.T.C.
Manager: U.S.T.C.
Description of Services: Provides same services as USTC for California and surrounding western states

ARES Holdings, Inc.
Virginia LLC (49% ownership)
Description of Services: Engineering and R&D company

Blackwater Security Consulting LLC
Delaware LLC
Member: U.S.T.C.
Manager: U.S.T.C
Description of Services: Provides training and security services

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10 comments for “Blackwater/Xe Front Companies Chart

  1. 49 Pan
    September 6, 2010 at 9:10 am

    It all looks so terrible, until you understand government contracting. The gov desires a certain percentage of any contract to be small business. So Blackwater owns a number of them. Also, by breaking Blackwater up into functional area business units there are many advantages. For example they can compete for contracts as small businesses. Liability is limited if one of the companies fail or get sued.

    This is not new. Look at Boeing, L3, DynCorp. They are all working like this. Calling them front companies implies fraud. All of blackwaters problems I don’t think fraud in reporting is one.

    • Public Intelligence
      September 6, 2010 at 1:43 pm

      Read the accompanying material linked to at the top of the page. The New York Times calls them front companies. Senators refer to them as front companies. They are front companies, whether or not we choose to refer to them as such and regardless of their commonalities with other operations.

      Plus, we might add that while everything you say is true, it still does constitute unethical behavior. For example, when you say that they can “compete for contracts as small businesses” this may be technically legal, but it remains completely unethical and a blatant manipulation of regulations put into effect to further actual goals beyond making money. Small business contracting regulations are in place to encourage smaller businesses to participate in government contracting and prevent overaccumulation of contracts to the larger companies you mentioned. The regulations are not there so that large companies can set up a network of shell companies to circumvent the rules and get the contracts anyway.

  2. September 7, 2010 at 8:12 am

    In response to both 49 Pan and Public Intelligence…

    you both are correct, numerous large companies, especially the large defense contractors have been using subsidiaries and front companies for years in order to compete for and win federal small business contracts. The issue of front companies, now referred to as “pass-throughs” has been growing more and more every year. There is legislation in Congress, introduced by Congressman Sestak- H.R. 4420, that begins to define and look at this issue.

    Fraud in small business contracting is nothing new. Small businesses lose over $100 billion a year, and every year, in contracts that are supposed to go to small businesses, or go to large firms and get counted as small towards the governments mandated 23 percent small business procurement goal. There have been dozens of federal investigations into this issue, going back to the mid-1990’s. The American Small Business League (www.asbl.com) has been fighting, and documenting, these issues for years. Blackwater/Xe is just another well connected defense contractor that wants an ever growing bigger slice of the pie.

    Eisnehower said it best, “Beware the military-industrial complex.”

  3. musashi_88
    September 8, 2010 at 9:26 am

    I think the main point here is to delineate between a ‘front company’ which is legal, and one that is not.

    A Chinese ‘front company’ that is shipping antimony-trioxide illegally to Hong Kong is a threat.

    A Blackwater ‘front company’ that works under multiple titles in order to maintain anonymity and have an edge against competitors is not a threat.

    Reason #1 the IC is trying to come up with a new term for such a situation. I’ve heard names like ‘front entity’ or ‘foregn front entity’ thrown around. Interesting to say the least…

  4. Fred Hughes
    September 18, 2010 at 9:57 am

    GIGO

    Labeling something as front company is as accurate as saying that DynCorp’s or L3’s subs and sister companies are front companies. All large government contracting companies are “front” companies because they simply handle the management of subs and contractors. This says more about the politics of the report writers and the lack of standard journalistic

    Some of those companies are holding companies, some are set up to do business outside the U.S (a requirement for local partners in many countries). Some are long defunct, some have different liability or business classifications (one size does not fit all in contracting) Some are set up to separate them from State Dept of DoD legal requirements, some are set up because they sub to a prime and have unique liabilities or profit centers, I can go on, etc etc. If I was charitable I would say that some companies were set up because of the intense negative publicity due to Nisour square. But google DynCorp, Halliburton, CACI, etc etc. They all dodge the bullet by morphing… at the client’s request.

    This chart clearly shows that the author has done no fact checking and does not understand corporate law, contracting or business. Why would AAR pay $200 million for a front company? The answer is they didn’t. The corporations had assets, core business skill sets, clients and contracts.

    and lastly, follow the money… Most of Blackwater’s money came willingly from us to protect our government officials overseas. So if Blackwater goes away, DynCorp and Triple Canopy simply absorb the people, equipment and business. So wouldn’t the government be the one playing the shell game?

  5. cwiklinski
    October 8, 2010 at 10:04 pm

    You need to add DMS International Inc. to the list of front companies. What has Blackwater got over the govt that it keeps getting US training contracts?

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