WASHINGTON, Aug. 24 (UPI) -- Security contractor Xe Services LLC was penalized for 288 defense violations, though it is still eligible for contracts, the U.S. State Department said.
The State Department announced that Xe Services, which had formally done business as Blackwater, settled a lawsuit with the department for 288 violations of the Arms Export Control Act and the International Traffic in Arms Regulations.
The State Department said "many" of the alleged violations took place when the company was providing services for the U.S. government and military overseas from 2003-09.
Xe frequently provides security detail for diplomats and government officials in Iraq and Afghanistan.
A U.N. working group on the use of mercenaries and private military and security companies said international mechanisms were needed to regulate their activity.
Critics say contractors like Xe are operating outside of international law.
The State Department said the security contractor agreed to pay a civil penalty of $42 million to settle the claims.
Because Xe had taken what the State Department said were "the necessary steps" to address the causes of the violation, it is eligible for future contracts.
The U.S. Federal District Court for the District of Columbia in December dismissed an indictment against five employees of Xe who were charged with voluntary manslaughter for a 2007 incident in Baghdad.
The men were charged in connection with the death of 17 Iraqis during a shootout in Nisoor Square in Baghdad in 2007.
