Blackwater accused of fraud by employees

A current worker and a former employee of the security contractor previously known as Blackwater have filed a whistleblower lawsuit against the company, the second such suit filed against the firm.

A lawsuit in a US District Court alleges that Blackwater, now known as Xe, overcharged the US government for work protecting State Department employees in Iraq and Afghanistan. Part of the alleged fraud included billing for sniper services from people who were not properly qualified. The lawsuit alleges Blackwater charged for sniper services from one individual who sat behind a desk. In another case, the company allegedly charged for services provided by a marksman who had failed a drug test.

A spokesman for Xe, based in Moyock, North Carolina, declined to comment. The company has denied similar allegations in the past. Court papers do not spell out how much the State Department allegedly overpaid for Blackwater's services.