Jeremy Scahill - Blackwater

A few months earlier, it would have been difficult to predict ASG’s downfall. The firm enjoyed a prosperous 2005, ranked as a Top 25 lobbying outfit by National Journal, with revenues on a steady rise—up 34 percent in one year, to $8 million from what the Washington Post termed “an A-list of about 70 companies and organizations.” 61In addition to powerhouses like PhRMA, Enron, TimeWarner, Microsoft, and Eli Lilly, ASG counted among its clients over the years several evangelical Christian causes and organizations—among them right-wing media operations like Salem Communications, the National Religious Broadcasters, and Grace News. 62ASG was also a quiet workhorse in procuring lucrative military contracts for some of its clients. At the time of its downfall, ASG was on the cutting edge of one of the fastest-growing industries within the military world—private security. That was thanks in large part to the long-term relationship between ASG partner Paul Behrends and Blackwater owner Erik Prince.

While Behrends had been lobbying for Prince and Blackwater almost from the moment the business began, the key assistance Behrends provided came in the immediate aftermath of the Fallujah ambush in 2004. In November 2005, when Blackwater and other private security firms began a push to recast their mercenary image under the banner of the International Peace Operations Association, the mercenary trade association, it was Behrends and ASG they enlisted to help them do it. 63Among those registered by ASG as lobbyists for IPOA were several former DeLay staffers, including Ed Buckham and Karl Gallant, former head of DeLay’s ARMPAC, and Tony Rudy, DeLay’s former counsel, who pleaded guilty in March 2006 to conspiracy to corrupt public officials and defraud clients. 64Interestingly, Rudy had also worked alongside Behrends in Representative Dana Rohrabacher’s office in the early 1990s—the same time Erik Prince claimed to have worked there as a defense analyst. 65According to Rohrabacher’s office, Prince was actually an unpaid intern. Rohrabacher remained an ardent defender of Jack Abramoff, whom he first met when Abramoff was a leading College Republican and Rohrabacher was an aide to President Reagan. When Abramoff was sentenced in 2006, Rohrabacher was the only sitting Congress member to write the sentencing judge asking for leniency. “Jack was a selfless patriot most of the time I knew him. His first and foremost consideration was protecting America from its enemies,” Rohrabacher wrote. “Only later did he cash in on the contacts he made from his idealistic endeavors.” 66

Prince himself managed to escape scrutiny, despite his ties to Rudy and his connection to Abramoff. The Edgar and Elsa Prince Foundation, of which Erik Prince is a vice president and his mother is president, gave at least $130,000 to Toward Tradition, 67an organization that described itself as a “national coalition of Jews and Christians devoted to fighting the secular institutions that foster anti-religious bigotry, harm families, and jeopardize the future of America.” 68Abramoff served as chairman of the organization, run by his longtime friend Rabbi Daniel Lapin, until 2000, and remained on the board until 2004. 69Toward Tradition surfaced in Abramoff’s plea agreement as a “non-profit entity” through which “Abramoff provided things of value… [w]ith the intent to influence… official acts.” 70Abramoff clients eLottery, an Internet gambling company, and the Magazine Publishers of America each donated $25,000 to Toward Tradition. 71The $50,000 was then paid to Tony Rudy’s wife, Lisa, in ten $5,000 installments for consulting services. 72At the time, Rudy was DeLay’s deputy chief of staff and was helping eLottery to fight a bill that would outlaw Internet gambling and helping the MPA to fight a postal rate increase. 73

Despite the ASG scandal in early 2006, the head of the IPOA, Doug Brooks, told Roll Call that the association with Behrends would continue, saying IPOA found him “helpful in terms of what we were working on.” 74While the ASG lobbyists scrambled to set up new shops with different names and clients tried to distance themselves from the scandal, Behrends began working for powerhouse law firm Crowell & Moring’s lobbying arm, C&M Capitol Link—a company he had previously worked with on behalf of Blackwater in 2004. 75Still, some questioned the hiring of a DeLay-linked lobbyist. “We did our homework. We did all the right due diligence, as you might guess,” said John Thorne, head of C&M Capitol Link. “[Behrends’s] reputation is solid. Everyone we talked to said he was completely out of that other business.” 76But Behrends was not out of the mercenary business in general nor Blackwater’s stake in it specifically. The bond between the influential lobbyist and Erik Prince was far too strong not to weather a mere political scandal. Besides, major projects were on the horizon.

The company would soon begin expanding its global reach and its appetite for international contracts, putting its forces forward as possible peacekeepers in places like Darfur—a crisis zone located in Cofer Black’s old stomping ground, Sudan. Eight years after Blackwater’s quiet beginnings, the company had become a major player in the neoconservative revolution and would enthusiastically act as the Pied Piper of the neo-mercenary rebranding movement.

BY THEtime Defense Secretary Donald Rumsfeld resigned in late 2006, he had indeed, as President Bush declared, overseen the “most sweeping transformation of America’s global force posture since the end of World War II.” 1By Rumsfeld’s last day in office, the ratio of active-duty U.S. soldiers to private contractors deployed in Iraq had almost reached one to one, 2a statistic unprecedented in modern warfare. Vice President Dick Cheney called Rumsfeld “the finest Secretary of Defense this nation has ever had.” 3The praise was understandable coming from Cheney. The dramatic military privatization scheme launched during Cheney’s time as Secretary of Defense during the 1991 Gulf War had grown beyond his wildest expectations under Rumsfeld and has forever altered the way the United States wages its wars. And yet despite the unprecedented level of private sector involvement on the battlefield, the U.S. military has seldom been stretched more thinly or faced more perilous times. The Bush administration’s occupations of Iraq and Afghanistan taxed U.S. forces to the point where former Secretary of State Colin Powell declared in late 2006 that “the active Army is about broken.” 4In the midst of such striking commentary from one of the country’s most celebrated military figures, President Bush announced his intent to increase the size of the American armed forces to “position our military so that it is ready and able to stay engaged in a long war.” 5In his 2007 State of the Union address, Bush called for an increase of ninety-two thousand active duty troops within five years and proposed a Civilian Reserve Corps to supplement official U.S. forces. 6

While the “bleeding” of the U.S. military was without question the result of the administration’s aggressive policies and unpopular occupations, the new Democratic Congressional leadership, which swept to power in November 2006, seemed more than willing to go along with Bush’s aspirations for an even larger military, rather than questioning the insatiable appetite for conquest that made it a necessity. Among the few forces that could take comfort in this situation are those that have benefited the most from the war on terror—the companies of the war industry. Few have gained as much in the Bush years and few stand to benefit more from the projected U.S. course in the future than Blackwater USA. Erik Prince knows this. In fact, he has offered up a remedy of his own for the numbers crisis in the military—the creation of a “contractor brigade.” As for the official Army plan to increase its size by thirty thousand troops, Prince asserted, “We could certainly do it cheaper.” 7Those are the words of a man empowered by success and confident in his future. They are the words of a man with his own army, hailed by the neoconservative Weekly Standard as “the alpha and omega of military outsourcing.” 8