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Erik Prince, left, founder of the now-defunct mercenary firm Blackwater and now chairman of Frontier Services Group, looks at a map of Africa with Deputy Chairman Johnson Ko. FSG, which is backed by Chinese capital, is based in Hong Kong. (Photo: HKEJ)

Erik Prince in the Hot Seat

Blackwater’s Founder Is Under Investigation for Money Laundering, Ties to Chinese Intel, and Brokering Mercenary Services

Eric Prince, founder of the now-defunct mercenary firm Blackwater and current chairman of Frontier Services Group, is under investigation by the U.S. Department of Justice and other federal agencies for attempting to broker military services to foreign governments and possible money laundering, according to multiple sources with knowledge of the case.

What began as an investigation into Prince’s attempts to sell defense services in Libya and other countries in Africa has widened to a probe of allegations that Prince received assistance from Chinese intelligence to set up an account for his Libya operations through the Bank of China. The Justice Department, which declined to comment for this article, is also seeking to uncover the precise nature of Prince’s relationship with Chinese intelligence.

 

Prince, through his lawyer, Victoria Toensing, said he has not been informed of a federal investigation and had not offered any defense services in Libya. Toensing called the money-laundering allegations “total bullshit.”

 

The Intercept interviewed more than a half dozen of Prince’s associates, including current and former business partners; four former U.S. intelligence officers; and other sources familiar with the Justice Department investigation. All of them requested anonymity to discuss these matters because there is an ongoing investigation. The Intercept also reviewed several secret proposals drafted by Prince and his closest advisers and partners offering paramilitary services to foreign entities.

For more than a year, U.S. intelligence has been monitoring Prince’s communications and movements, according to a former senior U.S. intelligence officer and a second former intelligence official briefed on the investigation. Multiple sources, including two people with business ties to Prince, told The Intercept that current government and intelligence personnel informed them of this surveillance. Those with business ties were cautioned to sever their dealings with Prince.

Read the full article at The Intercept.


© 2021 The Intercept

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