Former Employees Sue Blackwater, Claim Prostitute Was On Payroll

Blackwater was sued on Thursday by two ex-employees who claim the company defrauded the U.S. government.

The most colourful accusation, according to the Guardian: a Filipino prostitute was allegedly was listed on expenses under “morale welfare recreation,” and the government was billed for plane tickets and her monthly salary. They also allegedly hired stripped for workers working in the Hurricane Katrina aftermath.

Former Blackwater employees Melan Davis, who was fired from the company, and her husband Brad say they have knowledge of damning evidence against the disgraced military company (now re-branded itself as Xe).

Guardian: According to Associated Press, the records say they had personal knowledge of the company falsifying invoices, double-billing federal agencies and charging the government for personal and inappropriate items whose real purpose was hidden.

They said they witnessed “systematic” fraud on the company’s security contracts with the state department in Iraq and Afghanistan, and with the department of homeland security and federal emergency management agency in Louisiana after Hurricane Katrina.

Read more at the Guardian.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.