Loser In Fallujah Suit Is Hiding from Press

California trial lawyer Daniel Callahan was never shy about talking to the press during his effort to profit financially from the deaths of four American military veterans in Iraq.

But now that a federal appeals court has effectively thrown out his suit against Blackwater, Callahan suddenly isn't talking.

The Virginian-Pilot, which serves the area near Blackwater Worldwide's headquarters and has been one of the main newspapers to break stories about the company, tried to get comments from both sides of the case for its October 21 story about the court decision.

Only Blackwater spokesman Anne Tyrrell would talk to the newspaper. According to Virginian-Pilot reporter Louis Hansen, the trial lawyers "did not respond to requests for comment."

SBA Memo Does Not Accuse Blackwater

You wouldn't know it by Congressman Henry Waxman's spin when he released a memo to the press, but the Small Business Administration Inspector General did not accuse Blackwater of improper behavior.

A reporter for the Virginian-Pilot (a paper that has long been critical of the company) actually read the memorandum and reports, "The memo, written by Glenn Harris, counsel to SBA inspector general Eric Thorsen, refers to 'potential misrepresentations by Blackwater' but does not accuse the Moyock, N.C.-based firm of breaking federal laws or improperly obtaining contracts."

Waxman postured in a written statement that Blackwater “misled contracting officials who in turn ignored blatant warning signs. It is deplorable that no one ever looked out for the interests of the federal taxpayer.” He said it as fact, when that's not what the Inspector General said at all.

ACLU intervenes as anti-Blackwater protesters are convicted

The American Civil Liberties Union (ACLU) has spoken out on behalf of radical activists who were convicted and sentenced for trespassing and vandalizing Blackwater property.

In order to avoid having the activists turn his courtroom into a media circus, the judge closed the proceedings to the public after convicting and sentencing the first militant. The others were convicted behind closed doors, according to the Virginian-Pilot.

"It’s a clear violation of constitutional rights, not only of the defendants but the press and public,” an ACLU official complained. “They have a right to a public trial, so any trial that goes on behind closed doors is a farce.”

'Blackwater Worldwide' - Company re-brands for growth

Reflecting confidence in future demand for its products and services, Blackwater USA has re-branded itself as Blackwater Worldwide. The change has been in the works for 9 months, and has taken effect amid the global media controversy about its diplomatic security services in Iraq.

Longtime Blackwater critic Bill Sizemore of the Virginian-Pilot, the Norfolk-area daily that's a hometown paper of sorts to the company, says that Blackwater has lots more business beyond its State Department security contracts, and that it can afford to lose Foggy Bottom as a client.

Says Sizemore, "Losing the huge State Department contract – which has brought the company more than $800 million in revenue since 2004 – would undoubtedly be a blow to Blackwater, but it would not be a death knell. The 10-year-old company has developed many other lines of business:

• It provides tactical training to every branch of the armed services and many federal, state and local law enforcement agencies.


• In the past two months, it has been named one of five companies to share a five-year federal counter narcotics contract that could be worth up to $15 billion and has won a four-year, $92 million contract to provide aviation services in central Asia. Its aviation affiliate owns 40 aircraft.


• It has acquired an oceangoing ship for training and potential paramilitary use.


• It is building and marketing an armored personnel carrier and a surveillance airship.


• It continues to seek a role providing private armed forces in support of international peacekeeping and nation-building operations. The company is organizing a symposium to promote the idea Dec. 4-5 in Washington.

Reflecting its broadening horizons, the company has recently changed its name from “Blackwater USA” to “Blackwater Worldwide.” Anne Tyrrell, a company spokeswoman, said the rebranding has been in the works for nine months.

Looking beyond the State Department?

A longtime local critic of Blackwater, reporter Bill Sizemore of the Virginian-Pilot in the Norfolk area, seems wowed by how CEO Erik Prince has handled the unprecedented national media attention.

Reading the tea leaves, Sizemore and fellow critic Robert Young Pelton speculate that Prince has decided to go on without the State Department as a client. What follows is from Sizemore's October 19 article headlined "Blackwater, Prince looking ahead after media blitz":

"'I think he’s given up on the State business,' Pelton said. 'I think he got told, "You’re outta here," and he said, "OK, I want to tell my side of the story." And that’s when you saw him on TV. …

"'I could be terribly wrong, but the way he’s burned his bridges, there’s been some huge rift between Blackwater and the State Department. … If he keeps that business it’ll be a miracle.'

"The Associated Press has quoted unnamed US officials as saying they do not expect Blackwater to continue its diplomatic security work in Iraq after its current contract expires next May.

"In an interview with The Washington Times, Prince took an unusual swipe at the State Department, expressing disappointment that it has not come to the company’s defense."

Vote in newspaper poll about Blackwater report

The Virginian Pilot, a newspaper that serves the huge military bases in the Hampton Roads, Norfolk and Virginia Beach areas, has been jihading against Blackwater USA for a year or more.

Its September 28 poll question asks if readers believe Congressman Henry Waxman's partisan report, authored by a trial lawyer who stands to make a fortune from suing Blackwater, and to vote "yes" or "no." (Actually, the question says nothing about Waxman, partisanship or the trial lawyer; the Virginian Pilot has gone out of its way to make the report look objective and mainstream).

There's still time to vote by clicking here: http://content.hamptonroads.com/story.cfm?story=133464&ran=240852

As of this posting the vote was close. More than 1,100 people have voted so far, with about 47 percent believing the report (as portrayed in the paper) and almost 45 percent not believing it.

That must mean that 45 percent of Virginian Pilot readers don't trust their newspaper!