Denver (Nov. 15, 2010) – On Nov. 10, 2010, Xe Services filled the position of Special Compliance Officer, a core requirement of the Consent Agreement Holland & Hart negotiated with the U.S. Department of State, Directorate of Defense Trade Controls (DDTC) on behalf of its client, Xe Services LLC (formerly known as Blackwater Worldwide).
The appointment of Wendy Wysong as Special Compliance Officer is one of many elements of the Consent Agreement reached on August 18, 2010, that closed a multi-year investigation into Xe Services’ compliance with International Traffic in Arms Regulations (ITAR). Per the DDTC settlement, Xe Services will pay a $30 million cash penalty and take other measures to resolve allegations that it had violated the ITAR while providing support for U.S. government programs and military operations from 2003 to 2008.
Holland & Hart’s trade sanctions team, led by Trip Mackintosh, represented Xe Services in reaching this settlement that was important not only for its client and DDTC, but also for the multiple U.S. military programs supported by Xe Services. In settling the matter, DDTC acknowledged the significant remedial and mitigation measures that the company engineered and implemented with Holland & Hart guidance. These measures included the establishment of an independent Export Compliance Committee comprised of outside experts to oversee the company’s compliance during the resolution of the allegations. No other company had implemented a similar independent oversight committee with DDTC enforcement action pending. This unprecedented remedial and proactive step in compliance added to other measures – establishment of an Export Compliance Office, enhanced logistic and other controls and training -- to achieve the cooperative settlement.
“The settlement and Xe’s comprehensive action as it relates to the settlement demonstrates that Holland & Hart has a trade sanctions team that not only helps clients to address legal issues, but also devises solutions that are creative and effective,” said firm Chairman John Husband. “Because of that, Trip Mackintosh and his team are internationally-recognized for their work in this area.”
Holland & Hart’s trade sanctions and export control attorneys have represented companies in some of the most significant trade sanctions cases in recent years. These include two of the three ITAR enforcement Consent Agreement resolutions published by DDTC for the calendar year 2010.
For more information on the Holland & Hart trade sanctions team, please contact Katie Cloyd at
kmcloyd@hollandhart.com or Trip Mackintosh at
tmackintosh@hollandhart.com.