From The New York Times:
WASHINGTON — Just weeks before Blackwater guards fatally shot 17 civilians at Baghdad’s Nisour Square in 2007, the State Department began investigating the security contractor’s operations in Iraq. But the inquiry was abandoned after Blackwater’s top manager there issued a threat: “that he could kill” the government’s chief investigator and “no one could or would do anything about it as we were in Iraq,” according to department reports.
American Embassy officials in Baghdad sided with Blackwater rather than the State Department investigators as a dispute over the probe escalated in August 2007, the previously undisclosed documents show. The officials told the investigators that they had disrupted the embassy’s relationship with the security contractor and ordered them to leave the country, according to the reports.
After returning to Washington, the chief investigator wrote a scathing report to State Department officials documenting misconduct by Blackwater employees and warning that lax oversight of the company, which had a contract worth more than $1 billion to protect American diplomats, had created “an environment full of liability and negligence.”
http://www.nytimes.com/...
A bit more from Gawker:
Per memos and internal State Department documents obtained by the Times from 2007, Jean C. Richter, a Diplomatic Security special agent, and Donald Thomas Jr., a State Department management analyst, met with Daniel Carroll, a Blackwater project manager in Baghdad, to discuss the their month-long investigation into the contractor's work in the country. This is when Carroll reportedly threatened them. From Richter's memo:
"Mr. Carroll said "that he could kill me at that very moment and no one could or would do anything about it as we were in Iraq," Mr. Richter wrote in a memo to senior State Department officials in Washington. He noted that Mr. Carroll had formerly served with Navy SEAL Team 6, an elite unit.
"Mr. Carroll's statement was made in a low, even tone of voice, his head was slightly lowered; his eyes were fixed on mine," Mr. Richter stated in his memo. "I took Mr. Carroll's threat seriously. We were in a combat zone where things can happen quite unexpectedly, especially when issues involve potentially negative impacts on a lucrative security contract."
http://gawker.com/...
Scary stuff - these Blackwater folks seem to think they are above the law. I suppose if you can halt investigations by making death threats, you are.