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Press Release

Previous Officers Of Corporate Entity Formerly Known As Blackwater Plead Guilty & Are Sentenced

For Immediate Release
U.S. Attorney's Office, Eastern District of North Carolina

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today GARY JACKSON and WILLIAM WHEELER MATTHEWS, JR. pled guilty before United States District Judge Louise W. Flanagan, to one count each of failing to make and maintain records related to firearms in violation of Title 18, United States Code, Sections 922(m) and 923(g)(1)(A). 

Additionally, Judge Flanagan sentenced JACKSON and MATTHEWS to 3 years probation, 4 months house arrest with stipulations, and fined them $5,000.00.

According to the Criminal Information filed on February 14, 2013, JACKSON and MATTHEWS, between 2005 and 2007, were employees of a corporate entity formerly known as Blackwater which was a licensed federal firearms manufacturer and dealer, and whose responsibilities for a certain period of time included direct or indirect supervisory authority over employees whose duties included the making and maintenance of records required by federal law.  JACKSON and MATTHEWS failed to make and maintain or cause to be made and maintained adequate records specifying the actual location where firearms were stored on Blackwater’s premises and failed to make and maintain or cause to be made and maintained required records with respect to registration of certain firearms.

The corporate entity formerly known as Blackwater has entered into a Deferred Prosecution Agreement with the government in which it has agreed to extensive ongoing compliance programs and the payment of approximately 7 million dollars in fines.

Assistant United States Attorneys John Bowler and Eric Goulian with the Eastern District of North Carolina, along with Senior Trial Counsel Clifford Rones with the Department of Justice Counter Espionage Section, are handling the prosecution on behalf of the government.

Updated July 14, 2015