Blackwater Founder Sets Up Private Army For UAE12:42
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Erik Prince, Founder and CEO of the company formerly known as Blackwater Worldwide. (AP)
Erik Prince, Founder and CEO of the company formerly known as Blackwater Worldwide. (AP)

A company formed by Erik Prince, the founder of the security contractor Blackwater Worldwide, is working for the United Arab Emirates, setting up a private army that would defend the country against terrorists and quash internal revolts.

The New York Times first reported on Sunday that Reflex Responses signed a $529-million-dollar contract with the UAE last year. Blackwater, now known as Xe Services, earned billions in Iraq but also drew legal and Congressional scrutiny when four of its guards were accused of killing 17 civilians in Baghdad in 2007.

New York Times reporter Mark Mazzetti joins us to talk about Erik Prince's new project.

This segment aired on May 18, 2011.

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