United Kingdom-based security firm Blue Mountain Group (BMG) was providing security at the diplomatic outpost in Benghazi, Libya, during the 2012 terrorist attack, but documents obtained by Judicial Watch found that the company did not have a license to operate in Libya.
This was due to a business dispute with XPAND Corporation, which was its business partner in Libya.
The documents [obtained by Judicial Watch] indicate that the dispute and licensing issue led the State Department to immediately plan to terminate their contract with BMG. On the morning of September 11, 2012, David Sparrowgrove, a State Department regional security officer, wrote to Visintainer and others, "The dissolution of the partnership leaves BMG without a security license to operate in Libya and the Libyan partner has no capacity to manage the guards or the contract. As a result, we feel the best course of action is to terminate the contract in short order." Sparrowgrove also writes, "I’ve CC’d OPO Branch Chief Ricki Travers who has had the unfortunate pleasure of dealing with these types of emergency situations in the past."
In an email from Deputy Assistant Secretary of the Bureau of European and Eurasian Affairs Mark Toner dated October 17, 2012, the fact that the dispute between BMG and XPAND meant the company wasoperating without a license is glossed over, any reference to the September 11, 2012, emergency Benghazi security situation is specifically omitted, and he describes Visintainer’s response in July as "invoking collaborative resolution to the said dispute." The misleading responses are significant because they were also shared with Congress.
The day after the attack, the Nabulsi law partner wrote again to Visintainer on behalf of XPAND to express their condolences and to advise the State Department that in light of the attack, "XPAND shall put its differences with the security operators, Blue Mountain UK, to the side for the moment, and shall allow the use of its security license by BMUK to meet your full needs until a suitable alternative has been arranged."
BMG was not the only security contractor bidding on the Benghazi contract, according to Judicial Watch, and it is unclear why they were awarded the contract.