A few miles away from the French Quarter, another wealthy New Orleans businessman, James Reiss, who serves in Mayor Ray Nagin's administration as chairman of the city's Regional Transit Authority, brought in some heavy guns to guard the elite gated community of Audubon Place: Israeli mercenaries dressed in black and armed with M-16s. Two Israelis patrolling the gates outside Audubon told me they had served as professional soldiers in the Israeli military, and one boasted of having participated in the invasion of Lebanon. "We have been fighting the Palestinians all day, every day, our whole lives," one of them tells me. "Here in New Orleans, we are not guarding from terrorists." Then, tapping on his machine gun, he says, "Most Americans, when they see these things, that's enough to scare them."

The men work for ISI, which describes its employees as "veterans of the Israeli special task forces from the following Israeli government bodies: Israel Defense Force (IDF), Israel National Police Counter Terrorism units, Instructors of Israel National Police Counter Terrorism units, General Security Service (GSS or 'Shin Beit'), Other restricted intelligence agencies." The company was formed in 1993. Its website profile says: "Our up-to-date services meet the challenging needs for Homeland Security preparedness and overseas combat procedures and readiness. ISI is currently an approved vendor by the US Government to supply Homeland Security services."

Unlike ISI or BATS, Blackwater is operating under a federal contract to provide 164 armed guards for FEMA reconstruction projects in Louisiana. That contract was announced just days after Homeland Security Department spokesperson Russ Knocke told the Washington Post he knew of no federal plans to hire Blackwater or other private security firms. "We believe we've got the right mix of personnel in law enforcement for the federal government to meet the demands of public safety," he said. Before the contract was announced, the Blackwater men told me, they were already on contract with DHS and that they were sleeping in camps organized by the federal agency.

One might ask, given the enormous presence in New Orleans of National Guard, US Army, US Border Patrol, local police from around the country and practically every other government agency with badges, why private security companies are needed, particularly to guard federal projects. "It strikes me...that that may not be the best use of money," said Illinois Senator Barack Obama.

Blackwater's success in procuring federal contracts could well be explained by major-league contributions and family connections to the GOP. According to election records, Blackwater's CEO and co-founder, billionaire Erik Prince, has given tens of thousands to Republicans, including more than $80,000 to the Republican National Committee the month before Bush's victory in 2000. This past June, he gave $2,100 to Senator Rick Santorum's re-election campaign. He has also given to House majority leader Tom DeLay and a slew of other Republican candidates, including Bush/Cheney in 2004. As a young man, Prince interned with President George H.W. Bush, though he complained at the time that he "saw a lot of things I didn't agree with--homosexual groups being invited in, the budget agreement, the Clean Air Act, those kind of bills. I think the Administration has been indifferent to a lot of conservative concerns."

Prince, a staunch right-wing Christian, comes from a powerful Michigan Republican family, and his father, Edgar, was a close friend of former Republican presidential candidate and antichoice leader Gary Bauer. In 1988 the elder Prince helped Bauer start the Family Research Council. Erik Prince's sister, Betsy, once chaired the Michigan Republican Party and is married to Dick DeVos, whose father, billionaire Richard DeVos, is co-founder of the major Republican benefactor Amway. Dick DeVos is also a big-time contributor to the Republican Party and will likely be the GOP candidate for Michigan governor in 2006. Another Blackwater founder, president Gary Jackson, is also a major contributor to Republican campaigns.

After the killing of four Blackwater mercenaries in Falluja in March 2004, Erik Prince hired the Alexander Strategy Group, a PR firm with close ties to GOPers like DeLay. By mid-November the company was reporting 600 percent growth. In February 2005 the company hired Ambassador Cofer Black, former coordinator for counterterrorism at the State Department and former director of the CIA's Counterterrorism Center, as vice chairman. Just as the hurricane was hitting, Blackwater's parent company, the Prince Group, named Joseph Schmitz, who had just resigned as the Pentagon's Inspector General, as the group's chief operating officer and general counsel.

While juicing up the firm's political connections, Prince has been advocating greater use of private security in international operations, arguing at a symposium at the National Defense Industrial Association earlier this year that firms like his are more efficient than the military. In May Blackwater's Jackson testified before Congress in an effort to gain lucrative Homeland Security contracts to train 2,000 new Border Patrol agents, saying Blackwater understands "the value to the government of one-stop shopping." With President Bush using the Katrina disaster to try to repeal Posse Comitatus (the ban on using US troops in domestic law enforcement) and Blackwater and other security firms clearly initiating a push to install their paramilitaries on US soil, the war is coming home in yet another ominous way. As one Blackwater mercenary said, "This is a trend. You're going to see a lot more guys like us in these situations."

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