Blackwater Founder Erik Prince 'Regrets' Working for US State Dept.

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Blackwater teams were said to be deeply involved in covert activities in Pakistan and Afghanistan until 2009, including the highly controversial use of unmanned aircraft to go after suspected terrorists.

When asked if Blackwater was involved in a drone program, Prince said, "I won't dispute that."

Prince claims that after the CIA cut ties with Blackwater, the CIA director at the time, Leon Panetta, "outed" Prince and Blackwater's secret role to a congressional committee during a closed-door hearing, and it soon leaked to the press.

"When you sign up ... as an asset to serve your country when you are asked to help and then to be outed by name to a very leaky Congress, that's unprecedented," he said.

A representative for Panetta told ABC News that the former CIA director was required to brief Congress on covert programs, and that he had no control over what happened to the information after that.

The CIA declined to comment on its association with Prince.

Prince said he is done doing business with the U.S. government. He is now living part-time in Abu Dhabi and focusing on mining and energy investments in Africa.

"Act 2 should be interesting," he said. "I'm working on it. You have not heard the last of me, I will say that."

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