Nathan Ertel and Donald Vance went to Iraq in 2005 to work for an Iraqi contractor, Shield Group Security. Once there, they say they witnessed SGS employees handing money over to "Iraqi sheikhs." After they notified two FBI agents in Baghdad and one in Chicago of what they say, they say their employer cut off their access pass to Baghdad's Green Zone and were struck in the city's dangerous "Red Zone."

But the lawsuit claims things got really bad once they were "rescued" from the Red Zone by US authorities.