WASHINGTON, (AP) -- Federal prosecutors are investigating whether employees of the private security firm Blackwater USA illegally smuggled into Iraq weapons that may have been sold on the black market and ended up in the hands of a U.S.-designated terrorist organization, officials said Friday.
The U.S. Attorney's Office in Raleigh, N.C., where Blackwater is based, is handling the investigation with help from Pentagon and State Department auditors who have concluded there is enough evidence to file charges, the officials told The Associated Press.
The U.S. attorney for North Carolina, George Holding, and a spokeswoman for Blackwater did not return calls seeking comment Friday. Pentagon and State Department spokesmen declined to comment.
Officials with knowledge of the case said it is active, although at an early stage. They spoke on condition of anonymity due to the sensitivity of the matter, which has heightened since 11 Iraqis were killed Sunday in a shooting involving Blackwater contractors protecting a U.S. diplomatic convoy in Baghdad..........
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