Feds probe Blackwater links to arms smuggling

 

Feds probe Blackwater links to arms smuggling

Reports: Weapons linked to employees may have gone to terrorist groups

Image: Iraqi car destroyed

Khalid Mohammed / AP
An Iraqi traffic policeman on Thursday inspects a car destroyed four days earlier by a Blackwater security detail in al-Nisoor Square in Baghdad. Eleven Iraqis were killed in the incident.

NBC video

Blackwater’s fate on the agenda
Sept. 21: The Blackwater security incident in Iraq is a growing source of contention between Iraq and the Bush administration.

Nightly News

Updated: 2 hours, 23 minutes ago

BAGHDAD – 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., 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. Blackwater is based in Moyock, N.C.

The U.S. attorney for the eastern district of North Carolina, George Holding, and a spokeswoman for Blackwater did not return calls seeking comment Friday. Pentagon and State Department spokesmen declined to comment.

Meanwhile, Secretary of State Condoleezza Rice ordered a review of security practices for U.S. diplomats in Iraq following a deadly incident involving Blackwater USA guards protecting an embassy convoy.

Rice’s announcement came as the U.S. Embassy in Baghdad resumed limited diplomatic convoys under the protection of Blackwater outside the heavily fortified Green Zone after a suspension because of the weekend incident in that city.

Early stages of investigation
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.

The officials could not say whether the investigation would result in indictments, how many Blackwater employees are involved or if the company itself, which has won hundreds of millions of dollars in government security contracts since the 2003 invasion of Iraq, is under scrutiny.

In Saturday’s editions, The News & Observer of Raleigh reported that two former Blackwater employees — Kenneth Wayne Cashwell of Virginia Beach, Va., and William Ellsworth “Max” Grumiaux of Clemmons, N.C. — are cooperating with federal investigators. Cashwell and Grumiaux pleaded guilty in early 2007 to possession of stolen firearms that had been shipped in interstate or foreign commerce, and aided and abetted another in doing so, according to court papers viewed by The Associated Press. In their plea agreements, which call for a maximum sentence of 10 years in prison and a $250,000 fine, the men agreed to testify in any future proceedings.

Calls to defense attorneys were not immediately returned Friday evening, and calls to the telephone listings for both men also were not returned.

The News & Observer, citing unidentified sources, reported that the probe was looking at whether Blackwater had shipped unlicensed automatic weapons and military goods to Iraq without a license.

The paper’s report that the company itself was under investigation could not be confirmed by the AP.

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