WASHINGTON (AP) -- Federal prosecutors are investigating whether employees of the private security firm Blackwater USA illegally smuggled weapons into Iraq 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, North Carolina, 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.

http://www.cnn.com/2007/WORLD/meast/09/21/blackwater.probe.ap/index.html