Feds Target Blackwater in Weapons Probe

WASHINGTON — 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.