WASHINGTON, Sept. 22, 2007

Blackwater Probed For Weapons Smuggling

Feds Investigate Suspicions Security Firm Employees Sold Weapons On Black Market, Arming Terrorists

  • Members of a private security company pose on the rooftop of a house in Baghdad, Sept. 18, 2007.

    Members of a private security company pose on the rooftop of a house in Baghdad, Sept. 18, 2007.  (AFP/Getty)

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(CBS/AP)  Federal prosecutors are investigating whether employees of the private security firm Blackwater USA illegally smuggled weapons into Iraq that might have been sold on the black market and ended up in the hands of a U.S.-designated terror organization, U.S. officials say.

The U.S. Attorney's Office in North Carolina, where Blackwater is based, is handling the investigation with help from auditors of the Defense and State departments who have concluded enough evidence exists to file charges, the officials told The Associated Press on Friday.

George Holding, the U.S. attorney for the eastern district of North Carolina, has declined to comment, as have Pentagon and State Department spokesmen.

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.

Blackwater USA denied Saturday any involvement in illegal weapons smuggling through Iraq to Kurdish insurgents in Turkey, responding to reports the private security contractor is a target of federal prosecutors.

"Allegations that Blackwater was in any way associated or complicit in unlawful arms activities are baseless," the company said in a statement. "The company has no knowledge of any employee improperly exporting weapons."

In Saturday's editions, The News & Observer newspaper in Raleigh, North Carolina, reported that two former Blackwater employees - Kenneth Wayne Cashwell and William Ellsworth "Max" Grumiaux - 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 and Observer, citing unidentified sources, reported that the probe was looking at whether Blackwater had shipped unlicensed automatic weapons and military goods to Iraq.

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

In a related story earlier this week, CBS News chief investigative correspondent Armen Keteyian reported that, according to an intelligence source, a shipment of artillery intended for U.S.-backed forces in Iraq was lost - and later found in the hands of the enemy.

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.

Meanwhile, Interior Ministry spokesman spokesman Maj. Gen. Abdul-Karim Khalaf said Iraqi investigators have a videotape that shows Blackwater guards opened fire against civilians without provocation in an incident Sept. 20 in Baghdad, from which 11 people died. He said they are expanding their investigation to include several other incidents involving Blackwater in which civilians have been killed or wounded.

In the United States, officials in Washington said the smuggling investigation grew from internal Pentagon and State Department inquiries into U.S. weapons that had gone missing in Iraq. It gained steam after Turkish authorities protested to the U.S. in July that they had seized American arms from the outlawed Kurdistan Workers Party, or PKK, rebels.

The Turks provided serial numbers of the weapons to U.S. investigators, said a Turkish official.

The Pentagon said in late July it was looking into the Turkish complaints and a U.S. official said FBI agents had traveled to Turkey in recent months to look into cases of U.S. weapons that have gone missing in Iraq.

Investigators are determining whether the alleged Blackwater weapons match those taken from the PKK.

It was not clear whether Blackwater employees suspected of selling to the black market knew the weapons they allegedly sold to middlemen might wind up with the PKK. If they did, possible charges against them could be more serious than theft or illegal weapons sales, officials said.

The PKK, which is fighting for an independent Kurdistan, is banned in Turkey, which has a restive Kurdish population, and is considered a "foreign terror organization" by the State Department. That designation bars U.S. citizens or those in U.S. jurisdictions from supporting the group in any way.

The North Carolina investigation was first brought to light by State Department Inspector General Howard Krongard who mentioned it, perhaps inadvertently, this week while denying he had improperly blocked fraud and corruption probes in Iraq and Afghanistan.

Krongard was accused in a letter by Democratic Rep. Henry Waxman, chairman of the Oversight and Government Reform Committee in the House of Representatives, of politically motivated malfeasance, including refusing to cooperate with an investigation into alleged weapons smuggling by a large, unidentified State Department contractor.

In response, Krongard said in a written statement that he "made one of my best investigators available to help Assistant U.S. Attorneys in North Carolina in their investigation into alleged smuggling of weapons into Iraq by a contractor."

His statement went further than Waxman's letter because it identified the state in which the investigation was taking place. Blackwater, based in North Carolina, is the biggest of the State Department's three private security contractors.

The other two, Dyncorp and Triple Canopy, are based in northern Virginia's suburbs of Washington, D.C, outside the jurisdiction of the North Carolina's attorneys.

Associated Press Writers Matthew Lee, Mike Baker in Raleigh, N.C., and Desmond Butler and Lara Jakes Jordan in Washington contributed to this report.

© MMVII, CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.
Add a Comment See all 133 Comments
by voteronpaul3 September 24, 2007 6:23 PM EDT
I agree this is why the Republican party is trying to Kick Ron Paul and and they have him on a Media Blackout and give him very very little exposure. Because he speaks the truth to the people about the corrupt government, neo cons and the hijacking of America by the banks and corporations! Join the Ron Paul Revolution http://www.ronpaul2008.com/about Tell everyone about him the Media Blackout cannot stop the truth! http://www.youtube.com/results?search_query=ron+paul
Reply to this comment
by forthepeopl1 September 24, 2007 4:16 PM EDT
He''s the head of a state sponsor of terror, and yet, an institution in our country gives him the chance to express his point of view, which really speaks to the freedoms of the country," Bush told FOX on Monday. "I''m not so sure I''d offer the same invitation, but nevertheless, it speaks volumes about the greatness, really, of America. We''re confident enough to let a person express his views. I just really hope he tells everybody the truth."

like you know how to tell the truth bush,you and cheney and most of your crony have been telling americans lies for over 6 years now...

so f-you
Reply to this comment
by voteronpaul3 September 24, 2007 3:32 PM EDT
Ron Paul has it all.

He has never voted:
* to raise taxes
* for an unbalanced budget
* to raise congressional pay
* for a federal restriction on gun ownership
* to increase the power of the executive branch

He HAS voted:
* against the Iraq war
* against the inappropriately named USA PATRIOT act
* against regulating the internet
* against the Military Commissions Act

He will eliminate the IRS, Wasteful Government Spending & Stop The Iraq War Immediately!

Most importantly, he vote NO on anything in Congress that is not allowed by the Constitution.

Shouldn''t ALL members of Congress uphold the Constitution? Aren''t they SWORN to uphold it? You can bet Paul won''t call the Constitution "just a G**D***ed piece of paper" like George Bush is reported to have.

If you want a candidate you can TRUST due to a proven track record, visit ronpaul2008.com and get busy spreading the word. The Mainstream Media is a lagging indicator!!

Ron Paul Revolution: http://www.youtube.com/results?search_query=ron+paul

Get Active join a meetup.com group today!
Reply to this comment
by abbe91 September 24, 2007 11:42 AM EDT
I guess that Blackwater could be renamed Deepmud.
Still trying to find a rhyme with "betray us".
Reply to this comment
by lars008-2009 September 24, 2007 3:16 AM EDT
COMING TO AMERICA,,, COMING TO AMERICA,,, COMING TO AMERICA,,,

NEVER FORGET THE RAPES OF BESLAN GIRLS!
Terror at Beslan
http://video.google.com/videoplay?docid=1316935651894423094

RAPES IN BESLAN: IN MUHAMMAD%u2019S FOOTSTEPS
http://www.chroniclesmagazine.org/News/Trifkovic04/NewsST091304.html

Forget Not the Children of Beslan
http://kenlydell.typepad.com/islamic_evil/forget_not_the_children_of_beslan/index.html

Religion of Peace??? More like a cult of death.
http://www.terrorists-suck.org/why_suck/beslan.html

Radical Islamists must be stopped:
comments on the Beslan child slaughter.
http://www.sullivan-county.com/immigration/list.htm
Reply to this comment
by Krazcarl September 23, 2007 8:50 PM EDT
Rick_VT..Dont worry it''s happened to me {my fault} the reality is if we don''t hire mercenarias we would have to impose the draft Bush doesn''t want that so when you follow this path these problems are to be expected. The sad thing is you offer no solution if you have a solution we would all like to here it throwing stones is easy the hard part is picking them up.
Reply to this comment
by rick_vt September 23, 2007 8:39 PM EDT
sorry about the multiple entries... the software was telling me the submit was disabled and not indicating anything was sent.
Reply to this comment
by rick_vt September 23, 2007 8:37 PM EDT
It is not in Blackwater''s interest to ever see an end to this war. It''s a hugely profitable business for them - that is one of the problems with hiring a mercinary force to do this type of work. They only have to answer to their company and have none of the honour or integrity that American solders pledge to uphold. I will hold off opinions on the illegal arms sale allegations until more information is revealed.
Reply to this comment
by rick_vt September 23, 2007 8:35 PM EDT
It is not in Blackwater''s interest to ever see an end to this war. It''s a hugely profitable business for them - that is one of the problems with hiring a mercinary force to do this type of work. They only have to answer to their company and have none of the honour or integrity that American solders pledge to uphold. I will hold off opinions on the illegal arms sale allegations until more information is revealed.
Reply to this comment
by rick_vt September 23, 2007 8:33 PM EDT
It is not in Blackwater''s interest to ever see an end to this war. It''s a hugely profitable business for them - that is one of the problems with hiring a mercinary force to do this type of work. They only have to answer to their company and have none of the honour or integrity that American solders pledge to uphold. I will hold off opinions on the illegal arms sale allegations until more information is revealed.
Reply to this comment
by rick_vt September 23, 2007 8:32 PM EDT
It is not in Blackwater''s interest to ever see an end to this war. It''s a hugely profitable business for them - that is one of the problems with hiring a mercinary force to do this type of work. They only have to answer to their company and have none of the honour or integrity that American solders pledge to uphold. I will hold off opinions on the illegal arms sale allegations until more information is revealed.
Reply to this comment
by rick_vt September 23, 2007 8:31 PM EDT
It is not in Blackwater''s interest to ever see an end to this war. It''s a hugely profitable business for them - that is one of the problems with hiring a mercinary force to do this type of work. They only have to answer to their company and have none of the honour or integrity that American solders pledge to uphold. I will hold off opinions on the illegal arms sale allegations until more information is revealed.
Reply to this comment
by Krazcarl September 23, 2007 2:24 PM EDT
lier oo8. is it imposible for you to react to the post not further what you think and twist facts to look intellegent {you dont you look pathatic and you scare more than you draw to your side} are you that oblivious to reality your the kind of cretin that will buy into any propaganda it''s obvious cby the way you expell it. Buy a dog but please be nice and don''t beat it and accuse it of being a commie.
Reply to this comment
by lars008-2009 September 23, 2007 1:13 PM EDT
VOTE FOR JEFFERSON,,, VOTE AGAINST FASCIST NAZI TERRORISLAM,,, VOTE GOP,,,

dnc are like john adams and want to give the jihadist their lunch money hoping they will leave us alone,,,

gop are like thomas jefferson and want to spend their lunch money on weapons and go kick the jihadists in their arses,,,

What Thomas Jefferson learned from the Muslim book of jihad,,,

Thomas Jefferson knew about fascist nazi islam,,, he killed plenty of them,,,

In 1786 Jefferson and John Adams went to negotiate with Tripoli''s envoy to London, Ambassador Sidi Haji Abdrahaman or (Sidi Haji Abdul Rahman Adja). They asked him by what right he extorted money and took slaves. Jefferson reported to Secretary of State John Jay, and to the Congress:

The ambassador answered us that [the right] was founded on the Laws of the Prophet (Mohammed), that it was written in their Koran, that all nations who should not have answered their authority were sinners, that it was their right and duty to make war upon them wherever they could be found, and to make slaves of all they could take as prisoners, and that every Mussulman who should be slain in battle was sure to go to heaven.[1]
http://en.wikipedia.org/wiki/First_Barbary_War
http://www.usvetdsp.com/jan07/jeff_quran.htm
muslim justifies slavery and piracy%u2026
http://www.hawaiireporter.com/story.aspx?6bdec278-6a71-4436-bc4d-29d1c54b0ad7
MUSLIM PIRATES STRIKE AGAIN
http://astuteblogger.blogspot.com/2005/06/muslim-pirates-strike-again.html
Reply to this comment
by lars008-2009 September 23, 2007 1:12 PM EDT
the war is legal, demonic-rat hero al bore says so%u2026

the resumption of hostilities was only a matter of time since iraq broke the ceasefire agreement.....

blame saddam for iraq%u2026%u2026. Even clintoon and the dems wanted the resumption of hostilities back in 1998

"We know that he has stored secret supplies of biological and chemical weapons throughout his country." - Al Gore, Sept. 23, 2002

"Iraq''s search for weapons of mass destruction has proven impossible to deter and we should assume that it will continue for as long as Saddam is in power." - Al Gore, Sept. 23, 2002

Moreover, no international law can prevent the United States from taking actions to protect its vital interests, when it is manifestly clear that there is a choice to be made between law and survival. I believe, however, that such a choice is not presented in the case of Iraq. Indeed, should we decide to proceed, that action can be justified within the framework of international law rather than outside it. In fact, though a new UN resolution may be helpful in building international consensus, the existing resolutions from 1991 are sufficient from a legal standpoint. - Al Gore, Sept. 23, 2002
http://www.gwu.edu/~action/2004/gore/gore092302sp.html
Reply to this comment
by Krazcarl September 23, 2007 10:26 AM EDT
Sgtrds yes it is balatantly obvious you don''t approve of the current administration {not a fan either} but a couple of draft dodgers were caught with there pants down on 9/11 and yes they made repeted mistakes but there set for life to be honest there kids are set for life they KNOW how to make money the old fashion way {why there in politics} but never the less as a bleeding heart liberel I don''t believe they would santion arm sales to the enemy yes they may award contract to some friends {believe that''s the pupose of political donation}. Don''t like Bush never did never will but after he killed that jesus freak in Texas never had any use for him showed me what kind of man he was but still don''t believe he would approve arms to the enemy. We need to keep our heads appear rational or we will defeat our own poposes.
Reply to this comment
by sgtrds September 23, 2007 3:13 AM EDT
war 101 don''''t give the enemy weopons to shoot at you not even for a buck.

Posted by crzmeat at 10:55 PM : Sep 22, 2007

However war 101 also says that all wars are fought for greed or religion and most for both. This war is first and foremost a war about greed and secondarily a war about religion. The people who started this war (Richard Cheney, etc) did it for one reason and one reason alone, war is profitable and they don''t care how many have to die for them to make money.
Reply to this comment
by Krazcarl September 23, 2007 1:55 AM EDT
Why would a USA co. supply arms to those they may have to kill unless a undercover sting to make things even or get info. This isn''t selling a little weed on the corner this is putting arms in the hands of men that shoot at you or your friens this is to stupid to be true it is plaulsible they used back door channel to get weapons but war 101 don''t give the enemy weopons to shoot at you not even for a buck. This liberal witch hunting is getting ridiculous the wort part is I''m liberal but not stupid.
Reply to this comment
by socrates392 September 22, 2007 10:36 PM EDT
Little gay dude, when did Jesus prohibit gay marriage? I thought Jesus was pretty explicit in explaining that the kingdom of heaven doesn''''t involve things like gayness or any kind of animal body funtions such as sexx. Those are bodily functions, not unlike going to the bathroom, which are not easy to perform without a body.

Posted by SharnCedar at 07:25 PM : Sep 22, 2007

Good point! Therefore, all Christians should support gay marriage!
Reply to this comment
by sharncedar September 22, 2007 10:25 PM EDT
What is your opinion about the TERRORIST LEADER "HAJI JESUS" who oppsed HOMOSEXUALS'''' RIGHT OF MARRIAGE

Posted by patriotic9 at 06:42 PM : Sep 22, 2007

Little gay dude, when did Jesus prohibit gay marriage? I thought Jesus was pretty explicit in explaining that the kingdom of heaven doesn''t involve things like gayness or any kind of animal body funtions such as sexx. Those are bodily functions, not unlike going to the bathroom, which are not easy to perform without a body.
Reply to this comment
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