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McClatchy newsWASHINGTON — The State Department is preparing to slap a multi-million dollar fine on private military contractor Blackwater USA for shipping hundreds of automatic weapons to Iraq without the necessary permits.
Some of the weapons are believed to have ended up on the country's black market, department officials told McClatchy, but no criminal charges have been filed in the case.
The expected fine is the result of a long-running federal investigation into whether employees of the firm shipped weapons hidden in shrink-wrapped pallets from its Moyock, N.C. headquarters to Iraq, where Blackwater is the State Department's largest personal security contractor.
Since the arms shipment allegations first became public 14 months ago, Blackwater, which has received $1.2 billion in federal contracts, according to the Web site fedspending.org, has consistently denied involvement in illicit arms trafficking.
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