FBI investigators have found that Blackwater guards shot 14 people with no justification in the controversial 16 September incident in Baghdad, according to a report in the New York Times.
17 people were killed in the incident in which Blackwater private security guards opened fire in a crowded Baghdad neighborhood as they protected a State Department convoy.
Blackwater said the guards came under attack.
At least 14 of the shootings broke rules for private security guards in Iraq regarding the use of deadly force, according to the report, citing unnamed civilian and military officials briefed on the case.
Federal Bureau of Investigation agents said the shootings were unjustified.
The FBI investigation into the incident has not concluded, but the findings are being reviewed by US Justice Department officials.
Two die in bomb blast
A roadside bomb attack targetting a US patrol near the heavily fortified Green Zone has killed two Iraqis and wounded three.
Two US military vehicles and a civilian car were badly damaged in the blast.
The explosion occurred shortly after 8am at a time when hundreds of Iraqis queue up to enter the Green Zone.
The blast was the biggest in recent weeks as bombings and shootings have dropped in the Iraqi capital.
