OTTAWA - Canadian troops and police were trained for two years by the international security contractor formerly known as Blackwater without the permission of the U.S. State Department.

The revelation is contained in U.S. federal court records, unsealed in North Carolina as part of a $7.5 million settlement of criminal charges against the company that's now known as Academi LLC.

It is the second time Canada's association with the notorious security company, often described as the world's largest mercenary army, has arisen in a complex legal case that has been churning its way through U.S. courts.

Blackwater, which changed its name to Xe Services before being sold and becoming Academi, was cited in August 2010 for the unauthorized export of technical data to the Canadian military.

The Harper government has had a standing, untendered contract with the company since 2008 and the NDP's defence critic is now calling for a further investigation into the country's ties to the company.

It's paid millions of dollars going back to 2006 for specialized training provided to special forces troops and some police officers.

U.S. prosecutors say Blackwater didn't seek the permission required under American arms control laws for the instruction, which took place between 2006 and 2008 and included training in marksmanship, defensive driving, bodyguard and close combat skills.

The company had a myriad of subsidiaries.

Some of what Blackwater companies taught the Canadian military involved the company's "Mirror Image" course, according to court documents filed in Raleigh, N.C. The program sees trainees living as a mock al-Qaida cell to better understand the mindset and culture of insurgents.

It is a "classroom and field training program designed to simulate terrorist recruitment, training, techniques and operational tactics," said a Blackwater brochure.

The course was offered by the now-defunct Blackwater subsidiary Terrorism Research Centre, which in addition to the immersion-like training provided advice to governments and U.S. cities on gathering intelligence. The centre was shut down by the new owners.

Much of the public attention on Blackwater has focused on the 2007 deaths of 17 Iraqis in Baghdad following an attack on a diplomatic convoy protected by Blackwater guards.

But the company's advice and potential involvement in the murky world of intelligence gathering for both government and corporations has been the subject of growing scrutiny over the last few years.

National Defence and the government have over the years defended their association with Blackwater, saying the courses and instruction were necessary and unavailable anywhere else.

A spokeswoman in Defence Minister Peter MacKay's office issued only a one-line email statement, saying it was "appropriate training" to ensure that soldiers had "skills required to survive a very difficult military mission in Afghanistan."

Officials within the department declined further comment, but a defence expert who has written extensively on the shadowy ventures of private security companies called the revelations troubling.

Dave Perry of Carleton University's Centre for Security and Defence Studies said whenever it's gotten into trouble, Blackwater always insisted it was carrying out business in compliance with U.S. foreign policy.

"It potentially brings into question whether they were actually doing that, if they weren't going through the formal channels to get approval for something as relatively mundane as training," Perry said.

The NDP's Jack Harris said his party has long opposed the training.

"What else don't we know that's going on without the knowledge or consent of the Canadian people?" Harris asked.

The idea that technical data was transferred to Canada also grabbed Perry's attention. He wonders what it was the U.S. thought was so sensitive that it could be shared with a private contractor, but not with its closest neighbour and military ally.

Perry said the court case raises more questions about the government's association and believes the revelations may only be the tip of the iceberg, given that Blackwater had over 30 different subsidiaries.

"I don't think we have a full appreciation of the full range of services" offered to Canada by the company, he said.

Asked if the Canadian public has yet to learn the full story, Perry replied: "I think that's fair to say."

Also on HuffPost:

Loading Slideshow...
  • Start of War: Oct. 7, 2001

    <em>American soldiers hide behind a barricade during an explosion, prior to fighting with Taliban forces November 26, 2001 at the fortress near Mazar-e-Sharif, northern Afghanistan. (Photo by Oleg Nikishin/Getty Images)</em>

  • Number of U.S. Troops in Afghanistan: 88,000

    <em>US Marines with the 26th Marine Expeditionary Unit deployed from the USS Bataan's Amphibious Ready Group arrive December 14, 2001 at an undisclosed location with field gear and weapons. (Photo by Johnny Bivera/Getty Images)</em>

  • Number of Troops at War's Peak

    <em>U.S. Marines begin to form up their convoy at a staging area near Kandahar, Afghanistan, as they await orders to begin their trek to Kandahar to take control of the airfield 13 December, 2001. (DAVE MARTIN/AFP/Getty Images)</em><br><br> Number of U.S. troops in Afghanistan at the war's peak: About 101,000 in 2010. Allies provided about 40,000.

  • Withdrawal Plans

    <em>U.S. President Barack Obama delivers a televised address from the East Room of the White House on June 22, 2011 in Washington, D.C. (Pablo Martinez Monsivais-Pool/Getty Images)</em><br><br> Withdrawal plans: 23,000 U.S. troops expected to come home by the end of the summer, leaving about 68,000 in Afghanistan. Most U.S. troops expected to be out of Afghanistan by the end of 2014, though the U.S. is expected to maintain a sizeable force of military trainers and a civilian diplomatic corps.

  • Number of U.S. Casualties

    <em>American flags, each one representing the 4,454 American soldiers killed in the Iraq and Afghanistan wars, move in the breeze at The Christ Congregational United Church March 17, 2008 in Miami, Florida. (Photo by Joe Raedle/Getty Images)</em><br><br> Number of U.S. casualties: At least 1,828 members of the U.S. military killed as of Tuesday, according to an Associated Press count. According to the Defense Department, 15,786 U.S. service members have been wounded in hostile action.

  • Afghan Civilian Casualties

    <em>Asan Bibi, 9, sits on a bench as burn cream is applied to her at Mirwais hospital October 13, 2009 Kandahar, Afghanistan. She, her sister and mother were badly burned when a helicopter fired into their tent in the middle of the night on October 3rd, according to their father. (Photo by Paula Bronstein/Getty Images)</em><br><br> Afghan civilian casualties: According to the United Nations, 11,864 civilians were killed in the conflict between 2007, when the U.N. began reporting statistics, and the end of 2011.

  • Cost of the War

    <em>An Iraqi man counts money behind a pile of American dollars in his currency exchange bureau in Baghdad on April 11, 2012. (ALI AL-SAADI/AFP/Getty Images)</em><br><br> Cost of the war: $443 billion from fiscal year 2001 through fiscal year 2011, according to the Congressional Research Service.

  • Number of Times Obama Has Visited Afghanistan

    <em>US President Barack Obama speaks to troops during a visit to Bagram Air Field on May 1, 2012 in Afghanistan. (MANDEL NGAN/AFP/Getty Images) </em><br><br> Number of times Obama has visited Afghanistan: 3 as president, including Tuesday, and 1 as a presidential candidate.