NEW YORK, April 30 (Reuters) - Private equity giant Cerberus Capital Management is in talks to invest $200 million for a stake in Blackwater USA, the controversial private security group, ABC News reported on Wednesday, citing sources.

Cerberus [CBS.UL], which owns a controlling stake in automaker Chrysler and a 49 percent stake in finance company GMAC, has been examining Blackwater's books since January, the news service reported.

Blackwater, which guards U.S. State Department personnel in Iraq, faced heavy criticism and an FBI investigation for the killing of 17 Iraqi civilians last September in a busy Baghdad square.

(Reporting by Dane Hamilton)