Picture was on Knight's Armament's company blog. (I live in the same town as KAC, but I don't work there.) The full report by AP can be read on yahoo news
here.
I don't buy, at all, that none of the ten guys in the pic, nor the photographer, knew that those jagged letters were the Nazi emblem. No one could be that ignorant. Not even Americans. Come on, get real. None of these dickheads ever played a WW2 FPS game while they were growing up?