Major Break In Miami Beach Munitions Dealer Case

[maddezmom]

Source: CBS4

Efraim Diveroli And Others Are Charged With Violating The Arms Export Control Act
MIAMI (CBS4) ― A 22-year old South Florida military contractor whose contract with the Pentagon had been under investigation is the center of a major announcement by the U.S. Attorney's Office in Miami Friday afternoon.

He has been accused of conspiring to misrepresent the types of munitions they sold to the U.S. Department of Defense as part of a $300 million Army weapons contract, officials said.

The U.S. Army has suspended Efraim Diveroli's company, AEY Inc., from doing any government contract work. The company reportedly provided ammunition to the Afghanistan army in violation of its contract and U.S. law.

Documents say Diveroli's company is under criminal investigation for reportedly claiming that the munitions were made in Hungary.


Read more: http://cbs4.com/local/Efraim.Diveroli.Army.2.753108.html

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Feds arrest Miami Beach munitions dealer
Efraim Diveroli has been charged with violating the Arms Export Control Act.A 22-year-old munitions dealer and others in his Miami Beach company were arrested on charges of selling prohibited Chinese weaponry to the U.S. government to supply allied forces in Afghanistan, according to law enforcement officials.

Efraim Diveroli, president of AEY Inc., and three other employees were arrested Thursday night and Friday morning -- accused of conspiring to misrepresent the types of munitions they sold to the U.S. Department of Defense as part of a $300 million Army weapons contract, officials said.

Diveroli and the others are charged with violating the Arms Export Control Act stemming from an investigation that began earlier this year by the Pentagon and Immigration and Customs Enforcement.

more:http://www.miamiherald.com/news/breaking_news/story/577409.html


Indicted Saudi Financier Gets $80 Million US Military Contract
The U.S. military suffered enormous embarrassment when the New York Times reported that a contract to arm the Afghan forces worth nearly $300 million had been awarded to a 22-year-old man, Efraim E. Diveroli, whose vice president was a licensed masseur. It turned out that Diveroli had been supplying the Afghans with defective weaponry and had broken numerous procurement laws. Apparently, the military has not learned their lesson. ABC News reports that they have awarded an $80 million contract to a prominent Saudi financier who has been indicted by the U.S. Justice Department:

The US military has awarded an $80 million contract to a prominent Saudi financier who has been indicted by the US Justice Department. The contract to supply jet fuel to American bases in Afghanistan was awarded to the Attock Refinery Ltd, a Pakistani-based refinery owned by Gaith Pharaon. Pharaon is wanted in connection with his alleged role at the failed Bank of Credit and Commerce International (BCCI), and the CenTrust savings and loan scandal, which cost US tax payers $1.7 billion.

more:http://www.huffingtonpost.com/2008/06/04/indicted-saudi-financier_n_105209.html

[SpiralHawk]

1. A republicon crony?

...sure has the stink of it.

The republicons have profited massively from this lie-induced Crusade.

[Judi Lynn]

2. Four indicted in munitions fraud

Four indicted in munitions fraud
A Miami-based weapons dealer is part of a 71-count indictment alleging that he defrauded the U.S. government.
Posted on Sat, Jun. 21, 2008

BY JAY WEAVER
[e-mail]

Last year, the State Department e-mailed a young Miami Beach munitions dealer, telling him that he could not sell Chinese weaponry to the U.S. government to help supply allied forces in Afghanistan.

But Efraim Diveroli, the 22-year-old president of AEY Inc., and three of his employees didn't take no for an answer, according to an indictment unsealed Friday.

Instead, authorities contend they conspired to defraud the federal government by selling it more than $10 million of Chinese-made machine-gun rounds, telling U.S. officials that the ammunition was from Albania.

Diveroli and his co-workers, who made their first appearances in federal court in Miami on Friday, even arranged to have ''Made in China'' markings removed from the wooden crates shipped to Afghanistan to conceal the origins of the weaponry, according to the indictment.

''When these contractors intentionally cut corners to line their own pockets, they risk the safety and lives of our men and women in uniform,'' U.S. Attorney R. Alexander Acosta said at a news conference Friday.

More:
http://www.miamiherald.com/news/miami_dade/story/578265.html

[Divine Discontent]

3. kick

there has to be a bunch of this type of crony favoring all over, it's just these guys were so young it was hard to not grab people's attention when it broke that a 22 yr old was running the company that got nearly a $300 Million contract!

[Scurrilous]

4. Miami Beach weapons dealer to enter plea

<snip>

"A 22-year-old Miami Beach entrepreneur is scheduled to enter a plea to charges of defrauding the U.S. government by allegedly falsifying the origins and age of ammunition intended for Afghanistan.

Efraim Diveroli's company had a contract to supply the U.S. military with ammunition for forces in Afghanistan. He has been charged along with three others with providing prohibited Chinese-made ammunition and saying it came from Albania.

He is scheduled to be in court Monday.

Diveroli's company, AEY Inc., was paid more than $10 million for 35 shipments of ammunition that prosecutors say was manufactured in China. Prosecutors contend his company removed markings from containers to hide the fact they were manufactured in China."

http://www.miamiherald.com/news/breaking_news/story/596090.html

[maddezmom]

5. Wonder if we'll hear any more about the Amb to Albania

House Democrat accuses US ambassador of evidence tampering
WASHINGTON - The U.S. ambassador to Albania allegedly approved removing evidence of the illegal Chinese origins of ammunition being shipped from Albania to Afghanistan by a U.S. defense contractor, a senior House Democrat said Monday.


In a letter to Secretary of State Condoleezza Rice, Rep. Henry Waxman, D-Calif., said the State Department then attempted to conceal that information from the House Oversight and Government Reform Committee, which he chairs.

Waxman's allegation comes three days after the contractor's president, a 22-year-old Miami Beach man named Efraim Diveroli, and three others were charged in federal court with providing the prohibited ammunition to be used by Afghan army and police forces. Diveroli's company, AEY Inc., was paid more than $10 million through a U.S. government contract for 35 shipments of ammunition that prosecutors say was manufactured in China.

Prosecutors contend AEY Inc. removed markings from containers to hide the fact they were manufactured in China. Diveroli certified that the ammunition was manufactured in Albania and submitted an invoice for it, they said.


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