21 Year Old S. Florida Arms Dealer, BUSTED!! Selling Junk To Our Troops.

[twyacht]

Ah to be 21 again,....land a $300,000,000 gov't arms contract,....own a $1 Million Dollar Condo on Miami Beach,....all the gambling, cars, hookers, etc,.... ah the good ol' days.....

IDIOT!!!!

http://www.miamiherald.com/2011/01/03/1999301/young-miami-beach-arms-dealer.html

FEDERAL COURT
Young Miami Beach arms dealer sentenced to four years in prison
 
The sale of banned Chinese ammunition to the U.S. Army in Afghanistan landed the 25-year-old from Miami Beach in trouble, and led to his guilty plea.

BY JAY WEAVER
jweaver@MiamiHerald.com

Efraim Diveroli, an arms-dealing wunderkind from Miami Beach who had scored a $300 million munitions contract with the Pentagon, was sentenced Monday to four years in prison by a federal judge who scolded him for a life of deception, gambling and substance abuse.

Diveroli, now 25, captured the attention of Congress when he was arrested in 2008 on charges of selling banned Chinese ammunition to the U.S. Army to supply Afghan forces fighting insurgents. He pleaded guilty the next year to one count of conspiring to defraud the Department of Defense.

``It is a sad day when anyone values their self-worth by a dollar sign,'' U.S. District Judge Joan Lenard told Diveroli, whose emotional sentencing was attended by about 50 family members and supporters.

``If it wasn't so amazing, you would laugh that such a young man could attain such responsibilities,'' she said, noting he won the massive military contract when he was only 21 years old.

``But to participate in such a fraud when people are putting their lives on the line, it makes it so much sadder,'' she said. ``It makes the heart ache. And all for money.''

Diveroli, who had faced up to five years in prison, got one break from the judge. Lenard gave him a lesser sentence because he accepted responsibility for his crime -- even though Diveroli was arrested in Central Florida in August while on bail on a separate charge of possessing firearms and ammunition.

Ever since, Diveroli has been in federal custody. He pleaded guilty to the firearms charge in November and awaits sentencing later this month.

His mother, two rabbis and his defense lawyers -- along with the judge -- said his five months in prison have taught him a sober lesson, transforming him from a reckless egotist to a humbled inmate.

``It is clear to me in prison you're a nobody,'' Diveroli told the judge. ``I'm an embarrassment to my family and my community.''

In addition to giving him four years in prison, the judge also fined Diveroli $250,000 and ordered him to repay the Defense Department more than $149,000.

In the plea deal, Diveroli admitted he conspired with employees of his Miami Beach company, AEY Inc., to sell the U.S. Army $10.3 million of prohibited Chinese munitions that they tried to disguise as being made in Albania. The Pentagon bought the machine-gun rounds from AEY in 2007 to supply allied forces in Afghanistan.

In return for pleading to one conspiracy count, the U.S. Attorney's Office in Miami agreed to drop 84 other procurement charges. AEY also pleaded guilty to the same count, and was ordered to pay a $500,000 fine.

Diveroli's contract with the Pentagon was only a fraction of his government business. His company agreed to sell about $300 million in weapons and munitions to the Army one year before he and three other men were indicted on conspiracy and procurement offenses in March 2008. The indictment triggered congressional hearings.

Two other employees, David Packouz, AEY's vice president, and Alexander Podrizki, an AEY agent, pleaded guilty in 2009 and await sentencing later this month.

An AEY agent and investor, Ralph Merrill of Utah, opted for trial and was convicted in December on a variety of charges. His sentencing is scheduled for March.

The case centered on the embargo of Chinese-made weapons passed by Congress in 1989 in response to the massacre of dissidents in Beijing's Tiananmen Square. Despite normalized trade relations with China, the arms embargo has remained in effect.

Diveroli's lawyers, Howard Srebnick and Hy Shapiro, tried to have the indictment dismissed, saying he did not violate the embargo because the Albanians acquired the Chinese munitions during the Cold War -- 15 to 30 years before the embargo took effect. Diveroli did not buy them from Albania until late 2007.

The dispute arose in 2007, when the State Department e-mailed the young Miami Beach munitions dealer to tell him he could not sell Chinese weaponry to the U.S. government to help supply allied forces in Afghanistan, according to a factual statement filed with Diveroli's plea agreement.

Diveroli, president of AEY, and three of his employees had the machine-gun rounds removed from the wooden crates and metal tins that bore the Chinese markings, and repackaged the ammunition in cardboard boxes, the statement said.

****

Other local outlets, say the stuff was unusable and junk.

Supplying our Armed Forces, with stuff that may not work?  Four Years? I think it should at least be at hard labor at a military prison..

Picture of this punk kid at link......He'll make a nice girlfriend in prison,...

[alfsauve]

I think you make him walk point with the junk he sold us. 

[fightingquaker13]

Lets leave morality aside for a moment. How the hell do you manage to score a three hundred million dollar contract with the military at 21? I mean, most punks that age are thinking about knocking over a liquor store. Where do I sign up to be a 9 figure arms dealer?
FQ13

[twyacht]

Lets leave morality aside for a moment. How the hell do you manage to score a three hundred million dollar contract with the military at 21? I mean, most punks that age are thinking about knocking over a liquor store. Where do I sign up to be a 9 figure arms dealer?
FQ13

Remember that infomercial with the guy in the checkered suit telling you about gov't programs that will "give" you money?

$10,000 for this.
$2500 for that.
$1500 to buy this or that.....

guess he found one,.....

[Solus]

The ammo wasn't going to our troops, it was going to be given to our Afghan allies.

The day may come when we would be glad they are using junk ammo.

[Sponsor]

[tombogan03884]

I think you make him walk point with the junk he sold us.  

This story, and the Judges self righteous posturing are pure BS.
The "junk" ammo is no more or less reliable than any other East bloc ammo. (It was good enough for the DoD to buy millions of rounds for the anti Soviet war )
The real crime was importing Chinese  (Norinco ) products.
They were prohibited from import during the Clinton administration when Norinco was caught shipping thousands of full auto AK's and sending Scud Missiles and parts to N Korea.
That's why Norinco  products are relatively scarce on the market now a days.
My question is where are the corrupt Customs officials that allowed it through inspection ?

[twyacht]

The sale of banned Chinese ammunition to the U.S. Army in Afghanistan landed the 25-year-old from Miami Beach in trouble, and led to his guilty plea.

Miami Arms Dealer Dude Had Complex Web Of Business Dealings
Ryan J. Reilly | August 27, 2010, 1:00PM

The world headquarters of Pinnacle Minerals Corporation and AEY Inc.

In their newest case against the already-convicted 20-something Miami arms dealer Efraim Diveroli, the feds accused him this week of using a front company to hide his continuing involvement in the arms trade. But a closer look at Diveroli's recent dealings suggest that, even as he was awaiting sentencing on his initial conviction for selling the U.S. government poor-quality and illegal munitions for use in Afghanistan, Diveroli engaged in a series of transactions designed to obscure his involvement in companies involved in the arms business.

AEY, Inc., the business that Diveroli used a few years back to sell the U.S. Army out-of-date Eastern European munitions, is still around and is run out of Diveroli's upscale home in Miami Beach.

http://tpmmuckraker.talkingpointsmemo.com/efraim_diveroli/

It was out of date, scum sucked prairie ammo dug up out of an easter bloc country, smuggled through China as "good stuff".

The gov't once again paid top money, for a $400 multi directional impact device.....to our troops.  This time ammo.

In 2008, as The New York Times investigated accusations that he was shipping decades-old Kalashnikov ammunition in corroded packaging to the war, and repackaging and obscuring the origins of Chinese cartridges procured from Albania, the United States Army abruptly suspended its contract with Mr. Diveroli and his firm.

It was crap J&G wouldn't sell....

[Solus]

Ah to be 21 again,....land a $300,000,000 gov't arms contract,....own a $1 Million Dollar Condo on Miami Beach,....all the gambling, cars, hookers, etc,.... ah the good ol' days.....

IDIOT!!!!

http://www.miamiherald.com/2011/01/03/1999301/young-miami-beach-arms-dealer.html

FEDERAL COURT
Young Miami Beach arms dealer sentenced to four years in prison
 
The sale of banned Chinese ammunition to the U.S. Army in Afghanistan landed the 25-year-old from Miami Beach in trouble, and led to his guilty plea.

BY JAY WEAVER
jweaver@MiamiHerald.com

Efraim Diveroli, an arms-dealing wunderkind from Miami Beach who had scored a $300 million munitions contract with the Pentagon, was sentenced Monday to four years in prison by a federal judge who scolded him for a life of deception, gambling and substance abuse.

Diveroli, now 25, captured the attention of Congress when he was arrested in 2008 on charges of selling banned Chinese ammunition to the U.S. Army to supply Afghan forces fighting insurgents. He pleaded guilty the next year to one count of conspiring to defraud the Department of Defense.

``It is a sad day when anyone values their self-worth by a dollar sign,'' U.S. District Judge Joan Lenard told Diveroli, whose emotional sentencing was attended by about 50 family members and supporters.

``If it wasn't so amazing, you would laugh that such a young man could attain such responsibilities,'' she said, noting he won the massive military contract when he was only 21 years old.

``But to participate in such a fraud when people are putting their lives on the line, it makes it so much sadder,'' she said. ``It makes the heart ache. And all for money.''

Diveroli, who had faced up to five years in prison, got one break from the judge. Lenard gave him a lesser sentence because he accepted responsibility for his crime -- even though Diveroli was arrested in Central Florida in August while on bail on a separate charge of possessing firearms and ammunition.

Ever since, Diveroli has been in federal custody. He pleaded guilty to the firearms charge in November and awaits sentencing later this month.

His mother, two rabbis and his defense lawyers -- along with the judge -- said his five months in prison have taught him a sober lesson, transforming him from a reckless egotist to a humbled inmate.

``It is clear to me in prison you're a nobody,'' Diveroli told the judge. ``I'm an embarrassment to my family and my community.''

In addition to giving him four years in prison, the judge also fined Diveroli $250,000 and ordered him to repay the Defense Department more than $149,000.

In the plea deal, Diveroli admitted he conspired with employees of his Miami Beach company, AEY Inc., to sell the U.S. Army $10.3 million of prohibited Chinese munitions that they tried to disguise as being made in Albania. The Pentagon bought the machine-gun rounds from AEY in 2007 to supply allied forces in Afghanistan.

In return for pleading to one conspiracy count, the U.S. Attorney's Office in Miami agreed to drop 84 other procurement charges. AEY also pleaded guilty to the same count, and was ordered to pay a $500,000 fine.

Diveroli's contract with the Pentagon was only a fraction of his government business. His company agreed to sell about $300 million in weapons and munitions to the Army one year before he and three other men were indicted on conspiracy and procurement offenses in March 2008. The indictment triggered congressional hearings.

Two other employees, David Packouz, AEY's vice president, and Alexander Podrizki, an AEY agent, pleaded guilty in 2009 and await sentencing later this month.

An AEY agent and investor, Ralph Merrill of Utah, opted for trial and was convicted in December on a variety of charges. His sentencing is scheduled for March.

The case centered on the embargo of Chinese-made weapons passed by Congress in 1989 in response to the massacre of dissidents in Beijing's Tiananmen Square. Despite normalized trade relations with China, the arms embargo has remained in effect.

Diveroli's lawyers, Howard Srebnick and Hy Shapiro, tried to have the indictment dismissed, saying he did not violate the embargo because the Albanians acquired the Chinese munitions during the Cold War -- 15 to 30 years before the embargo took effect. Diveroli did not buy them from Albania until late 2007.

The dispute arose in 2007, when the State Department e-mailed the young Miami Beach munitions dealer to tell him he could not sell Chinese weaponry to the U.S. government to help supply allied forces in Afghanistan, according to a factual statement filed with Diveroli's plea agreement.

Diveroli, president of AEY, and three of his employees had the machine-gun rounds removed from the wooden crates and metal tins that bore the Chinese markings, and repackaged the ammunition in cardboard boxes, the statement said.

****

Other local outlets, say the stuff was unusable and junk.

Supplying our Armed Forces, with stuff that may not work?  Four Years? I think it should at least be at hard labor at a military prison..

Picture of this punk kid at link......He'll make a nice girlfriend in prison,...

[tombogan03884]

Out of date ?
We've had threads on here about how long to keep ammo that included posts about shooting WWII manufacture.
The fact remains that there had to be collusion of Customs inspectors or it never would have gotten into the country.
And note, THIS WAS NOT FOR USE BY US TROOPS.
I also agree that in the future we will probably be damned glad the Afghans are using allegedly crap ammo.

[ratcatcher55]

My question is where are the corrupt Customs officials that allowed it through inspection ?

Tom, it wasn't an ICE problem it was a DOD IG issue. The DOD would be expected to sample the lot for complience not ICE.

If ICE had the paper work for rounds they are not looking to see if DOD bought crap ammo. If the import paper work was correct they were done.  If the boxes and paperwork said Albania and it was in fact ammo, they would let it pass if in fact it came to the US.

Lastly I didn't read that it was delivered directly to Afghanistan or to the US. If it never touched us soil, there would be little chance ICE would deal with anything but paper work.

How the hell do you manage to score a three hundred million dollar contract with the military at 21?

He submitted a bid on a DOD/Commerce RFQ. There are load of folks who have one or two people just read bid listings and write proposals. In my old job I would get 15 request for a bid that the DOD would list us as the supplier of the equipment. In fact many times we never even got sent the bid because these yokels supplied other stuff to the USN and were just acting as middle men.

If your company had an NSIC code and Federal ID number , you could bid  on just about anything.

The question would be why no one else protested the award of contract? They must have known the ammo had to come from the PRC.