Archive for August 21st, 2016

August 21, 2016

Efraim Diveroli

Arms and the dudes

Efraim Diveroli (b. 1985) was the founder of AEY Inc., a major weapons contractor for the U.S. Department of Defense that was prosecuted for violating an American arms embargo against China. In 2007, AEY provided 42-year-old substandard Chinese ammunition in ‘crumbling boxes’ that was re-branded and re-packaged. Documents showed that the company totaled more than $200 million in contracts to supply ammunition, assault rifles, and other weapons in 2007, despite the fact that his partner, David Packouz, and Diveroli were in their early 20s at the time.

As a result of the publicity surrounding the contract and the age of the arms dealers, the United States Army began a review of its contracting procedures. He was indicted on several dozen counts of fraud, and eventually pleaded guilty to a single count of conspiracy. He was sentenced to four years in federal prison. He is a subject of a 2016 Todd Phillips drama comedy film, ‘War Dogs,’ in which he is portrayed by Jonah Hill. The film was based on a ‘Rolling Stone’ article by Guy Lawson which he later adapted into a book titled ‘Arms and the Dudes.’ The film is heavily fictionalized and dramatized, and many of its events, such as the duo driving through Iraq, never took place.

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