Overseas Civilian Contractors

News and issues relating to Civilian Contractors working Overseas

Efraim Diveroli, AEY, Sentenced for Defrauding the Defense Department

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.

Efraim Diveroli after his arrest for drunk driving on Miami Beach in 2008. MIAMI-DADE

BY JAY WEAVER at The Miami Herald

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.”

Please read the entire story here

January 4, 2011 Posted by | Afghanistan, Civilian Contractors, Contractor Corruption, Department of Defense, Safety and Security Issues | , , , , , | Leave a comment

Contractor in ammunition scheme now target of Orlando federal prosecutors

AP and Orlando Sentinal

A 24-year-old Miami Beach man accused in a scheme to illegally ship nearly $300 million in Chinese-made ammunition to Afghan soldiers is now the target of an Orlando federal criminal investigation.

Efraim Diveroli, a military contractor who pleaded guilty to a conspiracy charge in a South Florida federal case last year, was arrested Friday.

A criminal complaint filed in Orlando charges Diveroli with two counts: possessing firearms as a convicted felon and possessing firearms by a person under indictment for a felony offense.

At a hearing Monday in Orlando federal court, a magistrate judge found Diveroli is a flight risk and ordered he be jailed pending trial.

Diveroli was president of AEY Inc., a Miami Beach firm awarded a $298 million U.S. Army contract to provide ammunition to Afghanistan.

Under the contract, ammunition exported from China was forbidden. Federal prosecutors in South Florida said AEY did it anyway, and claimed the rounds were from Albania.

Authorities said AEY bought much of the ammunition from Albania’s Military Export and Import Co., which purchased large amounts of Chinese ammunition.

AEY removed traces of the Chinese manufacturer and gave the U.S. Army written certification the ammunition came from Albania, authorities said.

Federal prosecutors in South Florida indicted Diveroli on more than 80 charges.

In August 2009, Diveroli pleaded guilty to a conspiracy charge and is considered a felon. He had been free from jail on bond pending his sentencing in that case, which was slated for November.

Central Florida agents began investigating Diveroli in July, when they received a tip from a local person, identified only as a “cooperating source,” who is a “federal firearms licensee,” according to the criminal complaint.

The source told an agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives that Diveroli called and offered a pallet of ammunition for sale. Diveroli also suggested they partner to buy and sell machineguns, the complaint said.

The source, who had no prior contact or a business relationship with Diveroli, notified ATF to report the suspicious behavior.

An ATF agent went undercover and had several conversations with Diveroli, the criminal complaint said.

During one conversation, Diveroli reportedly said he does not want direct involvement in the ammunition business, but said he keeps getting drawn back into it. “Once a gun runner, always a gun runner,” Diveroli allegedly said.

Diveroli admitted to being at a shooting range during one conversation and about a week later, said he was hunting alligators, white tail deer and hogs in the Everglades, the complaint said.

On Friday, Diveroli met with the undercover agent in Brevard County, even though he wasn’t allowed to travel there because of his pending criminal case in South Florida.

It was during that meeting that Diveroli allegedly handled several of the undercover agent’s firearms.

August 23, 2010 Posted by | Uncategorized | , , , , , , , | Leave a comment