Oscar Winners, Fashions, Stars
Jun 20, 2008 8:44 pm US/Eastern
Major Break In Miami Beach Munitions Dealer Case
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. Among the accusations the U.S. government says he bought old weapons from China and resold them to the U.S.
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.
The Army has told Diveroli that there are complaints that the ammunition arrived in Afghanistan poorly packaged, including loose cartridges in brown paper bags.
There have been no reports that the ammunition was unsafe or failed to work properly.
A U.S. Senate committee has called a hearing to investigate Diveroli's company and the allegations.
Michael Diveroli told
CBS4 in late March that he's not sure his son made the right career choice. "I would prefer he became a nice Jewish doctor or lawyer rather than an arms dealer. He's never asked for my approval on the company. He doesn't always take my advice, I don't influence him. As a father of a boy genius he's hard to control."
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