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Efraim and David disagreed about how much of the cut David was entitled to. David, who had not yet received his commission, was going to be a millionaire.īut with success comes strife. AEY Inc.'s accounts were receiving millions of dollars worth of wire transfers from the Pentagon. But with no complaints regarding the quality of the rounds, everything seemed to be going smoothly. So the boys conspired to repackage the ammunition - which is considered fraud.Īfter a few minor delays and a seizure scare by the Kyrgyz KGB, the plane landed in Kyrgyzstan and the ammo was approved by the Afghans, despite every shipment being stamped with the place of manufacture.

Army banning Chinese ammunition because of an American embargo on the Chinese military industry. However, there was a problem - the Albanian ammo originally came from China, and this was a violation of the terms of AEY's contract with the U.S. Despite offers from AK-47 suppliers in Hungary and Czech Republic, David decided on Swiss arms dealer Heinrich Thomet's contacts in Albania because they did not require large down payments, which allowed for larger orders. The quality of the ammo wasn't important, as long as it worked. But finding such huge shipments of ammo would become a difficult task, one that led David (whose official title was 'account executive') to Abu Dhabi, then Russia, and ultimately, Albania. They expanded their two-man enterprise and opened a real office in Miami Beach, even hiring two receptionists. Nobody else our age was dealing weapons on an international level.'Īfter learning their bid had been accepted, the two celebrated with dinner and a few lines of cocaine on the dashboard of Efraim's brand-new Audi. But it was thrilling and fascinating to be in a business that decided the fate of nations. ' I didn't plan on being an arms dealer forever - I was going to use the money to start a music career. 'I was going to make millions,' he told Rolling Stone magazine. Through a massive underbid, Efraim's dream of becoming the biggest arms dealer in the world was finally coming true.ĭavid's dream, however, was somewhat different. The two 20-something stoners, one a former masseur and the other a high school drop out, had actually managed to beat out Fortune 500 giants like General Dynamics to secure the impressive deal. government contract to supply millions of rounds of ammunition (for AK-47s, SVD Dragunov sniper rifles, and aviation rockets) to the American-allied Afghan army during the War on Terror. After a falling out with his uncle, Efraim took over his father's shell arms company, AEY Inc., in 2003, at just 18 years old.įour years after Efraim took over and and two years after David joined, AEY Inc. At 14, Efraim went to work for his uncle at his police supply business.

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His family was somewhat high-profile as his grandfather was one of the wealthiest property owners in Los Angeles and his uncle is the famous rabbi, author and TV host Rabbi Shmuley Boteach. He met Efraim Diveroli at the Beth Israel Congregation, the largest Orthodox synagogue in Miami Beach, and the two bonded over their mutual love of hanging out the beach, playing guitar, and smoking weed.Įfraim was born Decemin Miami Beach, Florida to Michael and Ateret Diveroli - strict orthodox Jews. He majored in chemistry at the University of Florida before switching to Miami-Dade College, graduating as a licensed massage therapist. government.ĭavid Packouz was born Februas one of nine children to Rabbi Kalman Packouz and Aish HaTorah in St. AEY Inc.'s international profile would grow exponentially January 2011, when Efraim and David were convicted of fraud of the U.S.

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And through a series of smaller contracts, which afforded them a solid performance record, they would succeed. However, they had their sights set much higher: the U.S. By the end of 2006, they had 149 small contracts worth over $10 million. The two young men began an expansion plan that included scanning government contracts on the internet and contacting foreign arms traffickers.

In 2005, Efraim Diveroli, 19, offered his friend David Packouz, 23, a job at his arms company, AEY Inc.

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