Oh, man. Not cool. Not only has the Army suspended any further contracts for AEY (the shady contractor run by 22 year-old Efraim Diveroli), but the U.S. attorney in Miami along with Department of Justice prosecutors in Washington have picked up the case, The Miami Herald reports.
The probe launched as a result of an audit by the Army’s Procurement Fraud Branch (it’s unclear whether the probe launched as a result of The New York Times‘ inquiries), where officials determined that Diveroli appeared to have lied when he claimed that the ammunition he was providing came from Hungary when it in fact was made in China — which he would have done because the Army prohibits using Chinese ammo.
If Diveroli did lie to the government, that would be a crime. You can read the Army’s audit letter, in addition to the letter to Diveroli suspending his ability to win any further contracts, here.
The Herald also uncovered a second arrest for Diveroli: one for drunk driving earlier this month. That’s the mugshot above. The earlier one, as the Times reported in the initial story, was for beating up a parking valet and getting busted with a fake ID (ironically just after his 21st birthday). The mugshot for that one is to the right. I guess sometimes the pressures of being a big time defense contractor are just too much.
Update: A number of stories have featured Diveroli’s sadly out of date MySpace page. How a multi-million dollar contractor only has one friend I cannot understand.
For the curious, Radar was also able to get in touch with AEY’s 25 year-old masseur VP (or someone claiming to be him, at least) through his MySpace page.