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Waxman Scheds Hearing for Twenty-Something Arms Contractor

Dude! It's time to testify before Congress!

House sleuth Henry Waxman (D-CA) read the news today, oh boy. And he wants 22 year-old AEY President Efraim Diveroli, his 25 year-old VP (and masseur) David Packouz, and the company's general manager, also 25, to testify before Congress about how they managed to get a $300 million U.S. contract to supply (sometimes forty year-old) ammunition to the Afghan Army, among other contracts. Waxman also wants officials from the Department of Defense and Department of State to appear as well. He's set the date of April 17th.

Update: Here's a copy of the letter that the Army sent AEY on Tuesday, suspending any further contracts. The attached letter also runs through all of the contracts AEY won since 2004.


Comments (48)

This one will be so much fun to watch.

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If you thought Rove, Gonzalez, Harriet and the gang were the only ones thumbing their noses at Congress, you ain't seen nothing.

Wait until the Beavis & Butthead of Defense Contractors lawyer up. These guys were defending us from the GWOT!, so they shouldn't have to testify.

Harsh!

Monica Goodling redux. They'll have four answers that they'll use in rotation and (prediction) Congress will not be able to break through them.

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Sadly, there's bound to be a movie about these two asshats....

Dude, who are they fronting for? It's got to be the mob or the cartels - Bushco could never pull it off.

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I agree (though not about the mob :-) ) -- these two knuckleheads with barely high school education (in Florida, no less!) don't look like they could pull this off: find out about the U.S. Army tender, submit a winning bid, establish connections with East European/Albanian arms dealers, set up and run a shipping operation from multiple third parties to Afghanistan, etc. Some real adults must be behind this, with some serious juice in the GOP circles.

I think Waxman has jumped the gun with the hearings. This definitely requires some careful study and more prep.: Waxman should have appointed a couple of shrewd investigators to see what's going on. Dragging the two bozos in front of Congress, where they'll quickly lawyer-up, plead the fifth, etc. is not gonna do any good. Besides, the real culprits are the Pentagon/U.S. Army public officials who let this happen -- whether due to sheer incompetence or due to corruption.

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I do not know who is writing these comments, but I believe that they are not as intelligent as the Congressman. These supposedly called kids, that are not kids at all, all went to a private school. I keep reading about this crap of masseur, well buddy my Harvard Educated Attorney also was a trash man before law school. This kid was an entrepreneur, and should be congratulated for making it as fare as he did. If you understand the government contracting business and see the companies that win a majority of the contracts it is a few people getting very rich. This kid broke that cycle. The American way! The other companies would have distributed the same arms but because of there political connection and monitery value this would never happen to them. Just as long as there stock goes up and up. Yes he is 22, but Bill Gates with Microsfot was how old? Facebook? Dell? Please let me know the problem with business and age

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I'm from miami beach and i happen to know both these "kids" personally. If there's anyone that could pull off an operation like this, it is Efraim Diveroli. There are no "real adults" behind all this.

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I will have to remember to stock up on popcorn and shadenfreude to watch this one. I think I'll be going through a lot of both.

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Why does Congress hate young entrepreneurs?

No, no no! It's "Why does congress hate america?"

Maybe Representative Waxman can finally get to the bottom of that perennial mystery... "Dude, where is my car?!?"

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Masseur David M. Packouz also appears to run a business selling scrap metal worldwide. Here's his 2006 Annual report (you can see others through sunbiz.org).

Here's a copy of the business record:

Company Name: Intelliterran Inc.
Business Type: Buying Office
Product/Services: Metal, Scrap, Copper, Non-Ferrous Metal
Number of Employees: 101 - 500 People
Company Website URL: http://

Ownership & Capital
Year Established: 1999

Trade & Market
Main Markets: North America
South America
Western Europe
Eastern Europe
Eastern Asia
Southeast Asia
Mid East
Africa
Oceania

Total Annual Sales Volume: US$50 Million - US$100 Million

The headquarters address, 3150 Sheridan Ave, Miami Beach, FL tracks back to the Aish Hatorah Jerusalem fund, a nonprofit run by Rabbi Kenneth M. Packouz and Shoshonna Packouz. No record of a scrap metal business in their 990 IRS filings.

Nice catch! The plot thickens...

Seriously, there is obviously so much more to this story than what has trickled out so far...

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Love that photo. Dude, where's my RPG?

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Well, the net is full of claims about that the Aish Hatorah fund is connected to arms dealing. Who knows? Prove it or not, anyone?
For example,
http://www.inminds.co.uk/boycott-starbucks.html

"The Jerusalem Fund of Aish HaTorah sponsors Israeli military arms fairs chaired by the butcher of Jenin - General Shaul Mofaz, Israel's Minister of Defense. It aims to "strengthen the special connection between the American, European and Israeli defense industries" and "to showcase the newest Israeli innovations in defense"."

And

"The Jerusalem Fund of Aish HaTorah also sponsors the zionist propaganda website "honestreporting.com"

What's up with all this?

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Well, consider the source. There are thousands of sites like this one, most were set up by various anti-Israeli interests -- directly or indirectly sponsored by Arab countries or by ex-pat. Arabs and/or Moslems living in the West.

Most are connected to the Palestinian cause, others are plain garden-variety anti-Semites. Some are academics angry at the U.S., but don't have the guts to attack it directly (e.g. have their research funded by the U.S.), and use Israel as a proxy to vent their hate of America. The UK is a big center for these folks; so are France, Greece, and, more recently, Scandinavia, Spain, and every other country with a significant muslim immigrant population.

Factually, Shaul Mofaz is Israel's Minister of Transportation. Moreover, Israel's cabinet ministers are not allowed to engage in business activities while in office. Calling Mofaz "the butcher of Jenin" is pure propaganda: only 51 Palestinians, all combatants, were killed in the Jenin operation. No civilians were harmed. This was confirmed by an independent UN investigation. (As everyone knows, the UN is famously pro-Israel. NOT!)

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Thanks. I know this is the same Packouz because his state massage license database record also reflect the 3150 Sheridan Ave address:

Massage Therapist
License ID - 40153
Expires - 08/31/2009
Issued - 08/18/2003
Rank Code - MA
License # - 39123
Status Effective Date - 08/18/2003
Board Action Indicator - N
License Status Description - CLEAR
PACKOUZ DAVID M
ACTIVE
23
DADE
3150 SHERIDAN AVE.
MIAMI BEACH, FL 33140
305-793-3413

So we've got a religious organization also serving as mailing address home to a scrap metal business and a massage business. What else is operating out of 3150 Sheridan Ave?

According to Dade County records, 3150 Sheridan is a private home belonging to:
KENNETH M PACKOUZ & W RHONDA
3150 SHERIDAN AVE MIAMI BEACH FL
33140-3946

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And from Sunbiz.com here are all of the Diveroli-officered enterprises:

DIVEROLI, ANGELO VANANGELI, INC. 501918
DIVEROLI, ANGELO VANANGELI, INC. M01915
DIVEROLI, ANGELO VANANGELI, INC. 501918
DIVEROLI, ANGELO VANANGELI, INC. M01915
DIVEROLI, BLUMA VANANGELI, INC. 501918
DI VEROLI, BONNIE ODV HOLDINGS, INC. P98000026102
DIVEROLI, BONNIE SUE EXPERT INSTALLATION SERVICE, INC. P93000069031
DIVEROLI, EFRAIM LOW, LLC L08000004099
DIVEROLI, EFRAIM AMMOWORKS, INC. P08000025613
DIVEROLI, EFRAIM AMMOWORKS, INC. P08000025613
DIVEROLI, EFRAIM AMMOWORKS, INC. P08000025613
DIVEROLI, EFRAIM AMMOWORKS, INC. P08000025613
DIVEROLI, EFRAIM AEY, INC. P99000103738
DIVEROLI, EFRAIM AEY, INC. P99000103738
DIVEROLI, GIANCARLO G & R, CORP. K19150
DIVEROLI, GIANCARLO G & R, CORP. K19150
DIVEROLI, JULIE ON-LINE WONDERS, INC. P98000016806
DIVEROLI, MICHAEL MICHAEL DIVEROLI, P.A. H59806
DIVEROLI, MICHAEL WORLDWIDE TACTICAL LLC L05000025068
DIVEROLI, MICHAEL ADVANTAGE POLICE SUPPLY, INC. P00000107367
DIVEROLI, MICHAEL BUSINESS PRODUCTS DEPOT CORP. P04000116872
DIVEROLI, MICHAEL WORLDWIDE TACTICAL LLC L05000025068
DIVEROLI, MICHAEL ADVANTAGE POLICE SUPPLY, INC. P00000107367
DIVEROLI, MICHAEL MR BUSINESS PRODUCTS DEPOT CORP. P04000116872

On Monday, June 27, 2005, Bunnatine Greenhouse, a Senior Procurement Officer for the DOD testified before Congress about ongoing contract abuse in the department. She chose that course only after she had exhausted all internal avenues. She was dismissed as a semior procurment officer and religated to a desk-without-portfolio somewhere in the basement after a 20 year career. While much of her testimony centered on 2003 no-bid contracts to KBR, then a Haliburton subsidiary, which she believed were politically motivated, her comments went beyond that case.

The thought occurs regarding questions Waxman might want to ask Efraim Diveroli. "Who's your Daddy?"

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If the Penty was able to prevent actual Generals from testifying, I'm guessing they'll have no prob hiding these two, as well.

22 year-olds, under duress, would spill their guts. There's no way the Penty allows this to happen.

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Efram registered Low LLC on 01/14/2008.

He lists the incorporated address as 975 41st St, but then changed it four days later to 3801 Collins Ave #503, Miami. Property records show #503 as owned by a Dr. Richard Gebhart and W Teresa Salerno of 5523 Beejay Ct Dayton, OH. My guess is young Efram is renting. Quite a spread according to these photos.

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Thx for all of the great research. This looks really interesting. Really really interesting. This kind of setup with the money involved means some big hitters are directing it but I'm sure they're well protected.

This might wind up being a huge story over the coming months.

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Aish ha-Torah is a religious organization which is headquartered in Israel and whose goal is to make non-Orthodox Jews Orthodox. May I venture to say, with the possibility of the family relation being different, that David Packouz lives at home with his parents? Or he at least gave that address. It seems that his father also goes by the Hebrew name of Kalman, also see here. I could be wrong about Kalman=Kenneth, but it is common for Jews to have their Hebrew and English names begins with the same letter, and it wouldn't be surprising if Kalman's legal name was really Kenneth. Kalman seems like a pretty hard-working rabbi trying to spread the message of Torah whose son made it into the NYT's for all the wrong reasons.

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Diveroli is reported to be on these recordings, via You Tube with the Albanians.

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Check these sample listings:

uzitalk:

we are meeting and beating everyones prices in the country on this ammo and have the only stock still available in the country

firearmstalk:

delivered in continental U.S. but willing to go lower depending on quanity

pafoa.org:

if someone is really able to get this up and moving I would consider
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These listings are samples of websites which include the same phone number, but a different extension. The listed sites appear to be the domestic arm of the munitions business. Looks like he was (really) a subsidiary of these other munitions companies/efforts.

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The phone number on the craig's list account, excluding the exctention goes to this Google map address. Street view is available.

Not seeing this address listed above. Unclear if the phone number, excluding the extensions, goes to a different facility. The listings for the phone number suggest this was a new division, part of a larger munitions effort/company.

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The 925 address in Miami matches the addresses posted in China, with the same fax number. They were listing weapons repair kits. Didier's name is on the Chinese sites. 64 common tools were needed to finish the listed repair kit.

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I like this one, about the FY07 $48M contract award (firm fixed price):

There were an unknown number of bids solicited via the World Wide Web on July 28, 2007, and ten bids were received. From

What were the quality of the nine [9] bids which DoD rejected; what was the basis to reject the others, and go with this one, apparently an unproven contractor?

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Some in Congress are baffled how they could get Chinese weapons? The fax phone number, linked with the main office's voice-line, appears in these sample Chinese language ads.

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VERY interesting research...combined with the front page of NYTimes lengthy article today (3/27) and an earlier Times piece from last Nov there's quite a case established...consider how peculiar appointing your 22 yr old son to be President of a munitions (illegal munitions at that) company, filing multi million dollar contracts with Dod ($300M last one) for worthless ammo to be sent to Afghanistan or Iraq for training the cops/soldiers to "stand up" for American troops. Tax payer rip off a plenty...but the situation even has another edge...remember the swell TV rabbi, Shmuely Boteach who Michael Jackson's pal? who got cozy with Oprah? who got a tv gig on HGTV for Shalom inthe Home? etc etc..he is UNCLE to Efraim..the 22 yr old...because Shmuely's family has been 'enterprising'...his sister Ataret is Efraim's mother helped him out wiht his British 'charity' that ended up being shut downfor some fraudulent reasons..Rabbi Shmuely's all over the place.

Is that Adam Sandberg?

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Duuuuuuudebro it's time to testify before congress what are we gonna do??

I'm clearing my entire day for this!

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I don't know why everyone is getting so upset over this. After all, it's only $300 million, and that's less than the cost of one day in Iraq! And we've now had over 1,830 days in Iraq!

After all, it's just a number...

These guys are never going to allowed to testify in open hearings. BushCo will claim national security something or other.

But if I was one of these guys, I'd spend some of that money on body guards... seems like an accident is waiting to happen.

PEACE

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Efraim's Myspace, thanks to crooksandliars!

http://profile.myspace.com/index.cfm?fuseaction=user.viewprofile&friendid=31397346

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This kid runs a munition supply company but, at the age of 19, when he last logged into his myspace, he couldn't spell American Beauty or Godfather correctly? Are you serious??

------

efraim

Male
22 years old
MIAMI BEACH, Florida
United States

Last Login: 10/29/2005
------

efraim's Blurbs
About me:
Well of course im a super nice guy!!! , i know what i want out of life but not exactly quite sure how to get it yet. I was born and bred in miami beach and have no immediate plans to leave but i have thought about it. Im a pretty easy going guy and many say i have a good sense of humor. I had problems in high school so i was forced to work most of my teen years and i probably grew up way to fast. I finally got a decent apartment and im content for the moment , however i definately have the desire to be very successful in my business and this does take up alot of my time.
Who I'd like to meet:
a sweet pretty girl with a good attitude and love for life , a woman that will stand by her man because she knows he would do the same for her no matter the circumstance

----
General for the moment im basically just working and chilling with my boyz when im not, im looking for some hobbies like i keep saying im gonna go to the gym and i started playing football again which is definately my favorite sport. im one of those guys who needs to be entertained and having lots of fun all the time so if your also an undiagnosed case of ADD look me up. i like to eat good food and i dont know how to cook so i eat out alot!!!! ilike to travel whenever posssible sometimes for business , and of course i like going clubbing or going to a movie, oh and ive really taken a liking towards fine scotch whisky recently dont ask me why....
Movies MY FAVORITE MOVIES ARE: HEAT,,BLOW,SCARFACE, FACE OFF, THE ROCK,GOFATHER, SCHINDLERS LIST,AMERICAN BEUTY ETC.....

This is a great story, with lots of legs. I would like to know who
in the White House is behind this. A $300 m contract has to have some kind of oversight from the top.

This kid, could not of done this all on his own, believe he is just
the fall guy.

Oh BTW who was getting all those "massages" by the VP of
the Company.

Sound kinda "twisted"

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Hi, C92!

Diveroli is apparently selling office supplies through AEY. See this ad. Here is the website which was registered to Michael Diveroli in 1999.

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Wouldn't it be neat if there was an Abramoff link to any of this?

We've got Israeli arms merchants... Jack was trying to get military hardware to a sniper school in Israel.

We've got shennanigans in Southern Florida... Jack used to be in business with SunCruz in SoFlo.

Timeframe's right. Divertoli businesses appeared around 1999 - so did Jack.

We've also got a Brent Wilkes sytle syndicate. Ammo, weapons, office supplies, scrap metal... The Divertoli clan seems to be in all of these businesses.

This all is utter speculation, of course!

A couple of years ago, TPM Muckraker wrote about another Miami defense contractor, Matthew Pushkin in connection with the MZM investigation. The question was how Pushkin's firm, Pushkin Operational Consultants, Inc. (POC)got a WH contract.

One of the questions was how Pushkin, a 25 year old, went from running a Miami car wash in 2003 to landing classified defense business in 2004.

BTW, I took a look at Aish Hatorah Jeruslaem Fund 990s and it appears that Rabbi Packouz and his wife keep most of the money raised for themselves.

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Hi Mrs. P!

I remember the Pushkin story. POC is listed in this GSA publication -- where it is listed as a "business owned by service-disabled veterans."

GSA Publication Dec 2005.

GSA also lists Pushkin as having an active contract (GS-35F-0422P) through 2009 providing services from 635 Discovery Drive, Huntsville, AL. Two things are down there - the DIA, and the military rocket program.

Pushkin's current business record shows a new phone # - (256) 922-0200. That tracks back to the Camber Corporation, a big military contractor.

Any idea if Pushkin was a vet?

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Here's the URL for that GSA Publication - didn't transmit:

http://www.gsa.gov/gsa/cm_attachments/GSA_DOCUMENT/SDVOSB Brochure for Federal Agencies - REVISED 12-12-05_R2-x08R_0Z5RDZ-i34K-pR.pdf

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The important connection which happens to run through this entire fiasco, though, is that... "WE the People" continue to vote for those crooks (both Dems and Reps) who always vote "YES" when it comes time to give our hard earned money to people like this, rather than allowing us to pay hospital bills, dental work for the kids, save for retirement, etc...

"We the People" continue to throw our money away.... then blame others who happen to pick it up. Perhaps we need to stop throwing it away, folks... IMHO

C92,

What business record are you looking at? The GSA address for POC is Camber's, I can see that but in the GSA vendor list, POC is still listed at a Miami address. That address is outdated since the company moved to Herndon VA in 2003.

I checked the FPDS records and POC hasn't been awarded any recent contracts. If I use the just the first part of the GSA contract number, it looks like Dell is the contractor so maybe POC is a sub.

I don't know if Pushkin is a disabled vet. He graudated from Florida International U. in 2001. In 2002, he registered Island Wash-N-Go which is the same year he registered POC.

The POC FL registration is defunct as is the website. FYI, here is a link to an ad for a POC senior All Source Intelligence Analyst in Miami Florida.

Since POC seems to have dropped out of sight in 2006, I wonder if it did have something to do with MZM.

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