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No Testimony without Immunity, Man
House oversight committee Chair Henry Waxman (D-CA) wants the twenty-something senior executives of AEY, Inc. to appear for a Congressional hearing. You know, just to hang out and chat about how they managed to bag a $300 million contract to provide munitions to Afghan forces, and then allegedly lied about where they were coming from.
But they're not going to come easy, The New York Times reports:
Marc D. Seitles, the lawyer who represents David M. Packouz, the licensed massage therapist who is AEY’s former vice president, said he had sent a letter to Congress saying Mr. Packouz would speak publicly only if he was granted immunity from prosecution.Mr. Packouz, 25, left AEY last spring and had no contact with the company since, Mr. Seitles said. Without immunity, he said, “I cannot allow my client to testify in this matter, and if he is subpoenaed he will invoke the Fifth Amendment.”
AEY and particularly its president Efraim Diveroli do have a lot to worry about. Federal investigators are digging to see if Diveroli committed a crime by promising in a contract to deliver Hungarian ammo, when he was in fact delivering forty year-old Chinese ammo (itself prohibited). And Government Executive reports today that AEY might have also misrepresented itself as a disadvantaged business, allowing it to pick up much more business.
It seems highly unlikely that Congress would even consider immunity for either Diveroli or Packouz, so either Waxman's planned hearing later this month will be deferred, or the two will spend a lot of time respectfully pleading the Fifth.
Josh
Zachary
Packouz is also a scrap metal company entrepreneur. Here's his record on file with the State of Florida:
Sunbiz.org Record
The company is oddly named "Intelliterran."
Odd name for a "scrap metal" industry. Methinks Davie was importing ammo and munitions from foreign countries under the aegis of "scrap."
I wonder how the DHS feels about that?
April 4, 2008 12:05 PM | Reply | Permalink
Given the trail of destruction these guys caused, I also highly doubt they can just negotiate immunity unless they turn over some bigger, badder fish.
If they were fronting for another organization federal investigators would probably be able to get a hold of whatever information they need without the need to give these guys immunity. Dude, you're going to jail bro!
April 4, 2008 12:16 PM | Reply | Permalink
These guys better bring down some big fish if they are going to get immunity.
April 4, 2008 12:18 PM | Reply | Permalink
So... the little guys do not get amnesty or "Please Come Talk To Us" or "We will not swear you in" from Congress.
I am not for giving these clowns any leeway at all, but Congress has been doing nothing more than a grandstanding with the "Important" people in Washington, while coming down like they are supposed to against the common folk.
It's sad to see that the elite are doing all it can to protect the elite...
Too bad we've lost the reason our nation exists... you know, All men are created equal .... oops... that no longer holds water, does it. It's been replaced by waterboarding and protecting those who do waterboard...
April 4, 2008 12:36 PM | Reply | Permalink
I was a purchasing agent for several defense contractors abate 15 years ago. While the Federal Acquisition Regulations have changed, allowing larger buys will less documentation, the basics are the same; careful sourcing (company history), including site and financial audit. The mind boggles that this contract passed a basic stink test, let alone all the sign-offs required. The fox is in charge of the chicken coup. Viva the industrial military complex!
April 4, 2008 1:10 PM | Reply | Permalink
"Given the trail of destruction these guys caused, I also highly doubt they can just negotiate immunity unless they turn over some bigger, badder fish."
There's one sure fact; no one is smaller fish than these guys, so anyone they finger would ne a bigger fish than themselves...
I still smell Jack somewhere.
April 4, 2008 1:13 PM | Reply | Permalink
and a test post
April 4, 2008 1:19 PM | Reply | Permalink
While I don't feel sorry for these idiots at all, I think it's obvious that something else was/is going on that a masseuse would have the proper connections to be a VP of a multimillion dollar international arms trading company.
These guys are obviously a front for some bigger guys.
April 4, 2008 1:22 PM | Reply | Permalink
It might not be a bad idea to just put these crime kiddies on the stand and ask them enough well-framed questions that we can find out where the trail leads by which questions prompt them to plead the fifth.
I very much doubt that two guys many would pass over for a lawn-mowing job are at the bottom of the deal.
April 4, 2008 2:18 PM | Reply | Permalink
The $300M bullet kid - his daddy started this company when Efraim was 13 years old. It lay dormant while the old man started a police equipment/supply company. Then magically AEY LLC wins a $300M bullet procurement contract with the Department of Defense.
Did a fellow Zionist steer this bullet contract to this nice Jewish boy and his dad ? Someone mentioned the whiff of Abramoff, seems there maybe the stench of Wolfowitz, Perle, or Feith - and their dirty little fingers having a hand in dishing out this lucrative contract to their war profiteering - I want a piece of the action ($$$$$) - seeking some of the riches of war - not so Kosher acting - Hebrew friends.
April 4, 2008 3:59 PM | Reply | Permalink
the whole contracting system is ripe for this kind of crap. 8(a), Service Disabled Vet, Women Owned. You have all kinds of front companies using their social-economic "status" and are really pushing stuff for large business.
April 4, 2008 4:41 PM | Reply | Permalink
You'd think that someone in Congress might come up with a law that required all government contractors to waive fifth amendment rights (narrowly, only in application to their contract) at least so far as congressional investigations are concerned. The idea that you can be paying someone for a service and they reserve the right to withhold information from you (the people of the USA being the ultimate contractor) about how those services are delivered would never fly in any other context.
April 4, 2008 5:08 PM | Reply | Permalink
IANAL, but I think such a law would require a constitutional amendment. Not an easy thing to do, of course.
April 4, 2008 5:56 PM | Reply | Permalink
David M. Packouz - Efraim Diveroli - meet Tyronne..He'll be your CELL MATE for the next 25 years...
Have fun....
April 5, 2008 9:18 AM | Reply | Permalink
Clearly, Ashton Kutcher will star as Efraim in the made for TV docudrama "Dude, Where's my No-bid Contract?"
April 6, 2008 7:23 AM | Reply | Permalink