3 Rip-Off Amigos In Florida Steal $800 Million

March 27, 2008

Elaine Meinel Supkis

Yet another strange story about arms dealers, this time, who were young Jewish men under the age of 21 who were selected by the Pentagon to supply ammo for Afghanistan. Seems they went into the murky world of Albanian and other arms dealers in order to buy out of date, dangerous ammo. The Pentagon then paid huge price hikes on this ammo which had to be destroyed. The NYT has covered this story today and it is making very tiny waves in the media. The rapine of the American taxpayer by traitors continues, of course. We aren't supposed to talk about this, of course. But this is what is bankrupting us? We don't make ammo anymore? What the hell?

22-year old awarded $300m Pentagon contract, according to report

The Pentagon entrusted a 22-year old previously arrested for domestic violence and having a forged driving licence to be the main supplier of ammunition to Afghan forces at the height of the battle against a resurgent Taliban, it was reported today.

AEY, essentially a one-man operation based in an unmarked office in Miami Beach, was awarded a contract worth $300m to supply the Afghan army and police in January last year.

But as the New York Times reported in a lengthy investigation, AEY's president, Efraim Diversoli, 22, supplied stock that was 40 years old and rotting packing material.

"Much of the ammunition comes from the aging stockpiles of the old Communist bloc, including stockpiles that the state department and Nato have determined to be unreliable and obsolete, and have spent millions of dollars to have destroyed," the paper said.

I do hope these three young traitors and the dad who sponsored them are arrested. The looting of the US taxpayer has gotten entirely out of control. On top of this, the fact is, we are bankrolling the world's most inept and expensive military on earth. And we used to not only be a manufacturing giant, we supplied most of the ammo during WWII as well as the Vietnam war. So why do we have to hire middle men or in this case, middle juvenile delinquents in order to supply ammo? What on earth has happened to the military/industrial complex? IS IT GONE????

House panel to examine Afghan arms contract

The army suspended AEY from future contracts during the course of the investigation - although it continues to fill existing orders. The Times said Diversoli was unaware of the action although he was to be formally notified yesterday.

Until then, however, Diversoli appears to have had a good run. He told the Times his firm had won contracts worth $200m each year since 2004. AEY also supplied weapons and ballistic vets to US government agencies, as well as rifles to Iraqi forces.

$800+ million???? To these infants? And he thinks this is funny? The US has turned itself over to not only offshore pirates who then are being rescued by us after they sink our economic banking system, we also are supplying funny money to a bunch of rapacious arms dealers??? Arrest everyone involved in this!

How DARE the Pentagon destroy our own arms markets by offshoring our military purchases! How DARE they outsource our arms in this fashion! How DARE anyone in Congress allow contractors to loot the public purse in this outrageous fashion! How DARE they!

My fury over this is for obvious reasons: the right wing neo cons, many of whom are supporters of Likud, have assured us that we would save money and be richer if only we outsource much of our military procurement and even the troops. Under cover of this program, a looting expedition has been mounted by all and sundry. In this case, it is totally insane and outrageous. But across the board, it is the SAME! ALL of the corporations and entities and people involved in looting the taxpayers has used wars in the Middle East as cover for enriching themselves at our expense. And boy, is it ever expensive!

Now, nearing a trillion dollars a year! The neo cons keep pointing to Social Security as the place where we will get into financial trouble. But that keeps Americans safe and alive! The military spending, on the other hand, is totally destructive. Our inept military can't win battles nor wars. They are spread across the earth as targets and aimlessly mill around until they are blown up. Meanwhile, the suppliers think this is an excellent opportunity to rip us off and hand off defective goods that kill our soldiers. How many soldiers died because of this trio of traitors, for example?

My Space page for this craven young pirate:

The details in this story are infuriating. The kid was probably told, 'You can make lots of money cheating America. Have fun.' What sort of father would say that to his child? As the US can't raise troops for these useless wars, these traitors protect their own children and then loot us! Arrest them.

All My Sons: Crook Sells defective Arms To Afghan Anti-Terror Forces Under Bush's Auspices

Michael Diveroli, Efraim’s father, had incorporated the company in 1999, when Efraim was 13. For several years, a period when the company appeared to have limited activity, Michael Diveroli, who now operates a police supply company down the street from AEY’s office, was listed as the company’s sole executive.

In 2004, AEY listed Efraim Diveroli, then 18, as an officer with a 1 percent ownership stake.

The younger Diveroli’s munitions experience appeared to be limited to a short-lived job in Los Angeles for Botach Tactical, a military and police supply company owned by his uncle, Bar-Kochba Botach.

Mr. Diveroli cut off an interview when asked about Botach Tactical. Mr. Botach, reached by telephone, said that both Michael and Efraim Diveroli had briefly worked for him, but that after seeing the rush of federal contracts available after the wars began, they had struck out on their own.

“They just left me and took my customer base with them,” he said. “They basically said: ‘Why should we work for Botach? Let’s do it on our own.’ ”

As Efraim Diveroli arrived in Miami Beach, AEY was transforming itself by aggressively seeking security-related contracts.

It won a $126,000 award for ammunition for the Special Forces; AEY also provided ammunition or equipment in 2004 to the Department of Energy, the Environmental Protection Agency, the Transportation Security Administration and the State Department.

By 2005, when Mr. Diveroli became AEY’s president at age 19, the company was bidding across a spectrum of government agencies and providing paramilitary equipment — weapons, helmets, ballistic vests, bomb suits, batteries and chargers for X-ray machines — for American aid to Pakistan, Bolivia and elsewhere.

YOU CAN BET, POLITICIANS WERE BRIBED! And the connections that gained these fraudulent contracts were paved by many 'contributions' to the appropriate people. The complex of relations involved probably are very deep and should be pursued. Who introduced whom? Is AIPAC involved? How about anyone in the Israeli government? No ordinary person can go into international arms trade without letters of introduction or Mafioso-type connections. And within the Jewish community, there is a lot of this. In spades. Ask Mossad.

The international arms business operates partly in the light and partly in shadows, and is littered with short-lived shell companies, middlemen and official corruption. Governments have tried to regulate it more closely for years, with limited success.

As Mr. Diveroli began to fill the Army’s huge orders, he was entering a shadowy world, and in his brief interview he suggested that he was aware that corruption could intrude on his dealings in Albania. “What goes on in the Albanian Ministry of Defense?” he said. “Who’s clean? Who’s dirty? Don’t want to know about it.”

The way AEY’s business was structured, Mr. Diveroli, at least officially, did not deal directly with Albanian officials. Instead, a middleman company registered in Cyprus, Evdin Ltd., bought the ammunition and sold it to his company.

The local packager involved in the deal, Mr. Trebicka, said that he suspected that Evdin’s purpose was to divert money to Albanian officials.

The purchases, Mr. Trebicka said, were a flip: Albania sold ammunition to Evdin for $22 per 1,000 rounds, he said, and Evdin sold it to AEY for much more. The difference, he said he suspected, was shared with Albanian officials, including Mr. Pinari, then the head of the arms export agency, and the defense minister at the time, Fatmir Mediu.

(Mr. Mediu resigned last week after the ammunition depot explosions; Mr. Pinari was arrested.) The Albanian government has been infuriated by Mr. Trebicka’s allegations. Sali Berisha, the prime minister, Mr. Mediu and Mr. Pinari all denied involvement in kickbacks. But Mr. Trebicka said that after he raised his concerns about Evdin with the Defense Ministry, his company was forced from the repackaging contract.

On June 11, 2007, Mr. Trebicka and Mr. Diveroli commiserated by phone about problems with doing business in Albania. Mr. Trebicka surreptitiously recorded the conversation, and later gave the audio files to American investigators.

The conversation, he said, showed that the American company was aware of corruption in its dealings in Albania and that Heinrich Thomet, a Swiss arms dealer, was behind Evdin.

Just the other day, Steve Forbes, one of the stupidest rich people on earth, praised Albania as a shining model for the US to follow. Indeed, we certainly are following Albania...down the drain. The recent explosion in Albania killed people. And these cashes of unstable weapons were being exploited by Jewish arms dealers to cheat the Pentagon. And see how that looks? It looks awful. Where are our patriots? Why aren't they howling about this?

The silence on the right is amazing. They love to wave flags but collapse whenever real treason is done. Like when Reagan ran off to Japan to collect his $2.5 million in bribes. Asleep at the wheel, they are.

This isn't raising huge waves. As usual. Of course, I must thank the NYT for breaking this story. If only they also connect all the dots. Maybe some day they will have a great story about the USS Liberty attack!

Out of the shadows

As the head of Mossad, Efraim Halevy presided over some of the most ruthless and controversial decisions in Israeli history. Now retired from the elite intelligence agency, he tells Con Coughlin in Jerusalem about those murky years of spying and assassination - and why he has no regrets

I include this because the boy in the fraud/rip off story is probably named after this guy. I suspect there are other connections but right now, they are hidden from view. So time to talk about Israel in the news! Indeed, it is often in the news...overseas. Here is a Jewish news story written by a liberal Jew in Israel:

Israel Update
Situation in Gaza is complicated.

Israeli public opinion on the Gaza dilemma is coming into focus thanks to a Ha'aretz-Dialog poll published on Wednesday. 64% of all those asked support holding direct talks with Hamas in order to obtain a ceasefire and the release of captive soldier Gilad Shalit. This includes a surprising 48% of Likud voters and an overwhelming 72% of Labor voters.
*snip*
Regarding the Israel-Palestinian negotiations, presentations by Olmert, Livni and Peres followed a consistent mantra. There are close to equal numbers of Jews and Arabs between the Jordan River and the Mediterranean Sea. With that reality in mind, the only path to a Jewish, democratic state is a two state solution. As Livni told the delegation: "We are not doing it for the sake of the Palestinians and not even for the sake of the Americans. We are doing it for our own sake and future." That statement, along with a sense of urgency, really sums up the thinking of the current government. Remembering the days when the proponents of a two-state solution where in the Israeli and Jewish political wilderness, it does feel good to belong to the majority.

Deputy Prime Minister and Shas leader Eli Yishai spoke to the Conference while through the newspapers Netanyahu and other leaders of the Israeli right were calling on him to bring down the Olmert government by leaving the coalition. When pushed by questioners after his presentation as to why indeed he won't pull out of the government and block the peace talks, he had ready answers. First of all he said, Shas stayed in the government while then Prime Minister Netanyahu was negotiating with the Palestinians at the Wye Plantation talks, so why is it so urgent that they leave now. He then gave the answer that ends the conversation and drives a secular democrat crazy: Rabbi Ovadia Yosef, the Shas Ultra-Orthodox spiritual leader, will decide when it is time to bring down the government, not him.

Palestinian Prime Minister Dr. Salem Fayad's presentation drew particular interest as it was the first time the Conference has ever hosted a high-ranking Palestinian figure.

The Jewish people are very concerned about creating a 'democratic' state that gives them a majority lock on the laws. The fear is obvious: they have to create some sort of 'state' so they can expel the remaining Palestinians. But if they do this, Palestine will be stronger. So they want a ghettoized Palestine under their collective thumbs. This cruel solution means destroying democracy in Palestine. The vote for Hamas has to be nullified somehow. The rump state Israel is willing to give Palestinians is similar to the rump state Hitler gave the Czechs. A meaningless, militarily helpless half-state. Then, wiping their collective hands, the Jews who eliminated the natives can sit down and have a feast. Perhaps, they can sell us lousy bullets at double the price they paid to Albania.

Shiite militia counters army offensive in Iraq

Thousands of supporters of the powerful Shiite cleric Moktada al-Sadr and his Mahdi army militia took to the streets of Baghdad on Thursday to protest the Iraqi Army assault on the southern port city of Basra, as intense fighting continued there for a third day.

In Basra, there seemed to be no breakthrough in the fighting by either side. As much as half of the city remained under militia control, hospitals in some parts of the city were reported full and the violence continued to spread. Clashes were reported all over the city and in locations about eight kilometers, or 12 miles, south of Basra.

Militants also attacked the U.S-protected Green Zone in central Baghdad on Thursday, and the U.S. Embassy said one American government employee was killed, The Associated Press reported. It was the second death inside the Green Zone since frequent attacks against the area began Sunday, when an American financial analyst was killed. The State Department ordered all personnel at the U.S. Embassy to remain inside reinforced structures.

The US occupation of Iraq, on the other hand, is collapsing. The US pushed the Shi'a President to confront al Sadr. And this seems to not be working. Probably due to crummy weapons bought at a tremendously high mark-up. The Green Zone is being hammered now. I suppose, this is due to the insurgents having better international arms dealers.

Thursday: 222 Iraqis, 1 US Soldier, 3 US Contractors Killed; 338 Iraqis Wounded Every day, American soldiers, despite all the armor, are dying. Many more are wounded. This charade will go on forever. If we don't stop. It seems so utterly hopeless. On top of this, the war is costing us an arm and leg at home. And not just due to craven youth playing international arms dealers with taxpayer dollars.

Gunmen blow up oil pipeline in Iraq's Basra

Gunmen blew up an oil pipeline in Zubair area west of Basra on Thursday morning, a local security source said.

"A powerful explosion rocked the town of Zubair, 20 km west of Basra, in the morning when unknown gunmen blew up a major oil pipeline," the source told Xinhua on condition of anonymity.

A huge fire was ignited by the blast while a column of black smoke rose over the area, the source said.

Fire fighters rushed to the area to put out the fire, while Iraqi security forces cordoned off the area to secure the scene, he said.

Every month, our rulers assure us that oil prices will go down. War criminal Cheney and his gang of neo con men and Condi Rice trot off to the Middle East to crawl on their bellies before the royals there, begging for cheap oil. And then turn around and push for more war on behalf of Israel. Israel is very keen on us cornering and attacking Iran. And since we get to pay for all of this, they are content. But we are going bankrupt. When oil hits $200 a barrel due to our wars on behalf of people who don't care if we live or die, meaning, the Israeli Jews, the Sunni kings and other dictators we support, eventually we will figure out that we are gaining nothing and losing our shirts here.

OIL FUTURES: ICE Brent Crude Up $1 On Iraqi Pipe Blast

Crude oil futures climbed over $1 in London trade Thursday as traders reacted to news of an explosion on a southern Iraq pipeline that is expected to crimp the country's oil exports.

Prices had been trading lower ahead of the news from the Iraqi oil hub of Basra, with traders continuing to follow moves in the U.S. dollar as the main driver of crude oil prices.

But any further weakness in the dollar, combined with developments in Iraq, could add considerable upside pressure to oil prices Thursday, analysts said. "The Basra headline came out as the dollar is coming under some intraday pressure," says Oliver Jakob of Petromatrix.

"Basra will add fire to fire if the dollar continues to be pressured." At 0933 GMT, the front-month May Brent contract on London's ICE futures exchange was up $1.12 at $105.11 a barrel.

The US stock market, after some joy over a $400 billion bail out, is now heading back downwards as we expect. And gold, which soared to $1025 before the bail out and then collapsed to nearly $900 is now heading back upwards rapidly. The people who bought at the bottom are probably grimly happy over the windfall this commodity collapse gave them. I hope they enjoy it.

I, on the other hand, have to watch the bottom line. And that is bad news, all around. I say, we should withdraw our troops from the entire planet, bring them home, stop all the contracts to war mongering teenagers and their craven fathers and rethink how one must run a military. The present system is destroying America, not protecting us. And the ONLY reason to have ANY military is to protect us, isn't it?

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Comments

[OC]

Reminds me of the 'best army and navy' in the 19th century controlled by the Ching dynasty.

The soldiers are super aggressive - 'cos they are on drugs. Once the withdrawal hits, they are push over. Oh, the rifles have impressive firepower - as long as u don't pull the trigger.

The navy ships are invincible - as long as they don't have to float and not hit by cannonballs

As for the ruling academic elite - chosen from the highest level of examinations and schools. They run the country very smoothly as long as they don't have to deal with reality from the West.

Now East is West and West is East. God is the Devil and the Devil is God - Yin and Yang are two sides of the same coin! What does up must come down. What is down will go up!!

[Dervish]

We still make ammo. Just not fast enough for a global war. Metals aren't cheap anymore. We keep the primo stuff for ourselves, and our 3rd rate friends get 40 year old surplus crap. Also, keep in mind, this is just another form of outsourcing to the lowest bidder. Just so happens that in this case, the lowest bidder was within our borders. The objective isn't to screw America, the objective is to maximize profit.

[OC]

I believe there was an article in the news 2 years ago that US requested for additional ammo supplies from all their allies including Japan, Taiwan, S Korea and Singapore.

US soldiers need something like 50,000 bullets per kill (Vietnam figures I think) - not surprising the Iraq war used up all the surplus ammo supplies leaving crap stuff being used now.

[Dervish]

Withdraw our troops? Sounds nice, but I am not sure that's such a good idea. Troops establish front lines. If we withdraw our troops from the entire planet, then the front lines will be our very borders. Not good. I do agree, however, that over the last 8 years America has become WAY too aggressive and brutal. A human rights line has been crossed. If we don't fall back to a more humane level, we will suffer the consequences. Other nations are loosing patience. Some nations are so afraid that they are next on the occupation list that they are rapidly developing nuclear weapons as a deterrent. We must stand down.

[Bokonon]

US Federal debt has grown by $400 Billion every year while the US has been in Iraq. This is the kind of money if spent on the upgrading of railroad system could connect Fairbanks to Miami by TGV.

[Carli]

Elaine, if $800 Million in bad ammo is distressing, let's not forget the $2.3 Trillion that disappeared from the Pentagon just before 9/11. Compute that amount in 2001 dollars (1 Euro = $1.11) which means you can add 49% of value to that figure.

One name, Dov Zakheim. Read about him in the following url's:

http://www.cbsnews.com/stories/2002/01/29/
eveningnews/main325985.shtml

http://www.defenselink.mil/speeches/speech.aspx?
speechid=430

http://www.cbsnews.com/stories/2002/01/29/
eveningnews/main325985.shtml

http://benfrank.net/blog/2006/01/07/
incompetent_or_traitors/

Btw, now the Israelis are printing US passports, big contract! shouldn't they be doing it for free? After all, American taxpayers support them to the tune of $2-3 Billion a year. The interest alone on that should cover the passports...

[OC]

Dervish,

Without money and bullets; even the best equipped and trained armies become practice targets for the enemies.

Can't hold any line if you don't have money - that's how reality bites u in the ass. Nice ideas by generals don't translate to victories. U need strong economy and no internal traitors. Throughout history, powerful empires brought to heel by these 2 factors + famine and disease. They have to be 'hollowed' out before they collapse. Defeat by external enemies are the last stage of defeat - not the first stage.

[Gary W]

Interesting to see "weapons, helmets, ballistic vests, bomb suits, batteries and chargers for X-ray machines" being referred to as "American aid". Mmm, yeah, the millions who die each year from malaria (never mind the thousands who die under the rain of US bombs and missiles) would probably have liked a few bomb suits.

Tonight I'm reminded of something Gore Vidal - the US emeritus gadfly - said a few years ago (let me paraphrase): "sooner or later a new Saladin will bring them together, and they'll come after us". Lots of luck!

[CK]

When it comes to military supplies, there is Victoria's secret level and their is dollar store level. The US MIC still tryies to produce the sexy high end stuff, Osprey's and Microwave cannons, strike fighters and star wars and Anti Satellite missles. The low end day to day stuff, boots, bullets, socks not so much. How much facetime will a congressman get for obtaining a new sock contract for the military for a factory in his district? How much airtime for setting up a SGT York contract for a local factory?
I thought it was interesting yesterday when I read this story side by side with the story about the BIGMONEY donors threatening Speaker Pelosi. The evil villains at the Great Orange Satan had a diary regarding the signatories to the letter.
http://www.dailykos.com/storyonly/2008/3/27/912/91904/66/485037
The author of the diary notices almost everything about the 20 donors except for one thing that stands out quite loudly.
And in related news the espionage trial of the AIPAC officers has been postponed indefinitely.

[OC]

Kinda of remind u of the last days of Nazi Germany where all the toys are brought out to play doesn't it?

Didn't help Germany then and the same goes for US now. It's all goin to wind up in Chinese hands; mark my words. Just as Nazi assault rifles, cruise missiles and space rockets end up in US hands; the Chinese will get attack drones, embedded tracking chips, moon and Mars and stealth planes

[Elaine Meinel Supkis]

Remember, the Pentagon had to spend millions to destroy these bullets. And lord alone knows how many were turned into IEDs by the Afghanis.

And yes, our country is busy 'defending' itself overseas while utterly unable to defend even the Pentagon at home.

[Christian W]

US actions in Iraq are so typical of an imperial power aren't they. They support one Shiite group (their puppet Malaki) over another (Sadr) in a civil war, but they only give Malaki's troops light arms and second or third rate crap at that.

Just like the Sunni v Sunni action the US supports they are all designed to bleed and weaken Iraq even further. All the while catapulting the propaganda that thanks to the surge things are progressing in Iraq (since now it is Iraqis that are dying instead of US troops). Classic divide and conquer.

When will the faith in these fiat dollars the US is spending no tomorrow going to end?
All of the above and all crimes against humanity by Israel are underwritten by US tax payers.

[Christian W]

Correction. Just had a US military personnel stationed in Baghdad correcting me on the second rate thing. Malaki's troops apparently have the same HMMW's and M16's and M4's as the US troops.

[JSmith]

"We don't make ammo anymore? What the hell?"

We make 5.56mm/.223 ammo for the M16, not 7.65mm AK47 rounds. That's the commiebloc stuff we give to the 3rd worlders.

The 16 is a nice weapon and far more accurate at much longer ranges than the AK, which has primitive iron sights and is basically un-aim-able: you spray and pray with that rifle. The downside of the 16 is that it wants to be kept nice and clean and well-oiled, while the AK will function if it's been buried in a bog for a month. And 3rd-world soldiers don't do the maintenance thing worth a damn.

"US soldiers need something like 50,000 bullets per kill (Vietnam figures I think) ..."

Doctrine has changed since then - we aim better now - but we still use a lot of ammunition. That's been a problem at the range; people I know hav experienced significantly more misfires lately because all the good primers are going to Iraq.

"Malaki's troops apparently have the same HMMW's and M16's and M4's as the US troops."

Well, some of them get those things - the ones that show they can maintain them. The M16 isn't the best weapon for everyone.

[Elaine Meinel Supkis]

We do NOT aim better. Most soldiers simply unload their ammo at everything and anything that moves including many innocent civilians.

[shargash]

It would be trivially easy to adapt cartridge manufacturing equipment to the 7.62x39 Warsaw Pact round. The reason we pull stupid ops like this is not that we can't manufacture the stuff. It is that we've got a government full of black ops run by jeuvenile spy wannabes who cook up ops like 12-year olds huddled in a tent at jamboree.

This has nothing to do with it being Warsaw Pact ammo and everything to do with secrecy. If they placed a large order for 7.62 rounds from Winchester, then Congress would see the appropriation and people would start asking questions.

[Elaine Meinel Supkis]

You are probably right, Shargash.

And then there is the various ethnic Mafias on this planet: illegal drugs and international weapons sales are big, big money makers for all of them.

[PW]

50,000 bullets per kill? Who the fuck trained these soldiers?

[AF]

Shargash nailed it.

Has anyone else seen the stories about the Navy's push to develop Free Electron Lasers (FELs) to mount on ships?

They've taken the utterly brilliant step of ignoring the EXPERTS who developed the FELs and dangling the contract in front of the defense industry.

In the end, this project will basically turn into a miniature SDI program. Lasers are easily defeated by fog, smoke, and mirrors.

[Elaine Meinel Supkis]

Reminds me of a very ancient Greek sea battle which used highly polished bronze shields...

[Gary W]

These mega weapons programs don't need to "work"; they're just a means of funnelling taxpayer funds into the weapons manufacturers. The more the merrier!