Alleged Ammo Scammers Asked to Testify

March 27, 2008 2:35 PM

Justin Rood Reports:

On the heels of this morning's New York Times expose, a House committee has called a hearing to learn more about a Miami-based company accused of supplying lousy ammo to Afghan forces via a U.S. government contract.

AEY Inc. does hundreds of millions of dollars in business with the U.S. government, according to the Times, including supplying pro-U.S. Afghan forces with ammunition.  The Times determined that the company had been shipping decades-old Chinese ammo to Afghanistan, whose age and condition made some of it defective and unreliable.

This afternoon, House Oversight and Government Reform Committee chairman Henry Waxman, D-Calif., announced he'd like to see AEY's executives in his hearing room April 17, along with senior Pentagon and State Department officials.

AEY president Efraim E. Diveroli defended his company to the New York Times, insisting his firm, which operates out of an unmarked office in Miami Beach, "does everything 100 percent on the up and up."

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March 27, 2008 | Permalink | User Comments (4)

User Comments

If this story is investigated and found to be truthful, the people in charge should be charged with murder and since they are in a state where the death penalty is widely used they should recieve it.

Posted by: dave | Mar 27, 2008 2:54:52 PM

CIA front for covert ops. Been there for years. Company has been for sale for awhile.

Posted by: Jeff | Mar 29, 2008 7:19:20 PM

If they dig into this, I'm sure they'll find a sub contractor whom had a huge $$$ contract with the Company and 10 to 1 the sub will be somehow conected in a relationship with / to one or more of the company principals.

In other words someone on the inside set up a sham deal to collect a boat load of money for nothing!!!! Military Contracts are targets of many frauds and it has been a historical trend for many of them to be successful.

Posted by: Wayne | Mar 30, 2008 10:12:00 PM

when a company president says everything is on the up and up, please investigate! The minute these guys open their mouths, red flags fly

Posted by: william fearn | Apr 9, 2008 12:56:33 PM

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