Final Debarment: Army procurement branch imposes debarment of AEY Inc., and Associates
ISAF HQ Press Office KABUL, Afghanistan (Mar. 28, 2011) – On Thursday, the United States Army Procurement Fraud Branch issued the final debarment of a Miami-based company, AEY, Inc., and six additional corporations associated with AEY, Inc. for criminal violations committed while under contract with the U.S. Army Sustainment Command. Efraim Diveroli, President of AEY and his associates, David Packouz and Alexander Podrizki were convicted in U.S. District Court for the Southern District of Florida with one count each of conspiracy to commit false statements, commit major fraud against the United States and commit wire fraud. All individuals named under this debarment are American citizens and each corporation listed is American-based.
The AEY, Inc., contract with Army Sustainment Command, performed from January 26, 2006 to March 25, 2008, included 29 task orders to provide non-standard ammunition to the Afghan National Police and Afghan National Army. In 2008 AEY, Inc., attempted to sell Chinese ammunition that was packaged as Albanian. The ammunition was destined for the Afghan National Police and Afghan National Army, as part of a contract valued at more than $200M. As part of the criminal judgment, Diveroli and his associates have been ordered to pay restitution of approximately $150,000 to the U.S. Army. Mr. Diveroli and AEY will be debarred for a period of 14 years, ending on March 25, 2025; Mr. Packouz and Mr. Podrizki will be debarred for a period of 11 years, ending on September 28, 2022; all other parties will be debarred for a period of 10 years, ending on September 28, 2021.
In accordance with the ISAF COIN Contracting Guidance, ISAF and USFOR-A are ensuring contractual agreements are not providing revenue or resources to criminals, criminal networks or insurgents, irrespective of the companies’ or individuals’ country of origin or nationality. As dictated within the TF 2010 charter, ISAF remains committed to ensuring our contracts are not undermining our mission as they pertain to the sustained viability of the Afghan state.
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