In a follow-up to yesterday’s investigative blockbuster, the New York Times’s C.J.Chivers reports that Efraim E. Diveroli, the 22 year-old head of AEY Inc., could face criminal fraud charges. The charges stem from selling 28 pallets of ammo manufactured in China to the Afghanistan government, after the claiming the ammo actually came from a Hungarian company. That Diveroli sold Chinese ammo is what led to the Pentagon canceling AEY’s $300 million government contract.

The real culprit, though, may be the Pentagon itself — for not overseeing Afghanistan’s top munitions supplier. Chivers writes that even as AEY sold tons of munitions that were more than 40 years old, they were still in compliance with their contract.  Read Chivers here.  MB

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