Unraveling the Real Tale of Efraim Diveroli and David Packouz: The "Stoner Arms Dealers" of Miami Beach
The Actual Tale of Efraim Diveroli, the 21-Year-Old Weapons Trader who Influenced 'War Dogs' Movie
When War Dogs hit the screens in 2016, the movie's tale of two gunrunners nabbing a fortune while still frat boy age seemed implausible, but the reality was even wilder. Let's dive into the jaw-dropping story of War Dogs and Efraim Diveroli.
In 2007, 21-year-old Efraim Diveroli and his 25-year-old partner David Packouz snatched $200 million worth of government contracts for their fledgling company, AEY. Their new riches didn't whisper discretion; they screamed flamboyance.
Diveroli exuded extravagance from every pore. The flashy clothing, the new whip, the swagger – it all screamed easy money, considering he was barely old enough to drink legally. But this fortune was just the beginning for Diveroli, with his arms dealing stretching across continents – from Miami to China, Eastern Europe, and war-torn Afghanistan.
Rolling StoneThe masterminds behind the War Dogs scandal, David Packouz (left) and Efraim Diveroli (right).
This was the journey of War Dogs and Efraim Diveroli, a tale that outshines Hollywood's interpretation.
Efraim Diveroli's Early Encounters with Guns
In many ways, Diveroli's path wasn't a shock. As a child, he was all about testing limits and breaking rules – pranks, booze, and weed.
"I loved it, and I indulged in it for over ten years," Diveroli reminisced. This zest for pushing boundaries extended beyond green into the realm of money.
Guns provided Diveroli with the financial fuel. Since he was a teen, Diveroli had been in contact with arms and ammunition while working for his uncle in Los Angeles at Botach Tactical.
Emboldened by this exposure, Diveroli and his father, Michael Diveroli, decided to venture into arms dealing independently. They incorporated AEY (named after the Diveroli kids' initials) in 1999. Efraim Diveroli later became an officer at 18 and President by 19.
Initially, AEY bagged small federal contracts larger companies overlooked. Old friend David Packouz lent a hand with the intricate contracts, and childhood buddy Alex Podrizki handled the overseas operations. The business primarily ran out of a Miami apartment, keeping costs minimal, which made their bids competitive – just what the American government sought.
The War Dogs Controversy
The Bush administration began to favor smaller contractors for arms and ammunition supply. Thus, AEY was essentially the perfect supplier for these deals.
Diveroli's charisma and relentless drive sealed many of these contracts. Yet, his overzealousness sometimes clouded his judgment, leading to blunders.
War DogsDiveroli (portrayed by Jonah Hill) in the movie.
According to Packouz:
"When he was trying to get a deal, he was incredibly persuasive. But when he was about to lose a deal, his voice would shake. He'd say he was running a tiny business, even though he had millions in the bank. He said if the deal fell through, he was going to lose his house, his wife and kids would go hungry. He'd actually cry. I couldn't tell if he was psychotic or acting, but he genuinely believed what he was saying."
It was May 2007, and the war in Afghanistan was far from triumphant when Diveroli seized a significant opportunity. AEY underbid the nearest competitor by around $50 million and secured a $300 million arms contract with the Pentagon. The young gunslingers celebrated with champagne – a drink Diveroli was just barely allowed to enjoy – and cocaine, then proceeded to procure the much-needed AK47s.
The high from this contract didn't last long, however. AEY struggled sourcing the promised goods, eventually turning to contraband Chinese supplies.
Diveroli's propensity for rule-bending surfaced. They repackaged the weapons into plain containers and removed any visible indicators of Chinese origins. AEY eventually delivered these illegal products to the government.
The Fall of Efraim Diveroli and David Packouz
Although War Dogs took creative liberties with some facts, the underlying story was largely accurate. Packouz and Podrizki were amalgamated into the film's single character. Meanwhile, Ralph Merill, their Mormon financial backer and former arms manufacturer, was reinvented as a Jewish dry cleaner. The film's depiction of Diveroli and Packouz embarking on a treacherous journey from Jordan to Iraq never occurred, but the pair were fearless, just not suicidal.
Diveroli's unwavering ambition was skillfully portrayed by Jonah Hill in the film.
According to Packouz, Diveroli became increasingly challenging to work with and even accused Packouz of holding back money. Packouz ratted on his former partner to the Feds, but Diveroli minimized Packouz's role in the company, calling him a "part-time employee... who only closed one small deal, with my help, and dropped the ball on countless others."
NYPostEfraim Diveroli's mugshot.
Despite the lifelong habit of thumbing his nose at regulations, Diveroli's transgressions finally caught up with him in 2008. He pleaded guilty to fraud and conspiracy to defraud the US government. By 23, he was facing a four-year prison sentence.
Ahead of his sentencing, Diveroli couldn't resist the allure of guns. As a result, he received an additional two years of supervised release. His partners received lighter punishments for cooperating with the investigation. True to form, Diveroli continued to scheme while behind bars, looking for shorter prison terms and power.
Since his release, Diveroli has taken on new ventures, including a lawsuit against Warner Bros. for defamation in War Dogs, a court battle with his memoir co-author, and the establishment of Incarcerated Entertainment.
As former AEY investor Ralph Merrill stated, Efraim Diveroli now lives "in a condo with a secure gate," and drives a BMW. The saga of one of the youngest arms dealers in history continues to unfold.
- Diveroli's zest for pushing boundaries extended not only beyond green but also into the realm of money and business, as guns provided him with the financial fuel.
- Efraim Diveroli and David Packouz's arms dealing activities spanned from Miami to various continents, including China, Eastern Europe, and war-torn Afghanistan, and their transactions occasionally involved questionable practices.
- The War Dogs scandal, in addition to politics and general news, also falls under the categories of crime-and-justice and finance, as Diveroli pleaded guilty to fraud and conspiracy to defraud the US government.
- Today, Efraim Diveroli, despite his history of illicit activities and imprisonment, is involved in entrepreneurship, particularly with Incarcerated Entertainment, showcasing his ongoing ambition and resilience, even within the realm of war-and-conflicts and politics.
