2 plead guilty in Miami Beach weapons contracting case

[Scurrilous]

Source: Associated Press

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"Two men pleaded guilty Tuesday in Miami to federal fraud charges for their roles in a scheme to ship Chinese-made ammunition to the Afghan military in violation of a U.S. Army contract worth nearly $300 million.

David Packouz and Alexander Podrizki, both 27, each pleaded guilty to a single fraud conspiracy charge, which carries a maximum prison sentence of five years. U.S. District Judge Joan Lenard set sentencing for Sept. 28.

Packouz, who is also a songwriter and musician, was vice president of AEY Inc., a Miami Beach-based defense contractor, and Podrizki was the firm's agent in Albania. AEY president Efraim Diveroli and business associate Ralph Merrill have pleaded not guilty and are awaiting trial in the case.

Court records show that in January 2007, the Army awarded AEY a $298 million contract to provide 7.62mm rifle rounds to Afghanistan's military. The contract prohibited any Chinese ammunition from being used to fulfill the deal."

Read more: http://www.miamiherald.com/news/breaking-news/story/1066730.html

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From the archives:

Feds target Miami Beach arms merchant (22- year-old)

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=3245905