Pentagon Contractor Was Suspect
Company Accused of Fraud Had Been Flagged by State Dept.
Washington Post Staff WriterAEY Inc., the company run by a 22-year-old Miami Beach arms dealer who was indicted last week for conspiring to defraud the government on a $298 million Pentagon contract in 2007, was on a State Department watch list for suspicious international dealings the year before that contract was awarded, according to testimony before Congress yesterday.
Both AEY and its president, Efraim E. Diveroli, were listed because they had been under investigation since July 2005 because of suspicion of "numerous violations of the Arms Export Control Act and contract fraud," according to a report released by the House Committee on Oversight and Government Reform at yesterday's hearing. ......
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