How arms trafficking actually works, according to a former arms dealer
David Packouz is a former arms trader. In 2005, he joined the arms dealer Efraim Diveroli at AEY, bidding on contracts for the US military. In 2007, AEY won a $300 million contract to supply munitions to Afghanistan. Packouz was part of a cover-up to disguise the true identity of the ammunition, concealing that it was of Chinese origin.
After an investigation by The New York Times, he was charged with 71 counts of fraud and faced 355 years in prison. He was sentenced to seven months of house arrest and issued with a 15-year arms-dealing ban. His story was the subject of the 2016 movie "War Dogs" and Guy Lawson's book "Arms and the Dudes."
Packouz speaks with Business Insider about corruption in shipping and transport, the influence of middlemen and politicians, and links to organized crime.
After leaving house arrest, Packouz developed Instafloss and founded the music company Singular Sound, which developed the BeatBuddy. He also cofounded War Dogs Academy, a contracting training service.
Arms trafficking involves the illegal trade and smuggling of weapons across borders, bypassing laws and fueling conflicts. Arms dealing is the legal sale of weapons by authorized dealers, conducted under strict regulations like background checks and export licenses and overseen by bodies such as the UN Arms Trade Treaty.
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