Packouz joined
Efraim Diveroli's arms company AEY Inc. in 2005; Efraim was only 19 years old at the time, while David was 23. By the end of 2006, they had won 149 contracts worth around $10.5 million. The ammunition that AEY had secured in
Albania to fulfill the contract had originally come from
China, violating the terms of AEY's contract with the US Army (which had prohibited filling the contract with Chinese ammunition). AEY had failed to perform on numerous previous contracts, including sending potentially unsafe helmets and failure to deliver 10,000
Beretta pistols to Iraq. During a House Oversight and Government Reform Committee investigation documents were produced to show that federal agencies terminated, withdrew, or canceled at least seven previous contracts with AEY for poor quality or late deliveries. Packouz responded by email to his associates that they had to get rid of the crates with the Chinese markings since Chinese products were prohibited and would not be accepted The issue of the Chinese ammunition became the focal point of a months-long legal and logistical disturbance in the United States Army and the
Department of Justice; AEY received much media attention, especially due to the age of the young
Miami Beach arms dealers and their penchant for
marijuana, earning them the epithet of "the
stoner arms dealers" or "the dudes". ==Personal life==