Nascent Captain of Industry Goes to Court

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The boy wonder is facing the judge:

Efraim E. Diveroli, the president of AEY Incorporated, who is now 22 — was expected to enter a plea today in federal court in Miami, The Associated Press reports. He faces charges of fraud and making false statements to the United States Army in the course of procuring munitions for the government. 

It may be unusual that a 20 something gets a $300 million contract to arm Afghans, but it’s not unprecedented. Neither is the issue that brings Diveroli and associates before the bar:

When the arms arrived in Afghanistan, it became clear that this wasn’t the latest factory-fresh stuff — it was made in China way back in 1966… Prosecutors said that Mr. Diveroli and the other defendants concealed the true source and age of the ammunition by submitting false documents to authorities and removing Chinese markings from the original shipping containers. The American ambassador to Albania, the country where AEY bought the munitions (from the Albanian government, which got them from China during the cold war), has also been ensnared in the allegations.

I came across the precedent many years ago, reading Howard Zinn:

J. P. Morgan had started before the war, as the son of a banker who began selling stocks for the railroads for good commissions. During the Civil War he bought five thousand rifles for $3.50 each from an army arsenal, and sold them to a general in the field for $22 each. The rifles were defective and would shoot off the thumbs of the soldiers using them. A congressional committee noted this in the small print of an obscure report, but a federal judge upheld the deal as the fulfillment of a valid legal contract.

I wonder if there’s a legal precedent here, too. Anyhow, stay tuned to the life of Efraim. Most people may view him as a sleazy hustler, but I’m sure there are those of a more — romantic — frame of mind who may lionize him yet. Like this guy:

But men such as… J. P. Morgan, et al.– are individuals who possess a rare virtue: the ability to create wealth on an enormous scale… Business giants like these dramatically solved the problem of production–the problem that plagued mankind throughout its history, and that still plagues the impoverished, non-capitalist nations of the world.

Gotta love those Ayn Rand freaks.  For them, to paraphrase Vince Lombardi, rationality isn’t everything — it’s the only thing! And rationality only means anything if it works to enhance homo faber.

But, you can’t be homo faber without thumbs, ya know?


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