How Arms Trafficking Actually Works — From The 'War Dogs' Arms Dealer | How Crime Works | Insider

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 to 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, export licenses, and oversight by bodies such as the UN Arms Trade Treaty (ATT).

For more, visit:
http://www.davidpackouz.com/
https://www.singularsound.com/

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00:00 - Introduction
00:45 - The $300 Million Contract
04:08 - The Manufacturing
07:21 - The Middlemen
08:35 - The Scheme
12:13 - Air Transport
14:56 - The Albanians
19:25 - The Money
21:10 - The Fallout
25:58 - War Dogs
27:59 - The Future
31:56 - The Backstory
35:51 - Credits

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How Arms Trafficking Actually Works — From The 'War Dogs' Arms Dealer | How Crime Works | Insider