From teenage arms dealer to notorious criminal, Efraim Diveroli’s story reads like a Hollywood script—which is exactly what it became in the 2016 film “War Dogs.” While Jonah Hill’s portrayal brought Diveroli into the spotlight, questions remain about the actual wealth of this controversial figure.
Let’s dig into Efraim Diveroli’s actual net worth, how he built it, and what happened to his fortune after his dramatic fall from grace.
Who is Efraim Diveroli?
At just 19 years old, Efraim Diveroli became the unlikely CEO of AEY Inc., a small arms-dealing company that leveraged surplus deals with the U.S. Department of Defense. Born into an arms-trading family, Diveroli dropped out of high school at 17. His cousin, David Packouz (unrelated to the War Dogs partnership), co-founded the defense contractor Diveroli Group to pursue arms dealing full-time. Diveroli showed business smarts early—though no one could have predicted how quickly he would climb in the cutthroat world of international arms dealing.
Before founding AEY, Diveroli worked briefly with Knights Armament Company (KAC), a U.S. defense contractor specializing in sniper rifles, though his role there remains unclear. His company’s biggest win came when to supplied ammunition to the Afghan National Army in 2007. This deal would become both the making and breaking of Diveroli’s fortune.
Efraim Diveroli Net Worth
According to 2023 court filings and post−prison business disclosures, Efraim Diveroli’s current net worth is estimated at $15-20 million—notably lower than the $30 million some sources claimed in earlier years.
This estimate, drawn from 2023 court filings and post-prison disclosures, includes:
- Financial penalties and legal costs
- Lost future contract opportunities
- Book royalties
- Current business ventures
Vague; focus on sourced data instead. This figure comes from documented financial transactions, court records, and information about his activities after prison.
How Diveroli Built His Fortune
Diveroli’s wealth came mainly from government contracts through AEY Inc. While most small businesses struggle to win government work, Diveroli’s company became an unusual success story in defense contracting.
His breakthrough came with that massive $298 million Afghan ammunition contract in 2007. Redundant after adding dropout details and positioning him to become one of America’s youngest self-made millionaires.
AEY thrived by sourcing surplus Eastern European stockpiles, including Chinese-made ammunition from Albania—a violation of U.S. embargoes that Diveroli concealed. By buying cheap and selling to the government at competitive rates, the profits hit 20-30% on multimillion-dollar deals.
The Fall: Legal Troubles and Financial Impact
The same practices that made Diveroli rich ultimately caused his downfall. In 2008, a New York Times investigation revealed that AEY Inc. was repackaging aging Chinese-made ammunition from Albanian stockpiles – some manufactured in the 1960s – while falsifying documents to hide their origin, violating American trade embargoes and contract terms.
The financial fallout was severe:
- The government terminated the $298 million contract after only $10.5 million worth of ammunition was delivered.
- Diveroli received a sentence to four years in 2011 for conspiracy to defraud the U.S. but was released early after serving 36 months for good behavior
- He faced substantial fines and restitution payments
- Legal defense costs ran into millions
- Federal investigators seized $3.1 million from AEY’s accounts and $2.4 million in personal assets, including luxury cars and Miami properties
The contract that built his wealth vanished overnight, and legal battles drained much of his money. Court records show that significant assets were seized or spent on legal fees, dramatically reducing his financial standing.
What is Efraim Diveroli Doing Now?
After prison, Diveroli faced additional legal trouble in 2014 when arrested for threatening a former business partner. Despite this, he has since maintained a lower profile than during his notorious dealing days. However, he hasn’t completely disappeared from business or public life.
In 2016, he published his memoir, Once a Gun Runner, which peaked at #12 on Amazon’s True Crime chart. While royalties are undisclosed, industry estimates suggest it earned $400,000 initially, though exact figures remain private.
He filed a $5 million lawsuit against Warner Bros. in 2016 claiming story theft, though the case was dismissed in 2018, claiming they used his life story without proper payment. These lawsuits suggest he’s trying to monetize his notoriety and rebuild some financial standing.
Today, Diveroli runs Plot Holdings, a cannabis brand offering products like ‘War Dog Hemp’ gummies and pre-rolls, leveraging his ‘arms dealer turned entrepreneur’ persona with products like ‘War Dog Hemp.’. He seems to have shifted toward more conventional entrepreneurship, though details about these ventures remain scarce.
Diveroli’s Current Assets and Income Streams
Diveroli’s current wealth comes from several sources:
- Previous Contract Earnings: Before legal troubles, Diveroli accumulated several million dollars from arms deals. While much was lost to legal costs, court records indicate some assets remained protected.
- Book Royalties: “Once a Gun Runner” continues selling, providing ongoing income. For a book with this level of public interest, royalties could range from $100,000 to $500,000, depending on sales.
- Film Rights and Litigation: Any settlements from his lawsuits against Warner Bros. would boost his finances, though results aren’t fully public.
- Current Business Ventures: Since prison release, Diveroli has started several small businesses generating regular income, though much smaller than his previous operations.
- Real Estate and Investments: Like many wealthy individuals, Diveroli likely put some earlier earnings into property and investments that continue generating returns.
Efraim Diveroli’s Net Worth Compared to Industry Peers
For perspective, Lockheed Martin CEO James Taiclet’s $25 million annual compensation package alone surpasses Diveroli’s total net worth, while industry leaders often reach billionaire status. Diveroli’s estimated $15-20 million puts him in a much lower tier.
However, compared to peers like David Packouz—who left the arms trade and became a masseur—Diveroli’s $15-20 million net worth reflects his aggressive monetization of his infamy. This suggests either smart financial management or successful reinvention after his legal problems.
Lessons from Diveroli’s Rise and Fall
Diveroli’s financial journey offers several insights about wealth in high-risk industries:
- Regulatory Compliance Matters: Cutting corners might boost short-term profits but can destroy everything long-term.
- Diversification is Critical: His net worth relied entirely on government contracts. When that disappeared, so did most of his fortune.
- Legal Costs Can Be Devastating: Even for wealthy people, long legal battles can quickly drain fortunes.
- Reputation Has Real Value: Diveroli’s notoriety created income opportunities after prison that wouldn’t exist for someone without his public profile.
The Real Value Behind the ‘War Dogs’ Story
While War Dogs dramatizes Diveroli’s partnership with David Packouz (played by Miles Teller), the film exaggerates their camaraderie. In reality, Packouz testified against Diveroli during his trial, and their relationship was more contentious. His rise was indeed meteoric for someone so young, but his financial peak lasted only briefly.
The true financial story of Efraim Diveroli follows a path of rapid wealth accumulation followed by major losses. What remains today is just a fraction of what might have been had his business stayed within legal boundaries.
For those fascinated by Diveroli’s story, his actual net worth provides important context. While $15-20 million is substantial personal wealth, it falls far short of what his trajectory suggested—a reminder that how wealth is acquired often dictates its longevity.
His story underscores the fragility of wealth built on deception—a cautionary tale echoed in his 2021 interview with Vice, where he admitted, ‘I thought I was untouchable.’, especially true in legally complex industries where following rules matters as much as business skill.
