[VIDEO] - “War Dogs” Gun Lord: Israeli Origins, Chinese Weapons & Losing $300M | David Packouz • 213
Jun 15, 2024
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David Packouz, arms dealer featured on the podcast, discusses his journey in the arms industry, landing massive deals with the US government, ethical dilemmas in arms dealing, and challenges faced in the business. From childhood friendship to securing a $300 million contract, his story is filled with twists and turns that captivate the audience.
Specialization is crucial for success in bidding for lucrative government contracts.
Collaborating with international suppliers is complex yet essential for fulfilling government contract requirements.
Persistence and resilience are key to overcoming losses and securing significant contracts in government contracting.
Cost-efficiency measures, such as repackaging goods, help navigate financial challenges and optimize profitability.
Legal dilemmas and moral decisions unfold in high-stakes arms dealing operations, showcasing the complexities of legal disputes.
Media scrutiny and government investigations impact legal proceedings in arms dealing contracts, emphasizing the significance of public perception.
Deep dives
Venturing into Government Contracts
The podcast episode delves into a moment where the speaker discusses their journey into the realm of government contracts, specifically focusing on bidding and winning lucrative military-related contracts, highlighting the importance of specialization in different areas to increase chances of success.
Navigating International Supplier Networks
The episode further delves into the complexities of navigating international supplier networks, emphasizing the challenges and strategies involved in identifying and collaborating with diverse suppliers across different countries to fulfill varied government contract requirements.
Overcoming Obstacles in Government Contracting
Lastly, the podcast explores the hurdles and uncertainties faced in the competitive landscape of government contracting, shedding light on the persistence and resilience required to overcome losses and secure significant contracts in this challenging yet rewarding business domain.
Strategic Cost Considerations for Air Freight
The increase in oil prices led to a spike in air freight costs, impacting profit margins. AK-47 ammo incurred losses due to high air freight costs, exceeding profit margins. Grenades, with higher value and low volume, maintained profitability despite increased air freight costs.
Efforts to Optimize Profitability Through Packaging Innovation
Recognizing the weight implications of wooden crates, it was proposed to remove the wooden packaging for AK-47 ammo to reduce air freight costs. Opting for sardine can packaging over wooden crates could alleviate weight, potentially restoring profitability.
Delegating Field Inspection to Ensure Accurate Weight Assessment
To verify weight reduction feasibility by eliminating wooden crates for AK-47 ammo, an individual was tasked with on-site assessment in Albania. Alex, with a military background and pertinent expertise, was chosen to ensure precise weight verification, enhancing operational accuracy.
Deal Reflection and Financial Realizations
Reflections on winning the contract involved financial considerations, with the need to adapt to evolving cost dynamics. Challenges in cost-efficient delivery planning prompted strategic adjustments to optimize profitability and adapt to shifting market conditions.
Strategic Cost Adjustments for Profit Optimization
Navigating financial challenges associated with air freight surges and fluctuating costs from repackaging goods to enhance cost efficiency and bolster profitability prospects. Tactical adjustments sought to maintain viability and mitigate financial risks within the constraints of the existing market landscape.
Conflict Over Ammunition Source
The company faces a dilemma when discovering that the ammo sourced from Albania was originally from China, violating an arms embargo. Despite a potential waiver opportunity, they choose not to disclose the error. This decision leads to repackaging efforts and a risky attempt to avoid contract termination due to the delivery of unauthorized Chinese ammunition.
Business Dispute and Legal Challenges
Internal disputes arise as the CEO offers a different compensation package, aiming to replace prior agreements. When presented with an unsatisfactory deal that jeopardizes his previous earnings, the protagonist rejects the proposal. The tensions escalate, leading to the disappearance of their contractual agreement and the threat of legal action, culminating in a dramatic confrontation.
Legal Troubles and Negotiations
The episode delves into the legal challenges faced by individuals involved in a high-stakes arms dealing operation, revealing how a series of negotiations and severance offers unfolded amidst financial uncertainty. The narrative highlights the pressure and decisions made during intense legal battles, offering a glimpse into the complexities and moral dilemmas surrounding legal disputes and financial settlements.
Government Investigation and Media Fallout
The podcast episode explores the repercussions of a New York Times article exposing alleged fraudulent activities in an arms dealing contract. It details the subsequent government investigation, media scrutiny, and the escalating legal consequences faced by the parties involved, shedding light on the impact of media coverage on legal proceedings and the complexities of navigating criminal charges and public perception.
(***TIMESTAMPS in description below) ~ David Packouz is an American arms dealer, musician and inventor. Packouz along with his former partner, Efraim Diveroli, infamously landed 9-figure arms-deals with the US government before being arrested for violating US Weapons treaties. Their story was later the basis of the 2016 movie, "War Dogs."
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DAVID PACKOUZ’S LINKS:
DAVID’S INSTAGRAM: https://www.instagram.com/p/CRb6grWAQki/
DAVID’S TWITTER: https://x.com/davidpackouz?lang=en
WAR DOG’S ACADEMY: https://www.wardogsacademy.com/
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***TIMESTAMPS***
00:00 - War Dogs Backstory, Movie Adaptation, Jewish Heritage & Living in Israel 😱
11:31 - College & Rockstar Dream, Becoming Masseuse, Meeting Efraim Diveroli 🤘
22:03 - Young Entrepreneur Journey ‼️
31:24 - Reconnecting w/ Diveroli, Arms Dealing, First Contract & How Bidding Works 💰
44:02 - Understanding Weaponry (Soviet Weapons Utility), Blacklisted Countries 🇷🇺
55:47 - Military Contract Set-Up & Suppliers, $300 Million Afghan Contract, Relationship w/ Efraim Diveroli & Lack of Empathy 💸
01:09:43 - Staying in the Arms Dealing w/ Ethical Complications, Diverol Lying & Procrastination Paying, Errors in Contract 🤣
01:24:31 - In the Running for $300 Million, Dick Cheney & Haliburton 🇺🇸
01:31:45 - Government Auditing & Inspection, Growing up in Miami Beach, Winning Contract & Celebrating 🫢
01:42:52 - Process of Delivering Contract 🛂
01:52:27 - Oil Spiking & Air Freight Pricing, AK47 Ammo, Chinese Ammo Scare 🔫
02:07:32 - Repacking Chinese Ammo Solution, Cutting Henry Out w/ Albanians, 2008 Gerdec Explosions, Prime Minister’s Son Corruption 😳
02:23:04 - Efraim Screwing Over People, New York Times Investigation, Efraim Diveroli Narcissistic Psychopath 👿
02:30:25 - Getting Caught & FBI Raid, Efraim Diveroli Screwing David Packhouz & Running Out of Money, Suing Him 🤮
02:42:10 - Feds Raiding Office & Lawsuit, Alex Flies Back Home & Get Attorney’s 👨💼
02:53:47 - Accused of “Bad” Ammo, Getting Arrested for Possession 🌿
03:06:50 - Congress Discuss $300 Million Deal, Getting Charged, Sentencing & Entrapment ☢️
03:16:05 - Find David 👇
CREDITS:
- Hosted & Produced by Julian D. Dorey
- Intro & Episode Edited by Alessi Allaman: https://www.instagram.com/alessiallaman/
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Julian Dorey Podcast Episode 213 - David Packouz
