His Iranian-born grandfather, Yoav Botach, was one of the wealthiest property owners in Los Angeles, and his uncle is celebrity rabbi Shmuley Boteach.
After an argument with his uncle, he told his father he wanted to open a business specializing in arms, ammunition trading, and defense contracts with the U.S. government.
Companies such as AEY emerged as entities facilitating these operations, playing a role in executing tasks that were considered sensitive or clandestine in nature.
By the age of eighteen, Diveroli had become a millionaire by continuing to beat out big corporations like Northrop Grumman, Lockheed and BAE Systems.
[4] In meeting the contractual obligations set by the United States government, Efraim Diveroli became involved in interactions with individuals of questionable repute within the arms trade.
Diveroli's responsibilities further involved negotiating agreements with foreign defense ministers, participating in meetings held at diplomatic embassies, and responding to communication from high-ranking officials within the United States Army.
[8] On March 27, 2008, the U.S. government suspended AEY, Inc. for infringing upon the terms of its contract; in violation of a pre-existing arms embargo, the company was accused of supplying ammunition manufactured in China to the Afghan National Army and police.
[17] AEY had also failed to perform on numerous previous contracts, including sending potentially unsafe helmets and failure to deliver 10,000 Beretta pistols to Iraq.
[8] Packouz, along with Ralph Merrill, the group's former chief financier, later filed separate lawsuits against Diveroli seeking payment of millions of dollars they say they were owed in connection to the weapons contract with the U.S.
In 2016, Diveroli filed a lawsuit against Warner Bros. Entertainment Inc., director Todd Phillips, producer Bradley Cooper, and others, seeking to block release of the film.