Packouz joins Efraim Diveroli's arms dealing company, AEY Inc., based in Miami, Florida. His initial role is primarily focused on bidding on government contracts using online platforms.

AEY Inc. secures a massive $300 million contract with the U.S. Department of Defense to supply ammunition to the Afghan National Army. This becomes the defining, and ultimately detrimental, deal of their business.

AEY Inc. becomes embroiled in controversy when it's discovered they were supplying substandard and re-branded Chinese ammunition, violating U.S. sanctions. Packouz and Diveroli are accused of fraud and violating arms export laws.

David Packouz is sentenced to seven months of house arrest and probation after pleading guilty to one count of conspiracy to defraud the United States.