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U.S. House investigators said AEY Inc. of Miami Beach, Fla., continued to do business with the Defense Department even after the company had been flagged by the State Department as a possible violator of the Arms Export Control Act, The Washington Post reported Wednesday.

Pentagon officials told the House Committee On Oversight and Government Reform Tuesday they were unaware the company, headed by 22-year-old Ephraim Diveroli, had seen seven of its previous government contracts terminated for non-performance because the two branches of government didn't regularly share such information, the Post reported.

Diveroli and four associates have since been indicted for conspiring to conceal that ammunition they were supplying to Afghanistan had originated in China, and not Albania as they certified.

During the hearing, the State Department and Pentagon officials said they would look into sharing more data, the newspaper said.

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