A likely victim of Matthew Lesko's infomercials.
Diveroli's small printing firm and weapons dealership was suspended in late March 2008 from its one-time status as an authorized U.S. Defense Contractor. According to wire service and news reports1, this suspension was due not to his firm's alleged practice of selling somewhat corroded, nearly antique ammunition to the security forces of Afghanistan, but for selling them corroding, antique ammunition that was made by Chinese factories at times ranging from 1962 to 1974.
Allegedly, Diveroli claimed in his filings with the government that the ammunition was of Hungarian origin, made during roughly the same period. This was okay with the government, since, while Hungary was a communist state at the time of manufacture it has since become a kleptocracy on par with other post-Soviet, former Warsaw Pact members.
It's purely speculation on my part at this point, but I would guess there's a very good chance that the ammo did come from Hungary and just happened to be ammo that had been sold to the Hungarian military by the Chinese during the Sixties and Seventies? Wouldn't that be a reasonable conjecture?
1 Sources:
http://ap.google.com/article/ALeqM5jx9b3pIaRXiS10popV3X2NGZP6EQD8VMN5LO0
http://www.cnn.com/2008/US/03/27/military.ammunition/index.html