The U.S. Army took action after an investigation into questionable activities by AEY Inc., of Miami Beach, Fla., including the reported furnishing of 40-year-old ammunition in decomposing packaging for Afghan troops and police, The New York Times (NYSE:NYT) said Thursday.

The Times said much of the ammunition supplied under a $300 million contract came from aging stockpiles determined to be unreliable and were made in China, a possible violation of U.S. law and a reason cited for the suspension.

The company's president, Efraim E. Diveroli, also was accused of misleading the Army by saying the the munitions were Hungarian, the Times said.