This is one of three sets of hearing reports from hearings into the conduct of the BATF, in the 1980 time frame. Only the letter from J. Curtis Earl is reproduced; at $.10 the copies for other prattle added up. Note that Earl's description of what the charges agains thim involved, which were found by the grand jury to not be a crime, sound very similar to what Bill Fleming was convicted of. OVERSIGHT HEARINGS ON BUREAU OF ALCOHOL, TOBACCO AND FIREARMS HEARING BEFORE A SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS UNITED STATES SENATE NINETY-SIXTH CONGRESS SECOND SESSION ------ SPECIAL HEARING-PART 2 Department of the Treasury Nondepartmental Witnesses ----- Printed for the use of the Committee on Appropriations U.S. GOVERNMENT PRINTING OFFICE WASHINGTON : 1980 For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C. 20402 newpage [SNIP] CONTENTS Nondepartmental witnesses: Opening remarks of Senator DeConcini................. 1 Opening prepared statement of Senator DeConcini...... 3 Letter from G. R. Dickerson, Director, BATF.......... 5 Remarks of: Senator Schmitt.............................. 12 Senator Domenici............................. 12 Statement of: Paul A. Hayes................................ 13 Mrs. Paul A. Hayes........................... 14 Firearms Transaction records........................ 15 Memorandum from Herschel N. Stewart................. 27 Statement of Ron Koch............................... 29 Letter and draft stipulation by R. E. Thompson, U.S. attorney............................................ 31 Letter from: Dr. William S. Lovekin....................... 34 Mrs. Paul A. Hayes........................... 36 Statement of: Donald Vingino, Tuscon, Ariz................. 38 Gene Lane.................................... 38 Patrick Mulcahey, Columbia, S.C.............. 44 Article from the Washingtonian, "The Fat Man and the Gun Collector"...................................... 51 Letter from: John G. Krogman, Acting Director, BATF....... 61 G. R. Dickerson.............................. 65 Information forms on firearms sales.... 66 Neal Knox. executive director, National Rifle Association.................................. 71 Erwin Grombacher............................. 73 Judge Saul A. Epton (Retired)................ 73 Judge Edward D. Resenberg.................... 75 Thomas P. Koeberle........................... 76 Randall Callender............................ 78 J. Curtis Earl............................... 80 Richard T. Melcher........................... 82 Patricia M. Koval............................ 86 John M. Sando................................ 87 Appellant's opening brief.............. 90 Brief of appellee..................... 113 Department of the Treasury: Bureau of Alcohol, Tobacco and Firearms: Statement of: G. R. Dickerson, Director, BATF....... 119 Richard J. Davis, Assistant Secretary for Enforcement and Operations, Department of the Treasury.............................. 119 Prepared statement of G. R. Dickerson....... 121 Firearms program document................... 133 Opinion on use of "Strawman" in Firearms sales....................................... 153 Circular on "Strawman" transactions......... 162 Notice on sales of firearms at organized gunshows.................................... 163 Result of task force study.................. 165 Order on return of confiscated firearms..... 167 (iii) newpage iv Department of the Treasury-Continued Bureau of Alcohol, Tobacco and Firearms-Continued Directive on Firearms administrative actions and criminal action......................... 171 Public affairs guidelines................... 176 Statement of: Marvin Dessler....................... 190 Stephen Higgins...................... 193 Philip McGuire....................... 194 Questions submitted by Senator DeConcini.... 198 letter from: David J. Anderson.................... 204 Michael D. Hawkins and Virginia A. Mathis............................... 205 Michael D. Hawkins and Linda A. Drake................................ 207 David J. Anderson.................... 209 Memorandums from William C. Lawrence........ 216 Summary of investigation relating to: Paul A. Hayes........................ 217 Patrick M. Mulcahey.................. 225 Donald Vingino....................... 227 Letter from Neal Knox....................... 236 Excerpt from Code of Federal Regulations.... 238 Letter from Bill Garrison................... 244 newpage [SNIP] 80 LETTER FROM J. CURTIS EARL, PHOENIX, ARIZ. Senator Dennis DeConcini 3230 Dirkson Senate Office Building Washington, D.C. 20515 Dear Senator DeConcini: I remember at the hearings in July BATF stated that it was not their policy to use administrative remedies such as license revocations as punitive measures, to punish someone against whom criminal charges could not be proven. The fact is that this is their policy, at least in my case, and remains their policy to this day. As I pointed out at the hearings in July, BATF initially brought a specious criminal case against me. This case was based on allegations that I had falsely designated a police department as the prospective possessor of Title II firearms to be shipped, when in fact I was the recipient. As I pointed out, the truth was that I had first informed BATF of the transfer to the police department and secured their approval in writing for the transfer to that department, all in accordance with statute. I then separately requested approval, in writing, for the police department to transfer the firearms to me, and the BATF issued its approval for this second transfer. Only after receiving this approval was the second transfer made. At all times BATF knew of the recipient and present possessor of the firearms. At all times it was BATF itself who approved the transfers before they were made. The charges that I had misled them were obviously trumped-up. Their motive was clear, and it was not to fight crime. In July, I supplied for the record an investigative report, made by one of their agents about seven months before their raid on me, in which the agents informed his superiors that he had contacted me in an undercover capacity, asked about buying guns illegally, and I had told him I would sell no firearms except in the legal manner, and would not sell. a firearm illegally even if I could get $10,000 for it that way. At any rate, BATF raided my premises with a large team of agents, at least one flown in from Washington, assisted by a communication van and, I am told, one or two aircraft. The "raid was obviously a media event, for I had in the past often been inspected by BATF and invariably welcomed their inspectors, often splitting a few beers from my refrigerator with them. They audited several hundred firearms in my inventory and, after I produced my records, which were far better than theirs, concluded that every one examined was legally registered and recorded-- every one. BATF took their charges to a grand jury. Of course, the grand jury only decides if there is "probable cause" to believe there may be a violation of law; they hear only the prosecutor, not the defense attorney. Yet on the twenty-one counts BATF presented to them, they returned "no true bill" on every one. Every single one. Notwithstanding this vindication, and proof that there was not even "probable cause", BATF his proceeded to confiscate and forfeit the firearms involved, splitting them into two lots and two cases to double my legal expenses. They have also filed an action to revoke my license, running those expenses still higher. These charges are based on precisely the same claims that the grand jury acquitted me of. I cannot see where they can be considered anything but harassment of myself, after vindication by my peers. Even if BATF loses, they know their legal expenses are paid by taxpayers--including myself--whereas I must pay my own. To date my legal expenses total around $25,000; I just received my latest bill, for last month newpage 81 alone, for $1865. They are still withholding everything confiscated from me, even my typewriter and records. Although BATF claimed during the July hearings that they would abandon their ways, they certainly have not done so in my case. All actions are still being pushed to their fullest. Indeed, a little over a week ago my attorney and I were served with a motion for summary judgement in the confiscation cases, which we are told was drafted at BATF's Washington headquarters. How much money BATF has wasted on this case I cannot say; but the license revocation preliminary hearings alone involved a Bureau "judge" hearing officer flown in and put up here from San Francisco, a BATF agent flown in from Tucson, plus local agents and a recording crew, which I believe came from Texas. The initial raid apparently involved use of aircraft, communications van, a records "expert" flown in from Washington and a number of agents. I would not be surprised if the cost to the public has exceeded $350,000, counting agent time--, all on a case where they couldn't even prove probable cause, against a man whom their own undercover agents say wouldn't sell an illegal gun at any price. (Prior to the July hearings, some friendly agents estimated the Bureaus' costs at a quarter of a million dollars!) They have not changed their ways in the least, but are continuing to this day to waste public monies and my money and liberties in a vindictive pursuit of an honest dealer. Even my private life is affected. David "Kelly" Sanderson, an FBI agent and my closest friend, his been instructed, apparently on BATF instigation, not to have social contacts with me. It might he interesting to find out just 1. how many agents have worked on this case, and how many administrative personnel have worked on it; 2. how many airline tickets, hotel rooms, etc., have been used in its pursuit; 3. how many vehicles, including aircraft, have been employed; 4. how much attorney time has been devoted to it; and 5. how much the above has cost. I am told an agent was flown to Washington to hand carry my typewriter to headquarters-despite the fact that they could have sent typed samples, or shipped the typewriter alone. Why the waste of hundreds of dollars of taxpayers money? It might also be interesting to see if my guns have been defaced or injured. The guns taken from police chief Lane, which BATF did return, were marked with an electric pencil, destroying collector's value. I can only assume that the agents, administrative officers, and legal talent at the Bureau have nothing better to do with their time and taxpayers' money, than engage in useless, wasteful, vindictive conduct of this type. They certainly don't seem to have any time for the gun-using criminals in this region, or any other. Sincerely, [signed] J. Curtis Earl