This is a report preared by the ATF internal affairs office, investigating a complaint as to specific ATF personnel, and is not really an investigation into the validity of the NFA Registry. An investigation into the Registry is being conducted by the Inspector General's office, and is independent of this investigation. "[]" indicates a redacted name or other deleted information; generally it is the name of an ATF employee. In the report the subjects are as follows: 01 refers to Gary Schiable, 02 to Ed Owen, and 03 to Terry Cates. The author is Special Agent Jeff Groh. The copy of the report I OCR'ed was provided by ATF to the instigator of this investigation, Eric M. Larson, under the Freedom of Information Act, therefore his name was not redacted from this version. REPORT OF INVESTIGATION ATF OFFICE OF INSPECTION Department of the Treasury [] (01) [] (02) SUBJECT [] (03) 970178-01 970178-02 CASE NO 970178-03 DATE [] OFFICIAL USE ONLY ATF F 8600.38 (11-94) PREVIOUS EDITIONS ARE OBSOLETE [new page] DEPARTMENT OF THE TREASURY BUREAU OF ALCOHOL, TOBACCO AND FIREARMS WASHINGTON, DC 20226 DEC 17 1997 F:SD:WAN 2146 MEMORANDUM TO: ATF Specialist [] FROM: Chief, Firearms, Explosives and Arson Services Division SUBJECT: Memorandum of Clearance I have reviewed Office of Inspection (OI) Report of Investigation, number 970178-01, dated October 22, 1997, and determined that disciplinary action is not warranted. The report documents OI's investigation of allegations made against you and two other Bureau employees by Mr. Eric M. Larson of Takoma Park, Maryland. Mr. Larson sent a letter to the Office of the Assistant Inspector General (IG) for Investigation, dated May 10, 1997. Later forwarded to OI, Mr. Larson's letter alleges that you and the other Bureau employees committed the following offenses: 1) ATF employees destroyed firearm registration documents that they were required by law to maintain; 2) ATF employees registered approximately 2,500 unregistered National Firearms Act (NFA) firearms without the proper authorization from Congress; 3) you and another ATF employee perjured yourselves in two letters to Mr. Larson; 4) registration activity that ATF classifies as "other" could include registrations of firearms that ATF employees registered contrary to the law, and that ATF refused to disclose the nature of this registration activity; and 5) that a significant number of NFA firearms were registered to persons who were deceased. However, the investigation did not substantiate any of the allegations and I have found no evidence of any wrongdoing on your part. Therefore, I am issuing this memorandum of clearance concerning the incident covered in the above-referenced OI report of investigation. Walfred A. Nelson [new page] DEPARTMENT OF THE TREASURY BUREAU OF ALCOHOL, TOBACCO AND FIREARMS WASHINGTON, DC 20226 DEC 17 1997 F:SD:WAN 2146 MEMORANDUM TO: [] Chief, Firearms Technology Branch FROM: Chief, Firearms, Explosives and Arson Services Division SUBJECT: Memorandum of Clearance The Professional Review Board (PRB) has reviewed Office of Inspection (OI) Report of Investigation, number 970178-02, dated October 22, 1997, and has determined that disciplinary action is not warranted. The report documents OI's investigation of allegations made against you and two other Bureau employees by Mr. Eric M. Larson of Takoma Park, Maryland. Mr. Larson sent a letter to the Office of the Assistant Inspector General (IG) for Investigation, dated May 10, 1997. Later forwarded to OI, Mr. Larson's letter alleges that you and the other Bureau employees committed the following offenses: 1) ATF employees destroyed firearm registration documents that they were required by law to maintain; 2) ATF employees registered approximately 2,500 unregistered National Firearms Act (NFA) firearms without the proper authorization from Congress; 3) you and another ATF employee perjured yourselves in two letters to Mr. Larson; 4) registration activity that ATF classifies as "other" could include registrations of firearms that ATF employees registered contrary to the law, and that ATF refused to disclose the nature of this registration activity; and 5) that a significant number of NFA firearms were registered to persons who were deceased. However, the investigation did not substantiate any of the allegations and I have found no evidence of any wrongdoing on your part. After a careful review of the report, I concur with the PRB. Therefore, I am issuing this memorandum of clearance concerning the incident covered in the above-referenced OI report of investigation. Walfred A. Nelson [new page] DEPARTMENT OF THE TREASURY BUREAU OF ALCOHOL, TOBACCO AND FIREARMS WASHINGTON, DC 20226 DEC 17 1997 F:SD:WAN 2146 MEMORANDUM TO: [] Chief, Revenue Division FROM: Assistant Director, Alcohol and Tobacco Programs SUBJECT: Memorandum of CIearance The Professional Review Board (PRB) has reviewed Office of Inspection (OI) Report of Investigation, number 970178-03, dated October 22, 1997, and has determined that disciplinary action is not warranted. The report documents OI's investigation of allegations made against you and two other Bureau employees by Mr. Eric M. Larson of Takoma Park, Maryland. Mr. Larson sent a letter to the Office of the Assistant Inspector General (IG) for Investigation, dated May 10, 1997. Later forwarded to OI, Mr. Larson's letter alleges that you and the other Bureau employees committed the following offenses: 1) ATF employees destroyed firearm registration documents that they were required by law to maintain; 2) ATF employees registered approximately 2,500 unregistered National Firearms Act (NFA) firearms without the proper authorization from Congress; 3) you and another ATF employee perjured yourselves in two letters to Mr. Larson; 4) registration activity that ATF classifies as "other" could include registrations of firearms that ATF employees registered contrary to the law, and that ATF refused to disclose the nature of this registration activity; and 5) that a significant number of NFA firearms were registered to persons who were deceased. However, the investigation did not substantiate any of the allegations and I have found no evidence of any wrongdoing on your part. After a careful review of the report, I concur with the PRE. Therefore, I am issuing this memorandum of clearance concerning the incident covered in the above referenced OI report of investigation. Arthur J. Libertucci [page 5 of FOIA deleted, this is a transmittal memo form] [new page] DEPARTMENT OF THE TREASURY BUREAU OF ALCOHOL, TOBACCO AND FIREARMS WASHINGTON, DC 20226 DEC 9 1997 M:P:R:DEK:ssw 2143 MEMORANDUM TO: Assistant Director, Alcohol and Tobacco FROM: Chair, Professional Review Board SUBJECT: Memorandum of Clearance for [] The Professional Review Board (PRE) has reviewed Office of Inspection Report of Investigation, number 970178-03, dated October 22, 1997, and has concluded that a memorandum of clearance is warranted for Chief, Revenue Division. Accordingly, attached is the memorandum to the employee for your signature. NOTE: If you disagree with this action, or have any questions about the PRE recommendation, please feel free to contact me at 202-927-8555 prior to signing the memorandum. If you agree, please review, sign and date the memo, and then issue it to the employee. The employee may also be allowed to read the OI report should he ask to do so. Please forward a copy of the signed, dated memo, to: [] Chief Employee and Labor Relations Branch Bureau of Alcohol, Tobacco and Firearms 650 Massachusetts Avenue, N.W., Room 4300 Washington, D.C. 20226 It is important that you send this memo as soon as possible so that ELRB can close the case with the Office of Inspection. You should also complete page 1 of the OI Report of Investigation (ATF Form 8600.36, Investigation Referral Memorandum), items 12 through 15, and return the OI Report to the Office of Inspection. [new page] - 2 - Should you have any changes to the memo, please contact your servicing employee relations specialist, [] at 202-927-8640. Don E. Keith Attachments [new page] DEPARTMENT OF THE TREASURY BUREAU OF ALCOHOL, TOBACCO AND FIREARMS WASHINGTON, DC 20226 DEC 24 1997 I:RJH 970178 TO: Assistant Inspector General for Investigations FROM: Assistant Director Inspection SUBJECT: Mismanagement and misconduct by [] [] [] and other unidentified employees of the Bureau of Alcohol, Tobacco and Firearms. Case Number: 97-1-075-R I refer to your memorandum dated June 5, 1997, referring this matter for investigation. The investigation has been completed and the report has been given to [] , Auditor, Chicago Office of Inspector General, who is reviewing this issue for the Treasury Office of Inspector General. Richard J. Hankinson [new page] [pages 9-15 deleted, these are memo forms circulating the report to various administrators, and to the subjects of the investigation] DEPARTMENT OF THE TREASURY BUREAU OF ALCOHOL, TOBACCO AND FIREARMS Report of Investigation INVESTIGATION NUMBER 970178-01 SYNOPSIS In May 1997, Raisa Otero-Cesario, Assistant Inspector General (IG) for Investigations, received a letter alleging that employees of the Bureau of Alcohol, Tobacco and Firearms (ATF), National Firearms Act Branch, had acted erroneously and without congressional approval on five separate issues. The letter, which was authored by Eric M. Larson of Takoma Park, Maryland, requests the Office of Inspector General to investigate the alleged ATF violations. IG Otero-Cesario forwarded the letter to the Director, ATF, who requested that the Office of Inspection (OI) investigate the allegations. OI determined that the ATF employees referred to in the first allegation as being suspected of destroying records were, in fact, contract employees who were hired to assist in the backlog of paperwork that resulted from an influx of registrations as per [] Depending on the year in question, if there was an increase in any National Firearms Act (NFA) firearm registrations, as alleged, this may have been an adjustment as a result of a different form number or registration date for the particular firearm. To address the second allegation, ATF continued to register weapons after 1971 because the backlog of paperwork that resulted from the amnesty period was very large and filing the documents required extra time. In addition, some individuals were granted extra filing time if they were out of the country when the time expired for filing. Regarding Larson's third allegation, the truthful information furnished to Larson by [] and [] in their respective letters involves a criminal case in Oregon investigated by ATF. The suspect, John David Dudley, a multiconvicted felon, dealt in narcotics and illegally possessed firearms which included an H & R Handy Gun. Dudley was charged and subsequently plead guilty in Federal court on Federal firearms violations. DATE OF REPORT: 9-8-97 [new page] Larson's fourth allegation suggests that ATF is using the "other category" to illegally register firearms. However, this category is used when the computer program cannot recognize a non-standard document that has been submitted for registration. For instance, some registrations were actually filed in correspondence on letterhead. If an ATF employee entering the information into the computer enters a Form 3 as a Form 33, the program will assign the document to the "other" column. The fact that the form is entered in the "other" column does not mean that the firearm is illegally registered. In his fifth allegation, Larson states that some of the NFA weapons registered may be registered to deceased persons. While it is possible that, unknown to ATF, some NFA weapons may be registered to deceased individuals, the integrity of the NFA is incumbent upon the individuals who possess legally registered firearms to report deaths and reregister the weapon. In closing, Larson suggests two solutions to the problems he cites in his allegations. His first recommendation is to remove 17,000 "any other weapons" listed under the NFA. Although Congress did enable firearms classified as collectors' items to be removed from the NFA, contrary to Larson's interpretation it did not mandate their removal. Therefore, if an individual weapon is suggested for removal, ATF will consider the particular firearm on a case-by-case basis and determine if removal is warranted. Furthermore, to address Larson's second solution, if the original registration of a firearm is misplaced, the owner needs only to contact ATF to obtain another copy. There is no need to reregister, and there is no need to establish an amnesty period as Larson suggests. [] 970178-01 [] 970178-02 [] 970178-03 -2- [new page] CHRONOLOGY OF INVESTIGATION On June 10, 1997, the Office of Inspection (OI) received a memorandum from Raisa Otero-Cesario, Assistant Inspector General for Investigations (IG), that referred a letter alleging misconduct by Bureau of Alcohol, Tobacco and Firearms (ATF) employees. The complaint alleges that various employees of ATF have destroyed (and may have illegally added) National Firearms Registration and Transfer Records (NFRTR), have committed perjury in letters of response to the complainant, and have been negligent in removing firearms registered to deceased individuals. In his letter dated May 10, 1997, Eric M. Larson sets forth the following allegations: 1. ATF employees have deliberately destroyed firearm registration documents that they are required by law to maintain, as noted in sworn testimony in 1996 by ATF Special Agent [] In analyses of data made public by ATF, I [Eric M. Larson] found that during 1992 to 1996, ATF may have added 119 or more firearms to the NFRTR which were originally registered on Form 1 or Form 4467 during 1934 to 1971, for which ATF lost or deliberately destroyed the original records. 2. ATF employees registered almost 2,500 unregistered NFA firearms on Form 4467 after December 1, 1968, without proper authorization by the Congress. In addition to not being authorized by the Congress, such registrations were prohibited by the Supreme Court in 1971, yet it appears that ATF registered 172 or more unregistered NFA firearms on Form 4467 after 1971. I have included an example of one apparently illegal post-December 1, 1968, Form 4467 registration in my testimony. 3. ATF employees [] and [] committed felony perjury in letters written to me dated March 23, 1992, and July 29, 1993, respectively. [] and [] each alleged that "an unlawful trafficker in drugs with an extensive criminal record" was in possession of a .410 bore H & R Handy-Gun "while committing drug violations." This alleged instance of criminal conduct was used to deny my petition to remove the H & R Handy-Gun from the NFA as a collector's item. In fact, a Freedom of Information Act request disclosed that the Handy-Gun was recovered from an acquaintance of the trafficker, who said that the trafficker had [] 970178-01 [] 970178-02 [] 970178-03 -3- given it to him for safe-keeping (see pages 212-215, 222-230, and 233-236 of my 1996 testimony). Any person who petitions for removal of a firearm from the NFA must state the reasons under penalty of perjury. The plain language of the statute at Title 26, U.S.C., section 5861(l) and section 5871 applies to any person who knowingly makes or causes the making of a false entry on any document required to be prepared as a result of administering the NFA, including the legal decision regarding the classification of an NFA firearm. Both [] and [] deliberately falsified the facts of the case they cited. 4. Certain "registration activity" that ATF classifies as "OTHER" could include registrations of firearms that one or more ATF employees registered contrary to law, because ATF has refused to disclose the nature of this "registration activity." To the best of my knowledge, I've never heard of any forms numbered other than 1, 2, 3, 4, 5, 6, 9, 10 or 4467 being used to register or transfer NFA firearms. According to a letter to me dated January 9, 1997, from NFA Branch Chief [] the "OTHER" category is "comprised of registrations where the form number is different from the other ones tabulated." [] , however, has declined to provide the names or numbers of these forms. Coupled with the other evidence of registration mismanagement I have documented, it appears that the "OTHER" category may represent firearms that were registered illegally, as noted in my 1997 testimony. 5. It appears that a significant number of NFA firearms are currently registered to persons who are deceased, and that ATF has been aware of this fact since at least 1981 and done nothing about it, as noted in my 1997 testimony. Consequently, a significant number of NFA firearms are now illegally possessed, in some instances by persons who are unaware they are in violation of the law. The reason is that many firearms classified as 'Any Other Weapon" are rare collector's items that many people do not consider weapons, as noted in both my 1996 and 1997 testimonies. (Exhibit 1, Larson letter) On July 10, 1997, Special Agent (SA) [] Office of Inspection (OI), interviewed Office of Chief Counsel Attorney ATF, who related the following facts: [] 970178-01 [] 970178-02 [] 970178-03 -4- [] is currently employed by ATF, as an Associate Chief Counsel in the Office of Chief Counsel in Washington D.C. He is aware of an individual by the name of Eric Larson, whom he has spoken to and corresponded with concerning issues related to particular firearms, specifically, the H & R Handy Gun shotgun and the Marble Game Getter. According to [] Larson has been requesting information on the Handy Gun and the Marble Game Getter since approximately 1986 or 1987. Larson has requested that the H & R Handy Gun be removed, from the National Firearms Act (NFA) arguing that the firearm should only be classified as a curie or relic subject to the 1968 Gun Control Act. [] has debated the issue with Larson on numerous occasions, both verbally and in writing. Furthermore, whenever Larson has contacted ATF with a question or request, ATF has provided the information available. Regarding Larson's first allegation, [] stated that the conclusions Larson draws from [] testimony may be incorrect, and recommended that [] be contacted for the correct response. In response to the third allegation, [] stated that neither [] nor [] perjured themselves in their letters to Larson. The information referred to in each letter, ( [] letter dated March 23, 1992, and [] letter dated July 29, 1993) is true and correct based on the facts at the time. [] and [] of the Firearms Technology Branch authored the letter for [] response. Larson refers to a violation of 26 USC 5861(l) and 5871 by [] and [] stated that he is unaware of any violation in these two laws from correspondence between [] or [] and Larson. [] responded to Larson's fifth allegation, which refers to inaccuracies in the NFRTR by explaining that the NFRTR only reflects changes in the record when an individual legally transfers and registers a previously registered weapon. The NFRTR has no way of detecting how many times a firearm may have been transferred between the years 1940 and 1968 unless the transfers were recorded in the NFRTR. [] stated that if ATF were to allow periodic amnesty periods, as Larson suggests, the NFA may be circumvented any number of times by individuals in violation of the law. For example, a person could obtain a firearm illegally and [] 970178-01 [] 970178-02 [] 970178-03 -5- wait for the amnesty period to register the illegally obtained firearm. [] explained that when the original paperwork for a registered firearm is lost, the owner merely has to contact ATF to obtain copies of the original. If a firearm is already registered, there is no need to reregister the firearm. Regarding Larson's first solution, [] explained that ATF is not required to remove a firearm from the NFA it determines that the firearm is not likely to be used as a weapon, ATF did not draw this conclusion regarding the H & R Handy Gun. [] stated that if Congress wants to remove the weapons from the NFA, it has the authority to do so. In the late 1950's or early 1960's, Congress did lower the tax on the "any other weapon" category from $200 to $5. The category, however, was not removed from the NFA. The H & R Handy Gun has the same configuration as a sawed-off shotgun and is readily concealable. This configuration makes the firearm an unlikely candidate for removal from the NFA. [] states that Larson's second solution, that the Secretary of the Treasury grant an amnesty period as in 1968, is very unlikely to occur because another amnesty period is not warranted. Moreover, a new amnesty period could jeopardize pending investigations. This would also be an opportunity for people to avoid paying the tax to transfer the weapon. The 1968 amnesty was originally enacted to provide the public a brief opportunity to comply with the NFA as amended that year. The 1968 amnesty period served its purpose, and there is no legitimate reason for another amnesty. SA [] presented [] with the above summary of his statement, and [] stated under oath that the facts contained in the summary are true and correct to the best of his knowledge and belief. On July 14, 1997, SA [] interviewed [] at his office in the NFA Branch. [] advised SA [] of the following information: [] stated that he has been employed by ATF for the past 25 years and has been assigned to the NFA Branch for approximately 16 years. [] 970178-01 [] 970178-02 [] 970178-03 -6- He is aware of an individual by the name of Eric Larson and has spoken with Larson about statistics concerning NFA weapons. [] states that Larson has been writing letters to ATF for many years regarding NFA weapons, in particular the H & R Handy Gun. In response to Larson's first allegation regarding [] testimony in U.S. District Court, [] made reference to certain documents being destroyed at the NFA Branch. [] stated he made the comments in reference to thousands of Title II firearms manufactured by [] that were being exported to [] . Various manufacturers were forwarding the paperwork for these firearms. However, not all of the paperwork was entered properly into the NFA system. It was suspected that some of the contract employees had destroyed some of the documents in an effort to reduce case load. [] admits that Larson may have construed from his testimony that ATF employees were destroying documents, but this was not the case, [] suggested that if there was an increase in any NFA firearm registrations, it may have resulted from the changes made to reflect different form numbers being located and entered or from the transposition of registration dates on the original form. Such changes would have been added to the NFRTR. [] then addressed the second allegation in the letter, which concerns the filing of the proper paperwork for NFA firearms during the amnesty period Congress enacted in 1968, He explained that the backlog of paperwork received as a result of the amnesty program back in 1968 was very large, and the filing of these documents required extra time in order to get the registrations documented. In addition, paperwork was also received late, because certain groups of individuals were granted an extended period to file the paperwork. These individuals would have been granted extensions if, for example they were overseas when the amnesty period closed. Regarding the fourth allegation, [] stated that Larson is referring to the statistics maintained by the NFA Branch. The "other" category Larson refers to in his letter is a category designated by the computer program that produces statistics when a standard form number is not provided. For instance, an individual entering the information into the ATF computer may enter a Form 3 as 33. This form would then be placed in the "other" category. If an application for [] 970178-01 [] 970178-02 [] 970178-03 -7- registration were received in correspondence on letterhead, without a form number, this would also be placed in the "other" category. The fact that the form has been placed in the "other" category does not mean the form cannot be located. All registration correspondence is numbered and identified for proper filing. In response to the fifth allegation, [] stated that if a possessor of a legally registered NFA weapon passes away and the beneficiary of the estate wants to register that firearm in his or her name, ATF will do whatever is necessary to assist that individual in registering the firearm. The individual needs only to contact the NFA Branch, and an ATF employee will assist in any way. [] asserted in response to Larson's first solution that ATF will not arbitrarily remove any firearms from the NFA. Congress has the authority to do so and, if Congress deems it necessary to remove some of these firearms, it will do so. In response to Larson's second solution, he stated that ATF will provide anyone copies of registration forms for documents that may have been misplaced or lost. Another amnesty period has been discussed by Congress, the White House, and ATF; however, the idea was rejected because of pending investigations and other issues related to the registration problems that may arise. SA [] provided [] with the above summary of his statement, and [] stated under oath that the facts contained in the summary are true and correct to the best of his knowledge and belief. On July 21, 1997, SA [] interviewed [] , Chief of the Industry Compliance Branch. [] advised SA [] , that he has spoken with Larson on the telephone concerning the removal of the H & R Handy Gun. [] also advised SA [] of the following facts: He was the Chief of the NFA Branch in 1986 and 1987 and was unaware of any documents being destroyed by any ATF employee. At that time, some paperwork was missing and some contract employees hired by ATF were suspected of misplacing ATF paperwork. [] 970178-01 [] 970178-02 [] 970178-03 -8- [] stated that the Handy Gun has a configuration similar to the sawed-off or short-barreled shotgun. He likewise stated that it is within the purview of Congress to remove the firearm from the NFA. Finally, also stated that when the paperwork for a legally registered NFA firearm is lost, the owner need only contact ATF for copies of the original. ATF has the original documents, and a copy can be forwarded to the legal owner. Another amnesty period for the registration of NFA weapons must be authorized by Congress and the Secretary of the Treasury. SA [] presented with the above summary, and [] stated under oath that the facts contained in the summary are true and correct to the best of his knowledge and belief. (Exhibit 2, Letter from [] to Eric Larson dated July 29, 1993) On July 31, 1997, SA [] contacted Eric Larson by telephone to arrange an interview concerning his correspondence to the IG. Over the telephone, Larson stated that NFA status of a firearm known as the Game Getter put him over the edge on this issue, and he felt that there should be one person in the United States that stands up for what he believes in. Larson stated that he works for the Government Accounting Office (GAO) in the section that audits ATF. Larson added that he is not involved in the audit of ATF. He stated that he would like to meet with SA [] and he would try to think of anything he may have forgotten to put in his letter to the IG. On August 1, 1997, SA [] interviewed [], Chief of the Firearms Technology Branch, ATF. [] stated that he has been employed by ATF since November 1972 and knows of Eric Larson. [] advised SA [] of the following: The letter that Larson refers to was authored by ATF Counsel [] from information obtained by [] Assistant Chief of the Firearms Technology Branch. [] stated that if Congress wants to change the law as it pertains to some NFA weapons, he would have no problem with it. Congress has the authority to amend the law with respect to NFA weapons. If the law were changed, ATF would adhere to whatever change was made. [] 970178-01 [] 970178-02 [] 970178-03 -9- He added that ATF would help, in any way possible, an individual obtain proper paperwork for NFA registration. (Exhibit 3, Letter from [] to Eric Larson dated March 23, 1992) On August 1, 1997, SA [] interviewed [] , Chief of the Firearms and Explosives Regulatory Section, ATF. [] informed that he has been employed by ATF for the past 25 years and has been in his current position since January 1996. [] stated that he knows of an individual by the name of Eric Larson and has written a response letter to Larson. [] advised SA [] of the following: With regard to Larson's fifth allegation, if the relatives of a deceased person notify ATF about the death of a firearm owner and wish to reregister the firearm, ATF will help, in any way it can, to facilitate the registration process. However, the only way ATF would be aware of someone's passing away is if the family of the deceased advised ATF. In response to Larson's first solution, is not aware that ATF can legally remove NFA firearms without the approval of the Congress. In response to Larson's second solution, ATF does not have the authority to establish a 90-day waiting period. If the original copy of the NFA registration is lost, the owner of the firearm need only contact ATF and a copy will be provided. SA [] provided [] with the previous summary, and [] stated under oath that the facts contained in the summary are true and correct to the best of his knowledge and belief. On August 1, 1997, SA [] interviewed [] , Chief of the National Firearms Act Branch, ATF. [] stated that she has been employed by ATF for 11 years and has been in her current position since March 1996. She knows of an individual by the name of Eric Larson and has had corresponded with him. [] advised SA [] of the following: In reference to Larson's first allegation, [] stated that she is unaware of any original documents being destroyed by any ATF employees. The testimony given in U.S. District Court by [] concerned contract employees hired by ATF who were suspected of destroying or misplacing ATF documents. Such activity [] 970178-01 [] 970178-02 [] 970178-03 -10- is by no means recent and occurred well over 8 years ago. Regarding Larson's fourth allegation, the "other" category of registrations is used to capture nonstandard documents. For instance, if a Form 3 is entered as a Form 33, the computer software would automatically place the form in the "other" column. If an individual files a registration on correspondence with letterhead, the entry is also entered as "other." Furthermore, if errors are located, they are corrected. Concerning Larson's fifth allegation, if heirs or executors of estates of deceased individuals wish to transfer legally registered firearms to themselves, they must contact ATF. ATF will conduct a query for the individual and the particular firearm and advise the individual of the procedure to register. If an executor finds a firearm that is not registered, ATF will advise of abandonment procedures for the weapon. [] stated that family of the deceased go through enough without having to worry about firearms they were unaware of. In response to Larson's first solution, Levine stated that ATF should not make a blanket removal of some 17,000 firearms classified as "any other weapons." She suggested that some of these weapons may be looked at on a case-by-case basis and examined individually for removal from the NFA. Regarding Larson's second solution, copies of lost registrations are requested by registered owners and the requests are responded to. There would be no reason for another amnesty period, as it would serve no purpose. SA [] provided [] with the previous summary, and [] stated under oath that the facts contained in the summary are true and correct to the best of her knowledge and belief. (Exhibit 4, Letter from [] to Eric Larson dated January 9, 1997) On August 1, 1997, SAs [] and [] OI, met with Eric Larson and his attorney, [] . Larson stated the following: He had nothing to add to his allegations, and he felt he had filed everything that pertained to the issue. [] 970178-01 [] 970178-02 [] 970178-03 -11- He stated that he received the case information referred to in his third allegation through the Freedom of Information Act. This was the only case pertaining to the issue that he had received, and he felt that ATF had no other cases pertaining to the misuse of the H & R Handy Gun. On August 5, 1997, SA [] interviewed [] Assistant Chief of the Firearms Technology Branch, who has been employed with ATF since 1973. [] stated the following: He knows of Eric Larson and has supplied information about the H & R Handy Gun to the Office of Chief Counsel for responses to Larson's inquiries. The case cited by Larson refers to a case from the Portland, Oregon, Post of Duty in which an H & R Handy Gun with a metal cannabis leaf tacked onto the stock was seized during an investigation. The firearm was taken into custody from an acquaintance of an individual by the name of John D. Dudley. The case included a Title 26 charge and a felon-in-possession charge. Dudley, however, was not charged with possession of the firearm in question. There are numerous cases across the United States involving the criminal possession of an H & R Handy Gun. [] cited three other investigations that he is aware of that took place between 1990 and 1992. This does not preclude the possibility that other investigations may have been going on that [] was unaware of. The fact that only one was presented to Larson under his Freedom of Information request does not mean that there were no other investigations of this sort taking place or that no cases had been adjudicated prior to Larson's request. SA [] presented [] with the previous summary, and [] stated under oath that the facts contained in the summary are true and correct to the best of his knowledge and belief. On August 5, 1997, SA [] telephoned SA [] of the Portland, Oregon, Field Office about defendant John Dudley. SA [] stated the following: He investigated a previously convicted felon by the name of John David Dudley of Jacksonville, Oregon, in 1990. Dudley was suspected of methamphetamine trafficking, possession of stolen property, and being a felon in possession of firearms. [] 970178-01 [] 970178-02 [] 970178-03 -12- [] was contacted by a local task force concerning Dudley after Dudley was stopped on a traffic violation and found to be in possession of an unregistered pen gun and a Browning 9mm handgun. Shortly thereafter, a State search warrant was executed at the residence of one of Dudley's associates, [] Recovered from were 27 firearms, including an H & R Handy Gun, which, along with all of the other firearms located, allegedly belonged to Dudley. [] advised authorities that Dudley requested that [] keep the firearms at his [] residence. Dudley was taken into custody, and [] presented the case to the U.S. Attorney's Office for prosecution. The Assistant United States Attorney (AUSA) handling the case decided to indict Dudley on possession of the two firearms found during the traffic stop, The AUSA decided not to indict Dudley for the other 27 firearms that were recovered from []. Dudley was indicted for violations of 18 U.S.C. 922(g)(1) and Title 26 5861(d). Dudley was subsequently sentenced in July 1991 to 60 months imprisonment followed by 36 months supervision. (Exhibit 5, Copy of ATF Form 3270.1 reference IN #93360-90-4058 S.) [] 970178-01 [] 970178-02 [] 970178-03 -13- LIST OF EXHIBITS 1. Letter from Eric Larson Takoma Park, Maryland, to Inspector General Valerie Lau, dated May 10, 1997. 2. Letter from [] , Chief of the Firearms and Explosives Division, to Eric Larson, dated July 29, 1993. 3. Letter from [] , Chief of the Firearms Technology Branch, to Eric Larson dated March 23, 1992. 4. Letter from [] Chief of the National Firearms Act Branch to Eric Larson, dated January 9, 1997. 5. Copy of ATF Form 3270.1 regarding John David Dudley, investigation #93360-90-4058 S from Portland, Oregon, Field Office. [] 970178-01 [] 970178-02 [] 970178-03 -14- [Exhibit 1 is deleted, it is available elsewhere on this page] DEPARTMENT OF THE TREASURY BUREAU OF ALCOHOL, TOBACCO AND FIREARMS Jun 29 1993 Mr. Eric M, Larson Post Office Box 5497 Takoma Park, MD 20913-5497 Dear Mr. Larson: This is in response to your July 12, 1993, follow-up letter to Treasury Secretary Bentsen. In your letter you take issue with our response, on Secretary's Bentsen's behalf, to your June 14, 1993, request that the H & R Handygun be removed from the National Firearms Act (NFA). H&R Handyguns currently fall within the "any other weapon" category of NFA weapons. As defined in 26 U.S.C. 5845(e],. the term "any Other weapon" means: (A)ny weapon or device capable of being concealed on the person from which a shot can be discharged through the energy of an explosive, a pistol or revolver having a barrel with a smooth bore designed or redesigned to fire a fixed shotgun shell. Such term shall not include a pistol or a revolver having a rifled bore, or rifles bores or weapons designed, made, or intended to be fired from the shoulder and not capable of firing fixed ammunition. The weapons meet this definition because of their concealability on the person (having an approximate overall length of 17 inches), and because they are smooth bore pistols designed to fire a fixed shotgun shell. They have been subject to the NFA since the Act was originally enacted in 1934. The H & R Handygun was manufactured between 1920 and 1934. Although the exact number of Handyguns manufactured is unknown, available information suggests that between 20,000 and 25,000 were made in different gauges and calibers, The value of the Handygun is estimated to range from $400 to $600 for standard variations, with scarcer versions exceeding that amount. EXHIBIT NO. 2 [new page -2- Mr. Eric M. Larson Pursuant to 26 U.S.C. 5845(a) and the regulations in 27 C.F.R. 179.25, the Bureau of Alcohol, Tobacco and Firearms (ATF) may remove weapons other than machineguns and destructive devices from the scope of the NFA which, although originally designed as weapons, are determined by reason of their date of manufacture, value, design, and other characteristics to be primarily collector's items and not likely to be used as weapons. The removal of weapons from the scope of the NFA is an action not taken lightly by ATF, and the requester has a heavy burden of establishing that an item is not likely to be used as a weapon. This is particularly true where, as in the present case a substantial number of weapons are sought to be removed. In addition, your request requires close scrutiny in view of prior congressional action with respect to H & R Handyguns and similar NFA weapons. In 1945 and 1960, Congress amended the NFA by changing the rate of tax on the transfer of these smooth bore shot pistols with the scope of the "any other weapon" category. Because the weapons were found to be of interest to collectors and useful for certain legitimate purposes, Congress in 1945 reduced the original $200 transfer tax to $1 and in 1960 changed the transfer tax to $5 for all weapons within the category "any other weapon." It is significant that, although the shot pistols were considered collector's items, Congress did not choose to remove them from the NFA. Moreover, the legislative history shows that Congress deliberately left these weapons within the purview of the NFA: However, this "any other weapon" category will continue to be subject to the present control provisions applicable to all firearms under present law. As a result, the safeguards of present law are maintained, while applicable taxes are lowered to the level which makes it possible for gun collectors to obtain novel weapons in the category . . . S. Rep. No. 1303, 86th Cong., 2d Sess, 2, reprinted in 1960 U.S. Code Cong. & Admin. News 2111. As previously stated, one of the criteria to be considered in acting upon a removal request is the "design" of the weapon. The design and function of the H & R Handygun are identical to that of the sawed-off shotgun, which is also [new page] -3- Mr. Eric M. Larson subject to the NFA. Both weapons are smooth bore handguns which fire a fixed shotgun shell and are concealable on the person. The weapons differ in two regards, neither of which relate to their design or function: (1) the typical sawed-off shotgun is made by converting an existing shotgun into a shot pistol, whereas the H & R Handygun was originally manufactured as a shot pistol; and (2) the sawed-off shotgun is subject to the NFA because it fits within the definition of "weapon made from a shotgun" in 26 U.S.C. 5845(a)(2), whereas the H & R Handygun is within the NFA definition of "any other weapon." Practically speaking, however, the two weapons are substantially the same. The sawed-off shotgun is a popular crime weapon and has been the subject of numerous Federal and State prosecutions. This is attributable in part to the availability of such weapons. As stated above sawed-off shotguns are produced by simply altering conventional, sporting shotguns which are readily available in the marketplace and which are not themselves subject to the NFA's registration or other requirements. Although H & R Handyguns have not frequently been used in crimes, these weapons have been found in the possession of criminals. The subject of a recent ATF case was an unlawful trafficker in drugs with an extensive criminal record. While committing drug violations, this person was in possession of two NFA weapons, a sawed-off Savage Arms Shotgun and a .410 bore H & R Handygun. H & R Handyguns may well become a crime problem if they become readily available in commerce. We believe that their limited availability is affected by the fact that the weapons have not been manufactured since the 1930's, as well as the fact that they have been subject to NFA controls since 1934. Under the NFA, weapons not registered in the National Firearms Registration and Transfer Record are contraband and cannot be lawfully transferred. Possessors of registered weapons may only transfer the weapons pursuant to applications approved by ATF. Transfer applications are denied if the transferees' receipt and possession of the weapons would violate any law. As stated above, the removal of a weapon from the NFA requires a finding that it would not likely be used as a weapon. We believe that removal of H & R Handyguns would increase the circulation of these weapons in commerce and their availability to those who would use them for criminal purposes. Because of the number of weapons originally manufactured, we cannot conclude that they would not find [new page] -4- Mr. Eric M. Larson their way into criminal hands and be put to unlawful use. As previously stated, it is believed that 20,000 to 25,000 were manufactured but the precise figure is unknown. In addition, we do not believe that the value of the weapons is so high as to make the weapons inaccessible to criminals. Because the weapons are identical in design to the sawed-off shotgun, we have no doubt that those acquired by criminals would be used for unlawful purposes. For the above reasons, it has not been established that the weapons would not likely be used as weapons if removed from the NFA. In support of your request, you have cited examples of ATF's removal of certain other weapons from the NFA. Specifically, you refer to Mauser and Luger pistols with shoulder stocks and trapper carbines. In our view, these weapons are distinguishable from the H & R Handygun in that neither they nor any similar weapons have constituted a crime problem. You also suggest that we compare the H & R Handygun with the .45 Colt/410 bore Thompson Contender pistol, a firearm which you state is similar to the H & R Handygun, is distributed in commercial channels today, and is not considered a crime weapon. We do not believe this to be a valid comparison because the Thompson Contender pistol is not a smooth bore shot pistol and is not a weapon subject to the NFA. Accordingly, we must affirm our denial of your request to remove the H & R Handygun from the scope of the NFA since we cannot conclude that such weapons, if removed from the Act, would not likely be used as weapons. Sincerely yours, Terry L. Cates Chief, Firearms and Explosives Division [new page] MAR 23 1992 CC-40,647 FE:CLK Mr. Eric M. Larson Post Office Box 5497 Tacoma Park, Maryland 20913-5497 Dear Mr, Larson: This is in response to your request for removal of the Harrington and Richardson Handygun (H & R Handygun) from the scope of the National Firearms Act (NFA), 26 U.S.C. Chapter 53. The weapons in question are .410 and 28 gauge H & R Handyguns which currently fall within the "any other weapon" category of NFA weapons. As defined in 26 U.S.C. section 5845(e), the term "any other weapon" means: [A]ny weapon or device capable of being concealed on the person from which a shot can be discharged through the energy of an explosive, a pistol or revolver having a barrel with a smooth bore designed or redesigned to fire a fixed shotgun shell. Such term shall not include a pistol or a revolver having a rifled bore, or rifles bores, or weapons designed, made, or intended to be fired from the shoulder and not capable of firing fixed ammunition. The weapons meet this definition because of their concealability on the person (having an approximate overall length of 17 inches), and because they are smooth bore pistols designed to fire a fixed shotgun shell. They have been subject to the NFA since the Act was originally enacted in 1934. The H & R Handygun was manufactured between 1920 and 1934. Although the exact number of Handyguns manufactured is unknown, available information suggests that between 20,000 and 25,000 were made in different gauges and calibers. The value of the Handygun is estimated to range from $400 to $600 for standard variations, with scarcer versions exceeding that amount. EXHIBIT NO. 3 -2- Mr. Eric M. Larson Pursuant to 26 U.S.C. section 5845(a) and the regulations in 27 C.F.R. section 179.25, the Bureau of Alcohol, Tobacco and Firearms (ATF) may remove weapons other than machineguns and destructive devices from the scope of the NFA which, although originally designed as weapons, are determined by reason of their date of manufacture, value, design, and other characteristics to be primarily collector's items and not likely to be used as weapons. The removal of weapons from the scope of the NFA is an action not taken lightly by ATF, and the requester has a heavy burden of establishing that an item is not likely to be used as a weapon. This is particularly true where as in the present case, a substantial number of weapons are sought to be removed. In addition, your request requires close scrutiny in view of prior congressional action with respect to H & R Handyguns and similar NFA weapons. In 1945 and 1960, Congress amended the NFA by changing the rate of tax on the transfer of these smooth bore shot pistols within the scope of the "any other weapon" category. Because the weapons were found to be of interest to collectors and useful for certain legitimate purposes, Congress in 1945 reduced the original $200 transfer tax to $1 and in 1960 changed the transfer tax to $5 for all weapons within the category "any other weapon." It is significant that, although the shot pistols were considered collector's items Congress did not choose to remove them from the NFA. Moreover the legislative history shows that Congress deliberately left these weapons within the purview of the NFA: However, this "any other weapon" category will continue to be subject to the present control provisions applicable to all firearms under present law. As a result, the safeguards of present law are maintained, while applicable taxes are lowered to the level which makes it possible for gun collectors to obtain novel weapons in this category . . . S. Rep. No. 1303, 86th Cong., 2d Sess. 2, reprinted in 1960 U.S. Code Cong. & Admin. News 2111. As previously stated, one of the criteria to be considered in acting upon a removal request is the "design" of the weapon. The design and function of the H & R Handygun are identical to that of the sawed-off shotgun, which is also -3- Mr. Eric M. Larson subject to the NFA. Both weapons are smooth bore handguns which fire a fixed shotgun shell and are concealable on the person. The weapons differ in two regards, neither of which relate to their design or function: (1) the typical sawed-off shotgun is made by converting an existing shotgun into a shot pistol, whereas the H & R Handygun was originally manufactured as a shot pistol; and (2) the sawed-off shotgun is subject to the NFA because it fits within the definition of "weapon made from a shotgun" in 26 U.S.C. section 5845(a)(2), whereas the H & R Handygun is within the NFA definition of "any other weapon." Practically speaking, however, the two weapons are substantially the same, The sawed-off shotgun is a popular crime weapon and has been the subject of numerous Federal and State prosecutions. This is attributable in part to the availability of such weapons. As stated above, sawed-off shotguns are produced by simply altering conventional, sporting shotguns which are readily available in the marketplace and which are not themselves subject to the NFA's registration or other requirements. Although H & R Handyguns have not frequently been used in crimes, these weapons have been found in the possession of criminals. The subject of a recent ATF case was an unlawful trafficker in drugs with an extensive criminal record. While committing drug violations, this person was in possession of two NFA weapons, a sawed-off Savage Arms shotgun and a .410 gauge H & R Handygun, H & R Handyguns may well become a crime problem if they become readily available in commerce. We believe that their limited availability is affected by the fact that the weapons have not been manufactured since the 1930's, as well as the fact that they have been subject to NFA controls since 1934. Under the NFA, weapons not registered in the National Firearms Registration and Transfer Record are contraband and cannot be lawfully transferred. Possessors of registered weapons may only transfer the weapons pursuant to applications approved by ATF. Transfer applications are denied if the transferees' receipt and possession of the weapons would violate any law. As stated above, the removal of a weapon from the NFA requires a finding that it would not likely be used as a weapon. We believe that removal of H & R Handyguns would increase the circulation of these weapons in commerce and their availability to those who would use them for criminal purposes. Because of the number of weapons originally manufactured, we cannot conclude that they would not find -4- Mr. Eric M. Larson their way into criminal hands and be put to unlawful use. As previously stated, it is believed that 20,000 to 25 000 were manufactured, but the precise figure is unknown. In addition, we do not believe that the value of the weapons is so high as to make the weapons inaccessible to criminals. Because the weapons are identical in design to the sawed-off shotgun, we have no doubt that those acquired by criminals would be used for unlawful purposes. For the above reasons, it has not been established that the weapons would not likely be used as weapons if removed from the NFA. In support of your request, you have cited examples of ATF's removal of certain other weapons from the Specifically, you refer to Mauser and Luger pistols with shoulder stocks and trapper carbines. In our view, these weapons are distinguishable from the H & R Handygun in that neither they nor any similar weapons have constituted a crime problem. You also referred to ATF's "removal" of the Marble Game Getter with an 18-inch barrel from the "any other weapon" category. This weapon was not removed from the NFA because it was not subject to the Act in the first place. Because of its overall length, it is not considered concealable on the person and, therefore, does not fall within the definition of "any other weapon." You also suggest that we compare the H & R Handygun with the .45 Colt/410 gauge Thompson Contender pistol, a firearm which you state is similar to the H & R Handygun, is distributed in commercial channels today, and is not considered a crime weapon. We do not believe this to be a valid comparison because the Thompson Contender pistol is not a smooth bore shot pistol and is not a weapon subject to the NFA. Accordingly, we must deny your request to remove the H & R Handygun from the scope of the NFA since we cannot conclude that such weapons, if removed from the Act, would not likely be used as weapons. Nevertheless, we commend you for your thorough research and presentation and regret that our decision could not be more favorable. Sincerely yours, SIGNED Edward M. Owen, Jr. Chief, Firearms Technology Branch [new page] DEPARTMENT OF THE TREASURY BUREAU OF ALCOHOL, TOBACCO AND FIREARMS WASHINGTON, DC 20226 JAN -9 1997 E:RE:FN:GS Mr. Eric M. Larson P.O. Box 5497 Takoma Park, MD 20913 Dear Mr. Larson: This is in response to your letter of November 21, 1996, in which you request confirmation of statements made about data in the "NFA REGISTRATION ACTIVITY ANNUAL COMPARISON" table. You enclosed a copy of the table with data through December 31, 1995. The table shows Form 4467 registrations after 1971 and before 1968. We believe that there are errors in the date or form fields which cause the registrations to appear in those years. The table shows pre-1934 data. This data results from errors, blanks, or misrepresented characters in the date field which cause the registrations to appear prior to 1934. This statistical report was developed several years after the implementation of the automated database and the programmer apparently included a procedure to capture these date ranges because errors in the date field showed dates prior to 1934. You asked about the "OTHER" column in the table. This category would be comprised of registrations where the form number is different from the other ones tabulated. An incorrect form number would be counted in that column. In regard to items 5 and 6 of your letter, we are constantly verifying the information in our database. If we do locate a record where the date, form number, EXHIBIT NO. 4 [new page] -2- Mr. Eric M. Larson or other information was not entered correctly, we enter the correct information. These actions may then result in an adjustment to previously generated statistics. We would like to point out that errors in the date or form number fields would not affect the thoroughness of a search of the database by NFA Branch personnel. We use a search methodology that ensures a thorough review of the database for all possible responsive entries and an examination of the original registration document. Finally, you asked whether a firearm would be added to the Registry if a person possessed a valid registration that was not in the Registry. The document the person possesses is his or her evidence of registration. It would be added to the National Firearms Registration and Transfer Record if the information was not already in the Record. We trust this has been responsive to your request. Should any additional information be needed, please contact us at (202) 927-8330. Sincerely yours, Chief, National Firearms Act Branch [new page] [Exhibit 5] REPORT OF INVESTIGATION (LAW ENFORCEMENT) TO: Special Agent in Charge Seattle District Office TITLE OF INVESTIGATION: DUDLEY, John David This status report relates to alleged violations of federal firearm laws by John David Dudley, a multiple convicted felon, who was unlawfully using and carrying firearms while trafficking in drugs in the Judicial District of Oregon. This investigation is classified as CIP: Narcotics. John David Dudley has a criminal history dating back to 1977. Dudley's criminal history reflects four felony convictions, one for first degree theft and three for the delivery and possession of controlled substances. Dudley also has four misdemeanor convictions, numerous arrests for both the possession and delivery of controlled substances, ex-con in possession of a firearm, parole violations, burglary, theft and most recently, the manufacture of controlled substances. John Dudley is currently under two separate Oregon state indictments for possession of a controlled substance, methamphetamine and marijuana; manufacturing a controlled substance, methamphetamine: criminal conspiracy; and ex-con in possession of a firearm. On November 29, 1989, based on information received from a confidential informant about drug activity, the Jackson County Narcotics Enforcement Team (JACNET), served a search warrant at John Dudley's residence, [] Oregon. During service of this warrant, a small quantity of methamphetamine, photos of a "Streetsweeper" shotgun lying on the car seat of John Dudley's Corvette and the owner's manual for the "Streetsweeper" were seized. On November 30, 1989, John Dudley was subsequently arrested for possession of a controlled substance/methamphetamine. On March 30, 1990, a search warrant was served on a shop building located at [] Oregon. Officers discovered a methamphetamine lab and numerous firearms in a hidden compartment next to the lab. Evidence was found that linked John Dudley and another individual to the lab. JACNET officers found drug records and property in the lab that relate to John Dudley. On April 12, 1990, a search warrant was served at John Dudley's residence (described as a fifth wheel trailer) [] Oregon. During this search, an AMT, .45 caliber pistol. bearing serial number B23196 [new page] was found in a gym bag that also contained several ounces of both methamphetamine and marijuana. Numerous letters, receipts for telephone bills and other correspondence in the name of John Dudley were found in this same residence. Prior to the service of the warrant, John Dudley was stopped while leaving his property and advised of the warrant; he chose not to remain on the premises. In another trailer on this same property, [] an associate of John Dudley, was found to be in possession of a small amount of methamphetamine. [] was arrested for the possession of a controlled substance/methamphetamine. Subsequently, John Dudley was indicted in state court for (1) manufacturing a controlled substance, methamphetamine, (2) possession of a controlled substance, methamphetamine. (3) possession of a controlled substance, marijuana, and (4) ex-con in possession of a firearm. On April 21, 1990, a weapon made from a shotgun was seized during a consent search of [] Oregon, pursuant to an arrest warrant for John Dudley. [] , a resident of [] stated that "Dudley owns all the guns" that were found in the residence, and that Dudley and [] had brought the guns over to [] house at different times during a two-week period. A total of 27 firearms, including the weapon made from a shotgun, were found and seized from the residence. Three of the above firearms were found to be stolen. On June 1, 1990, sheriff's deputies went to [] Oregon, (John Dudley's residence) to do a follow-up investigation of a burglary, and smelled phenylacetic acid and P2P on the property. Based upon the deputies' experiences with methamphetamine laboratories and the odors associated with the chemicals used in the making of methamphetamine. a search warrant was issued and executed at the address. In addition to stolen property, an operating methamphetamine lab was discovered in a shed located on the property. Four firearms were during execution of the search warrant, including a shotgun which was strategically placed atop the doorway leading into the methamphetamine laboratory. Subsequently, John Dudley and two other suspects were indicted in state court for (1) criminal conspiracy, (2) manufacturing a controlled substance, (3) possession of a controlled substance, and [4) ex-con in possession of a firearm. Arrest warrants were issued for all three; John Dudley turned himself in and was released on bail. A firearms trace of the Cobray "Streetsweeper", 12 ga., semiauto shotgun, bearing serial number 6193, found during a search warrant on the residence of [] revealed that it was purchased by [] Both individuals are known associates of John Dudley. [] transported several firearms, including the Cobray "Streetsweeper" shotgun, to [] residence, allegedly at John Dudley's request. The Jackson County Narcotics Enforcement Team currently has a total of 55 firearms in custody from various seizures that are linked to John David Dudley. [new page] A trace has been initialed on several of the other firearms that were seized by JACNET. At present, ATF/Portland has no property in custody relating to this case. AUSA [] has expressed interest in pursuing federal prosecution for violations of federal firearms laws in this case. Investigation to continue. [new page] REPORT OF INVESTIGATION (LAW ENFORCEMENT) TO: Special Agent in Charge Seattle District Office TITLE OF INVESTIGATION: DUDLEY, John David This status report relates to alleged violations of federal firearms laws by John David Dudley, a multiple convicted felon, who was unlawfully using and carrying firearms while trafficking in drugs in the Judicial District of Oregon. This investigation is classified as CIP: Narcotics. John David Dudley has a criminal history dating back to 1977. Dudley's criminal history reflects four felony convictions, one for first degree theft and three for the delivery and possession of controlled substances. Dudley also has four misdemeanor convictions, numerous arrests for both the possession and delivery of controlled substances, ex-con in possession of a firearm, parole violations, burglary, theft and most recently, the manufacture of controlled substances. John Dudley is currently under two separate Oregon state indictments for possession of a controlled substance, methamphetamine and marijuana: manufacturing a controlled substance, methamphetamine; criminal conspiracy; and ex-con in possession of a firearm. As described in the previous status report, from November 1989 to June 1990, five search warrants were executed by the Jackson County Narcotics Enforcement Team (JACNET) on John Dudley's residence or his associates' residences that contained Dudley's property. During these search warrants, numerous firearms, various quantities of both methamphetamine and marijuana a "boxed" methamphetamine lab and an operating methamphetamine lab were discovered by police officers. During an April 21, 1990, search warrant on one of John Dudley's associates, two Title II firearms were found that belonged to Dudley. THE FOLLOWING EVENTS HAVE OCCURRED SINCE THE LAST STATUS REPORT: On December 31, 1990, a Jackson County Sheriff's deputy spotted a stolen vehicle and followed it until the vehicle came to a stop. Two white males exited the vehicle and the deputy immediately recognized the driver as being John Dudley. Both John Dudley and his passenger, [] were taken into custody for the unauthorized use of a motor vehicle [] was later released). Officers discovered a pistol, in plain view, wedged between the console and passenger side seat. Officers found that the pistol, an F.N. Browning, 9 mm pistol, bearing serial number 295501, was loaded, complete with [new page] one round in the chamber and ready to fire. A computer check on the pistol revealed that it had been stolen during a residential burglary in Jackson County two months previously, Officers also discovered a cylindrical metal object in Dudley's left jacket- pocket. Upon further examination the object proved to be a .38-caliber pen gun, The .38 caliber pen gun does not have a serial number, John Dudley was arrested for the unauthorized use of a motor vehicle and ex-con in possession of a weapon. On January 2, 1990, AUSA [] agreed to indict John Dudley for felon in possession and the unlawful possession of an unregistered Title II firearm, based upon Dudley's December 31, 1990, arrest. Based upon the rationale that Dudley intimidates several of the potential witnesses against him and that once he is in custody, these same witnesses may be willing to testify, AUSA [] wants to make a supplemental indictment on several of Dudley's previous arrests after he is taken into federal custody. On January 3, 1990, the F.N, Browning 9mm pistol, described above, was fingerprinted by the Jackson County Sheriff's laboratory with negative results. Both the F.N. Browning, 9mm pistol, bearing serial number 295501, and the suspected.38 caliber pen gun, no serial number, discovered during the December 31, 1990, arrest of John Dudley, were taken into custody by ATF/Portland. Additionally, the two unregistered Title Il firearms, allegedly owned by John Dudley and seized in an April 21, 1990, JACNET search warrant, were taken into custody by ATF/Portland: 1. Savage Arms, Stevens Model 94, Series M, .12 gauge shotgun, bearing serial number R000079, barrel length of 13-3/4 inches, and an overall length of 21-11/16 inches. 2. Harrington & Richardson, H & R Handy-Gun, .410-12 m/m choke, bearing serial number 37757, barrel length of 12-1/4 inches. The .38 caliber pen-gun, taken from John Dudley on December-31, 1990, will be sent to Firearms Technology Branch for a Title Il determination. An NFA search was conducted under the name of John David Dudley, with negative results. On January 9, 1991, this case was presented before a federal grand jury. It is anticipated that Dudley will be indicted for his 12/31/90 illegal possession of two firearms. Investigation to continue. [new page] REPORT OF INVESTIGATION (LAW ENFORCEMENT) TO: Special Agent in Charge Seattle District Office TITLE OF INVESTIGATION: DUDLEY, John David This report is submitted to update the status and request property disposition regarding the investigation of John David Dudley. Dudley is a multiple convicted felon, who was unlawfully using and carrying firearms while trafficking in drugs in the Judicial District of Oregon. This investigation is classified as CIP: Narcotics. John David Dudley has a criminal history dating back to 1977. Dudley's criminal history reflects four felony convictions, one for first degree theft and three for the delivery and possession of controlled substances. Dudley also has four misdemeanor convictions, numerous arrests far both the possession and delivery of controlled substances, ex-con in possession of a firearm; parole violations, burglary, theft and most recently, the manufacture of controlled substances. As described in the previous status reports, from November 1989 to June 1990, five search warrants were executed by the Jackson County Narcotics Enforcement Team (JACNET) on John Dudley's residence or his associates' residences that contained Dudley's property. During these search warrants, numerous firearms, various quantities of both methamphetamine and marijuana, a "boxed" methamphetamine lab and an operating methamphetamine lab were discovered by police officers. During an April 21, 1990, search warrant on one of John Dudley's associates, two Title II firearms were found that belonged to Dudley, On December 31, 1990, John Dudley was stopped while driving a stolen vehicle and found to be in possession of a 9mm pistol and a .38 caliber pen-gun, he was arrested for the unauthorized use of a motor vehicle and ex-con in possession of a weapon. An NFA search was conducted under the name of John David Dudley, with negative results. On January 9, 1991, this case was presented before a federal grand jury; John Dudley was subsequently indicted for violations of federal firearms laws, Title 18 U.S.C., Section 922(g), and Title 26 U.S.C., Sections 5861(d) & 5871. [new page] On January 17, 1991, John Dudley was arrested by ATF/Portland, and he is currently in the custody of the Federal Bureau of Prisons. On May 9, 1991, John David Dudley pled guilty to the original indictment. On July 22, 1991, John David Dudley was sentenced to 60 months imprisonment with three years of supervised release. Permission is requested to destroy the seized property in this investigation and to release the retained property back tot he Jackson County Sheriff's Office.