Affidavit for 7/21/86 search warrant to search American Research & Development, Co., AFFIDAVIT I, Steven J. Bauer, being duly sworn, depose and state: 1. That I am a Special Agent employed by the Bureau of Alcohol, Tobacco and Firearms, United States Department of the Treasury, and that I have been so employed for the past 1 1/2 years. 2. That as a result of my training ad experience as a Special Agent for the Bureau of Alcohol, Tobacco and Firearms, I am familiar with the Federal Firearms Laws and know that it is unlawful for a person who is a licensed importer, dealer, manufacturer or collector knowingly to make false entry, or fail to make appropriate entry, or fail to maintain any record he is required to keep pursuant to 18, USC, 923 or regulations promulgated thereunder; and that it is also unlawful for any person to obliterate, remove, change, or alter the serial number or other identification of a firearm required by the provisions of Chapter 53, Title 26, USC; to receive or possess a firearm having the serial number or other identification required by Chapter 53, Title 26, USC, obliterated, removed, changed or altered, and to make, or cause the making of, a false entry on any application, return or record required, knowing such entry to be false. 3. That on June 6, 1986, the affiant obtained a search warrant on written affidavit (Magistrate Case No. G-86-00075M) for American Research & Development Co., Inc,, 3386 West 1987 South, Salt Lake City, Utah. The affidavit for said warrant is attached and incorporated herein. 4. That on July 17, 1986, the affiant was provided the following information by Paul Brunson. Mr. Brunson was employed by American Arms and American Research & Development Co., Inc. (ARDCO) from February, 1982, to July 16, 1986, in the capacity of gunsmith. 5. Mr. Brunson confirmed that during the period from late Summer, 1985, to the Spring of 1986, in excess of 500 receivers, belonging -2- to the bankrupt American Arms International, were removed from a locked area under the control of the bankruptcy Trustee. Mr. Brunson stated that most of the receivers had their serial numbers and manufacturer's markings milled off and, subsequently, were reserialized. Mr. Brunson stated that he assisted in, or observed, the following: The removal of the guns; milling off the receivers; the reserializing and the reapplication of manufacturer's markings. All of these actions were done at the direction of Charles Goff, Sr. and/or Charles Goff, Jr., corporate officers of American Arms International, American Arms, and American Research & Development Co., Inc. 6. On June 30, 1986, the affiant interviewed R. Kimball Mosier, the court appointed Trustee for the bankruptcy of American Arms International. Mr. Mosier said, in order to protect the assets of American Arms International, he had the rear portion at 3386 West 1987 South, Salt Lake City, Utah, secured. (American Arms/American Research & Development continued to operate from the front portion of the building.) Mr. Mosier stated he had never authorized the removal of any completed firearms, receivers, or firearms parts from the secured property of American Arms International. Mr. Mosier further noted he never gave permission to any officer or employee of American Arms, American Arms International, or American Research & Development Co. to enter or remove an item from the secure area. 7. On July 16, 1986, the affiant, conducted a consent search of Quality Plating Co., Salt Lake City, Utah. Seized pursuant to the search were four Am 180 M-2 machine gun receivers, serial numbers; A00030, A00037, A00048, and A00652. Each of the receivers were marked as having been produced by Voere, Kufstein, Austria, and carried American International Corp. markings. The receivers had been left at Quality -3- Plating on July 16, 1986, by ARDCO employee Mark Sheranian. The receivers were characterized by two milled grooves approximately 3/8-inch wide and 2 15/16-inches long, located on the lower front portion of the receiver. The receivers' serial numbers were compared to American Arms International Acquisition and Disposition books, and it was determined they were supposedly produced in 1978 and 1979 by Voere of Kufstein, Austria. 8. On July 17, 1986, Mr. Brunson inspected the four receivers and stated they were not produced by Voere of Kufstein, Austria. Mr. Brunson identified the receivers as same of those removed from the Trustee's room, milled, and reserialized. Mr. Brunson said that there are several marked differences between genuine Voere receivers and the four receivers seized on July 16, 1986. The most notable difference is that Voere receivers are cast aluminum alloy, while the seized receivers are machined aluminum. Mr. Brunson further noted that the remilled receivers had been remarked as the production of either American Research & Development Co. or American International Corp/Voere of Kufstein, Austria. 9. Mr. Brunson said that all of the reserialized receivers are characterized by two mill marks, approximately- 3/8-inch wide and 2 15/16-inches long, located on the lower front portion of the receiver, adjacent to the barrel lug. 10. Mr. Brunson stated that, prior to leaving the premises of American Research & Development Co., on July 16, 1986, he had observed approximately fifteen (15) milled and reserialized receivers. Brunson said that some of those receivers are marked as Voere production. Mr. Brunson noted that work was ongoing to produce firearms from the receivers and remove them from the premises. Mr. Brunson said that a few receivers are also on the premises which have had only the serial -4- numbers removed by an end mill. The receivers were then reserialized. Those receivers have a mill channel approximately 1/4-inch wide by 1/2-inch long. 11. That based upon the above, I believe there exists probable cause to believe there are presently firearms and evidence of their possession in the business of American Research & Development Co., Inc,, 3386 West 1987 South, Salt Lake City, Utah, which are evidence of the fruits and instrumentalities of violations of Title 18 USC, Section 922(m), and Title 26 USC, Sections 5861(g),(h) and (i). ______________________ Steven J. Bauer Special Agent Bureau of Alcohol, Tobacco & Firearms SUBSCRIBED & SWORN to before me on this __ day of __, 1986. _______________ U.S. Magistrate TIME:___