update,Gun shop lost license, but can sell inventory

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http://www.baltimoresun.com/news/local/bal-te.md.guns13jul13,0,3317083.story?coll=bal-home-headlines

Gun shop lost license, but can sell inventory
Store was cited for 900 violations of record-keeping rules
By Matthew Dolan and Gwyneth K. Shaw
Sun reporters
Originally published July 13, 2006

When federal officials revoked the dealer license of Valley Gun Shop in Parkville this year, owner Sanford Abrams looked to Washington.

Abrams, a board member of the National Rifle Association, won a concession from federal prosecutors that allows the sale of more than 700 guns from his store's inventory - a move that outraged critics who thought his days of selling firearms were over. The buyer is likely to be the gun shop opening next door on Harford Road, in a building owned by Abrams' 80-year-old mother.

The owner of Just Guns confirmed yesterday that he intends to buy all of Abrams' firearms and sell them on consignment after his store opens next month.

Congress is taking up the issue as well. Weeks after Valley Gun lost a bid in federal court in Baltimore to restore its license, a lawmaker introduced a bill on gun dealer regulation that supporters say would create a better system to punish minor infractions.

But opponents say the legislation could gut the power of federal law enforcement officials to revoke the licenses of gun dealers.

Gun control advocates say the fallout from the Abrams case is a stark and troubling illustration of how hard it is for the federal Bureau of Alcohol, Tobacco, Firearms and Explosives to wrest a firearms license from a large-scale gun dealer.

The license revocation in the Abrams case was based on more than 900 violations of record-keeping regulations designed to help police track guns used in crimes, according to the ATF.

The Americans for Gun Safety foundation ranked Abrams 37th out of 80,000 dealers for the sale of firearms between 1996 and 2000 that were later used in crimes. An analysis of ATF data by the Brady Center to Prevent Gun Violence found that Valley Gun sold 14 firearms from 1993 to 1997 that were later used in homicides.

"Clearly, the NRA is trying to protect him," said Daniel R. Vice, a staff attorney for the Brady Center and the author of a new investigative report about Abrams. "And by protecting him, they are protecting the worst of the worst of rogue gun dealers."

Abrams, an outspoken advocate of gun rights, dismissed those concerns yesterday, saying that he has never committed a crime and has been unfairly targeted by overzealous federal agents. He said his days as a gun dealer are over.

"They said I broke the regulations," Abrams said. "But it's a dead issue. They took the license. Nothing has happened since."

Abrams said that as a private citizen, he will sell his firearms to Just Guns owner James D. Morganthall Jr., who also owns OC Outdoors in Dundalk.

"What does she want me to do?" Abrams asked of Sarah Brady, wife of Reagan press secretary James Brady, who was wounded in 1981 during an assassination attempt and for whom the Brady Center is named. "Bury them with me in my coffin?"

Abrams said that as an agent for his mother, he signed a lease with Morganthall. Abrams included a no-compete clause, agreeing not to sell firearms from Valley Gun. ATF officials said Morganthall has no record-keeping violations.

Any suspicions that Just Guns would be a front for him are ridiculous, Abrams said. "I have nothing to do with [Morganthall's] business," Abrams said.

In 2000, Abrams' store was one of 41 licensed firearm dealers - out of 80,000 nationwide - ordered by the ATF to provide detailed reports on all gun purchases and sales for the previous three years, and to continue providing such reports monthly. The idea, bureau officials said, was to prod "uncooperative" gun shops into compliance.

Abrams saw it as an improper power play and sued the federal bureau.

"You think they love me for that?" Abrams said yesterday.

The investigation that led to the license revocation started shortly afterward when, the ATF said, it found problems in Abrams' bookkeeping. In July 1997, agents compared the number of firearms listed in the store's books with the number on the premises. The store came up 45 guns short, according to agents.


After more missing guns were identified after a 1999 inspection, the bureau held a "warning conference" with Abrams, who promised to improve record-keeping. Agents returned in 2001 and noted that there were 133 fewer firearms than were listed in the store's inventory. They held another warning conference. Abrams again pledged to make progress. Finally, in May 2003, an audit of Abrams' books found 472 guns unaccounted for.

The ATF issued a notice of license revocation in May 2004. In October, an administrative hearing officer ruled that Abrams' violations were "willful."


A final notice to take the license was issued in February 2005 but was stayed pending the court case.

Abrams acknowledges that his 2,000-square-foot shop on Harford Road might have had problems in the past. His six employees have had to fill out up to nine forms for a single customer who wanted to buy more than one gun at a time, Abrams said.

His store once sold about 3,000 firearms a year. "Human error" was the way Abrams described most of his store's mistakes. "I'm not doing something illegal," he said.

But in February, U.S. District Judge William M. Nickerson in Baltimore ruled that while Abrams "may challenge the numerousness or seriousness of its violations of federal firearms law, [he] makes no credible argument that there were no violations."

"The undisputed fact is that because of [Valley Gun's] lapses, scores of firearms are unaccounted for, and therefore, untraceable," the judge ruled.

Nickerson rejected Abrams' plea to be able to buy and sell guns while his appeal is pending. So Abrams' lawyer filed a new lawsuit in Washington, asking another judge for relief.

Abrams complained that the ATF in Maryland made threats of what would happen if he tried to sell guns.

"If Mr. Abrams were to engage in dealing firearms without a license, the inventory involved in these violations would be subject to seizure and forfeiture and Mr. Abrams could be subject to criminal prosecution," ATF lawyer Jeffrey A. Cohen wrote to Abrams' attorney, according to court papers.

But the office of the U.S. attorney for the District of Columbia said that Abrams could sell off his existing stock legally if he didn't buy new weapons.

"It has been ATF's long-standing position that (in cases such as plaintiff's) when a dealer loses his license he can dispose of his inventory by selling those firearms without" breaking the law, wrote Assistant U.S. Attorney Alan Burch.

The news that Abrams, whom federal prosecutors in Maryland labeled a "serial violator" of gun regulations, can still sell hundreds of guns alarmed critics such as Vice of the Brady Center.

"This isn't a personal inventory," Vice said. "This is an inventory of a gun shop."

Abrams, who has served as vice president of the Maryland Licensed Firearms Dealers Association, remains a board member of the National Rifle Association, a leading gun rights lobbying group. He was elected last year to another three-year term.

Among the NRA's legislative priorities is H.R. 5092 - the Bureau of Alcohol, Tobacco, Firearms and Explosives Modernization and Reform Act of 2006.

Its sponsor is Rep. Howard Coble, a North Carolina Republican. The bill would revamp enforcement rules for gun dealers, establishing fines and suspensions based on the severity of the violation, and still would allow a license to be revoked under the most serious circumstances. But the bill also allows for an extensive appeals process and, if a shop owner requested it, would prevent the ATF from revoking a license while a case is being reviewed.

Coble's bill, introduced in early April, cleared a subcommittee that he chairs a month later. Coble, now in his 11th term, has received $12,950 from the National Rifle Association's political action committee since 1999, according to Federal Election Commission records.

Given the crowded legislative schedule and the rapidly shrinking number of days before lawmakers head home to campaign for re-election, the bill might have languished. But Coble got a boost late last month from House Republican leaders, who added his bill to their American Values Agenda, a list of high-priority legislation aimed at courting conservative voters in the months leading up to the fall elections.

Coble said in an interview that he was unfamiliar with Abrams or his case. But records show that days before Coble introduced his bill, Abrams' attorney, Richard E. Gardiner, testified on the gun licensing issue before Coble's subcommittee. Yesterday, Coble insisted that his legislation grew out of complaints of overzealous ATF patrols at gun shows in Richmond, Va. The agency's efforts upset potential customers and show organizers, who complained of harassment.

"I'm not anti-ATF, but I am anti-heavy-handed law enforcement," Coble said.


He said he was troubled by the all-or-nothing setup of the current law, which he said has no middle ground between doing nothing and moving to revoke a shop's license.

If the offense is minor, "rather than yanking a guy's license, maybe a slap on the hand might be better," Coble said.

Rep. Robert C. Scott, a Virginia Democrat who worked with Coble to craft the bill, said the legislation would enhance enforcement for minor infractions while still allowing the ATF to close down a dealer who has flouted the law.

"If you have a serious violation, you should have your license revoked," Scott said.

Coble said the bill is not retroactive, so even if it does win approval from Congress and President Bush, it would not affect current cases.

"It's not for me," Abrams said yesterday. "I'm toast. It's for the next dealer down the road. Whatever happens to this bill will not affect me."

But Vice remains skeptical that Abrams is gone for good. The bill, he said, could be used to reinstate Abrams' license - at least temporarily - during his legal appeal.

"And he could reapply for a license tomorrow," Vice said.

[email protected]
 
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Hard to have a lot of sympathy over the paperwork problems. He knew the "rules of the game" when he got into the gun-selling deal. Sure, we don't like all the rules, but they exist whether or not we like them.

There's always the option to take up another line of work. Lobbying Congress on behalf of gun owners/sellers, for one thing...

Art
 
Something about doing business as a firearms dealer in Baltimore comes to my mind as well. Is there not a plethora of persons residing thereabouts, who, now and then, decide to circumvent various and sundry laws and who might also have gotten their hands on some specific tools that come to mind, that perhaps were once sold from the aforementioned business in question? Naaah. Probably not. My imagination working overtime again.

Not saying anything about paperwork discrepancies mind you. Sticky wicket and all that. Ya gotta pay the piper if ya wanna dance to his tune.
 
well

In my area E&B Sporting Goods lost his FFL recently. This guy was as straight up as you can imagine. Unfortunetly he had paper work problems as well. It took a 4yr battle to get him but they did. This is the new tactic of the b.a.t.f. , if they can't get the gun owners,they'll get the sellers.
 
I think the ATF in the MD/VA region is trying to make examples of people.

The gun shop that was close to this guy is also gone now. Not sure, but I heard it was also due to paperwork "issues". If I recall right it was Walt's Gun Chamber.

I know they're putting the heat on 2 other shops in VA that are first rate businesses that have been around for a long time. (Clark Brothers and a great dealer in Winchester, can't recall his name now though)

Add to it the Richmond gun show fiasco and it really seems like this region has some issues in the way they "enforce" the law.
 
and even

if "They" don't find anything solid the first time, they may keep coming back and eventually harrass them out of the business. :uhoh:
 
Another thing I've seen several times in the last few years is that a license will take months longer than it should to get renewed. This leaves them with a business that is not allowed to sell any firearms.

The fact that they are in a bind to the paper-pushers isn't any issue to them.
I'm sure they could have done more to get it in even sooner. However, if you've done it for years and never had an issue you get thrown for a loop when it takes 2-3 times longer than the other times.
 
Personally, I'm curious to know the specifics of the recordkeeping violations.

Say, for example, a buyer writes "MD" on the form instead of "Maryland." Is the gun sold on that form now considered "unaccounted for" because it is no longer in the store, but there is no "proper paperwork" on it?


In 2000, Abrams' store was one of 41 licensed firearm dealers - out of 80,000 nationwide - ordered by the ATF to provide detailed reports on all gun purchases and sales for the previous three years, and to continue providing such reports monthly.

Correct me if I'm wrong, but I don't think the ATF is legally allowed to do that. Abrams called them on it with his lawsuit, and in retaliation they harassed him out of business.

Maybe my tinfoil's wrapped a little too tight, but that's about how it sounds to me.
 
In July 1997, agents compared the number of firearms listed in the store's books with the number on the premises. The store came up 45 guns short, according to agents.


After more missing guns were identified after a 1999 inspection, the bureau held a "warning conference" with Abrams, who promised to improve record-keeping. Agents returned in 2001 and noted that there were 133 fewer firearms than were listed in the store's inventory. They held another warning conference. Abrams again pledged to make progress. Finally, in May 2003, an audit of Abrams' books found 472 guns unaccounted for.

Isnt 472 guns missing alot of lost guns????

Who here has an FFL store??

How many guns would you expect to go missing in a year???
 
I'm wondering if that 472 is a total which was accumulated over time. It sure seems like a lot.
His store once sold about 3,000 firearms a year.

If 472 were missing in one year, that amounts to 14% of potential total sales lost and 16% of annual inventory. Speaking as a businessman that is one h*** of a large shortage.

Wow.

Either the BATFE is over stating or over regulating the forms (ie. they exist, but are deficient in some way), or this guy is a bad businessman, or this guy is ????
 
The instances that I know of the weapons are not lost. It's an accounting issue that the paperwork is not 100% correct and therefore, they consider it unaccounted for.

I'm curious if any FFL holders can chime in on this and if they have has the same experiences.

I understand it to be an accounting game and not actually a case of them being gone. However, it wouldn't be a headline if he was accused of accounting issues, people could relate to that. Missing guns sounds far more scarey and newsworthy.
 
Sandy takes a few hundred (maybe more???) guns to MANY gun shows every year.

Add a few stolen guns to numerous paperwork errors, and some exagerations from BATFE and you've got a great headline.


You guys should check out the intense report that the Brady Bunch must've spent THOUSANDS of dollars on to run this fella' through the ringer.
 
Hard to have a lot of sympathy over the paperwork problems. He knew the "rules of the game" when he got into the gun-selling deal. Sure, we don't like all the rules, but they exist whether or not we like them.
I still wind up feeling a little sorry for the guys. I can't imagine how hard it is to run a gun shop and try to keep prices down while making sure your $7 an hour help remembers to get the paperwork perfect.
 
I'm still unclear as to the whole "missing guns" issue.

Are these weapons that have actually vanished or just pieces that are associated with "bad" paperwork (like people writing "MD" instead of "Maryland")? There's a world of difference between the two.

As for "crime guns" being traced to Sandy's store, well... he didn't make Baltimore what it is. He just sold legal products to citizens he knew to be law-abiding. I bought ammo from Valley Gun numerous times and my girlfriend got her pistol permit from their video and everything I saw on my trips to the shop was on the up-and-up. I personally witnessed the crew there chasing off straw purchasers and other undesirables.
 
Rep. Robert C. Scott, a Virginia Democrat who worked with Coble to craft the bill, said the legislation would enhance enforcement for minor infractions while still allowing the ATF to close down a dealer who has flouted the law.

A pro-gun bill from Bobby Scott? Even just slightly pro? I don't believe it. Has this thing been checked for poison pills, or is it not as beneficial as it's made out to be?
 
It's a good bill.

A lot of people got harrassed at a VA gunshow and that prompted this bill which the House, at least, will vote on.

I doubt the Senate will because Chuckles Schumer will find a way to block or fillibuster it.
 
"What does she want me to do?" Abrams asked of Sarah Brady, wife of Reagan press secretary James Brady, who was wounded in 1981 during an assassination attempt and for whom the Brady Center is named. "Bury them with me in my coffin?"
That was my initial reaction, too. Glad they printed his.
 
I work at an FFL part-time & I can tell you that the paperwork is an absolute PITA. For the most part we are all very intelligent, hard-working people, but as everyone knows mistakes do happen. The only thing I can guess is that a blank may have not been filled in or an abreviation was done. 473 missing weapons is hard to do, but it can happen. Look at any retail outlet, what comes up missing may in fact be present, but allocated incorrectly.

We run inventory every month, and occasionally 1 or 2 pop up missing. After some digging in the store, we find them in the correct spot, they were usually just missed the first time around. Usually in the Lay-Away cabinets...

It sounds to me like Abrams is getting railed on paperwork and nothing more. To bad it put him out of business.:(
 
I don't understand how the neighbor is going to "buy them", and then "sell them on consignment." :scrutiny: :scrutiny:
 
I don't understand how the neighbor is going to "buy them", and then "sell them on consignment."

I'd strongly suspect, given that this article is in the BS (Baltimore Sun), that there's at least one factual error in this story. Most likely the guns will be transferred to the new shop, and sold on consignment, as there aren't a lot of shops out there that could lay out the cash to add 700 firearms to their existing inventory.
 
I'm still unclear as to the whole "missing guns" issue.

Are these weapons that have actually vanished or just pieces that are associated with "bad" paperwork (like people writing "MD" instead of "Maryland")? There's a world of difference between the two.


an insider told me that most of the guns "lost" in paper were either junk taken in for a few bux and scrapped for parts without being logged out, or were "lent out" as bribes to local pd.

this report from an employee.

valley handles a lot of guns. the final number of untraceables is more like 40, after the books had been reconciled. 472 is an early number.
 
Several members have questioned the details of Abram's paperwork problems, and "missing guns". John Lott has a good editorial in the Wash Times, that sheds some light on this specific issue, and the general progress of gun control in the USA...

Firearms sales and red tape

TODAY'S COLUMNIST
By John R. Lott Jr and Maxim C. Lott
July 28, 2006

It is tough operating a gun shop with harassment from the federal government and unjustified media attacks. But the harassment could get a little better with legislation by Reps. Howard Coble and Bobby Scott which may fix some of the problems.

Since 1992, when Bill Clinton was elected president, the number of federally licensed firearms dealers in the United States has plummeted by 80 percent. Kmart no longer sells guns, Wal-Mart just recently stopped selling guns at one-third of its stores and tens of thousands of other gun shops have gone out of business. With all the talk of recent legislative success by the National Rifle Association, it is winning some battles but may be losing the war. The gun-control movement may ultimately be winning where it really counts.

Part of the drop in licensees was simply due to fees imposed by the federal government. Many licensees used the licenses only for their own personal purchases or only for selling a small number of guns, and the fees made that unprofitable.

The constant breakdowns of "instant" background-check systems during the Clinton administration halted gun sales for hours or even days at a time, costing stores untold sales and causing them to raise their costs. Even by the end of the Clinton administration, from September 1999 to December 2000, the system was down about one hour for every 16.7 hours of operation. The breakdowns often came in big blocks of time, the worst during a period covering 60 hours during two weeks in the middle of May 2000. Try running a business where neither customers nor sellers are ever informed of how long outages are expected to last.

Fortunately, the background-check problems are fixed. And there are no new fees. So, why are gun shops still going out of business? There were still about 100,000 license holders at the end of Mr. Clinton's last term. Today that has been cut almost in half.

The Washington Post's front page on Sunday illustrated the problems with both the Bureau of Alcohol, Tobacco, Firearms and Explosives abuses as well as the media's out-of-control attacks. The article examined the supposed abuses by Sandy Abrams' gun shop in Baltimore, a shop he took over from his father in 1996. The second paragraph points out that "there were 422 firearms missing -- more than a quarter of his inventory." The count listed guns as missing if there were simple paperwork mistakes (e.g., two digits in a number transposed).

Taking all these mistakes since Sandy Abrams took over the store in 1996 and comparing them to his current inventory, not the 25,000 guns that he has sold over the last decade, borders on journalistic malpractice. It surely doesn't provide readers with an accurate understanding of what is happening.

So, what is the right number of missing guns? Mr. Abrams claims it is 19. Nineteen out of 25,000 isn't perfect, but .076 percent is a lot less scary than 25 percent -- a difference of 329 fold. More importantly, the government has apparently never connected any of those guns to crimes committed. As Mr. Abrams notes, "we have had the paperwork and successfully traced every gun whenever [the government] asked."


Is this the type of gun dealer who should lose his license? The BATFE thinks he is a prime candidate.Nine hundred rules violations over 10 years certainly sounds impressive -- that is until you realize that violations include writing "Balt." instead of "Baltimore" or that his government-approved ledger was apparently missing a column. Of course, the information the column was supposed to record was redundant anyway.

Part of the problem may simply be a government agency that manipulates numbers to make the problem seem a lot worse than it is so that it can fight for more resources.
But Messrs. Coble and Scott's legislation would reduce the discretion currently available to the BATFE and allow licensees who face revocation to be heard before a neutral administrative judge.

Over the years we have had Chicago's Mayor Richard Daley's undercover sting operations with video but no audio of the conversations in the gun shops. This was perfect so that CBS' "60 Minutes" could twice show the tapes with the city's version of what was said. Their legal cases against the sellers were flops, but the press had lost interest by then.

The Coble-Scott legislation may not reverse the massive decline in licensed firearm dealers, but it is a start.

John R. Lott Jr. writes frequently on the issue of crime and guns. Maxim Lott is an intern at Fox News.

Note: Here's a link to the WAPO article mentioned above: http://www.washingtonpost.com/wp-dyn/content/article/2006/07/22/AR2006072201032.html

Comment: By pursuing false charges to accomplish a political agenda, & justify their budget, BATFE is still a rogue agency...at least they aren't sending in cattle trailers like they did at Waco (we should be thankful for small things?)
 
hammer4nc, thank you very much for your post

This proves what I was suspicious of, that they were out to get this guy for some reason.

So some employee or buyer used MD or Balt, thats a reason to say the gun is missing?:barf:

Guns shouldn't be registered in the first place!
 
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