In Light of current circumstances, what is Arms East going to do??

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Stag Arms owner pleads guilty to federal firearms charges, will get out of gun business

POSTED 10:03 AM, DECEMBER 22, 2015, BY DOUG STEWART AND JOHN CHARLTON, UPDATED AT 03:14PM, DECEMBER 22, 2015

HARTFORD — The owner of a local gun manufacturer has pleaded guilty to violating federal firearms laws.

The president of Stag Arms, LLC, Mark Malkowski, 37, pleaded guilty to a federal firearms charge. Per a plea agreement, Malkowski has agreed to pay a $100,000 fine, while the company will pay a $500,000 fine. Stag Arms also has to forfeit its gun manufacturing license, and Malkowski agreed to get out of the gun business and never return in an ownership or management role.

In July of 2014, the ATF conducted a firearms compliance inspection of Stag’s two New Britain manufacturing facilities, including a building which houses gun-maker CMT. A 2007 inspection found record keeping violations which the company was warned to fix.

During the latest investigation, ATF investigators found that more than 3,000 gun receivers –the part of the gun that includes the trigger and firing mechanism–were not properly registered, violating the National Firearms Act. Federal agents also discovered a total of 62 fully automatic machine guns and machine gun receivers which were either registered somewhere else or not registered at all. Guns were also recovered which had serial numbers “obliterated,” meaning numbers were purposely erased.

Furthermore, federal prosecutors said Stag Arms could not account for 200 guns, meaning they are lost. The fear is the guns wound up on the streets and could potentially be used in a crime.
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http://fox61.com/2015/12/22/stag-arms-expected-to-plead-guilty-to-federal-firearms-charges/ (I have included the above link so others can do their own due diligence)

Mr. Danger Tree

I have always been a supporter of Canadians firearms businesses, and I have bought my fair share of AR stuff from your firm.

However, in light of the above, things just seemed to gotten a lot more complicated.

With respect, as the Canadian distributor for Stag, how does Arms East proceed from here?

I have $'s to spend come the new year, and I was wondering will there be any AR product on the shelves for the foreseeable future.

I thank you for your time and I look forward to your constructive response.

regards

AbH
 
From Stag Arms:
"The federal government has agreed to allow Stag Arms to continue operating with an effective firearms license during the transition to new ownership and the plan moving forward is for business as usual during the transition and beyond"

Short Answer. There will be a new owner/management soon, and it will be business as usual.
 
Tigerbalm said:
From Stag Arms:
"The federal government has agreed to allow Stag Arms to continue operating with an effective firearms license during the transition to new ownership and the plan moving forward is for business as usual during the transition and beyond"

Short Answer. There will be a new owner/management soon, and it will be business as usual.
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This.

Stag Arms continues to accept and fill orders and will under new ownership. We wish Mark the best in his future endeavours.

We appreciate the kind comments! Thank-you!
 
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wasrupzuk said:
You read why they got convicted right?...
-Erasing serial numbers.
-Concealing full auto guns.
-Missing guns.
So what would be a stupid reason?
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Did you read why they were convicted?

I have seen or heard nothing about erasing serial numbers or concealing full autos. All they have been accused of or plead to involved record keeping, not erasing or concealing anything. Of about 400,000 receivers made in their own name in the past 10 years, apparently about 145 lowers couldn't be accounted for. And for those it seems that re-manufacturing errors may be to blame. These receivers are officially missing.

They did have full autos lowers machined and not yet registered, as well as lower receivers not yet serialized. All similar accusations, all record keeping.
 
Thringer said:
thats great news.

any plans for a boxing day sale?
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No, we actually have very little Stag inventory at the moment. Small shipments arriving tomorrow and next week though. The USA is sold out of AR15 at the moment. We are getting what we can get.
 
wasrupzuk said:
You read why they got convicted right?...
-Erasing serial numbers.
-Concealing full auto guns.
-Missing guns.
So what would be a stupid reason?
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I was shocked when I first read this. I can see clerical errors but erasing serial numbers. I have to think that there's a lot more to this story or the Feds would have sent someone to prison. Something tells me this is a half story that paints a much darker picture than is true.
 
ARMS EAST said:
Did you read why they were convicted?

I have seen or heard nothing about erasing serial numbers or concealing full autos. All they have been accused of or plead to involved record keeping, not erasing or concealing anything. Of about 400,000 receivers made in their own name in the past 10 years, apparently about 145 lowers couldn't be accounted for. And for those it seems that re-manufacturing errors may be to blame. These receivers are officially missing.

They did have full autos lowers machined and not yet registered, as well as lower receivers not yet serialized. All similar accusations, all record keeping.
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On the DOJ website the documents indicate that the atf found receivers whose serial numbers were intentional obliterated

The investigation also discovered that, in violation of the Gun Control Act, STAG had failed in thousands of instances to adequately document the manufacture and disposition of firearms – machine guns as well as assault weapons – making them more susceptible to theft or loss. Many of the record-keeping violations that were uncovered were similar to violations for which STAG was cited in 2007. For example, inspectors discovered more than 3000 un-serialized receivers on the premises without any record of their manufacture or acquisition, and more than 3000 firearms that were transferred by STAG without properly being recorded. Inspectors were able to reconcile the majority of these transfers from other paperwork on site, but found more than 300 instances in which the disposition of the firearms could not be reconciled. To date, approximately 200 firearms are reported as lost or stolen.

In September 2014, ATF executed search warrants at STAG’s two facilities on John Downey Drive in New Britain and seized dozens of machine guns that had not been marked and/or registered, as well as three machine guns with serial numbers that had been intentionally obliterated, or scratched out.
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http://www.justice.gov/usao-ct/pr/n...pleads-guilty-violating-federal-firearms-laws

Although, it seems obvious to me that both Stag, and Mark plead down the potential charges that they could have been convicted of.
 
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I think that qualifies as stupid reasons. As stated above, stupid things done by people who knew better. It could have been just one guy.
 
DOOK said:
I think that qualifies as stupid reasons. As stated above, stupid things done by people who knew better. It could have been just one guy.
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Agreed. For those who want to assume malice in this, I believe "Hanlon's Razor" covers it more aptly.
 
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