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Old December 08, 2017, 08:13   #1
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HK Parts owner gets 48 months and a $100,000 fine.

Looks like Adam Webber was hit with the firearms and tax fraud charges. I didn't realize he was fired from a PD job he once had.

http://www.sltrib.com/news/2017/12/0...to-four-years/

Part of the Story:

Utah businessman convicted of tax fraud, selling firearms without a license is sentenced to four years in federal prison

U.S. District Judge Dee Benson was unmoved by a crestfallen apology from a Salt Lake County businessman on Thursday.

“I think deceit is one of his most apparent characteristics. I’m not even sure about the speech he gave me today,” Benson said of the apology before sentencing 40-year-old Adam Michael Webber on one count of dealing firearms without a license and five counts of tax fraud.

He sentenced Webber to four years in a federal prison and a $100,000 fine, shocking family and friends who sat behind the defendant in the courtroom to offer their support. They had submitted letters calling Webber generous and charitable. Those letters, Benson said, painted a picture inconsistent with the person he became acquainted with over the past three years.

“I appreciate the effort,” the judge said, “but I don’t believe a lot of it.”

The prosecution had asked for 37 months and a $250,000 fine.

Webber was convicted by a jury last year of selling firearms without a license and tax fraud. Initially, he had also been accused of smuggling and gun trafficking. Those counts were thrown out because of what the judge said were mistakes made by the prosecution.

And, after the conviction, Benson himself made an error in the jury instructions, the judge said Thursday, noting that he granted Webber a new trial on the count of dealing in firearms without a license. In May, however, Webber pleaded guilty to the charge.

Prosecutors initially said Webber had acquired more than 2,000 firearms between 2008 and 2012 to be sold. After the plea deal, the number was adjusted down to “well over 200” firearms, court documents state. Federal investigators seized 369 firearms from a warehouse and 11 from Webber’s home, according to court documents.

In 2007, Webber and his brother had agreed to never apply for a federal firearms license or deal in weapons. The agreement was part of a civil settlement with the U.S. government after federal agents seized several firearms that belonged to Webber in 2005.

The same year, Webber operated HK Parts, an online market for unregulated firearm parts and accessories, out of the basement of his Rose Park home. In 2008, he added firearms to the product line, according to prosecutors. In addition to selling firearms online, he met with customers in a parking lot to sell guns, according to court documents.

Defense attorney Rebecca Skordas said during the sentencing hearing that only 1.8 percent of HK Parts’ sales could be attributed to the sale of firearms.

“The idea that he profited from illegal wealth is not accurate,” Skordas said.

From 2007 and 2010, Webber earned more than $10 million in gross receipts from his business, between the legal sale of parts and the illegal sale of firearms.

The prosecution doesn’t know how much of the income came from illegal sales versus legal sales, said prosecuting attorney Kathleen Barry said Thursday.

But, Webber also was found guilty of underreporting how much he made in both his legal and illegal sales, reporting just $183,397 in gross receipts on tax forms.

He twice sold firearms to undercover agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives.

Webber bought a house in $670,000 — in cash and under his wife’s name — according to court documents. He sheltered the home with a “sham limited liability company and the charade of a promissory note and mortgage worth less in reality than the paper on which it was printed,” court documents state. Skordas argued on Thursday that that decision was made based on advice from the couple’s real estate broker.

Webber paid $1.8 million in restitution to the IRS prior to the sentencing hearing.

The judge is allowing him to self-surrender to prison on Jan. 22, 2018. After serving four years of prison, he will be under supervised release for three years.

Both the prosecuting and defense attorneys declined to comment after the hearing.

Some 45 letters were submitted on Webber’s behalf, vouching for his character and asking the judge to be lenient with the sentencing.

Webber apologized to his wife and kids, to the judge and to each of the prosecuting attorneys. The trial had caused “suffering of many, including family and associates,” he said. “I caused them sorrow, stress and pain.”

“I was taught to take honest inventory of my actions. Your honor, my conduct was wrong,” he said.

He had done everything he could to make amends, he said, and asked the judge to sentence him to probation only.

But Benson handed down a harsher punishment, calling Webber “manipulative.”

“From my view of him, he is deceitful,” Benson said. “He is remarkably deceitful.”

Gun smuggling and trafficking charges had been dismissed because of “prosecutorial mistakes,” Benson said, adding that he can’t ignore that history.

“Gun trafficking was far more serious than anything that came up with the sale of guns domestically ... I’m not making a finding because those counts were dismissed, but there was something to them,” he said.

Webber had been briefly employed by the Salt Lake County Sheriff’s Office, before he was fired for “misrepresenting his criminal history,” Barry said.
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Old December 08, 2017, 08:30   #2
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He had a good thing going, too bad he turned dirt bag.
I honestly liked him, personally dealing with him on a small number of occasions.
Oh well.
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Old December 08, 2017, 08:42   #3
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Selling roll pins and handguards is one thing, how does a person get the idea it won't be a problem to sell guns online (even if you ship to an FFL) without any kind of license? Uncle Sam is a pimp collecting that cash from his hoes, if a hoe doesn't pay up.... **SMACK!
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Old December 08, 2017, 09:45   #4
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It's like my gunsmith friend has always told me: "You need a license if you want to make money on guns. Uncle Sam has to get his cut."

Selling parts is one thing. Selling receivers/intact firearms is something else.
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Old December 08, 2017, 09:53   #5
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He was on the radar in 2007 Then he thought he could just keep on selling
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Old December 08, 2017, 13:20   #6
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Plenty of folks don't get it, Adam was one.

Post Sandy Hook there were a number of folks popped in MN that were buying from L&M Fleet Supply stores around the Twin Cities suburbs then immediately listing their NIB ARs on Gunjoker.

The Feds made noises about "black market" but the base issue was "dealing" without a license. At least one character was shipping through a local FFL to the receiving FFL. Thing was and remains if you buy even one regulated item with the intent to make bank selling it technically you need an FFL.

There are folks sitting on piles of AR lowers that they bought with the intent of resale during the next panic...that's completely unlawful
Want the greater insanity ?
People often post about doing exactly that online

Truth is though un-licensed people buy guns all the stinkin' time just because the are a bargain and they know there is a fair bit of coin they can make reselling. Ton of that used to go on through the DCM

The Bureau has folks specifically tasked to watch Gun Broker these days and that site is Extremely cooperative with Federal inquiries. In Webber's case they simply watched GB and a few forums.

Now on how much he made on illicit Firearms sales ?
Most of his business was always parts
one crazy bit about the whole matter is the Bureau as a rule when this crap does come up warns the offending party to immediately cease until they obtain an FFL, yeah they generally encourage one to get licensed up.
In this case they told Adam don't apply for an FFL, just quit period !

So then what ?
You have a guy sitting with a pile of HKs that they have basically told him he can not sell
He can no longer list them online
They don't want him doing FTF
They tell him he can't get an FFL
I wager they would have taken issue with him consigning them to say Simpsons or a major auction house.

basically screwed, blued and tattoo'd no matter what he did.

My guess is this 2007/08 "agreement" was with the local SLC field office, had no force of law. Frankly he should have went over their heads and negotiated a better agreement with regional allowing him a method to divest himself of the accumulation or licensed up the wife.
Yeah BATF does that.

Known of SOTs that ended up incarcerated that BATF transferred the SOT over to the spouse. Best example was Bill Flemming. After his conviction NFA branch fast tracked the transfer to his wife while he went to Leavenworth. Literally hundreds of MGs.

Before Wild Bill's release from the Pen the Wife unit built a massive walk in vault attached to their home so when Flemming returned BATF and DOJ were fine with the situation as they were HER guns under HER control.

Another was the situation at Maadi Griffin. Bob Stewart had a felony so when they set up shop in AZ the Wife had the 07 SOT and ran that side of the business on one side of the building, Bob had a much smaller shop on the other side where he shipped the non FFL kits out of and "tinkered" rather unlawfully.

anyways 4 years puts Webber at the door in roughly three and change, it also means he won't be placed in a Pen, likely he ends up in a Prison Camp and placed close to wife & kids.
The shorter sentence is there simply to prevent appeals, same with dropping the greater accounts over "prosecutorial mistakes"...the threat is still there for DOJ to refile.

Some pissing was done regarding paying for his home in "cash"
understand what "cash" means to DOJ
that's just writing a check or using a bank draft. It doesn't necessarily mean a briefcase packed with circulated currency.
Just that he didn't finance.
I simply penned a check on this home, well the last two as well. Did the same on the last two cars, one was 30K, the next over 40K
I finance NOTHING.

Bad deal for Webber, worse for the family
I wager as part of the plea agreement the Feds agreed to leave his wife and home out of any BS which was likely the carrot on the stick.
That's what they did to both Flemming and Stewart.
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Old December 08, 2017, 13:25   #7
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That 'ol NICS check dog bit him hard, as did the parking lot FtF sales.

In his defense, he did not have an FFL license and should have gone to the local gunshop and had the NICS done.

Undercover ATF agents buying from his personal collection of "privately owned" guns, might have protested doing that, but, hey, there it is.

You are allowed a certain number of sales from personal gun collections, but they all have to go thru an FFL.

What kind of guns was he selling? I notice no charges for possession of class 3 stuff mentioned at all.
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Old December 08, 2017, 13:32   #8
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Oh, this has very little to do with Government getting a piece of the action.
The money they would have taken in from Adam being licensed is inconsequental. Wouldn't even paid for his routine compliance inspections.

Again the vast majority of his business was parts, you can bet that's where the IRS violations erupted from.
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Old December 08, 2017, 13:57   #9
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Okay, let's play nice.

There is no, nada, none requirement for NICS on private sales in UT

even had he funneled his private sales through a FFL, had NICS done he would still have been in violation over making profit
in fact he had been doing just that in 2008 when he was warned.

There is NO certain number of guns you can sell during any given interval
That's an urban internet fantasy

Let's say great Uncle Clem passes on leaving you several hundred firearms
As Estate you can dump them all and in most States there is no NICS involved. It's not being an unlicensed "dealer". It's called being the Executor of an Estate.

The key here is being in "business", in other words are you actually buying and selling to an extant it makes a meaningful contribution to your yearly income.

Another example is Ole Joe
That's the old timer you see once or twice a year at Shows who never seems to sell one damn thing. Same crap, new year. Joe doesn't have a license but he isn't a "dealer" either. He mostly has a negative income from doing shows.

Then at the same show you have Bill
See Billy had his licensed revoked by the Bureau
He had a bunch of guns on the books, ATFE simply told him to book them out to himself and mail his bound book on in.
Since he is no longer a FFL he can sell every thing privately
same with FFLs who retire and still have booked stock.

Webber's case had zero to do with NICS
it was all about selling for profit
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Old December 08, 2017, 14:05   #10
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As far as the guns involved

mostly high end collectors grade HKs, whole mess of rather rare pistolas
$1000.00+ guns
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Old December 08, 2017, 14:07   #11
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Okay, let's play nice.

There is no, nada, none requirement for NICS on private sales in UT

even had he funneled his private sales through a FFL, had NICS done he would still have been in violation over making profit
in fact he had been doing just that in 2008 when he was warned.

There is NO certain number of guns you can sell during any given interval
That's an urban internet fantasy

Let's say great Uncle Clem passes on leaving you several hundred firearms
As Estate you can dump them all and in most States there is no NICS involved. It's not being an unlicensed "dealer". It's called being the Executor of an Estate.

The key here is being in "business", in other words are you actually buying and selling to an extant it makes a meaningful contribution to your yearly income.

Another example is Ole Joe
That's the old timer you see once or twice a year at Shows who never seems to sell one damn thing. Same crap, new year. Joe doesn't have a license but he isn't a "dealer" either. He mostly has a negative income from doing shows.

Then at the same show you have Bill
See Billy had his licensed revoked by the Bureau
He had a bunch of guns on the books, ATFE simply told him to book them out to himself and mail his bound book on in.
Since he is no longer a FFL he can sell every thing privately
same with FFLs who retire and still have booked stock.

Webber's case had zero to do with NICS
it was all about selling for profit
My understanding is you can make a profit on a private sale. Just if you buy with the intent to sell for a profit it becomes a problem especially if it becomes meaningful income.
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Old December 08, 2017, 14:24   #12
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My understanding is you can make a profit on a private sale. Just if you buy with the intent to sell for a profit it becomes a problem especially if it becomes meaningful income.
Exactly
"Intent" is the issue

This really is not a huge issue with the Feds

What they do detest is some ass with several tables doing shows every weekend with signs claiming "private collection" and a hot wet mess of new firearms.

Used to be a huge mess of C&R FFLs running a business as well rather unlawfully. Since new imports of C&R have waned we see less of that now.
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Old December 08, 2017, 18:01   #13
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so if you buy a rifle and shoot it, then decide to sell it you are OK?
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Old December 08, 2017, 19:17   #14
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https://www.atf.gov/file/100871/download

He committed tax fraud of 1.8 million and did the illegal gun sales.
ITax fraud alone is pretty serious by itself.

Last edited by V guy; December 08, 2017 at 19:24.
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Old December 08, 2017, 19:28   #15
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so if you buy a rifle and shoot it, then decide to sell it you are OK?
again, it's all in your "intent"

Reality is "intent" is a difficult thing to prove out

During the Obama era things like business cards or business sounding emails were used as evidence
it's all politics

Webber's investigation was well glory be under El' Negro's DOJ for the most part.
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Old December 08, 2017, 19:34   #16
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https://www.atf.gov/file/100871/download

He committed tax fraud of 1.8 million and did the illegal gun sales.
ITax fraud alone is pretty serious by itself.
well according to whom ?

While he had a solid parts business I just don't see it as that huge, maybe at best 40K net profit yearly, probably less.
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Old December 08, 2017, 20:08   #17
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From the link above.

From 2007 and 2010, Webber earned more than $10 million in gross receipts from his business, between the legal sale of parts and the illegal sale of firearms.

Webber bought a house in $670,000 — in cash and under his wife’s name — according to court documents. He sheltered the home with a “sham limited liability company and the charade of a promissory note and mortgage worth less in reality than the paper on which it was printed,” court documents state. Webber's atty argued on Thursday that that decision was made based on advice from the couple’s real estate broker.


Webber had only claimed $187,000 in gross receipts............... on the actual $10 million in gross receipts.
He agreed to pay 1.8 million to the IRS, and had done so, just before sentencing.

Illegal guns sales and Income tax evasion, 4 years is actually a pretty good deal, in light of it all. Plenty get 5-10 for tax evasion or guns sales alone.

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Old December 08, 2017, 20:28   #18
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From the link above.

From 2007 and 2010, Webber earned more than $10 million in gross receipts from his business, between the legal sale of parts and the illegal sale of firearms.

Webber bought a house in $670,000 — in cash and under his wife’s name — according to court documents. He sheltered the home with a “sham limited liability company and the charade of a promissory note and mortgage worth less in reality than the paper on which it was printed,” court documents state. Webber's atty argued on Thursday that that decision was made based on advice from the couple’s real estate broker.


Webber had only paid $187,000 in taxes on the $10 million gross receipts.
He agreed to pay 1.8 million to the IRS, and had done so, just before sentencing.

Illegal guns sales and Income tax evasion, 4 years is actually a pretty good deal, in light of it all. Plenty get 5-10 for tax evasion or guns sales alone.
"between" sales of parts and firearms
his business was primarily parts

IRS generally makes guesses
just what they do
no question he owed cash
how many here report the wife's garage sales ?
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Old December 08, 2017, 20:42   #19
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In 2008, he had about 2000 firearms and they confiscated about 400.

That was after he agreed not to ever get an FFL. Odd, he was not a felon at that time.

Most of his illegal gun sales case was thrown out according to the Judge, but two sales to the ATF guys was enough.

He actually only reported $187,000 in gross receipts, on the ten million in actual gross receipts, during that period on guns and parts.

That got him the $1.8 million tax bill, inc fines.....probably negotiated

Parts sales are good, and legal.

He can make a profit on his collection or not, as long as he is not "in the business" of buying and selling guns on the side. Judgement call, but a local guy was caught doing that and told to get an FFL and set up a shop.

He did. Cost him a location, taxes, light bill, etc, all the reason why he did not do so before.

Why this H&K guy did not get a 3rd party partner to get an FFL and sell the guns, is probably as complicated as the inventory of guns he acquired.
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Old December 08, 2017, 21:01   #20
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Adam had some cool stuff and was a good source of HK parts despite his prices at times. This is bad news for the industry. With every case like this one must ask, “will the next generation carry the torch?”

Compliance is expensive; lack of compliance more so.
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Old December 08, 2017, 21:16   #21
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Adam had some cool stuff and was a good source of HK parts despite his prices at times. This is bad news for the industry. With every case like this one must ask, “will the next generation carry the torch?”

Compliance is expensive; lack of compliance more so.
HKPARTS.net is still going strong and will continue to do so. Adam hasn't had a large role to play in the company for years and is now completely removed from it.
Possibly in spite of the "industries" wishes, HKPARTS.net isn't going anywhere.
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Old December 08, 2017, 21:26   #22
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In 2008, he had about 2000 firearms and they confiscated about 400.

That was after he agreed not to ever get an FFL. Odd, he was not a felon at that time.

Most of his illegal gun sales case was thrown out according to the Judge, but two sales to the ATF guys was enough.

He actually only reported $187,000 in gross receipts, on the ten million in actual gross receipts, during that period on guns and parts.

That got him the $1.8 million tax bill, inc fines.....probably negotiated

Parts sales are good, and legal.

He can make a profit on his collection or not, as long as he is not "in the business" of buying and selling guns on the side. Judgement call, but a local guy was caught doing that and told to get an FFL and set up a shop.

He did. Cost him a location, taxes, light bill, etc, all the reason why he did not do so before.

Why this H&K guy did not get a 3rd party partner to get an FFL and sell the guns, is probably as complicated as the inventory of guns he acquired.
Well, he had a third party back when they rousted him in 08'
Again, the issue is profit buddy.

Understand this was GW/Obama, neither administration was pro gun

Had Webber sold at a dead loss he might have been lawful
you just can't buy to resell for gain.

again he should have worked with the bureau, I am certain he could have gained an FFL. Sometimes locals think they are Gawds. Adam should have reached out some in my opinion.

He didn't and screwed the proverbial poodle
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Old December 08, 2017, 22:11   #23
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HKPARTS.net is still going strong and will continue to do so. Adam hasn't had a large role to play in the company for years and is now completely removed from it.
Possibly in spite of the "industries" wishes, HKPARTS.net isn't going anywhere.
That’s good news then! I didn’t realize the separation so in that case tally-ho for HKPARTS.

Who is wishing ill will toward HKPARTS?
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Old December 08, 2017, 22:16   #24
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again he should have worked with the bureau, I am certain he could have gained an FFL. Sometimes locals think they are Gawds. Adam should have reached out some in my opinion.

He didn't and screwed the proverbial poodle
You don't know what he did or didn't do and are speculating, taking assumptions from a dark stinky place. Maybe you should concede to being dumb to facts and lay off a bit?
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Old December 08, 2017, 23:27   #25
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You don't know what he did or didn't do and are speculating, taking assumptions from a dark stinky place. Maybe you should concede to being dumb to facts and lay off a bit?
nope HK guy, I am rather familiar with what went on, friends of his shared documentation years ago with me.
My opinion has not changed.

I gave my advice and that's end of the story HK
I have a rather hard time accepting the story in the media
Adam was no turd
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Old December 09, 2017, 07:16   #26
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Wouldn't it be swell if the govt. audited and inspected itself with the same vigor that it uses on citizens?
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Old December 09, 2017, 10:00   #27
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Wouldn't it be swell if the govt. audited and inspected itself with the same vigor that it uses on citizens?

Dreamer...

Yes, swell it would be.
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Old December 09, 2017, 12:01   #28
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I actually agree with you RSS.

It is baffling as to why he did not negotiate a way to legally sell off the inventory he acquired in '08 , as he only agreed not to apply for an FFL in '07.


I guess middleman fees, and Lawyer's bill forced him to go under the table.

I am slowly selling off my collection thru an FFL, who actually sells them as book guns on consignment, for a %.

A 10% fee avoids 10 years in with Adam.

I look at guns as art objects or sporting devices; use costs value.
Getting even money back over time or better, is ok with me.

Recently sold a NIB hipower for BINow $859 + shipping. It was just under the prevailing market. I get $775, $125 more than I paid years ago. Not top $$ , but ok with me in this day and age of entrapment enforcement.

Last edited by V guy; December 18, 2017 at 19:24.
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Old December 10, 2017, 19:25   #29
eyegun
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