The company pleaded guilty to possession of 62 machine guns and machine gun receivers that were registered to another entity or not registered at all. ATF agents found the automatic rifles and receivers at the New Britain factory during an inspection July 15, 2014.
Eleven machine guns were registered to an entity in the Philippines, one to a police department and 25 to another manufacturer. The remaining 25 machine gun receivers — the portion of the firearm that houses the operating parts and on which the serial number is engraved — did not have serial numbers, the government said.
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In 2007, ATF inspectors found instances of poor record-keeping, administrative violations and regulatory violations, but worked with Stag to bring it into compliance, said Nealy Earl, area head of industry operations for ATF.
The problems found during the 2014 compliance review at Stag Arms were similar or worse than those found in 2007, prompting the recommendation for criminal action, Earl said. Assistant U.S. Attorney S. Dave Vatti described the new violations as "egregious and systemic."
Some of the firearms found at Stag also had obliterated serial numbers, a serious violation of the law, Vatti said. The government has not determined why the serial numbers were scratched out.