More on the Cav Arms Situation

From The Arizona Republic, via. SayUncle

Cavalry Arms Corp. says on its Web site that it has been “engaged in an ongoing dispute” with the Bureau of Alcohol, Tobacco, Firearms and Explosives, or ATF, for two years over “regulatory and compliance mistakes.”

But in federal court last week, owner Shawn Nealon admitted that he and his company illegally sold as many as 40 weapons to an out-of state buyer, and he voluntarily surrendered his federal firearms licenses, meaning Cavalry will no longer be able to import, manufacture or deal in weapons or ammunition.

“This is not some individual setting up a stand at a gun show,” U.S. Attorney Dennis Burke said Friday. “These are the preliminary steps that individuals take to get around federal laws in order to traffic in illegal firearms.”

Sebastian makes the point that the firearm industry is unique in that unlike other heavily regulated industries, such as pharmaceuticals, it is made up of lots of small companies.

One reason I think we see a lot of things like this and like this in the firearms industry is that you’re dealing with smaller players who don’t have the money to hire full time legal staff, or maintain staff that deal specifically with ensuring regulatory compliance

Steve Johnson

Founder and Dictator-In-Chief of TFB. A passionate gun owner, a shooting enthusiast and totally tacti-uncool. Favorite first date location: any gun range. Steve can be contacted here.


  • Redchrome

    The barriers to entry in the firearms market are very low. Anyone with a lathe and a mill and some skill can make guns. Most of the barriers are regulatory; which don’t make nearly as much sense (especially to the types of people who see a tool as a tool and nothing special to make). As such, this tends to create a lot of small operations with lots of opportunities for regulatory slipups.

  • Fred Bastiat

    Congratulations, government regulation kills more jobs in a recession. I have yet to hear one cogent argument on why the ATF should exist in the first place. As far as I can tell they are a regulatory fee compliance organization. They actually do not produce anything, only consume tax money and destroy the lives of honest people that don’t understand these made up legalese laws. The 2nd amendment declares a “right” to keep and bear arms. You do not ask permission to express your rights. You do not ask permission to speak, or practice religion. Hence the ATF is not a legal organization if they require a person to ask permission to exercise their rights.

    These are the kind of people that tell you one thing, and go right around and tell you that you’ve broken the law, even though they approved of what you’ve done in the first place. Because ignorance of the law is no defense is what they say. Though it’s a physical impossibility to read and understand all laws that pertain to one’s person or business.

  • thomas

    [quote]Following a search of Cavalry’s offices and Nealon’s Mesa home in 2008, agents said Nealon had illegally sold weapons to out-of-state buyers, more than 40 of those to a California resident who often stored those weapons at Nealon’s home.[quote]

    This sentence bothers me. How many out-of-state buyers? How many is more than forty? Then why does the paper then list 36 guns were stored? Why even list numbers if you can’t give the correct amount? This whole article is misleading and typical of The Arizona Republic’s liberal agendas.

    It reads like the California resident is the one breaking the law, because he is the one importing the guns and crossing state lines not Nealon.

  • Destroyer

    fred, spot on! it amazes me that our government will make cuts into education but not even consider cutting useless tax leeches like the ATF, DEA, and FBI.

  • RegT_2000

    Knowing a bit about how these prosecutions work, has it occurred to anyone that Mr. Nealon may have been coerced into making the statement he did in lieu of being slammed by the Feds with more serious charges? Plead to this or we will imprison you for ten years? Twenty?

    Also, financial “Wacos” are commonplace. Many individuals, and a number of companies, have been bled of their assets and/or life savings in order to counter spurious prosecutions meant to drive them out of business. Don’t assume that Mr. Nealon has in fact actually broken any laws, let alone one of the unconstitutional laws or regulations we are all currently suffering under. He may be settling for the lesser of several evil alternatives being visited upon him.

  • Will

    Like Redchrome said, there are very, very few legal obsticles in this country to individuals who want to make their own firearms, in comparison with virtually every other nation in the world. Try to keep some perspective, and try to keep this great site non-political.