Connecticut Firearm Manufacturer Losing License After Numerous Violations

By RICH SCINTO (Patch Staff)

Connecticut gun manufacturer Stag Arms will lose its federal firearms license and was ordered to pay a $500,000 fine after numerous violations were found by federal authorities.

A July 2014 Bureau of Alcohol, Tobacco Firearms and Explosives inspection revealed 62 machine guns and machine gun receivers were found to be in possession of Stag, but that they were registered to another entity or not at all, according to the U.S. Attorney District of Connecticut office.

The Connecticut-based firearm manufacturer is a leading manufacturer of the popular AR-15 model rifle. It was founded in 2003 and boasts 100 percent American-made products.

Stag also failed in thousands of instances to document the manufacture of firearms, including machine guns and assault weapons. More than 3,000 firearm receivers, which are considered to legally be the firearm itself, were found unserialized and without records on premises.

More than 3,000 firearms were transferred by Stag without properly being recorded.

Most of the firearms were able to be reconciled with other paperwork, but in more than 300 instances the disposition of firearms couldn’t be reconciled. To date about 200 firearms are reported lost or stolen.

“When firearms licensees fail to comply with these federal regulations and laws they open the door for untraceable firearms to wind up on the street in the hands of traffickers and criminals,” said ATF Special Agent in Charge Daniel Kumor. “Today’s guilty plea and the license revocations demonstrate our commitment to hold firearms licensees accountable when they place public safety at risk.”

Stag has run into numerous regulatory violations over the years starting in 2007.

In September 2014, ATF executed search warrants at the company’s two facilities in New Britain and seized dozens of machine guns that had not been marked or registered. Three machine guns had serial numbers that were intentionally obliterated.

The possession of machine guns manufactured after 1986 is prohibited and manufacturers are required to register manufactured machine guns within a day of completion with ATF.

The company will have its license revoked in January and as part of a guilty plea won’t be able to challenge it in court.

Stag also failed in thousands of instances to adequately document the manufacture of firearms, which makes them more susceptible to theft or loss.

President Mark Malkowski through the company pleaded guilty to possession of a machine gun.

He is expected to plead guilty personally in federal court Wednesday to failure to maintain proper firearm records, which is a misdemeanor. He will personally pay a fine of $100,000. He has also agreed to divest himself in his interest in Stag and to never again hold ownership or a management position with respect to a firearm business.

Image of AR-15 with Stag Arms parts via Mitch Barrie/Flickr Commons