New York State Sues 10 Online Gun Retailers: Exposing Rats Among Them
By Lawrence Destefano
Owner of Indie Guns, an online gun retailer, sharing insights and news about rats in the firearms industry relevant to enthusiasts and consumers alike.
New York State Attorney General Letitia James announces a lawsuit against 10 retailers, including Indie Guns, for selling gun parts to New Yorkers.
With some of the toughest gun control laws in the U.S. and a government-maintained registry containing detailed information about all serialized firearms and their owners, New York State has now turned its attention to self-built firearms made from kits that include unfinished parts and components, such as an 80% frame or receiver.
UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK
Case No. 22-cv-06124 (JMF)
THE PEOPLE OF THE STATE OF NEW YORK, by LETITIA JAMES, Attorney General of the State of New York,
Plaintiff,
-against-
ARM OR ALLY, LLC; BLACKHAWK MANUFACTURING GROUP, INC., A/K/A 80 PERCENT ARMS, INC. OR 80 PERCENT ARMS; SALVO TECHNOLOGIES, INC., A/K/A 80P BUILDER OR 80P FREEDOM CO.; BROWNELLS, INC., A/K/A BROWNELLS OR BOB BROWNELL’S; GS PERFORMANCE, LLC, A/K/A GLOCKSTORE OR GSPC; INDIE GUNS, LLC; KM TACTICAL; PRIMARY ARMS, LLC; RAINIER ARMS, LLC; AND ROCK SLIDE USA, LLC,
Defendants.
The case caption displayed above is the first page of the lawsuit filed by New York State. It includes the names of all 10 defendants involved in the case, including Indie Guns.
retailers, such as Defendants who provide that market with the foundational product.
104. The scale of Defendants’ activities directed toward the New York market is staggering, as is the number of unfinished frames and receivers they have directed into New YorkState.
105. A preliminary analysis of shipping records obtained by the Office of the AttorneyGeneral demonstrates that in the past few years Defendants have made approximately 100,000 shipments to New York addresses that are not FFLs – i.e., shipments directly to consumers.
106. The actual number of direct shipments to New York consumers will be significantly higher – well into the six-figure range – once complete records from every shipper become available.
107. On information and belief, a significant portion of these shipments contained unfinished frames and receivers.
108. The shipping records compiled to date show approximately 29,655 packages that roughly match the weight and/or dimensions of the unfinished handgun frames sent by certain of Defendants in fulfillment of OAG’s undercover purchases. Many of these shipments into New York are likely to be unfinished frames, which are illegal.
109. The actual number of illegal shipments is likely to be significantly higher, for several reasons. First, the shipping data obtained by OAG is incomplete to date. Second, these shipments are only those matching the weight of an unfinished frame kit in its packaging alone. If a consumer bought more than one unfinished frame, or an unfinished frame and other parts (for instance, the parts necessary to convert the unfinished frame into a working ghost gun), the weight
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of the shipment would be different. And third, these are only shipments that match the weight of an unfinished frame used to make a handgun; shipments of the unfinished receivers used to make ghost gun rifles or shotguns will have different weights and dimensions.
110. The true number of unfinished frames and receivers shipped by Defendants into New York State can best be ascertained by each Defendant’s sales records, but the figure can reasonably be expected to number many thousands.
111. On information and belief, none of these unfinished frames and receivers were serialized according to federal and state requirements, and none of Defendants conducted a federal background check prior to sending them.
112. Each of the Defendants played a role in this massive influx of unfinished frames and receivers, and in the ghost guns that were inevitably and foreseeably made from them.
A. Arm or Ally
113. Arm or Ally is a distributor of firearms and firearms parts located in Indian Trail, NC. 114. Its business focuses on parts for AR-10 and AR-15-style rifles, including unfinished receivers that can be used to build ghost gun versions of those rifles. It also sells unfinished handgun frames, including into New York. 115. Its webpages selling AR-15-compatible receiver kits proclaim, in large bold green letters, “No FFL Required!” See https://www.armorally.com/shop/poly- mer80-ar15-80-lower- receiver-kit-rl556v3/ (last visited June 23, 2022). 116. Meanwhile in tiny, mostly-illegible text, Arm or Ally attempts to divest itself of27
129. On or around July 8, 2021 Arm or Ally sent a package to Rene Loyola at an address on East 6th Street in Manhattan.
130. On information and belief, the package from Arm or Ally contained unfinished frames or receivers and/or the parts to make them into ghost guns. 131. As discussed further below, the NYPD later executed warrants on Loyola’s home and storage locker, discovering an arsenal of unfinished frames and receivers and material used to convert them into working ghost guns. 132. Loyola was indicted on approximately 289 separate violations of New York’s firearms laws.133. Between approximately April 25, 2021 and June 7, 2021, Arm or Ally sent seven packages to Jonathan Santos at an address on 102nd Street in the Richmond Hill area of Queens, NY.
134. On information and belief, the packages Arm or Ally sent to Santos contained unfinished frames or receivers and/or the parts to make them into ghost guns. 135. On October 18, 2021, police officers observed Santos loading guns into the trunk of his car. See https://queensda.org/queens-man-charged-with-possessing-arsenal-of-illegal- ghost-guns/. 136. After pulling Santos over, they discovered nine ghost guns, including two assault rifles, one other assault rifle, 25 high-capacity magazines, and 500 rounds of ammunition. 137. When NYPD officers executed a search warrant on Santos’ home on 102nd Street, they recovered 21 working firearms, many made from unfinished frames or receivers, two rapid-30
fire modification devices, 110 high-capacity magazines, three silencers, approximately 15,000 rounds of ammunition, and various parts and tools commonly used to convert unfinished frames or receivers into working weapons.
138. Santos did not have a license to possess or own firearms.
139. A portion of the weapons recovered from Santos is pictured below:
140. Santos was charged with 252 separate violations of New York’s firearms laws.
141. On or around October 7, 2021, Arm or Ally sent a package to David Goldberg at an address on Bullet Hole Road in Mahopac, NY.
142. On information and belief, the package Arm or Ally sent to Goldberg contained unfinished frames or receivers and/or the parts to make them into ghost guns.
143. The Putnam County Sheriff’s Department, as part of a multi-agency investigation into ghost guns and other illegal weapons that led to more than 100 weapons seized, arrested Goldberg in late-January 2022 on four felony charges, including first-degree criminal possession
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of a weapon (10 or more). See https://www.westchestergov.com/home/
all-press-releases/9204- more-than-100-firearms-seized-following-lengthy-investigation-into-ghost-guns-and-other- illegal-weapons-in-westchester-and-putnam-counties.
144. On or around August 18, 2021, Arm or Ally sent a package to Andrew Lopez at an address on Fair Street in Carmel, NY.
145. On information and belief, the package Arm or Ally sent to Lopez contained unfinished frames or receivers and/or the parts to make them into ghost guns. 146. The Putnam County Sheriff’s Department, as part of a multi-agency investigation into ghost guns and other illegal weapons that led to more than 100 weapons seized, arrested Lopez in late-January 2022 for second-degree criminal possession of a weapon. Id.B. 80 Percent Arms
147. Blackhawk Manufacturing Group, Inc., also known as 80 Percent Arms, Inc. or 80 Percent Arms, is a California entity with its principal office in Garden Grove, CA. 148. As indicated by its name, 80 Percent Arms’ business is focused on selling unfinished frames and receivers, and the company explicitly sells its products as a means to get around federal registration and background check requirements. 149. Its page on 80% lowers emphasizes that “an unfinished receiver is not subject to the same regulations as any other complete firearm. This means no RED TAPE including: NO Registering an 80% Lower, NO Transfer fees like a typical firearm, NO FFL Required, Ships right to your door.” See https://www.80percentarms.com/80-lowers/ (last visited June 6, 2022) 150. Clicking on “No FFL Required” takes a consumer to a webpage explaining how32
https://www.80percentarms.com/pages
/california-laws-80-lower (last visited June 6, 2022).
154. Shipping data obtained by the Office of the Attorney General indicates that from March 2020 to the present, 80 Percent Arms sent approximately 155 packages to non-FFL addresses in New York State each month, with approximately 106 of those packages roughly matching the weight and dimensions of the unfinished frames obtained in undercover purchases.
155. On or around March 3, 2022 80 Percent Arms sent a package to Rene Loyola at an address on Hart Street in Brooklyn.
156. On information and belief, the package from 80 Percent Arms contained unfinished frames, unfinished receivers, and/or the tools to convert them into working ghost guns. 157. As discussed, the NYPD later executed warrants on Loyola’s home and storage locker, discovering an arsenal of ghost guns, unfinished frames and receivers, and tools used to convert them into working weapons. 158. Loyola was indicted on approximately 289 separate violations of New York’s firearms laws.159. On or around August 27, 2020 and January 4, 2021, 80 Percent Arms sent packages to Jonathan Santos at an address on 102nd Street in the Richmond Hill area of Queens, NY.
160. On information and belief, the packages 80 Percent Arms sent to Santos contained unfinished frames, unfinished receivers, and/or the tools to convert them into working ghost guns. 161. As discussed, when NYPD officers searched Santos’ home and car, they found dozens of working ghost guns, along with parts, ammunition, and tools used to convert unfinished frames and receivers into working weapons.34
162. Santos was charged with 252 separate violations of New York’s firearms laws.
163. On or around October 2, 2020 and October 30, 2020, 80 Percent Arms sent packages to a man named Kurt Therkelsen at an address on Ward Road in Salt Point, NY.
164. Therkelsen was a supporter of the “Boogaloo Boys,” a far-right militia-style organization with a well-documented history of political violence. See https://nypost.com/2022/02/01/boogaloo-boys-supporter-kurt-therkelsen-gets-4-years-in-nyc- ghost-guns-case/. 165. On information and belief, the packages 80 Percent Arms sent to Therkelsen contained unfinished frames, unfinished receivers, and/or the tools to convert them into working ghost guns. 166. On December 15, 2020, the Joint Terrorism task force and the NYPD raided an AirBNB on First Avenue in Manhattan, where Therkelsen was staying. 167. The NYPD recovered two unserialized Polymer80 ghost guns, 11 high-capacity magazines, four additional unfinished frames and receivers, as well as various parts, gunmaking tools, and other paraphernalia. 168. Investigators also recovered Kevlar body armor and a shirt that said, “Kill Cops.” 169. Therkelsen pled guilty to firearms charges in December 2021 and was sentenced to four years in prison.170. On or around August 24, 2021, and September 27, 2021, 80 Percent Arms sent packages to Dexter Taylor at an address on Eldert Street in Brooklyn, NY.
171. On information and belief, the packages 80 Percent Arms sent to Taylor contained35
unfinished frames, unfinished receivers, and/or the tools to convert them into working ghost guns.
172. When NYPD officers raided the Eldert Street location, they recovered four completed ghost gun assault weapons, five completed ghost gun handguns, four completed ghost gun rifles, eight unfinished receivers, five unfinished frames, eleven magazines, and various parts and tools used to convert unfinished frames and receivers into working firearms. See http://www.brooklynda.org/2022/04/22/bushwick-man-indicted-for-illegal-possession-of-ghost- guns/.
173. Taylor was indicted on 37 counts of violations of New York’s firearms laws.
174. On or around July 12, 2021 and October 26, 2021, 80 Percent Arms sent packages to Chaz McMillan at an address on 162nd Street in the Flushing Area of Queens, NY.
175. On information and belief, the packages 80 Percent Arms sent to McMillan contained unfinished frames, unfinished receivers, and/or the tools to convert them into working ghost guns. 176. On December 8, 2021, investigators executed a search warrant on McMillan’s 162nd Street address. 177. They found 25 working ghost guns, including 19 semiautomatic pistols, 5 assault weapons, and 1 semiautomatic shotgun. They also found four additional unfinished frames or receivers that had not yet been constructed into working weapons. See https://queensda.org/queens-man-charged-with-possessing-arsenal-of-illegal-ghost-guns-2/. 178. McMillan also had 31 large-capacity magazines, 670 rounds of ammunition, and various parts and tools used to convert unfinished frames and receivers into working ghost guns.36
179. McMillan did not have a license to possess or own firearms.
180. McMillan was charged with 125 counts of criminal violations of New York’s
firearms laws.
181. On or around August 24, 2020, 80 Percent Arms sent a package to Domingo Valle at an address on East Tremont Avenue in the Bronx, NY.
182. On information and belief, the package 80 Percent Arms sent to Valle contained unfinished frames, unfinished receivers, and/or the tools to convert them into working ghost guns. 183. As discussed below, Valle was a convicted felon who could not legally purchase a firearm and would have failed a background check if he had tried to do so. When law enforcement agents later searched Valle’s address, they found several ghost guns concealed throughout his apartment.184. On or around August 20, 2020, and January 14, 2021, 80 Percent Arms sent packages to a woman with the initials N.S. at an address on Baisley Avenue in the East Rockaway section of Queens, NY.
185. On information and belief, the packages sent to the residence contained unfinished frames or receivers and/or the parts to make them into ghost guns. 186. As discussed below, on February 19, 2022, Thomas Saxton, from the same address, was arrested after threatening to shoot his wife while she held her child. When police stopped Saxton, he was carrying two ghost guns, as well as additional ammunition and a plastic bag of cocaine.187. On or around October 21, 2020, 80 Percent Arms sent a package to Kai Zhao at an
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address on 167th Street in the Flushing area of Queens, NY.
188. Between approximately July 20, 2021 and September 22, 2021, 80 Percent Arms sent five packages to Seongwoo Chung at an address on Crocheron Avenue in the Flushing area of Queens, NY.
189. On information and belief, the packages 80 Percent Arms sent to Zhao and Chung contained unfinished frames or receivers and/or the parts to make them into ghost guns. 190. On or around March 1, 2022, Zhao, Chung, and two codefendants were arrested as part of an NYPD investigation into firearms trafficking. See https://queensda.org/four-queens- residents-charged-with-possessing-arsenals-of-illegal-ghost-guns-in-bayside-and-flushing- homes-photos/. 191. Search warrants executed on Zhao, Chung, and their alleged accomplices resulted in the seizure of 27 ghost guns, including 22 semiautomatic pistols, 4 assault weapons, and 1 assault shotgun. 192. The search warrants also resulted in the NYPD seizing 16 unfinished receivers, 78 large capacity magazines, approximately 10,000 rounds of ammunition, silencers, sites, components and tools to assemble unfinished frames and receivers into working firearms, and more than $50,000 in cash. 193. Zhao, Chung, and their codefendants did not have a license to own or possess firearms. 194. Zhao was charged with approximately eight counts of violations of New York’s firearms laws. Chung was charged with approximately eight counts of violations of New York’s38
its products into working ghost guns.
D. Brownells
208. Brownells, Inc., also known as Brownells or Bob Brownell’s, is an Iowa corporation with its headquarters in Grinell, IA. 209. Although Brownells sells a wide variety of different firearms, parts, and paraphernalia, it has taken to selling unfinished frames and receivers with particular gusto, marketing them based in large part on the lack of compliance with federal firearms law and the ease with which they can be converted into working ghost guns. 210. For instance, in an October 2017 press release announcing that the company would market a set of exclusive Polymer80 unfinished frames unique to Brownells, the company said that the unfinished frames could be used “to make instant custom handguns at home,” and that “[w]ith a drill press or similar tool, an 80% frame can be finished into a firearm in just minutes.” Press Release, “Brownells Announces Exclusive Polymer80 Frames,” (Oct 11, 2017), available at https://www.theoutdoorwire.com/story/1507676814jseq2774930. 211. The same press release also advertised the legal conclusion that “[b]ecause they are not complete firearms, [unfinished frames] can be shipped straight to a customer’s home without an FFL.” Id. 212. As discussed above, Brownells’ online materials go to great lengths to promote unfinished frames to consumers, saying that they “ha[ve] revolutionized the custom gun world. If you have some basic mechanical aptitude and a few simple tools found in many home workshops, you are good to go to build your own custom pistol on a Polymer80 frame.” See41
its products into working ghost guns.
D. Brownells
208. Brownells, Inc., also known as Brownells or Bob Brownell’s, is an Iowa corporation with its headquarters in Grinell, IA. 209. Although Brownells sells a wide variety of different firearms, parts, and paraphernalia, it has taken to selling unfinished frames and receivers with particular gusto, marketing them based in large part on the lack of compliance with federal firearms law and the ease with which they can be converted into working ghost guns. 210. For instance, in an October 2017 press release announcing that the company would market a set of exclusive Polymer80 unfinished frames unique to Brownells, the company said that the unfinished frames could be used “to make instant custom handguns at home,” and that “[w]ith a drill press or similar tool, an 80% frame can be finished into a firearm in just minutes.” Press Release, “Brownells Announces Exclusive Polymer80 Frames,” (Oct 11, 2017), available at https://www.theoutdoorwire.com/story/1507676814jseq2774930. 211. The same press release also advertised the legal conclusion that “[b]ecause they are not complete firearms, [unfinished frames] can be shipped straight to a customer’s home without an FFL.” Id. 212. As discussed above, Brownells’ online materials go to great lengths to promote unfinished frames to consumers, saying that they “ha[ve] revolutionized the custom gun world. If you have some basic mechanical aptitude and a few simple tools found in many home workshops, you are good to go to build your own custom pistol on a Polymer80 frame.” See41
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