And Here is a story with a lot more details::
According to Jefferson County Sheriffs office sources, Mr. Haddad was in the parking lot of a closed business at 7:30 p.m. when an officer asked him what he was doing. The police allege that the Fort Drum civilian employee said that he was meeting someone to sell the AR-15 style rifle magazines. A police source also said that the magazines were stamped with the words Restricted. For military use only.I think it is hard to fault the police for arresting him, if this is the story. I don't think he deserves to be arrested, just that you find some guy who says he is selling magazines, and it looks like those magazines might be "stolen", or not be legal for civilian possession, you can't just let them run along.
The article notes that it is highly unlikely he'll serve time. There is a meeting with prosecutors on February 20th, and then he'll know if there are any charges, and so, what punishment they are looking for.
But trying to sell them is probably going to make that conversation different from what it would be if he had just been passing through and had them thrown in his trunk with other things.
Production overruns are often sold to the public. Colt LE carbines are a good example as they used to be readily available for purchase at gun stores. They are marked for government use only and are by no means illicit to own.