The government said 200 firearms were stolen or lost from Stag, although there is no evidence those firearms fell into the hands of criminals or others not permitted to possess guns.
The company specifically 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.
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Losing 200 guns is a big deal. Having unregistered machine guns is a big deal.
They were sloppy at best. At worst, someone was selling machines off the loading dock.
Sounds like someone was selling lowers unpapered. I could imagine cash sales, no receipt.