ATF, tax agents raid Tacoma gun store (where sniper purchased rifle)

Seattle Times ^ | Dec. 5, 2002 | Steve Militich & Mike Carter

[berserker]

TACOMA — Evidence of tax evasion and scores of unaccounted-for guns led federal investigators yesterday to search the gun shop that once owned the rifle used in the Beltway sniper killings.

More than a dozen agents from the Bureau of Alcohol, Tobacco and Firearms (ATF) and the Internal Revenue Service conducted early-morning raids at Bull's Eye Shooter Supply near the Tacoma Dome and the luxury Lakewood home of its owner, Brian Borgelt.

The warrants authorizing the searches remained sealed while agents inventoried boxes of materials seized at both locations.

A federal law-enforcement source said agents in recent weeks had obtained evidence that Borgelt and his business — one of the largest gun shops in Washington — have not paid federal taxes for at least six years.

Borgelt was home during the search of his large, two-story house on the shore of American Lake, and later drove to Bull's Eye, where agents completed their search after 10 hours in the store. Handwritten signs on its barred, glass doors said Bull's Eye was closed for the day.

Borgelt said he is cooperating with authorities. He said he believes their main focus is learning how the Bushmaster rifle got from his store into the hands of sniper suspects John Allen Muhammad and Lee Boyd Malvo. "Everything else is a sub-issue," Borgelt said.

He declined to say whether he had paid his federal taxes for the past six years. The tax issues, he said, "are a business matter that's being attended to."

His store came under scrutiny after the arrests of Muhammad and Malvo, suspects in killings and robberies that left 14 people dead and five wounded in five states and the District of Columbia. Muhammad and Malvo lived in Tacoma just before the sniper spree and are suspected in the slaying of a 21-year-old woman here.

The .223-caliber Bushmaster rifle used in most of the slayings was traced to Bull's Eye, which obtained the $1,600 weapon in July from the manufacturer. Borgelt told investigators he was not aware it was missing until it was found behind the seat in Muhammad and Malvo's car when they were arrested Oct. 24.

It would have been illegal for either Muhammad or Malvo to buy a gun. Muhammad, 41, was the subject of a domestic-violence protective order and the 17-year-old Malvo was a juvenile and illegal immigrant.

Their arrests led to an ATF compliance audit of the Tacoma gun store. Gun dealers are required to keep a ledger of sales so that a weapon can be traced if it is used in a crime. The ledger also demonstrates that the buyer had a mandated background check.

ATF agents found that Bull's Eye could not account for as many as 90 guns, sources have said.

"We found sufficient record-keeping deficiencies that it became serious enough to conduct a criminal investigation," ATF special agent Martha Tebbencamp said.

Two years earlier, an ATF audit of Bull's Eye turned up 150 instances in which firearms couldn't be matched to sales records. ATF has been criticized for not having sanctioned Bull's Eye or its owner two years ago. Failure to properly keep the firearms records is a federal misdemeanor.

The ATF told Borgelt to clean up his books but took no action against his firearms license, federal sources said.

Borgelt filed a theft report for the Bushmaster with Tacoma police last month, but could not say when the rifle disappeared from his store. Federal agents and prosecutors question this account.

A regular customer who was turned away from Bull's Eye yesterday said a Bushmaster rifle was put on display in July, and he is certain it was the same gun. He said the weapon was a showpiece, customized with an expensive scope and bipod stand.

"I didn't see any others like it — it was too pricey for a lot of people," said the customer, who only gave his name as Robin.

The rifle would have been difficult to steal. "It wasn't at a spot where you would easily reach it," the customer said. "You had to ask if you could handle it, and one of the guys would let you."

[Poohbah]

If he hasn't paid taxes in six years, and he's done any business, he's f***ed.

[Eric in the Ozarks]

One reason why not to get a gun dealer's license. The ATF can kick in your door--anytime.

[uncbob]

If he hasn't paid taxes in six years, and he's done any business, he's f***ed.

And a stone cold idiot
With all the anti gun agenda around you would think he would be EXTRA careful with regulations
Guy sounds like a sleaze

[Poohbah]

Makes me wonder if he was doing his business under the table with the criminal element. I've run into some...operators, shall we say?...that convinced me not to buy anything from them in 30 seconds. Hell, one of them had a Class III license.

[Billthedrill]

Lots going on behind the scenes here - they were polygraphing the staff last month to try to find anyone who might have been involved in the 340 discrepancies (and now, it appears, no fewer than 90 missing weapons) they found. It may be they're focusing on the boss himself? In any case, somebody's going down over this and he looks like the current candidate. Bummer.

[Poohbah]

90 weapons gone missing?

Something ain't right...and if they've fluttered the staff and they're homing in on the owner, I've got a funny feeling he's probably guilty.

[Blood of Tyrants]

Nor entirely true. If you have type 3 FFL (C&R) they may request to review your documents but must give you 24 hours fore knowledge and then only once a year. But typically they don't mess with C&R firearms collectors as we are small potatoes.

[coloradan]

The rifle would have been difficult to steal. "It wasn't at a spot where you would easily reach it," the customer said. "You had to ask if you could handle it, and one of the guys would let you."

LOL! As if burglars only take the things they are handed!

[Poohbah]

It would take an exceptionally skilled burglar to break in to a gunshop, find the gun they want, and leave without a trace.

[Eric in the Ozarks]

I had considered this (type 3) as a way to buy and sell when we lived in Minnesota. Several friends talked me out of it because of the record keeping liability and difficulties in keeping privately aquired arms separate from trading pieces or new weapons.

[Billthedrill]

Yep, it doesn't look too good. That's a lot of ordnance in never-never land. I'm thinking, too, that that might not be the very best place to contemplate a firearms purchase in the foreseeable future, so one way or another he's gonna be hurting...

[WilliamWallace1999]

You made a damn good choice Eric. I have several friends that turned theirs back in. Not worth the hassle. Find yourself a good and reputable dealer and stick with him. I do ALL my business with one gunstore and he handles the transfers and consignment sales for less than I could do it myself.

[Blood of Tyrants]

Record keeping consists of keeping a Firearms Acquisition and Disposition book, commonly called a bound book and costs $3 from Brownells (BTW, a C&R gets you a dealer's discount at Brownell's, too:)). That means you take 5 minutes and write down the specifics about the gun you just received (caliber, importer, from whom, action type, etc.)

You only have to put firearms that are on the C&R list if you acquired them after you got your C&R license. Any modern firearms and any obtained before you received your C&R are NOT put on the list.

You can buy directly from the wholesalers and typically save 50% to 75% off what a retail FFL dealer would want for a comparable gun.

For example here are some C&R prices,

Turk 1938 Mausers - $40 - $60, fair to good condition
Yugo M48 Mausers - $125, excellent
Russian/Polish/Romanian Mosin Nagant - $50 to $100, good to excellent
Polish T33 pistol - $125
Ballester Molina (.45 ACP) - $150
Yugo SKS - $100 to $150, very good to like new
Captured German K98's - $200, good to very good

Don't let people who don't know what the ---- they are talking about talk you out of it again. It will be the best $30 you ever spent.

[Blood of Tyrants]

William, will your dealer transfer unlimited C&R guns to you for a one time $30 fee?

Can he beat the prices I posted above?

Can you call him up and say, "Joe, send me one of those German K98's you just got" and then get it via UPS three days later?

You know that the answer to all my questions is an unqualified, "No".

[Blood of Tyrants]

P.S. You are aware that the type 3 license is for Curios and Relics and is a collectors license only, right? You can still buy and sell, as long as your primary purpose is not dealing.

[ezo4]

Im going to miss bullseye, I wounder if there going to be shut it down. It's a cool store and they just remodeled

[FreedomFarmer]

I back you 100%.

A $30 C&R FFL is the only way to go.

I bought 5 broomhandles, sold 1, and own the others for free.

[WilliamWallace1999]

Nope, not aware of that. With a C&R do you still have to keep records forever and lose the ability to buy and trade guns outside the restrictions of your liscense? Guess I was thinking of the full FFL that allowed one to buy and sell to others. With a C&R are you limited to only collectable and relics or can you purchase that brand new .17 Hornady from Ruger directly.

[Blood of Tyrants]

"With a C&R do you still have to keep records forever "

Like I said, your "records" consists of a single bound book. No form 4473's and you can sell (or give) your excess firearms to anyone who can legally posess a firarm.

"and lose the ability to buy and trade guns outside the restrictions of your liscense?"

No, you just have to go through the normal route.

"With a C&R are you limited to only collectable and relics"

Yes, but be aware there are literally thousands of guns on the list. Generally, a gun must be at least 50 years old to be on the list. Here is the link to the list http://www.atf.treas.gov/forms/pdfs/f531016.pdf

And here is a link on the "How to" http://www.falfiles.com/forums/showthread.php?s=&threadid=33083