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This is the latest I could find.


PRESS RELEASE
updated 6/2/2008

For many years Cavalry Arms Corporation (“Cavalry”) has strived to manufacture and sell quality firearms to the public. We have always strived to put our experience from the field into making quality products that the average shooter can afford, while still bringing innovations to the industry. We are dedicated to providing the best possible products and customer service to the firearms market.

On February 27, 2008, agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives executed a federal search warrant on the business premises of Cavalry and on the private residence of its CEO, Shawn Nealon. We have immediately engaged legal counsel to resolve this matter with the federal government. Cavalry is confident that all its conduct has been lawful in carrying out its business activities. The Government has yet to share with the company details of the investigation or the cause precipitating the search warrant. Cavalry is cooperating with the federal investigation. To date, no accusations of wrongdoing have been filed against Cavalry or any of its employees regarding alleged illegal activity.

While we are waiting for this situation to be resolved, Cavalry Arms will remain open for business and continue operations to the best of our ability. Since we were unable to get a decision on the manufacturing variance we had asked for, we arranged for (at great difficulty and expense) and rented the equipment necessary to resume production of the CAV-15 at our licensed premises. Receivers and rifles and have begun shipping again to fill back orders. Production of firearms, firearm accessories and medical kits will continue uninterrupted throughout this situation. With the return of our computers, we are working on reconstituting our resources. Our business situation is more normal and stable than it was directly after the search and seizure.

Our continued existence as a business can be directly attributed to the overwhelming support we have received from our customers and most importantly from the shooting community as a whole. We cannot thank enough everyone who has helped us, and we appreciate your continued support.
 

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I was there the other day, talked to Russ too. They're afloat for the time being, they've been shipping lowers(I got two of them myself) so their bread and butter product is moving again. They've been making furniture and selling it ever since the day after the raid.

My personal impression is that they should do OK financially so long as the ATF doesn't BATFuck them again, however the Cav crew is worried and I can't blame them one bit.

They are molding the lowers on site now using a rented, borrowed, or purchased uber expensive injection molding machine, so the ATF can't fawk them with the variance letter issue. As far as their belongings, nobody knows until the fat fawker in the robe sings. When that will happen is anyone's guess.
 

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Thanks for the update. I'll check the finances and see if I can support them in some way too.
 

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I'm so desperate (and cheap) I wasn't even thinking AR furniture :laughing: :emb: ... but there really was some local (nearby??) Chandler company selling office furniture chairs, cabinets, etc, to help raise funds for CA. I have all the AR furniture I need. I need an office chair. :(
 

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I'm so desperate (and cheap) I wasn't even thinking AR furniture :laughing: :emb: ... but there really was some local (nearby??) Chandler company selling office furniture chairs, cabinets, etc, to help raise funds for CA. I have all the AR furniture I need. I need an office chair. :(
Is your ass that lopsided or did your chair suffer a calamity?
 

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Gilbert firearms maker admits to illegal sale of weapons

Complex gun regulations led to owner's violation, his attorney says
by Robert Anglen - Feb. 22, 2010 12:00 AM
The Arizona Republic
A Gilbert firearms manufacturer will cease its gun operations after the company's owner pleaded guilty to illegally selling rifles, shotguns and handguns.

Cavalry Arms Corp. says on its Web site that it has been "engaged in an ongoing dispute" with the Bureau of Alcohol, Tobacco, Firearms and Explosives, or ATF, for two years over "regulatory and compliance mistakes."


But in federal court last week, owner Shawn Nealon admitted that he and his company illegally sold as many as 40 weapons to an out-of state buyer, and he voluntarily surrendered his federal firearms licenses, meaning Cavalry will no longer be able to import, manufacture or deal in weapons or ammunition.

"This is not some individual setting up a stand at a gun show," U.S. Attorney Dennis Burke said Friday. "These are the preliminary steps that individuals take to get around federal laws in order to traffic in illegal firearms."

Although none of the Cavalry guns has been linked to a crime, Burke said such cases are a particular concern for the agency.

Illegal-firearms sales are steadily increasing in Arizona, with much of the market driven by demand in Mexico, said Burke, the U.S. attorney for Arizona.

"The activity - southbound guns into Mexico - is very robust," he said. "We have (several) very active investigations going on now."

Nealon's lawyer, Mark Vincent of Chandler, called the charges against his client ridiculous.

"This is by no means a great victory for the government," he said, describing federal gun regulations as arcane. "In my opinion, no gun dealer in the United States could comply with the myriad of regulations. . . . It's almost impossible to determine what the law is."

Vincent said as much as 90 percent of the government's original case against Cavalry was dismissed, leaving his client pleading guilty to selling to an out-of-state buyer.

"It's a minor problem. . . . If that had been the only (charge), I don't know that they would have bothered with it," he said, adding: "Nobody was hurt. Nobody was almost hurt."

Nealon faces up to five years in prison and a $250,000 fine when he is sentenced in April.

But authorities say the bigger victory in this case is stripping Nealon of his firearms license.

Cavalry's primary gun operation involved creating a polymer mold of a part for the AR-15 semiautomatic rifle. The "lower receiver," the piece between the barrel and the stock, contains the firing mechanism. It is defined by the government as a firearm. The receivers were sold to the public and to other manufacturers for commercial and law-enforcement use.

According to a memo from Cavalry's lawyers included in court documents, Cavalry employed six people and sold as many as 6,000 receivers between 2000 and 2006.

In a criminal complaint in 2008, ATF agents accused Nealon of illegal-weapons manufacturing for making the receivers. In addition, he was accused of illegal sales and export of other guns and possession of unlicensed firearms.

"To cover up this widespread illegal activity, Cavalry Arms and Nealon have failed to keep records, falsified records and lied to ATF," the complaint states.

The ATF cited violations dating to 2000, including failure to keep a weapons inventory, failure to conduct background checks on at least 25 purchasers and failure to report a multiple-handgun sale.

Another problem: The ATF said Cavalry had outsourced the production of its molded receivers to an unlicensed company.

Following a search of Cavalry's offices and Nealon's Mesa home in 2008, agents said Nealon had illegally sold weapons to out-of-state buyers, more than 40 of those to a California resident who often stored those weapons at Nealon's home.

Those weapons included: nine 9mm handguns, five .45-caliber handguns, five .22-caliber handguns, five .223 rifles, three 12-gauge shotguns, two .38-caliber handguns, two .44-caliber handguns, a .380-caliber handgun, a .308 rifle, a 7.62x39mm rifle, a 5.45x39mm rifle and a .357 rifle.

"Given Cavalry Arms' . . . willingness to falsify records to cover up illegal activities, including illegal sales, it is difficult, if not impossible, to determine exactly how many illegal sales Cavalry Arms and Nealon have made to out-of-state residents," the criminal complaint states.

Nealon on Friday referred questions about the case to his lawyer. But he said Cavalry is not shutting its doors.

He said the company will sell off its inventory of weapons, which it will be allowed to do with ATF oversight, and concentrate on developing firearm accessories and medical products.

"The firearms portion of our business doesn't make up a large part of what we do," Nealon said.

However, news of the shutdown prompted posts of outrage and well-wishes on Cavalry's Web page.

"CavArms has some righteous dudes working there and the ATF has screwed you over since they don't have the guts to take on street and prison gangs," one person said in an online post.

Burke had another take on the subject.

"This isn't the first or the last time a defendant is going to try and redefine his culpability," the U.S. attorney said. "For the rest of the gun industry, it's a sign to other bad actors that we are going to focus on them."

http://www.azcentral.com/news/articles/2010/02/22/20100222guns-gilbert.html
 

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It's a good thing firearms laws are so simple; just like our tax code.

I wish them well.
 

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If I read that right - All they were able to actually make stick was the fact that the owner was making bonehead piddly firearm sales... and nothing related to the actual BUSINESS or manufacturing was actually punishable?

Our .gov is absurd :shaking:
 

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Gilbert firearms maker admits to illegal sale of weapons

Complex gun regulations led to owner's violation, his attorney says
by Robert Anglen - Feb. 22, 2010 12:00 AM
The Arizona Republic
A Gilbert firearms manufacturer will cease its gun operations after the company's owner pleaded guilty to illegally selling rifles, shotguns and handguns.

Cavalry Arms Corp. says on its Web site that it has been "engaged in an ongoing dispute" with the Bureau of Alcohol, Tobacco, Firearms and Explosives, or ATF, for two years over "regulatory and compliance mistakes."


But in federal court last week, owner Shawn Nealon admitted that he and his company illegally sold as many as 40 weapons to an out-of state buyer, and he voluntarily surrendered his federal firearms licenses, meaning Cavalry will no longer be able to import, manufacture or deal in weapons or ammunition.

"This is not some individual setting up a stand at a gun show," U.S. Attorney Dennis Burke said Friday. "These are the preliminary steps that individuals take to get around federal laws in order to traffic in illegal firearms."

Although none of the Cavalry guns has been linked to a crime, Burke said such cases are a particular concern for the agency.

Illegal-firearms sales are steadily increasing in Arizona, with much of the market driven by demand in Mexico, said Burke, the U.S. attorney for Arizona.

"The activity - southbound guns into Mexico - is very robust," he said. "We have (several) very active investigations going on now."

Nealon's lawyer, Mark Vincent of Chandler, called the charges against his client ridiculous.

"This is by no means a great victory for the government," he said, describing federal gun regulations as arcane. "In my opinion, no gun dealer in the United States could comply with the myriad of regulations. . . . It's almost impossible to determine what the law is."

Vincent said as much as 90 percent of the government's original case against Cavalry was dismissed, leaving his client pleading guilty to selling to an out-of-state buyer.

"It's a minor problem. . . . If that had been the only (charge), I don't know that they would have bothered with it," he said, adding: "Nobody was hurt. Nobody was almost hurt."

Nealon faces up to five years in prison and a $250,000 fine when he is sentenced in April.

But authorities say the bigger victory in this case is stripping Nealon of his firearms license.

Cavalry's primary gun operation involved creating a polymer mold of a part for the AR-15 semiautomatic rifle. The "lower receiver," the piece between the barrel and the stock, contains the firing mechanism. It is defined by the government as a firearm. The receivers were sold to the public and to other manufacturers for commercial and law-enforcement use.

According to a memo from Cavalry's lawyers included in court documents, Cavalry employed six people and sold as many as 6,000 receivers between 2000 and 2006.

In a criminal complaint in 2008, ATF agents accused Nealon of illegal-weapons manufacturing for making the receivers. In addition, he was accused of illegal sales and export of other guns and possession of unlicensed firearms.

"To cover up this widespread illegal activity, Cavalry Arms and Nealon have failed to keep records, falsified records and lied to ATF," the complaint states.

The ATF cited violations dating to 2000, including failure to keep a weapons inventory, failure to conduct background checks on at least 25 purchasers and failure to report a multiple-handgun sale.

Another problem: The ATF said Cavalry had outsourced the production of its molded receivers to an unlicensed company.

Following a search of Cavalry's offices and Nealon's Mesa home in 2008, agents said Nealon had illegally sold weapons to out-of-state buyers, more than 40 of those to a California resident who often stored those weapons at Nealon's home.

Those weapons included: nine 9mm handguns, five .45-caliber handguns, five .22-caliber handguns, five .223 rifles, three 12-gauge shotguns, two .38-caliber handguns, two .44-caliber handguns, a .380-caliber handgun, a .308 rifle, a 7.62x39mm rifle, a 5.45x39mm rifle and a .357 rifle.

"Given Cavalry Arms' . . . willingness to falsify records to cover up illegal activities, including illegal sales, it is difficult, if not impossible, to determine exactly how many illegal sales Cavalry Arms and Nealon have made to out-of-state residents," the criminal complaint states.

Nealon on Friday referred questions about the case to his lawyer. But he said Cavalry is not shutting its doors.

He said the company will sell off its inventory of weapons, which it will be allowed to do with ATF oversight, and concentrate on developing firearm accessories and medical products.

"The firearms portion of our business doesn't make up a large part of what we do," Nealon said.

However, news of the shutdown prompted posts of outrage and well-wishes on Cavalry's Web page.

"CavArms has some righteous dudes working there and the ATF has screwed you over since they don't have the guts to take on street and prison gangs," one person said in an online post.

Burke had another take on the subject.

"This isn't the first or the last time a defendant is going to try and redefine his culpability," the U.S. attorney said. "For the rest of the gun industry, it's a sign to other bad actors that we are going to focus on them."

http://www.azcentral.com/news/articles/2010/02/22/20100222guns-gilbert.html
:mad3::mad3::mad3::mad3::mad3:


Fuck the ATF and their fucking allegations.

I have personally dealt with the Cav Arms guys, and seen the lengths they go to in order to stay within the boundaries of our stupid firearms laws.

I simply cannot believe that they willingly and knowingly broke any law while conducting business.

As for the sale of 40 guns to a CA resident... I'm guessing there is a dispute between a private transaction and a transaction made under the name of the business.

It's truly sad... I'm not sure why anyone is willing to risk becoming a firearms dealer these days. The laws need to be streamlined, and the ATF needs to be dis-fucking-mantled.
 

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Cavalry employed six people and sold as many as 6,000 receivers between 2000 and 2006.

In a criminal complaint in 2008, ATF agents accused Nealon of illegal-weapons manufacturing for making the receivers. In addition, he was accused of illegal sales and export of other guns and possession of unlicensed firearms.

"To cover up this widespread illegal activity, Cavalry Arms and Nealon have failed to keep records, falsified records and lied to ATF," the complaint states.

The ATF cited violations dating to 2000, including failure to keep a weapons inventory, failure to conduct background checks ... failure to report a multiple-handgun sale.

Another problem: The ATF said Cavalry had outsourced the production of its molded receivers to an unlicensed company.

"The firearms portion of our business doesn't make up a large part of what we do," Nealon said.
Politics and bad paperwork dont mix. Obama promised the world to crack down on the US gun trade. So it appears the ATF is going over all the records with a fine tooth comb looking for irregularities. They are probably doing a lot of undercover work.

The 6,000 receivers sold in 10ish yrs probably didnt cover his legal bills, So it would be wise for any FFL holders to triple check all their practices, records, inventories, and background checks.
 

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And the "outsourcing" thing wasn't a problem until right after the raid. The ATF approved the practice of producing the receiver halves offsite with the final ultrasonic welding assembly happening in house. The letter approving this(which Cav had operated under since day 1 if memory serves) was confiscated during the raid. Shawn was accused of illegally outsourcing without a variance letter(the confiscated one) after he tried to start production back up after the raid.
 
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