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Showing posts with label Fire Sale Loophole. Show all posts
Showing posts with label Fire Sale Loophole. Show all posts

February 2, 2009

New York's New Senator

Controversy erupted last week when New York Governor David A. Paterson announced U.S. Representative Kirsten Gillibrand as his appointee to fill the Senate seat vacated by now-Secretary of State Hillary Clinton. Senator Gillibrand, an upstate Democrat from New York’s 20th District, has drawn strong criticism from politicians and advocacy groups in her home state regarding her positions on gun issues. While in the House of Representatives, Senator Gillibrand continually supported legislation to weaken gun regulations and received an ‘A’ grade and 100% rating from the National Rifle Association (NRA). Jackie Hilly, Executive Director of New Yorkers Against Gun Violence, stated that, “It is clear that the public at both the national and state level want reasonable regulations of guns and Kirsten Gillibrand stands outside that mainstream.”

Gillibrand has stated that she is “very pro-Second Amendment” and supports the rights of hunters and sportsmen, but also believes that “gun safety, keeping guns out of the hands of children [and] making sure our guns are the safest in the world” should be goals of lawmakers of both sides of the aisle. Her voting record, however, suggests that she has shown little inclination towards compromise.

Last year, Gillibrand co-sponsored H.R. 4900, the “Bureau of Alcohol, Tobacco, Firearms, and Explosives Reform and Firearms Modernization Act,” in the House. This NRA-drafted legislation would have made the “Tiahrt Amendment” restrictions on crime gun trace data permanent, allowed law-breaking gun dealers to claim ignorance of the law as a full defense, blocked ATF from modernizing and updating its recordkeeping procedures, and codified the “Fire Sale Loophole” which allows crooked dealers to sell off their inventory without conducting background checks after their federal licenses have been revoked. H.R. 4900 would have effectively gutted law enforcement’s ability to curb the illegal trafficking of firearms across state lines, which occurs on a daily basis in the United States. As a New York representative, you would think Gillibrand would have been familiar with the scope of the problem—in 2007, 70% of New York’s crime guns were trafficked in illegally from outside states.

In 2008, Gillibrand also co-sponsored H.R. 6691, the “Second Amendment Enforcement Act.” This NRA-drafted bill would have repealed the District of Columbia’s registration requirement for handguns, legalized semiautomatic assault weapons, allowed individuals who have been voluntarily committed to psychiatric institutions within the last five years to own firearms, and prohibited the D.C. Council from enacting any gun-related legislation in the future. Most disturbingly, H.R. 6691 would have allowed individuals to openly carry loaded rifles and assault weapons on D.C.’s streets. Gillibrand has frequently stated that “hunting rights” are very important to her. After two years of living in the District of Columbia, you would think she would be aware that the only thing hunted in the city is human beings.

Due to Gillibrand’s strong pro-NRA stance, New York Representative Carolyn McCarthy has promised to challenge the new Senator in the 2010 Democratic Senate Primary. Rep. McCarthy has long advocated for stronger gun laws, having lost her husband in the 1993 Long Island Rail Road shooting massacre. To her credit, Senator Gillibrand has been gracious to her colleague, and even offered to work on Rep. McCarthy’s “signature bill,” the “NICS Improvement Act.” This bill was initially drafted to improve the National Instant Criminal Background Check System (NICS) to prevent individuals disqualified under federal law from purchasing firearms. However, the NRA was allowed to rewrite the bill during the 11th hour to include provisions that would restore gun-purchasing rights to veterans who have been deemed mentally incompetent by the VA. Time will tell if this was a serious offer by Senator Gillibrand to work to improve our background check system (which lacks millions of mental health records that would disqualify purchasers), or yet another attempt to appease the gun lobby.

Senator Gillibrand replaces a legislator with a strong history of support for gun control measures. Hillary Clinton made repeated efforts during her days as First Lady and Senator to reduce gun violence. While running for president, Senator Clinton advocated reinstating the federal Assault Weapons Ban, repealing the Tiahrt Amendment and closing the Gun Show Loophole that allows individuals to buy guns from private sellers without a background check. Senator Gillibrand’s views on gun control appear to stand diametrically opposed to those of her predecessor.

Despite her past record, the Coalition to Stop Gun Violence is eager to work with Senator Gillibrand and educate her about the problem of gun violence in New York and the country as a whole. Like Senator Charles Schumer (D-NY), we hope that Senator Gillibrand’s views will “evolve” and that she will represent all of her constituents—statewide—during her time on Capitol Hill.

September 1, 2008

Looking a Gift Loophole in the Mouth

In July, Bullet Counter Points reported on the “Fire Sales Loophole,” which allows corrupt gun dealers who have had their licenses revoked by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) to sell off their remaining inventory without conducting background checks or keeping records. That blog focused on a Chicago dealer who had his license revoked after committing 500 violations of federal law, and yet who was still permitted to transfer 200 guns from his "business inventory" into his "personal collection" of firearms. Those guns ended up on crime scenes in Canada after the dealer illegally trafficked them across the border and sold them off the books to gang members and others.

Now, an equally disturbing story comes to us from Michigan. On August 14, ATF agents and Michigan State Police troopers descended on the Gun Barn in Highland Township and confiscated more than 612 firearms from the store. The owners of the store, Gabriel Kish III and Deborah Summers, were arrested for dealing in firearms without a federal license.

The ATF had revoked Kish and Summers’ Federal Firearms License (FFL) in 2004 for violations of the 1968 Gun Control Act. Despite the threat they posed to public safety, the couple was then allowed to exploit the Fire Sales Loophole and sell off their remaining inventory without conducting background checks on purchasers or maintaining records of those sales.

Kish and Summers didn’t stop there, however. ATF soon received a tip that the couple was continuing to sell guns off the books even after depleting their remaining inventory. An investigation was launched, during which undercover agents were able to purchase firearms from Gun Barn—cash and carry, no questions asked. Now, after several years of dealing guns illegally, the couple has—finally—been put out of business for good.

ATF resident agent in charge Robin Shoemaker admitted that tracing the guns that were sold by Gun Barn after the store’s license was revoked will be difficult, if not impossible—because there is no paper trail whatsoever for the agency to follow in determining who bought them. Commented Special Agent Thomas Brandon from ATF’s Detroit Field Division: “The unlawful sale of firearms, especially dealing firearms without a license, can put guns into the hands of criminals, and put our communities at risk.”

That would seem so obvious that you’d think Congress would have taken action years ago to close the Fire Sales Loophole. Ever eager to please the gun lobby, however, they have yet to even consider legislation to do so. This has the 320 members of Mayors Against Illegal Guns up in arms (pardon the bad pun).

The tragedy is that the simple effort it would take to close the Fire Sales Loophole would do an enormous amount of good. The ATF has reported that just 1.2 percent of licensed dealers are the source of over 57 percent of guns found on crime scenes. Putting this small but dangerous group of bad apples out of business—immediately and permanently—would go far in drying up the gun pool that criminals swim in.

July 21, 2008

No License? No Problem.

For years, the Coalition to Stop Gun Violence has called attention to the problem of “bad apple” gun dealers who violate federal regulations and sell firearms that are later used in crimes. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) reports that just 1.2 percent of dealers are the source of over 57 percent of guns found on crime scenes.

A recent story demonstrates how easy it is for these “bad apples” to continue arming criminals even after ATF has revoked their licenses to sell firearms. The story focuses on Project Blackhawk, a two-year investigation of an organized gun and drug-smuggling ring between the United States and Canada. As part of the investigation, authorities traced more than 200 crime guns to one particular Chicago-area dealer, Ugur “Mike” Yildiz.

Yildiz was the owner of Chicagoland Bells, a gun shop in the suburbs of Chicago. In 2003, just one year after the store opened, ATF agents inspected it and found 500 violations of the Gun Control Act. Soon thereafter, the agency revoked Yildiz’s federal license to sell firearms. Instead of confiscating his remaining inventory, however, the ATF allowed Yildiz to transfer 200 guns from the store’s inventory to his personal collection of firearms. Yildiz then illegally smuggled these guns across the Canadian border and sold them to criminals and traffickers. Ontario police have seized 80 of Yildiz’s guns from gang members and have even connected one with an attempted murder.

Current law requires individuals “engaged in the business” of dealing firearms to possess a federal license, to conduct background checks on purchasers, and to keep records of sales so firearms can be subsequently traced if they are later used in crime. Private or “hobby” sellers, however, are exempt from these requirements under a loophole created by a 1986 law, the Firearm Owners Protection Act. Once Yildiz transferred his store’s guns to his “private collection,” he was able to evade government oversight altogether.

This is not the first time a bad apple dealer has exploited the Fire Sale Loophole. A similar situation occurred at Valley Gun Shop in Maryland in 2004. ATF recorded 900 violations of federal law by gun shop owner (and then-National Rifle Association Board member) Sandy Abrams and revoked his license to sell firearms. With legal assistance from the NRA, Abrams sued the federal government, seeking an order that would allow him to continue selling guns privately. The Bush Administration and the Department of Justice concurred with Abrams and announced in court papers that “when a dealer loses his license he can dispose of his inventory by selling those firearms” privately without being charged for illegal dealing in firearms. Through such unregulated private sales, Abrams continued to sell guns, one of which was an assault weapon later used by a criminal to shoot at police.

The NRA has worked with Members of Congress to codify the Fire Sale Loophole through the ATF Modernization and Reform Act. This legislation would enhance the ability of prohibited purchasers to obtain firearms without undergoing background checks.

Mayors around the country, however, have stood against the bill and are determined to close the Fire Sale Loophole for good. Mayor Michael Bloomberg of New York City and Mayor Thomas Menino of Boston are the co-chairs of Mayors Against Illegal Guns, a coalition which joins over 320 mayors from 45 states in opposing unlawful gun trafficking. Their proposal to close this loophole is common sense. Dealers who repeatedly violate federal law clearly pose a threat to public safety and should not be allowed to sell firearms without processing any paperwork after their licenses have been revoked.