Gilbert v. Bangs

813 F. Supp. 2d 669, 2011 U.S. Dist. LEXIS 93774, 2011 WL 3681530
CourtDistrict Court, D. Maryland
DecidedAugust 22, 2011
DocketCivil Action No. 10-cv-1440-AW
StatusPublished
Cited by2 cases

This text of 813 F. Supp. 2d 669 (Gilbert v. Bangs) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gilbert v. Bangs, 813 F. Supp. 2d 669, 2011 U.S. Dist. LEXIS 93774, 2011 WL 3681530 (D. Md. 2011).

Opinion

MEMORANDUM OPINION

ALEXANDER WILLIAMS, JR., District Judge.

The matters currently before the Court are a motion for summary judgment by Respondent Gary Bangs, the Director, Industry Operations of the Baltimore Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (hereinafter “ATF”), with the U.S. Department of Justice, see Doc. No. 13, and a motion for leave to file a surreply by Petitioner Charles Gilbert (“Gilbert”), see Doc. No. 29. Gilbert’s complaint seeks judicial review of ATF’s denial of his application for a license to deal in firearms. Doc. No. 1. The issues are fully briefed and the Court now rules pursuant to Local Rule 105.6, no hearing being deemed necessary. For the reasons stated more fully below, the Court will GRANT ATF’s motion for summary judgment and DENY Gilbert’s surreply.

I. FACTUAL AND PROCEDURAL BACKGROUND

The following facts are either undisputed or construed in the light most favorable to Gilbert, and are based primarily on documents in the administrative record (cited as “AR”), which was filed on October 1, 2010, and contains the much of the evidence referenced by the parties in this matter. Gilbert is the present owner of Gilbert Indoor Range, LLC, (“GIR”), which operates an indoor firearms range, and the former owner of American Arms International (“AAI”).

At some point around 1984, AAI secured a federal firearms dealers license to sell firearms and ammunition. AAI’s license was later revoked in administrative proceedings beginning in 2006 because an inspection of Gilbert’s operations revealed a multitude of record-keeping and other violations of the Gun Control Act of 1968 (“GCA”), as amended, 18 U.S.C. §§ 921-930, Pub.L. No. 90-618, 82 Stat. 213 (1968).1

[671]*671Under 18 U.S.C. § 923(g)(1)(A), every licensed firearms dealer must maintain such records of importation, production, shipment, receipt, sale, or other disposition of firearms at his place of business for such period, and in such form, as the Attorney General may by regulations prescribe. It is unlawful for a licensed dealer knowingly to make any false entry in, to fail to make appropriate entry in, or to fail to properly maintain, any record which he is required to keep pursuant to section 923 or regulations promulgated thereunder. 18 U.S.C. § 922(m). The Attorney General may revoke a license for willful violations of this statute, after notice and opportunity for a hearing. 18 U.S.C. § 923(e). After a revocation, the aggrieved party may petition for de novo review to the United States District Court within 60 days. 18 U.S.C. § 923(f)(3).

ATF inspectors found violations of the provisions detailed above after inspections of Gilbert’s businesses in 1984, 1987, 1991, 2000, and 2003. Following the August 2003 inspection, as detailed in the Fourth Circuit’s opinion:

ATF issued a notice of Revocation of License to AAT on January 21, 2005. The Notice indicated that AAI had willfully violated the provisions and regulations of the GCA and it detailed the aforementioned history of noncompliance. On January 13, 2006, the ATF issued a Notice of Denial for GIR’s application for renewal of its federal firearms license.
At Gilbert’s request, a hearing regarding these decisions was held before an ATF Hearing Officer on March 30, 2006. At this hearing, Gilbert, represented by counsel, introduced no evidence to contest the factual basis for the revocation and denial, and he refused to testify when called as a witness by the Government. On May 22, 2006, the Hearing Officer issued his report, recommending revocation and denial.
On June 24, 2006, ATF’s Director of Industry Operations for the Baltimore Field Division, Arthur Herbert, issued a Final Notice of Revocation/Denial to Gilbert. The Final Notice stated that Gilbert had “willfully engaged in repeat violations of the Gun Control Act.” At Gilbert’s request, ATF stayed the effective date of the revocation pending review by the United States District Court for the District of Maryland pursuant to 18 U.S.C. § 923(f)(3) (2006).
Gilbert’s petition for review asked the district court to “1) decide that ATF erred and was not authorized to revoke AAI’s license or to deny GIR’s license application; 2) order ATF to withdraw the revocation and denial; and 3) award such other relief, including costs and attorney’s fees ... as appropriate.” Instead, the district court granted summary judgment to ATF on February 19, 2008.
Am. Arms Int’l, 563 F.3d at 81 (citations omitted).

Following the August 2003 inspection, ATF found that Gilbert engaged in subsequent violations of the GCA and related regulations which served as additional bases for denying his application for a license.

First, the Director of Industry Operations (DIO) found that, following the August 2003 inspection, Gilbert had willfully failed to report the theft/loss of nineteen firearms in violation of 18 U.S.C. § 923(g)(6) and 27 C.F.R. § 478.39a. AR at 9. Gilbert was notified both during the August 2003 inspection and on October 14, 2003, that he needed to report firearms missing from his inventory. See id. According to Gilbert, he did not know the 19 firearms were missing, see Doc. No. 21 at 27.

Second, inspections conducted in 2008 following the revocation of AAI’s firearms license February 20, 2008, revealed subse[672]*672quent conduct by Gilbert or his employees taking orders for firearms and accepting payments for firearms. AR at 9-11. The ATF found that these actions constituted the continued business of dealing in firearms in violation of 18 U.S.C. §§ 922(a)(1)(A) and 18 U.S.C. § 921(a)(21)(C), (a)(22). Specifically, Gilbert or his employees continued to take orders for the purchase of new firearms on February 21, 2008 and March 4, 7, and 10, 2008, after Gilbert had been advised not to do so. AR at 9-11. Gilbert contended that his employees took the orders for the firearms rather than himself, Doc. No. 21 at 29, but the Director of Industry Operations rejected this argument, AR at 9-12.

The underlying facts regarding these sales are not contested. Once an order was taken from a customer, Gilbert or his employees would put in an order to a supplier. Pursuant to an agreement with Engage Armament, a federally licensed firearms dealer, the firearms would be received and transferred through Engage’s license in exchange for Engage’s sharing $30 in the sale proceeds. HT 316-319.

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813 F. Supp. 2d 669, 2011 U.S. Dist. LEXIS 93774, 2011 WL 3681530, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gilbert-v-bangs-mdd-2011.