United States v. M-K Specialties Model M-14 MacHinegun Serial Number 1447797

424 F. Supp. 2d 862, 2006 U.S. Dist. LEXIS 18470, 2006 WL 825006
CourtDistrict Court, N.D. West Virginia
DecidedMarch 22, 2006
Docket1:04-cv-00041
StatusPublished

This text of 424 F. Supp. 2d 862 (United States v. M-K Specialties Model M-14 MacHinegun Serial Number 1447797) is published on Counsel Stack Legal Research, covering District Court, N.D. West Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. M-K Specialties Model M-14 MacHinegun Serial Number 1447797, 424 F. Supp. 2d 862, 2006 U.S. Dist. LEXIS 18470, 2006 WL 825006 (N.D.W. Va. 2006).

Opinion

ORDER GRANTING THE GOVERNMENT’S MOTION FOR SUMMARY JUDGMENT AND FORFEITING THE DEFENDANT PROPERTY TO THE GOVERNMENT

KEELEY, District Judge.

This forfeiture action is pending on competing motions for summary judgment filed by the Government and the claimants. For the following reasons, the Court GRANTS the Government’s motion for summary judgment and FORFEITS the defendant property to the Government.

I. BACKGROUND

A. Brief Statutory Primer

The National Firearms Act (“NFA”), 26 U.S.C. § 5801 et seq., provides for the federal taxation of certain classes of firearms, including, but not limited to, “ma-chineguns,” and further provides for a central registry of all such firearms that are not under the control of the Government. This central registry is called the National Firearms Registration and Transfer Record (“NFRTR”). The information in the NFRTR includes identification of each firearm (by serial number), the date of the firearm’s registration, and the name and the address of the person who is entitled to possess the firearm. 26 U.S.C. § 5841(a).

Each manufacturer, importer and maker must register in the NFRTR each firearm that it produces if the firearm falls within the specific statutory class of firearms. 26 U.S.C. § 5841(b). The NFA also requires each manufacturer, importer and dealer of firearms as defined by the Act to register with the Secretary of Treasury in each internal revenue district in which it intends to conduct business and pay a special (occupational) tax for each place of business. 26 U.S.C. §§ 5801, 5802.

Furthermore, any person who transfers a firearm subject to the Act must register the firearm to the person to whom it is being transferred and pay a transfer tax. 26 U.S.C. §§ 5811, 5812, 5841. In order to register a firearm, the person selling the firearm must file with the Bureau of Alcohol, Tobacco, and Firearms of the Department of Treasury (“ATF”) an application for the transfer and registration of the firearm to the person purchasing the firearm. 26 U.S.C. § 5812(a). The application requires payment of the transfer tax, which is assessed by the NFA upon each transfer of the firearm. 26 U.S.C. § 5811. The transferee may only take possession of the firearm after the Secretary of Treasury has approved the transfer and registration of the firearm. 26 U.S.C. § 5812(b).

Based on the preceding statutory provisions, 26 U.S.C. § 5861 states:

It shall be unlawful for any person-
la) to engage in business as a manufacturer or importer of, or dealer in, firearms without having paid the special (occupational) tax required by section 5801 for his business or having registered as required by section 5802; or
(b) to receive or possess a firearm transferred to him in violation of the provisions of this chapter; or
(c) to receive or possess a firearm made in violation of the provisions of this chapter; or
(d) to receiver or possess a firearm which is not registered to him in the National Firearms Registration and Transfer Record; or
(e) to transfer a firearm in violation of the provisions of this chapter; or *865 (f) to make a firearm in violation of the provisions of this chapter....

Moreover, any firearm involved in a violation of the NFA is subject to seizure and forfeiture. 26 U.S.C. § 5872(a).

The NFA’s definition of a firearm includes, but is not limited to, a “machine-gun.” 26 U.S.C. § 5845(a)(6). The NFA defines “machinegun” as follows:

Any weapon which shoots, is designed to shoot, or can be readily restored to shoot, automatically more than one shot, without manual reloading, or by a single function of the trigger. The term shall also include the frame or receiver of any such weapon, any part designed and intended solely and exclusively, or combination of parts designed and intended, for use in converting a weapon into a machinegun, and any combination of parts from which a machinegun can be assembled if such parts are in the possession or under the control of a person.

26 U.S.C. § 5845(b). The definition of “machinegun” underlies the dispute in this matter.

B. Brief Summary of Facts

The defendants are MK Specialities model M-14, 7.62 caliber machineguns that are identified by individual serial numbers. MK Specialities, Inc. (“MK Specialities”) is the company through which Michael Kelly, Sr. (“Kelly”) distributed these firearms. Kelly held a Federal Firearms License as a manufacturer and dealer of firearms and, therefore, was licensed to distribute firearms out of his residence in Grafton, West Virginia.

As a manufacturer and dealer of firearms, Kelly, doing business as MK Special-ities, neither paid the special (occupational) tax required by 26 U.S.C. § 5801 nor registered with the Secretary of Treasury as required by 26 U.S.C. § 5802. Furthermore, he possessed the defendant receivers without registering the firearms in the NFRTR as required by 26 U.S.C. § 5841. Similarly, neither Kelly nor any claimant, as required by 26 U.S.C. §§ 5812(a), 5841(b), registered any of the defendant receivers in the NFRTR when they were transferred.

On March 10, 2004, the Government filed its complaint for forfeiture in rem, claiming that the defendant receivers are “machineguns” as defined by the NFA and requesting that they be forfeited to the Government pursuant to 26 U.S.C. § 5872(a). In response, several claimants filed verified claims of interest or right in the defendant receivers.

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Bluebook (online)
424 F. Supp. 2d 862, 2006 U.S. Dist. LEXIS 18470, 2006 WL 825006, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-m-k-specialties-model-m-14-machinegun-serial-number-wvnd-2006.