Stag Arms makes statement following their recent ATF investigation and the closing of their business.
It has been well known throughout the shooting and outdoor worlds that Stag Arms, maker of very popular AR-15 platforms, has been under a lot of heat from the ATF over bad record keeping and its manufacturing processes.
Back in August of 2014, the ATF began their investigation after discovering roughly 3,000 lower receivers without serial numbers on the factory floor during a routine inspection.
After Stag Arms could not come up with a legal reason as to why the lowers had no serial numbers the ATF returned to Stag Arms in October of the same year to seize the lowers. They obtained a search warrant to look for any activity or other evidence of possible weapons trafficking.
Over a year later they have reached the end of a very long investigation. Mark Malkowski, founder and CEO of Stag Arms, has reached a guilty plea bargain with the Federal government to resolve the matter.
Stag Arms released this statement on their FaceBook page:
A STATEMENT FROM STAG ARMS, LLC
NEW BRITAIN – Tuesday, December 22, 2015 – “Stag Arms, LLC today announced that the company and its founder, Mark Malkowski, have reached a resolution with government officials stemming from an investigation that began last year relating primarily to the timing of recordkeeping during the manufacturing process and compliance with federal firearms manufacturing and registration requirements. Both Stag Arms and Mr. Malkowski cooperated fully with the government throughout the investigation. While both Stag Arms and Mr. Malkowski believe that public safety was never compromised, they have agreed to enter guilty pleas and to pay significant fines, because doing so is in the best interests of the company and its employees. Mr. Malkowski has also agreed to transition the business to new ownership and is in advanced talks with a potential buyer. Mr. Malkowski will continue as a marketing consultant to the business and the industry for a period of time following the sale. Stag Arms takes its obligations to comply with all laws and regulations very seriously and has made comprehensive changes to ensure that similar problems cannot happen again and that best compliance practices are maintained in all of its operations.”
– Stag Arms, LLC
Stag Arms will pay out a $500,000 dollar fine and Malkowski will have to pay an additional $100,000 fine. Under the plea bargain, Malkowski is also never again allowed to own, manage, or operate any type of firearms company again once his temporary consulting is done at Stag Arms and a new owner is found.
The real question on everyone’s minds now is who is the potential buyer that they speak of in the statement and will they be able to keep producing the quality firearms that Stag Arms is loved for?