This from SipseyStreet

"Cease and Desist." ATF fires a shot across the bow of a Montana firearms component manufacturer. His lawyer fires back.

Regular readers will be familiar with the Montana Firearms Freedom Act. The ATF and U.S. Justice Department have been making threatening noises, vowing legal action against anyone who thumbs their nose at the federal leviathan by obeying a state law.

Some of you will also be familiar with the case of Richard Celata and KT Ordnance from back in 2006. Richard was manufacturing 80% complete receivers and the ATF decided they'd seize his property.

Well, the rumor is going around Montana that Richard might be interested in manufacturing firearms consistent with the Montana Firearms Freedom Act. Enter the Arrogant Thug Force. I certify that this is a true transcript of a copy of a letter I received just this afternoon. I will post the original later, probably on Scribd.

U.S. DEPARTMENT OF JUSTICE
BUREAU OF ALCOHOL, TOBACCO, FIREARMS AND EXPLOSIVES

SPECIAL AGENT IN CHARGE
DENVER FIELD DIVISION
DENVER, COLORADO 80294
www.atf.gov

NOTICE OF UNLICENSED FIREARMS DEALING IN VIOLATION OF FEDERAL LAW

Richard P. Celeta
382 Adams Lane
Dillon, Montana 59725

HAND DELIVERED

Dear Richard Celata,

Recently your participation in the purchase and sale of firearms has come to the attention of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). ATF is responsible for enforcement of the Federal firearms laws and, as part of that duty, ATF licenses those persons lawfully dealing in firearms and prevents unlicensed dealing in violation of Federal law. We seek the cooperative efforts of the general public in fulfilling this mandate.

Your firearms activity appears to bring you within the definition of a dealer in firearms as that term is defined by the Gun Control Act. A "dealer" in firearms includes persons engaged in the business of buying and selling firearms at wholesale and retail. A person engages in business as a dealer in firearms by devoting time, attention, and labor to dealing in firearms as a regular course of trade or business with the principal objective of livelihood and profit through the repetitive purchase and resale of firearms. See 18 U.S.C. S 921(a)(21)(C). A person convicted of unlawfully engaging in the business of dealing in firearms without a license is subject to imprisonment for not more than 5 years and/or a fine of up to $250,000.

This letter serves to officially advise you to cease and desist engaging in the business of dealing in firearms until you have sought and obtained a Federal firearms license. A Federal firearms license would authorize the purchase and resale of firearms from a licensed business premises, Continued activity without the required license could result in a recommendation for criminal prosecution.

An Application for License, ATF Form 7, may be obtained from the ATF Distribution Center by calling (301) 583-4696, or by placing an order for an application at www.atf.gov.

Sincerely yours,

(MBV Note: Scrawled signature which appears to be D. Dawson, which would be Douglas Dawson, Assistant Special Agent In Charge, Denver Field Division.)

Special Agent in Charge

(MBV Note: Maybe Dawson gave himself a promotion.)


So that was the shot across the bow. Mr. Celata's lawyer decided that one shot across the bow deserved another, so he fired this back:

SULLIVAN, TABARACCI, RHOADES ATTORNEYS AT LAW
1821 South Avenue West, Third Floor
Missoula, MT 59801
Telephone: (406) 721-9700

Stewart Brown
Division Counsel
Denver Field Division
Bureau of Alcohol, Tobacco, Firearms and Explosives
1961 Stout Street, Room 674
Denver, Colorado 80294

RE: RICHARD CELATA

Dear Mr. Brown,

We represent Richard Celata. He was hand-delivered the enclosed undated "Notice of Unlicensed Firearms Dealing in Violation of Federal Law" on November 10, 2010.

Be advised that Mr. Celata is not now, and has never, dealt in the purchase and sale of firearms, with or without a license to do so. Still, he does make a living, in part, by manufacturing and selling components that can be made ultimately into firearms. He is therefore very worried and intimidated by your agency's letter. In short, you vague but very intimidating demand that Mr. Celata "cease and desist" threatens his livelihood, as well as his freedom, without stating any factual basis for your command.

Frankly it is shocking to me that the Government of the United States of America would make such vague and intimidating demands absent all specific allegation or direction. This is a clear and inexcusable violation of due process. In response to your demand, we demand, on behalf of Mr. Celata, the the BATFE identify the specific items in which you allege he is dealing that you allege to be firearms. (MBV Note: Emphasis in the original.)

Please respond to this letter immediately. Every day that goes by is another violation of Mr. Celata's due process, and costs him not only money, but peace of mind. If we do not hear from you by December 1, 2010, Mr. Celata has authorized us to sue the Government in federal court for a declaratory judgment, as well as actual damages and attorney fees.

We look forward to hearing from you soon.

Sincerely,
SULLIVAN, TABARACCI & RHOADES

(MBV Note: Illegible scrawl signature.)

Quentin M. Rhoades.

cc: Richard Celata

**************************************************

ATF working on its next "Economic Waco"? Richard Celata sends a clarification on his targeting by the ATF.
Received this email from Richard Celata after posting his story last night:

Thank you Sipsey for posting this.

I would like to clarify the comment on “the rumor is going around Montana that Richard might be interested in manufacturing firearms consistent with the Montana Firearms Freedom Act (MMFA).”

It is true that I am interested, I had input in writing that law, BUT, I have never acted on that interest.

I am waiting for the law suit Gary Marbet filed. So, I do not believe this terrorist aggression by the ATF is related to MFFA. At this point we do not know what it is related to.

Richard Celata
KT Ordnance


So, the ATF is once again either

a. Jumping at shadows, or,

b. Deliberately targeting people it can wreak "economic Wacos" on simply because of their political opinions.

My bet is "B."

Mike
III

While I do look at this as a very important issue and firmly believe the ATF is overstepping there bounds. A case like this could very well help revers some of the ATFs prior violations of our rights as well as firmly cement there ability to violate the constitution. With all that said there is a much broader observation i would like to make here.

You cant and wont stop people in this country from owning firearms, not when the skill of the workforce can use there skills to make whatever they want. The people of this country are surly coming around when its common for someone to bend flats and make an AK , or drill some holes and make an AR, to top all that there are people whos income is selling the parts , flat pieces of metal, or 80% receivers.It also says allot about the general mindset of people in this country, how can we not see change is possible?

I refer back to the idea I have seen presented so many times that the government is broke beyond repair. I would agree that given the current state of mind of many sheep it is broke beyond quick single battle victory, but with change of mindset comes a change government. Sure this guy may only represent a small portion of America, but he represent enough to make a business out of it, im pretty sure that his consumers share his mindset and opinions. They may not be ready to jump up and fight to the death , but i dont need them to, I just need them to go out once every few years for one hour and vote.

Here is an important ?.. WHAT will the state of Montana do to help this guy???

ATF ‘cease and desist’ order to parts-maker defies logic and law


On Thursday, Montana unfinished firearm frame manufacturer Richard Celata of KT Ordance received a hand-delivered “cease and desist” letter from the Bureau of Alcohol, Tobacco, Firearms and Explosives (see sidebar slide show).

What for?

The order states:

NOTICE OF UNLICENSED FIREARMS DEALING IN VIOLATION OF FEDERAL LAW

There’s only one problem: Celata’s not doing that. He has manufactured parts for gun owners who wish to build their own firearms, a perfectly legal activity that ATF apparently wishes to squelch through threat of prosecution —what Mike Vanderboegh of Sipsey Street Irregulars has termed an “economic Waco.” Mike shares his thoughts with us on this latest act of intimidation and includes an important update from Celata that raises the possibility this action is retaliatory for his helping craft the Montana Firearms Freedom Act—something ATF has warned everyone against testing.

Long-time WarOnGuns readers will recall Celeste’s persecution by the agency has been the subject of numerous posts and updates on that blog, including:

* BATFU Raids KT Ordnance
* Help KT Ordnance
* Fighting the Swarm

to name a few and give you a feel for what this man has been going through—for years. Jews for the Preservation of Firearms Ownership summarized Celata’s plight and speculated on ATF motivations over four years ago, and it appears nothing has changed.

Here’s the thing: IF Celata is doing what the government accuses him of, since when do they give out warnings and advise people to get a license? Can you imagine the DEA finding you formulating and selling Oxycontin and responding by hand-delivering a letter telling you to stop and not resume activities until you become a legally-authorized pharmacist?

And since when does ATF do things that way? This looks like nothing so much as a clumsy attempt at entrapment--if they can get him to acknowledge in writing that what he is doing constitutes manufacturing firearms, they'll be able to use that to obtain a warrant, do a raid and then characterize it to a jury as Celata's "admission/confession."

No?

Celata’s attorney, Quentin M. Rhoades, has responded with a “cease and desist” demand of his own, also included in the slide show (sorry to have to present it that way, but the Examiner.com “upgrade” no longer allows content providers to embed documents in articles—for those who wish to have a copy of the complete document, I have posted it on Scribd).

Rhoades accuses the government of making “vague and intimidating demands absent all specific allegation or direction” and returns fire with the promise of a lawsuit.

It’s pretty obvious if the feds thought they had something on Celata they would have just come busting in with ski masks down, guns drawn and bubble-wrap tightly wound, as per standard practice. Why are we to think this is anything other than an official harassment campaign to discourage activity they do not approve of but do not have actual authority to enforce against? Why would we not think they’re relying on their near-unlimited resources being able to break Celata’s financial ability to defend himself against?

When are our representatives going to start dragging bullies in front of an oversight committee to explain themselves—under oath?

I guess that depends on when we gun owners are going to demand it.

You have, already, right?

The problem is jurisdiction and venue. If they are making parts on request for "MONTANA" gun owners the BATF should be out of line.
If they are advertising nationwide and agreeing to send these parts across state lines they may be in trouble. The new law Montana passed was to protect Montana Gun Manufacturers from Federal licensing and was so they could make and sell weapons and parts to Montana customers only.
If the parts shipped will allow the assembly of a weapon that if made outside of Montana would require license then they cold give the BATF sufficient venue to support a raid with Montana State police assisting.

Here is the kicker:

Andrew Traver new BATFE czar.

This is the EXACT SAME M.O. used by Treasury and DOJ to destroy the Liberty Dollar, which appears to be right out of the Stasi Playbook.

It starts with a "warning letter," and within a year expect a raid.

Prince Barry's BATFE badly wants to start a war, and they are certainly heading in that direction.

As Mike Vanderboegh warns us:

What happens within the bureaucracy is largely a matter of perceived credibility and the safety of the darkness. Up until now, the ATF has plundered people's lives and robbed them of their freedom, all done with lies that would not survive in the light of day. They would not be so froggy if people perceived them as the liars they are.