“The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) has revoked both Federal Firearms Licenses (FFLs) belonging to a gun shop that sued the federal government over the now-dead frames and receiver rule.

Morehouse Enterprises in North Dakota teamed up with Gun Owners of America (GOA) to fight the ATF’s attempt to regulate unfinished frames and receivers through bureaucratic Fiat. The ATF created a rule in response to a White House order to ban 80% firearms that President Joe Biden calls “ghost guns.” This lawsuit was the first case in the country to challenge the now-vacated rule.

Shortly after Morehouse Enterprises filed suit, the ATF launched an inspection of the gun shop. This ATF visit was the first inspection that the store ever received from the ATF. The Industry Operations Inspector (IOI), Jacob Temp, jokingly told the store owner that the ATF discussed whether the inspection would look like retaliation for the court case. The IOI said that the ATF originally would delay any inspection for at least three years, pending litigation, but the Bureau decided to inspect the store anyways…

The ATF found five policy violations, three of which or simple paperwork errors. The first violation was the store forgetting to record the return of a firearm to a customer that brought the gun in for gunsmithing. The second violation was the store accidentally writing a customer’s Social Security number in the NICS transaction number (NTN) box. A third clerical error was a number left off a NICS transaction number.

The store had two other more serious violations. The store had transferred a handgun to a Georgia resident. FFLs are not allowed to transfer handguns to residents of another state due to the differing gun laws surrounding handguns. In this case, Georgia law is not stricter than North Dakota law…

FFL revocations are up 500% since Biden took office, but even under Biden’s zero-tolerance policy, the store’s violations do not rise to the level for revocation. Under the president’s policy, the violations only merit a ‘Warning Conference.’”