The ongoing conflict over the Rare Breed Forced Reset Trigger (FRT-15) has resulted in a federal lawsuit in which the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) accuses Rare Breed of conspiring to defraud the Unites States. Specifically, the suit claims that Rare Breed has “knowingly and intentionally conspired to defraud the United States by impeding, impairing, obstructing, and defeating the lawful Government functions of ATF in their regulation of machineguns under the National Firearms Act of 1934 (NFA) and the Gun Control Act of 1968 (GCA).”

The suit further claims that ATF has probable cause to believe that Rare Breed has “engaged in the ongoing commission of mail fraud…wire fraud…as well as conspiracy to commit mail and wire fraud…in connection with their sale of the illegal FRT-15s.”

Interestingly, this action is a civil suit, not a criminal proceeding. The ATF asks the court for “injunctive relief…in order to protect the United States from further fraud.” The January 19, 2023, suit was filed in Federal District Court in the Eastern District of New York. The judge has unsurprisingly issued a temporary restraining order (TRO) against Rare Breed Firearms, Rare Breed Triggers, Company President Lawrence DeMonico, and owner Kevin Maxwell. Violation of the TRO by selling any more FRT-15s could result in serious criminal charges against DeMonico and Maxwell.

The Charges Against Rare Breed

As noted above, ATF is suing the company and its executives for fraud against the United States because the company allegedly sold illegal “machine guns,” thus disregarding the ATF’s duty to “protect” the public against such devices. The mail and wire fraud charges stem from Rare Breed’s allegedly misleading its customers and shipping FRT-15’s and the similar “Wide Open Trigger (WOT) under a false name (Red Beard Treasures).

The ATF also claims that, by selling tens of thousands of these products illegally, they cost the government an estimated $32 million in unpaid tax stamps. That charge seems very shaky because of the way machine gun law works, but the government seems to be all in against Rare Breed.

US Attorney General Merrick Garland said, regarding the suit, that the Justice Department will do “everything in its power to protect the American people from gun violence and to hold accountable those that flood our communities with illegal guns.” Never mind that not one FRT-15 has been used in a crime.

The Outlook for Rare Breed

The final result is difficult to predict, but some things seem fairly clear. The ATF has massaged the definition of “machinegun” by claiming the NFA language of “a single pull of the trigger” may be interpreted as “a single function of the trigger.” If allowed, that change could be significant. The FRT-15 clearly requires one “pull” per round fired. But how the term “function” is defined regarding the FRT-15 is murkier.

The government chose possibly the most anti-gun court in possibly the most anti-gun state to file the suit. A judge in Brooklyn is not likely to be gun-friendly. Indeed, the TRO has already been issued, with a preliminary injunction likely to follow. The suit doesn’t say so, but it seems very likely that the government is lining up criminal charges against DeMonico and Maxwell. A successful civil suit stopping the FRT-15’s sale would be a potential weapon in such a case.

One thing is clear: the government appears to be trying to ruin Rare Breed, DeMonico, and Maxwell financially. The suit is asking the court to order Rare Breed to reimburse everyone who bought FRT-15s and WOTs, as well as making good on the alleged lost tax money. There’s no way the defendants have that kind of cash.

The first round probably won’t go well for Rare Breed. The company will likely appeal, but that would go to the Second US Circuit Court of Appeals, which is equally anti-gun. This will be a major story moving forward. We will keep you up to date as it progresses. You can read the suit for yourself at courtlistener.com.>