Can you go to prison for unlicensed gun dealing

| by Max Soni

Can you go to prison for unlicensed gun dealing?

Thanks for visiting Spodek Law Group – a second-generation law firm managed by Todd Spodek. We have over 40 years of combined experience handling federal firearms cases, many of them cases other attorneys wouldn’t touch. You’ve probably heard about some of the high-profile matters we’ve handled – Anna Delvey’s case that became a Netflix series, the Ghislaine Maxwell juror misconduct case, Alec Baldwin’s stalking case. Federal gun charges are just as serious, and unlicensed dealing charges destroy lives if you don’t fight back correctly.

This article answers whether unlicensed gun dealing sends people to federal prison – and the short answer is yes, absolutely. We’ll explain what counts as “engaged in the business” under federal law, what sentences defendants actually receive in 2025, and why these cases are dangerously easy for prosecutors to prove.

You’re looking at up to five years in federal prison

Under 18 U.S.C. § 922(a)(1)(A), it’s illegal to engage in the business of dealing in firearms without a Federal Firearms License. The maximum penalty under 18 U.S.C. § 924 is five years in federal prison and substantial fines. What defendants actually get sentenced to depends on the Federal Sentencing Guidelines, their criminal history, how many guns were involved, and whether they cooperate.

In May 2025, David Joseph Mull got four years in federal prison for selling over 1,300 firearms without a license. Mull sold more than 500 guns to one customer alone for $350,000 in cash between 2019 and 2023. A 2024 Florida case showed similar results – a couple received 3 years and 10 months for unlicensed dealing. These aren’t outlier sentences, they’re what actually happens.

The sentencing calculation works through Guidelines Section 2K2.1, and if you’re trafficking firearms – which means transporting, transferring, or disposing of two or more firearms – the guidelines add a 4-level enhancement. Most unlicensed dealers get hit with that enhancement.

What “engaged in the business” actually means in 2025

The critical question in every unlicensed dealing case is whether you were “engaged in the business” of dealing firearms. Private individuals can sell guns from their personal collections occasionally without needing an FFL. Gun dealers cannot.

ATF’s 2024 rule expanded who counts as “engaged in the business” to cover anyone who devotes time, attention, and labor to dealing in firearms as a regular course of trade or business to predominately earn a profit through repetitive purchase and resale of firearms.

It doesn’t require that dealing be your primary income source. Selling firearms at gun shows regularly, buying guns specifically to resell them, advertising firearms for sale, maintaining inventory – these factors point toward “engaged in the business” even if you have another job.

Federal courts struck down parts of ATF’s 2024 rule in preliminary injunctions in 2025. The Northern District of Alabama held in Butler v. Bondi that ATF exceeded its authority. These legal challenges mean the exact boundaries are contested right now – but federal prosecutors are still charging unlicensed dealing cases aggressively.

If you sold 50 guns in a year for profit, you’re dealing. If you bought firearms wholesale to resell at markup, you’re dealing. If you set up tables at gun shows to sell inventory, you’re dealing.

These cases are simple for prosecutors to prove

According to the Department of Justice, federal firearms offenses are “simple and quick to prove” compared to other federal crimes. The prosecution doesn’t need to prove you knew the specific legal definition of “engaged in the business” – they just need to show you repeatedly bought and sold guns for profit without an FFL.

ATF builds these cases through undercover buys, confidential informants, gun show surveillance, and tracing firearms recovered at crime scenes back to the seller. They trace every firearm through its serial number. When multiple guns trace back to you as the source, and you don’t have an FFL, you’re getting indicted.

The evidence is usually overwhelming. Text messages about gun sales. Bank records showing cash deposits. Surveillance video from gun shows. Your own statements to ATF during an interview before you understood you needed a lawyer.

There aren’t many viable defenses. You can’t claim you didn’t know selling guns repeatedly for profit required a license – ignorance of law isn’t a defense. Your only defense is arguing you weren’t “engaged in the business” because your sales were occasional and from a personal collection.

Criminal history and cooperation determine your sentence

The Federal Sentencing Guidelines calculate your sentence based on the offense level and your criminal history category. Research from the U.S. Sentencing Commission shows that defendants with no prior criminal record received an average of 33 fewer months in prison than defendants with prior records for federal firearms offenses. Only 0.03% of federal firearms offenders had completely clean records – almost everyone charged federally has some criminal history.

The number of firearms matters. The Mull case – 1,300+ firearms over several years – resulted in four years in federal prison. Smaller operations might get 18-24 months, but you’re still going to prison.

Cooperation can reduce your sentence through a 5K1.1 motion if you provide substantial assistance to the government. Acceptance of responsibility gives you a 2-3 level reduction if you plead guilty and accept what you did was wrong.

What we do when you’re charged with unlicensed dealing

If you’re under investigation or already indicted, the first thing we do is shut down communication with law enforcement. Defendants destroy their cases by talking to ATF agents during interviews, thinking they can explain their way out of trouble. You cannot. Every word you say gives prosecutors more evidence.

We analyze what the government actually has. How many firearms did they trace to you? What do the buyers say? What did you tell ATF if you already talked to them? We need to know the strength of the prosecution’s case before we can advise whether to fight or negotiate.

If the evidence is overwhelming – you sold 100 guns in a year, you advertised yourself as a dealer, you kept inventory records – then trial is suicide. The conviction rate in federal court is over 90% at trial. In that situation, we negotiate the best possible plea agreement and fight for the lowest guideline calculation at sentencing.

If the case has weaknesses – you only sold a handful of guns over several years, the firearms came from a legitimate personal collection – then we fight. We challenge whether you were truly “engaged in the business” versus making occasional private sales. We argue the 2024 ATF rule doesn’t apply retroactively, and that parts of the rule are invalid under recent court decisions.

At Spodek Law Group – we’ve handled federal firearms cases for decades, many, many, years of experience defending clients against federal prosecutors who think every case is a slam dunk. You need attorneys who understand the sentencing guidelines, who know how to negotiate with federal prosecutors, and who can make the arguments that reduce your exposure.

If ATF contacted you, if you received a grand jury subpoena, if you were arrested – call us immediately. We’re available 24/7. Don’t talk to law enforcement without counsel – call us first.