NATIONALLY RECOGNIZED FEDERAL LAWYERS
What happens if you sell too many guns
|Thanks for visiting Spodek Law Group. We’re a second-generation law firm, managed by Todd Spodek – who has over 40 years of combined experience with our legal team handling federal firearms cases. We’ve handled many, many high-profile cases that others said were unwinnable, cases you probably heard about – Anna Delvey’s Netflix series, the Ghislaine Maxwell juror misconduct case. If you’re reading this, you’re probably worried about selling guns without a license, and you need to understand what “too many” actually means in federal court.
There’s no magic number. That’s the first thing prosecutors want you to know. The ATF doesn’t care if you sold three guns or three hundred – they care about your intent, your profit motive, your behavior. The 2024 ATF rule changed everything by redefining what it means to be “engaged in the business” of selling firearms, and understanding this shift could be the difference between walking free and spending years in federal prison.
The ATF’s New “Engaged in Business” Definition
The Bipartisan Safer Communities Act expanded the definition in 2022, and ATF’s 2024 final rule implemented it. You’re “engaged in the business” if you devote time, attention, and labor to dealing firearms to “predominantly earn a profit” through repetitive sales.
Here’s what makes this dangerous – you don’t need to actually make a profit. You could lose money on every transaction, and prosecutors can still charge you if they believe your predominant intent was earning money. Intent matters more than results. Actual profit isn’t required, just the intent to predominantly earn pecuniary gain.
One gun could be enough. Volume matters, but it’s never the whole story. Prosecutors look at advertising, storage facilities, business cards, online listings, gun show appearances, how you acquired inventory.
How Federal Prosecutors Build These Cases
ATF investigations focus on specific indicators – and they’re watching more than you think. Unlicensed dealing ranks as the most frequently identified violation in ATF trafficking investigations nationwide. They know what to look for.
Repetitive sales trigger scrutiny. You sold a gun from your personal collection – that’s legal. You bought ten guns at a gun show and listed them online the next week – that’s potentially federal prison. The line isn’t about numbers, it’s about pattern and purpose.
Your profit margin doesn’t protect you. Some defendants think selling at cost creates a defense. It doesn’t. The rule explicitly states you can lose money on transactions and still face charges if prosecutors prove your predominant intent was making money.
Online activity is evidence. Every Facebook Marketplace post, every Armslist ad, every gun forum interaction – ATF agents screenshot it, catalog it, use it to prove you were operating as an unlicensed dealer. They track your digital footprint going back years.
The Real Penalties You’re Facing
Federal prison time is real – not theoretical. Under 18 U.S.C. § 922(a)(1)(A), willfully dealing firearms without a license carries up to five years in federal prison, up to $250,000 in fines, and up to three years supervised release. Recent cases show judges actually impose these sentences.
May 2025 – David Joseph Mull of Indiana got four years in federal prison for unlicensed dealing. He sold over 1,300 firearms without obtaining a license, many destined for Mexico. The judge didn’t care that Mull claimed he didn’t know he needed a license – ignorance of the law failed as a defense.
August 2025 – Keith Harlow of Massachusetts was arrested on charges including unlicensed manufacturing and dealing. Federal prosecutors added drug distribution and felon in possession charges, stacking potential sentences into decades. That’s how federal cases work – they find one violation, they investigate everything, they charge you with anything they can prove.
The “willfully” element matters. Prosecutors must prove you knew your conduct was unlawful or acted with reckless disregard. But courts routinely find that experienced gun owners who repeatedly buy and sell firearms should know they need a license. Your gun knowledge works against you in federal court.
The 2024 Rule Faces Legal Challenges
Federal judges blocked parts of the ATF rule – but you can’t rely on that protecting you. A Texas federal court issued a preliminary injunction in May 2024, restraining enforcement against specific plaintiffs including Texas, Louisiana, Mississippi, Utah, and gun rights organizations. Alabama’s federal court went further, invalidating portions of the rule and issuing a permanent injunction for NRA members.
You’re probably not protected by these rulings. Courts issued narrow injunctions applying only to named plaintiffs – specific states, specific organizations. If you’re not part of those groups, federal prosecutors will argue the rule still applies to you. Even in states where courts blocked enforcement, U.S. Attorneys can charge you under the underlying statute without referencing the 2024 rule.
The legal landscape keeps shifting. DOJ and ATF announced they’re reviewing the “engaged in business” rule in 2025, potentially changing enforcement again. But while they review, prosecutions continue. Federal agents are still investigating unlicensed dealing, U.S. Attorneys are still bringing charges, defendants are still going to prison. Legal uncertainty doesn’t pause federal law enforcement.
What You Should Do Right Now
Stop selling immediately if you think you might need a license. Every additional transaction is another federal charge, another piece of evidence prosecutors use to prove you were “engaged in the business.”
Get a Federal Firearms License if you’re going to keep dealing. The application process takes time, costs money, requires ATF approval – but it’s infinitely better than federal prison. An FFL lets you legally do what you’re probably already doing illegally.
Talk to a federal criminal defense attorney before ATF contacts you. Once agents show up at your door with a search warrant, your options narrow dramatically. We’ve defended clients in unlicensed dealing cases from coast to coast – cases where ATF built investigations over months or years before making arrests. Early intervention changes outcomes.
Federal firearms charges are unforgiving. ATF has unlimited resources, experienced agents who’ve built hundreds of these cases, prosecutors who know exactly how to prove “engaged in the business” even when you thought you were just selling from your personal collection. At Spodek Law Group – we’ve handled federal firearms cases for many, many years. We understand how ATF thinks, how they investigate, what evidence they need, where their cases have weaknesses.
Unlike other law firms who maintain relationships with federal prosecutors, our loyalty is only to you. We’ve represented clients in cases others called unwinnable – that’s what we’re known for. If you’re worried about unlicensed dealing charges, if ATF has contacted you, if you’ve been selling guns and don’t know whether you crossed the line – call us. We’re available 24/7, we handle federal cases nationwide, and we know how to fight these prosecutions.
Don’t wait until federal agents execute a search warrant. By then, they’ve already built most of their case – you’re just giving them the final pieces of evidence. The time to act is now, before charges are filed, when we can still shape the outcome. Federal prison for unlicensed gun dealing is real, it’s happening right now in 2025, and it could happen to you unless you take this seriously.