A man who allegedly sold a gun to the man who killed Chattanooga Police Sgt. Tim Chapin has agreed to forfeit 323 weapons to federal authorities.
Kevin Dawson did so after earlier pleading guilty to conspiracy to engage in the business of dealing firearms without a license, possession of a machine gun, structuring transactions to avoid reporting requirements and concealment of assets in a bankruptcy proceeding.
The Ooltewah man faces sentencing on Jan. 10. He could get up to five years in federal prison on each case.
Anyone claiming an interest in any of the weapons will be allowed to file a claim and offered the chance to prove the claim.
Authorities said Jesse Mathews bought a gun from Dawson at a gun show at the National Guard Armory on Holtzclaw Avenue.
Dawson was charged along with Jack Wardlaw and Carl and Richard Monroe on gun charges.
The Monroes are set to go to trial in Federal Court today with Judge Curtis Collier presiding.
Authorities said, "On April 18, 2009, the defendant purchased 31 firearms from Earl Austin Crow ill, a federal firearms licensee (FFL). On September 10,2010, the defendant purchased 28 firearms from Globo Loan, Inc., an FFL.
"In April 2011, Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) bccame aware of the fact that the defendant was selling firearms. It was discovered that the defendant, who was not an FFL, traded a firearm at a gun show to Jesse Mathews, a convicted felon and the person who subsequently shot and killed a Chattanooga Police Sergeant. ATF agents interviewed the defendant in April 2011 regarding the firearm he traded to Mathews. The defendant said that Mathews told him he was not a felon. The agents advised the defendant to obtain a federal firearms license due to his apparent frequent and consistent firearms sales.
"In October 2011. it was learned that the defendant was still selling firearms without a federal firearm license. A business card was obtained which had the defendant's name and phone number as well as co-defendant Jack Wardlaw's name and phone number and the business name "TN Goods...".
"Also in October, 2011, IRS Agent Scott Kennedy found that the defendant had made two cash withdraws within four days of each other, totaling more than $10,000. The first, on September 29, 2011, was for $9,000. The second, on October 3, 2011, was for $3,800. Agent Kennedy spoke with the bank teller and manager about the withdraws. The teller said that the defendant had asked her how much he could take out before they had to notify the IRS. He also asked how soon he could withdraw more money without raising suspicions.
"On October 20,2011, the defendant filed a Chapter 13 bankruptcy case in the United States Bankruptcy Court for the Eastern District of Tennessee, Chattanooga Division, Case No. 11-15833. He converted his bankruptcy case to a Chapter 7 on January 17,2012. Pursuant to this bankruptcy filing, the defendant caused to be filed several documents which related to a determination ofhis assets. These documents were signed by the defendant under oath. In one such document titled Schedule B the defendant was required to disclose any and all firearms in which he had an interest as of October 20, 2011. The defendant answered "None." The defendant was also required to disclose the amount of money he had on hand. The defendant disclosed $2,800, when in fact he had withdrawn $12,800 cash in the three weeks preceding his bankruptcy filing and should have had an additional $6,500 from that $12,800 that he failed to disclosed.
"On April 25, 2012, the defendant testified under oath at an examination related to his bankruptcy case. During this examination, the defendant admitted that in October 2011 he owned one handgun, a Glock 45. During this examination, the defendant also answered that he had not sold anything besides a vehicle in the years 2011 and 2012. As stated below, the defendant sold more than twenty fireanns to two undercover agents in the time between the defendant's Schedule B filing and his sworn testimony.
"Between February 12, and May 23,2012, two ATF agents acting in an undercover capacity arranged the purchase of more than twenty fireanns from the defendant. The agents contacted the defendant through an email address and phone number listed on his "TN Goods ..." business card. Throughout these conversations the defendant explained that he and his father-in-law, co-defendant Jack Wardlaw, went to gun shows most weekends and he could get whatever fireann the agent wanted to purchase. The defendant displayed multiple fireanns as many as twenty at a time, including several different manufacturer's models ofthe same caliber handgun. The defendant offered to look for "lower end handguns" for the agent and said that he would sell them for a small profit. The defendant also said that he sold a lot of fireanns on a regular basis. The defendant often stored his guns at co-defendant Wardlaw's house and bought and sold fireanns with Wardlaw. The defendant and Wardlaw shared a bank account, in which Wardlaw made the initial investment. They also shared expenses associated with the gun shows, inventory, and clientele. Additionally, Dawson shared clients with co-defendant Richard Monroe, one calling the other to fill a buyer's request for a specific gun.
"On one such occasion, in April, 2012, an undercover ATF agent was discussing the purchase of an "AR" styled rifle with co-defendants Carl and Richard Monroe. During these discussions, Richard Monroe called the defendant to see if he had such a rifle. The defendant agreed to sell the agent an "AR" rifle, and agreed to do so at the price quoted by Richard Monroe.
"Between May 20, and May 23,2012, the defendant arranged to purchase a Thompson submachine gun from an undercover agent. On May 23, 2012, the defendant purchased and took receipt of the Thompson machine gun, which meets the definition for a machine gun pursuant to 18 U.S.C. §921(a). The defendant knew of the characteristics of the firearm that made it a machine gun.
"Also on May 23,2012, ATF agents searched the defendant's house and the residence of his father pursuant to a federal search warrant. Agents found more than 73 firearms in these residences as well as price tags, display cases, ledgers, and other indicia of firearm sales. Wardlaw had an additional 61 firearms at his residence. The defendant, after waiving Miranda, admitted that selling firearms has been his livelihood since at least October 2011. The defendant said that he and Wardlaw knew that they needed an FFL, and had discussed obtaining one, but did not file the necessary paperwork. He estimated that the business he and Wardlaw shared had amassed an inventory worth approximately $60,000."