BOSTON — A New Hampshire company has agreed to plead guilty to charges that it violated the National Firearms Act by distributing interoperable components for firearm silencers.
KBC Capital, LLC, d/b/a Lethal Eye, has agreed to plead guilty to 26 counts of transferring a firearm in violation of the National Firearms Act. In connection with the plea agreement, KBC Capital has agreed to pay a $260,000 fine, the maximum financial penalty permitted by law.
“KBC Capital was responsible for at least 26 illicit transfers of firearm suppressors to Massachusetts residents. These devices are controlled by law and private companies in the firearms trade have a duty to follow the proper legal channels to ensure a safe, lawful firearms industry,” said HSI New England Special Agent in Charge Michael J. Krol. “This investigation was only made possible through the close collaboration with our partners in law enforcement working together towards our public safety goals.”
As part of the plea agreement, KBC Capital admits the facts underlying the government’s allegations. The National Firearms Act imposes taxes on the making and transfer of National Firearms Act firearms, as well as a special occupational tax on federal firearms licensees engaged in the business of importing, manufacturing and dealing in National Firearms Act firearms. Only certain classes of federal firearms licensees may lawfully manufacture National Firearms Act weapons. The National Firearms Act requires registration of all National Firearms Act firearms with the attorney general in the National Firearms Registration and Transfer Record. The purpose of the National Firearms Act is to regulate transactions in National Firearms Act firearms, which are deemed to be more dangerous than those not regulated by the National Firearms Act due to their proliferation in criminal activity at the time the National Firearms Act was enacted.
KBC operated a website using the trade name Lethal Eye. KBC sold a variety of firearms accessories. Despite marketing one of these products as a “muzzle break,” this product actually served as a principal part of a firearm silencer. This part was interoperable with other KBC products that, together, along with other generally available consumer products, could be combined to generate a firearm silencer. According to court documents, while doing business as Lethal Eye, KBC allegedly sent 26 illegal suppressor parts to Massachusetts residents. On Aug. 18, 2023, a search of Lethal Eye’s principal place of business resulted in the recovery of 327 items classified by the ATF as illegal firearm silencers. At no time was KBC a federal firearms licensee, and at no time did KBC pay the appropriate tax to manufacture a single silencer.
The charge of transferring a firearm in violation of the National Firearms Act, when charged against a business entity, provides for the maximum penalty of $10,000 per violation, probation of three years and a mandatory special assessment of $400 per count.
“By making gunshots harder to hear, silencers impede law enforcement efforts to respond to shootings and diminish the effectiveness of gunshot detection technology. This results in slower response time by first responders, which can have a direct impact on saving the lives of people struck by gunfire,” said acting U.S. Attorney Joshua S. Levy. “That is why Congress and federal agencies require manufacturers and distributors of silencers to conform to strict regulatory requirements. By knowingly flouting these regulatory requirements, KBC Capital allegedly flooded the market with these inherently dangerous devices. This case demonstrates our office’s efforts to attack the problem of illegal guns from all angles.”
“Perpetrators engaged in the manufacturing, distributing or possession of illegal silencers pose a significant challenge for law enforcement,” stated ATF Boston Special Agent in Charge James M. Ferguson. “We are committed to work with our partners to identify and disrupt these illicit activities so that we can help ensure the safety of our communities.”
“The use of the mail to further the illicit trade in firearms and firearms components poses a real threat to the public,” said Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division Ketty Larco-Ward. “The Postal Inspection Service is proud to stand with our federal partners and hold this company responsible for its actions.”
“This investigation is an example of the Drug Enforcement Administration's (DEA) dedication to working with our local, state and federal partners in identifying, targeting and investigating those who are involved in selling dangerous devices,” said DEA New England acting Special Agent in Charge Stephen Belleau. “We will continue to work with our law enforcement partners to stop illegal activities so our communities can be safe places to be.”
The primary mission of Homeland Security Investigations' (HSI) Border Enforcement Security Task Forces (BEST) is to combat transnational criminal organizations by employing federal, state, local, tribal and international law enforcement authorities and resources to identify, investigate, disrupt and dismantle these organizations at every level of operation. BESTs eliminate the barriers between federal and local investigations and close the gap with international partners in multinational criminal investigations.
Krol, Levy, Ferguson, Larco-Ward and Belleau made the announcement Aug. 1. HSI’s portion of the investigation was led by HSI Boston’s BEST. Valuable assistance was provided by Nashua and Hollis Police Departments.
BESTs serve as an important tool to combat transnational criminal organizations engaged in drug trafficking, human smuggling, weapons trafficking and money laundering. There are over 90 BESTs throughout the United States and its territories, including Puerto Rico and the U.S. Virgin Islands.