It's a federal law- not a state law.
When you buy a gun, you are required to fill out a form as part of the background check in which you swear that you are purchasing the guns for yourself. Yes, you are allowed to later sell the guns or gift them- but you cannot purchase them with the intent of reselling them, a straw purchase. According to the article, prosecutors said they would be unable to prove that the straw purchasers had actually made straw purchases instead of buying tens or hundreds of thousands of dollars worth of guns with their own money, driving them to a location and selling them on a whim. That alone beggars belief, but then consider that these straw purchasers repeatedly came back and bought/sold more guns and prosecutors allegedly said they still couldn't make a case? Really? Put that in front of a jury and see if they believe they're straw purchases.
Unsuprisingly, Sen. Chuck Grassley disagrees with the article's characterizations of Voth. He has released some of Voth's emails to support his argument. Of particular interest to me is where concerned gun sellers question Voth on if they'll be protected from prosecution by selling guns to obvious straw purchasers and that they're worried the guns will end up in Mexico. Voth says he'll setup a meeting with a US Attorney to reassure them and that to appreciates their cooperation in continuing to sell guns and assures him they're "continually monitoring these suspects using a variety of investigative techniques which I cannot go into detail"- when they arent....
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