ATF

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Bureau of Alcohol, Tobacco, Firearms and Explosives

For Immediate Release

February 22, 2010

United States Attorney

Contact: Wyn Hornbuckle

Public Affairs

Telephone: (602) 514-7573

Cell: (602) 740-2422

Mesa Man Pleads Guilty to Illegally Selling Firearms

40 firearms sold illegally over 2 year period

PHOENIX - Shawn Michael Nealon, 38, of Mesa, Arizona, pleaded guilty to the felony offense
of Illegal Sale by a Federally Licensed Dealer to an Out-of-State Resident, in federal district court in Phoenix. In a separate agreement, Nealon’s business, Cavalry Arms Corporation (Cavalry Arms), also pleaded guilty to one count of the felony offense of Illegal Sale by a Federally Licensed Dealer to an Out-of-State Resident. Mr. Nealon and Cavalry Arms agreed to surrender federal licenses to sell firearms on March 3, 2010.

Mr. Nealon has finally taken responsibility for his crime of illegally selling firearms to someone he knew was an out-of-state resident, said Dennis Burke, U.S. Attorney for the District of Arizona. When firearms are sold illegally, they often end up being used in crimes of violence in the United States and other countries. This criminal activity will not be tolerated in the District of Arizona.

Nealon had a federal firearms license in his name as well one under Cavalry Arms’. On March 2, 2007, his personal federal firearms license was used to sell four firearms to an out-of-state resident, knowing that individual, at the time of the sale, resided in the state of California, and not in the state of Arizona in which Nealon’s business was located. From September 20, 2005, through September 1, 2007, Cavalry Arms’ federal firearms license was used to sell 36 firearms to that same individual, including AR-15 and AK-47 assault rifles, and a variety of shotguns, pistols and revolvers.

When ATF becomes aware of criminal activity at a federal firearm licensee’s business, we will take swift action to prevent firearms from ending up in the wrong hands, said John A. Torres, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives in Santa Clara, California. Although there are very few dealers that engage in criminal transactions, their impact on individuals and communities can be devastating.

A conviction for Illegal Sale by a Federally Licensed Dealer to an Out-of-State Resident
carries a maximum penalty of 5 years in prison, a $250,000 fine or both. In determining an actual sentence, the judge will consult the U.S. Sentencing Guidelines, which provide appropriate sentencing ranges. The judge, however, is not bound by those guidelines in determining a sentence.

The investigation in this case was conducted by the U.S. Bureau of Alcohol, Tobacco,
Firearms and Explosives. The prosecution is being handled by Sabrina D. DeCosta, Special
Assistant U.S. Attorney, District of Arizona, Phoenix.

CASE NUMBER: WI-10-102-PHX-NVW

WI-10-101-PHX-BGC

RELEASE NUMBER: 2010-026 (Nealon/Cavalry Arms Corporation)

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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/