D.C.V. Imports, L.L.C. v. Bureau of Alcohol, Tobacco, Firearms & Explosives

Darren's parents began operating S&N Fireworks in the 1970s and obtained a Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) license (18 U.S.C. 842(f)) to import explosives. Darren founded DCV in 2004, intending to eventually buy out S&N. DCV shared S&N’s Lincoln, Illinois place of business and obtained its own ATF import license. From 2004-2011, S&N ordered fireworks from DCV, which imported them from China and immediately transferred them to S&N, which packaged and sold fireworks for shows. Darren was employed by S&N and was listed as a “responsible person” on S&N’s license. DCV was not storing any explosives during this period and had no ATF violations. S&N, however, was cited for numerous violations in a 2006 inspection, relating to records and storage of fireworks. A 2009 inspection revealed multiple violations. Darren attended a meeting and signed a report acknowledging the violations. ATF notified S&N that its license would not be renewed. S&N voluntarily surrendered its license. DCV bought out S&N’s inventory, equipment, and contracts Darren delegated substantial responsibility to his brother, who had been responsible for many of S&N’s problems. ATF inspected in 2013, found multiple violations, and notified Darren that it did not intend to renew DCV’s license. DCV argued that its violations should not be deemed willful given its perfect compliance record before 2013. The agency responded that S&N and DCV were essentially the same operation and equated the S&N violations with DCV. After a hearing, the license was not renewed. The Seventh Circuit upheld the decision as supported by substantial evidence. View "D.C.V. Imports, L.L.C. v. Bureau of Alcohol, Tobacco, Firearms & Explosives" on Justia Law