According to a federal indictment, Ryan McGowan and Thomas Lu used a privilege that allows them to buy guns normally not allowed in the hands of civilians and then re-sell them through a licensed dealer.
The practice is allowed by state law, but the Feds say the volume of re-sales -four dozen in four years- makes the two unlicensed dealers. The indictment also charges the dealer with conspiracy.
McGowan is also charged with selling some weapons without going through a dealer. Sacramento District Attorney Jan Scully says one gun ended up in the hands of a convicted felon.
SCULLY: Two other guns McGowan sold to a private party were recovered by Daly City Police Department after responding to a shots-fired call that ended six-hour standoff by that subject with S.W.A.T."
An officer from the Sacramento Police Department and another from the Roseville Police Department resigned when they learned they were being investigated, but they are not facing prosecution.