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Feds raid KF pawn shop, arrest 2 on arms counts

Authorities load confiscated weapons into a truck outside Klamath Pawn & Loan Co. in downtown Klamath Falls Tuesday. Two men at the pawn shop were arrested on charges of selling firearms to felons.

Wednesday, June 9, 2004 2:19 PM PDT
Published June 9, 2004

By DYLAN DARLING

Federal agents charged two men with illegally selling firearms and seized more than 400 guns at a Klamath Falls pawn shop Tuesday morning.

Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives arrested Robert Thayer "Bob" Wagner, 63, and Terry Lynn Griffin, 42. They were charged with selling firearms to a felon. Wagner was also charged with failure to conduct a national criminal background check prior to the transfer of a firearm.


"We are seizing their entire inventory," said Fred Milanowski, resident agent in charge of the ATF's Portland office.

Both men work at Klamath Pawn and Loan at 435 South Sixth St. The seized inventory doesn't include guns that were held in hock at the shop but only guns that were for sale.

If convicted, the two face a maximum penalty for selling firearms to a felon of 10 years in prison and a $250,000 fine. The maximum penalty for failing to do a background check is five years in prison and a $250,000 fine.

Neither men had extensive criminal histories, according to records at the Klamath County Courthouse. A misdemeanor theft charge against Wagner was dismissed in 2002, and he was convicted of driving under the influence of intoxicants in Medford in 1980.

Wagner's wife, Harriet Wagner, is listed as the owner of the business, Milanowski said. The Wagners also live at the shop, in the back part of the building.

The shop is within city limits. Its city license was renewed on May 25 for $50, according to records at City Hall. The renewed license was set to expire on June 30, 2005.

City records show the business has had a license since 1999, but no information was available about when the business started.

The arrests and search of the business were the result of a year-long ATF investigation into illegal firearms sales at Klamath Pawn, according to a press release from the U.S. Department of Justice. Although Wagner and Griffin have been arrested, Milanowski said, the investigation is continuing.

Both men were arrested without incident.

Wagner was arrested around 8 a.m. Tuesday, when ATF agents happened upon him at the Post Office's downtown branch, Milanowski said.

About an hour later, Griffin was arrested when he showed up at the pawn shop for work.

ATF agents, along with members of the Klamath Interagency Narcotics Team, then spent the day boxing up the store's inventory of guns for sale. About a dozen ATF agents and narcotics team members moved the boxes and collected the shop's business records.

In all, they loaded up more than 400 guns into a trailer pulled by a rented semi-truck.

Left behind were guns that had been pawned at the shop as collateral for loans. Milanowski said anyone who had a gun pawned at the shop, should contact the shop about the possibility of getting the items back.

"I imagine there will be a long line out front," Milanowski said.

On the store's door this morning, a note printed on computer paper read: " We will be open Thursday June 10th at 9:00 Sorry for the Inconvenience."

Across the street, workers at D & R Auto and Industrial watched the parade of boxes be loaded much of the day Tuesday.

Chris Armstrong, a worker at D & R, said he would go to the pawn shop about once a month to buy DVDs, but never had talked much to Wagner or Griffin.

He said the shop sold everything from drill and tools to jewelry and knives.

"I just liked the movies," he said.

The movies were cheap, Armstrong said, at about $8 each.

But, he said, he heard others complain about the high prices on some of the shop's other items. He was surprised to hear why the two men were arrested and said he usually got good service from whomever was working the counter.

"They all were friendly," Armstrong said. "It sucks to lose your business."

As part of the indictment, the corporation of Klamath Pawn and Loan could also be fined up to $500,000 for each charge.

"If they are found guilty ,their firearm license will be revoked," Milanowski said.

On June 4, a federal grand jury returned a nine-count indictment naming the two men for the violations.

Armstrong said many hunters would come into the pawn shop at the end of hunting season to put their guns in hock for awhile and get some cash to pay back later.

Wagner lived at the shop with his wife, where they had living quarters back behind the shop in the old stone building, Armstrong said.

He would see Harriet Wagner come out of the shop daily to feed the birds that still hung around at the business location of For the Birds, which has moved.

"Every morning at 10 o'clock they're waiting for her to feed them," he said.

Wagner and Griffin were held in the Klamath County Jail this morning and are set to appear in court in Medford today. Their court date is at 1:30 p.m. at the Jackson County Courthouse, according to the Department of Justice.

Assistant U.S. Attorney Douglas Fong said the two will have an initial appearance at the court, where they will be advised of their charges and the possible maximum penalties. The appearance will be similar to an arraignment, but the official arraignment won't be until next week because the federal magistrate is out of town until then.

On the Net: www.atf.gov



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