Record contained sufficient evidence to support ALJ’s finding that plaintiff acted willfully in failing to keep required records of its daily transactions so as to preclude renewal of plaintiff’s license to import high explosives as part of its fireworks business. Team of ATF investigators found 73 instances in which plaintiff’s records did not match amounts of fireworks added or removed from plaintiff’s inventory, and that said discrepancies totaled approximately 870 net pounds of missing explosives. Moreover, ALJ could properly find that plaintiff’s failure to keep accurate records was willful, where: (1) plaintiff’s owner had long history working in fireworks industry and had sufficient knowledge of ATF regulations; and (2) owner made decision to defer recordkeeping responsibilities to his brother, who had known history of failing to keep accurate records in similar company, which also had its license revoked because of said faulty recordkeeping.
Federal 7th Circuit Court
Civil Court
Explosives