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Utah company accused of illegally selling ‘ghost gun’ parts shuts down

The Orem company’s closure comes after a settlement with the state of Connecticut over the hard-to-trace gun components.

A Utah company has agreed to shut down after the attorney general of Connecticut accused the business of selling parts for privately made “ghost guns” — which lack serial numbers, are harder for authorities to trace and are illegal in the southern New England state.

AR Industries LLC, based in Orem, will cease operations after the settlement that Connecticut Attorney General William Tong announced last week.

The company will dissolve, surrender its internet domain and deactivate its social media accounts, Tong announced in a news release. The company’s owner must report to Tong’s office annually whether they or “any agents of AR” have formed any business to start selling “ghost gun” parts again — and, if they do, the owner must attest that the business is obeying Connecticut law.

If any associates are found to be selling such parts illegally, or otherwise violating the terms of the settlement, the state of Connecticut would enforce a $205,000 penalty, the release said.

AR Industries holds a business license issued by the city of Orem, categorized as selling “dry goods and general merchandise.” The company’s address, according to the city, is a house in a residential area. A message left Monday to the company’s phone, as listed on its business license, was not immediately returned.

What appeared to be the company’s URL was not functioning as of last weekend, and there was no trace of the company on major social media platforms.

“Ghost guns” are often made from kits available online, and “typically sold and assembled without traceable serial numbers,” according to a report from the Giffords Law Center to Prevent Gun Violence, a nonprofit that advocates for gun safety. They are often purchased without a background check.

Tong in a statement said the guns “exist to evade law enforcement and registration.”

“AR Industries shipped these crime guns into Connecticut in violation of our laws and we are shutting them down,” Tong’s statement continued. “Our message to ghost gun dealers is clear — if you ship to Connecticut, we will find you and hold you accountable.”

AR Industries is the third company with whom the Connecticut attorney general’s office has reached a settlement, the news release said. A Florida “ghost gun” dealer also dissolved, while a North Carolina company reached a $425,000 settlement, which includes strong disclaimers and controls to prevent sales in Connecticut. A legal case against a fourth company remains pending.

Connecticut is one of 14 states that has passed laws to regulate the sale and manufacturing of “ghost gun” components, according to the Giffords Law Center to Prevent Gun Violence. Utah is not among those states.

The settlement between Connecticut and the Utah company came just days before the U.S. Supreme Court is set to hear a case involving federal regulation of “ghost guns.”

The New York Times reported that the high court on Tuesday is scheduled to consider a challenge to a 2022 rule change by the Biden administration that would require vendors who sell partially finished frames of Glock-style handguns — the pistol grip and the firing mechanism — to treat them like complete firearms, subject to federal regulations.