“This is an important victory for New Yorkers – as good as a win at trial – and a validation of our innovative efforts to hold gun dealers accountable for following federal laws.  In 2006, New York City undertook lawsuits to hold 27 gun dealers in five states accountable for following the federal law prohibiting ‘straw purchases,’ after an undercover investigation revealed that they sold guns in apparent violation of those laws.  The 27 dealers were among the top sources of illegal guns recovered in New York City, where approximately 90 percent of all guns recovered in crimes come from out-of-state. The lawsuits have resulted in settlements that require the dealers to cooperate with a court appointed monitor, who reviews their business practices and records and works to eliminate the potential for straw purchases.  A new independent analysis of sales from seven of the dealers under monitoring shows that the oversight has been extraordinarily effective at reducing the flow of illegal guns from these stores onto city streets.  The analysis, conducted by Johns Hopkins Professor Daniel Webster, finds that ‘the probability that guns sold by the defendant dealers would be recovered by police in the City within one year of retail sale decreased 75% from their pre-sting levels.’

“Today’s decision by Mr. Wallace to surrender his opportunity to defend his case at trial paves the way for the court to appoint a monitor of Adventure Outdoors.  We have always said that we have no interest in bankrupting gun dealers, only in ensuring that they follow federal laws.  Clearly, our strategy of enlisting court-appointed monitors has been working, and today we take another step toward keeping illegal guns out of the hands of criminals.  I want to thank Corporation Counsel Michael Cardozo, Criminal Justice Coordinator John Feinblatt, and our outstanding pro bono legal team from Pillsbury Winthrop for all their hard work.”