Salisbury man indicted on federal bank fraud, weapons charges
Jun. 4—SALISBURY — A Tyngsborough police officer who owned a gun shop in that town was indicted on felony charges by a federal grand jury Wednesday, including bank fraud, possession of an unregistered gun, and making and transferring a firearm in violation of the National Firearms Act.
Daniel Whitman, 36, listed as living in Salisbury, was arrested in January and charged with conspiracy to violate provisions of the National Firearms Act, according to acting U.S. Attorney Nathaniel Mendell.
The indictment handed down Wednesday includes felony charges of bank fraud conspiracy, two counts of bank fraud, two counts of making false statements to a bank, possession of an unregistered firearm, making a firearm in violation of the Firearms Act, and transferring a firearm in violation of the Firearms Act.
Whitman — who has been on paid administrative leave from the Tyngsborough Police Department for nearly two years because of the investigations involving him — was the owner and principal manager of Hitman Firearms LLC, a retail gun shop in Tyngsborough.
The U.S. Attorney's Office said Thursday that Whitman and co-conspirator Bin Lu, a Chinese national, sought to build a large indoor shooting range for regional and international customers, and offer shooting clinics and other services.
The two men brought in a Chinese investor who contributed several million dollars to the project. But when in applying for loans from federally insured financial institutions, Whitman allegedly hid the true source of their initial funding from the banks and filed false documents in connection with loan applications, according to court documents.
Law enforcement officials also believe Whitman knowingly made, possessed and transferred guns that had been modified by adding stocks and short barrels, resulting in their classification as short-barreled rifles under the Firearms Act.
These short-barreled rifles were not properly registered in the National Firearms Registration and Transfer Record as required by the act, nor did Whitman pay the taxes or fulfill other requirements, according to Mendell's office.
In May, Lu agreed to plead guilty to a count of conspiracy to commit bank fraud and a count of possession of an unregistered firearm. A plea hearing is scheduled for Tuesday.
Mendell's office said if convicted, Whitman could spend up to 30 years in prison and be fined $1 million. The Firearms Act charges provide for a sentence of up to 10 years in prison and a fine of $10,000.
Sentences are imposed by a federal district court judge based upon federal sentencing guidelines and other statutory factors, according to Mendell's office.
