Tyngsborough police officer indicted for bank fraud and national firearms act violations

 

Date: June 3, 2021

Contact: newsroom@ci.irs.gov

BOSTON — A Tyngsborough police officer was indicted yesterday by a federal grand jury on bank fraud and violations of the National Firearms Act (NFA).

Daniel Whitman, of Salisbury, was indicted on one count of bank fraud conspiracy, two counts of bank fraud, two counts of making false statements to a bank, one count of possession of an unregistered firearm, one count of making a firearm in violation of the NFA and one count of transferring a firearm in violation of the NFA. Whitman was previously charged and arrested in January 2021 with conspiracy to violate provisions of the NFA.

According to the charging documents, Whitman is a police officer with the Tyngsborough Police Department and was the owner and principal manager of Hitman Firearms, LLC, a retail gun shop in Tyngsborough. It is alleged that Whitman and co-conspirator Bin Lu sought to build a large indoor shooting range, which would serve regional and international customers, and offer shooting clinics and other services. Whitman and Lu brought in a Chinese investor, who contributed several million dollars to the project. However, 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 their loan applications.

It is also alleged that Whitman knowingly made, possessed and transferred firearms that had been modified by the addition of stocks and short barrels, resulting in their classification as short-barreled rifles (SBR) under the NFA. These SBRs were not properly registered in the National Firearms Registration and Transfer Record as required by the NFA, nor did Whitman pay the applicable taxes or fulfill other requirements under the NFA.

In May 2021, Lu agreed to plead guilty to one count of conspiracy to commit bank fraud and one count of possession of an unregistered firearm. A plea hearing is scheduled for June 8, 2021.

The bank fraud charges provide for a sentence of up to 30 years in prison, up to five years of supervised release and a fine of $1 million, or twice the gross gain or loss, whichever is greater. The NFA charges provide for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $10,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel R. Mendell; Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service's Criminal Investigations in Boston; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Jonathan Davidson, Special Agent in Charge of U.S. Department of State's Diplomatic Security Service, Boston Field Office; and Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service in Boston made the announcement today. The Westford Police Department provided special assistance in this case. Assistant U.S. Attorney Eugenia M. Carris, Deputy Chief of Mendell's Public Corruption & Special Prosecutions Unit, is prosecuting the case.

The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.