practically identical to the M-16 rifle carried by United States Armed Forces. The AR-15 rifle fires .223 caliber ammunition and, just like the. N-16, can carry magazines. of ammunition ranging from 30 to 60 rounds of ammunition. I have been involved in many cases. where defendants, following a relatively simple process, convert: AR-15 semi-automatic rifles to fully automatic rifles of the nature. of the N-16. This conversion process can often be accomplished by an individual, purchasing certain parts which will quickly transform the rifle to fire: fully automatic. Often times templates, milling: machines; Lathes and instruction guides, are utilised by the..

converter. Lieutenant Barber related. to se the following background information about the Mount Carmel Center commune, vhích is located at Rt. 7, Box 471-8, Waco, Texas, and consists of some seventy (70) acres of land, occupied by Vernon W. Hovell, a/k/a David Koresh and others.

The property was once owned and occupied by George Buchanan Roden, who once was an unannounced candidate for the office of Presidentof the United States. Roden inherited the property sometime in the 1950's, and beginning about January 1986 established and led religious cult group with about twenty (20) followers. He claimed to be the Prophet of the group. The property at that time was known as the "Elk Property/Mt. Carmel Center." About this same time, Roden was in jeopardy of losing the property by foreclosure due to delinquent taxes which had not been paid since 1968.

About this same time, Vernon Wayne Howell, had established similar group in Palestine, Texas, known as the Branch Davidian Seventh-Day Adventists. Sometime in 1987, Howell, laid claim to ownership of the Mr. Carmel Center property and wanted to acquire it by any means possible. On November 3, 1987, Howell led an armed group of eight sen into Roden's camp and a 45-minute gun battle ensued. Roden was shot in the finger and was the only person injured.

Eight people, including Vernon W. Howell and Paul Gordon Fatta were arrested by the McLennan County Sheriff's Department, Waco, Texas, and were indicted for attempted murder by a McLennan County_Grand Jury. All eight subjects vere tried in State court at Waco, Texas, and were acquitted of the charges of attempted murder by a jury. After the armed assault by Howell and his followers, George Roden vacated the property. In 1987, the property was taken over by. Howell and his cult group. The taxes owed on the Mt. Carmel Center have been paid by Howell's group. His cult has grown to about seventy (70) to eighty (80) people which includes men, women and children who now live on the Mount Carmel Center property.

Lieutenant Barber furnished BO with recently taken aerial photographs of the Mount Carmel Center which had been taken by

3

Captain Dan Weyenberg of the McLennan County Sheriff's Department, Waco, Texas. Among the things noted in the photographs was buried bus near the main structure and an observation tover, approximately three or four stories tall with windows on all four sides anabling a view. from the structure of 360 degrees.

I was also advised by Lieutenant Barber that Robert Carvenka, known long time. McLennan County citizen, who lives near the Mount Carsel Cantar compound, had, on several cocasions, from January through February of 1992, heard machinegun fire: coming from the compound property. Hr. Carvenka offered lav enforcement authorities his residence to be used as a surveillance post.

On July 21, 1992, I met with Robert L. Cervanka, Route 7, Box 103, Riesel, Texas. Mr. Cervenka farms the property surrounding the east side of the Mount Carmel property. Mr. Carvenka stated that he has farmed. that area since 1948, From about January and February of 1992 he has heard machinegun fire on the Vernon Howell property during the night hours. He is familiar with and knows the sound of machinegun fire because he did a tour overseas with the U.S. Aray. He believes that some of the gunfire he heard was being done with 50 caliber machineguns and possibly H-16 machineguns.

On November 13, 1992, I spoke with Lieutenant Gene Barber who told me that Mr. Cervenka, whose ranch is adjacent to the Mount Carmal Property, had reported hearing bursts of gunfire from the Mount Carmel compound on November 8, 1992, at approximately 2:45 p.z. · On June 8, 1992, based on information gained from Gilbreath by Lieutenant Barber, I interviewed Dave Haupert, Olympic Arms Inc., Olympia, Washington, a company which had shipped several parcels to David Koresh at the "Mag-Bag", Route 7, Box 555-B, Waco. Texas. Mr. Haupert told me that the records of Olympic Arms Inc., indicated that approximately forty-five (45) AR-15/M16 rifle upper receiver units, with barrels of various calibers, had been shipped from March through April of 1992 to the Mag-Bag Corporation for a total cost of $11,107.31, cash on delivery.

On January 13, 1993, I interviewed Larry Gilbreath in Waco, Texas, and confirmed the information which had previously been related to me by Lieutenant Barber. Mr. Gilbreath told me that although be had been making deliveries at the "Mag Bag" and the Mount Carmel Center for quite some time, his suspicion about the packages being delivered to those places never was aroused until about February 1992. At that time the invoices accompanying a number of packages reflected that they contained firearm parts and accessories as well as various chemicals. He stated that in May 1992, a package which was addressed to the "Mag Bag" accidently broke open while it was being loaded on his delivery truck. He saw that it contained three other boxes the contents of which were "pineapple" type hand grenades which he believed to be inert. He stated that there were about fifty of the grenades and that he later delivered then to the

Mount Carmel Center. The Mount Carmel Center is that tract of land depicted in the photograph labeled "Attachment B", with the main residential structure being depicted in "Attachment C.

Mr. Gilbreath stated that these suspicious packages were usually addressed to the #Mag Bag" or to David Korsch. When he would stop to deliver them to the "Hag Bag"; he was set most of the time by Woodrow Kendrick, and on other occasions by Steve Schneider. They would have his wait while they telephoned the Mount Carmel Canter to tell them that UPS vas coming with a C.O.D. packaga. He would be instructed to take the package(s) to the Mount Carmel Center. Upon arriving at the Mount Carmel Center, he was usually met by Perry Jones or, on occasion, by Steve Schneider, who would pay the C.O.D. charges in cash and would accept delivery of the shipments. On this same date, June 8, 1992, I interviewed Glen Deruiter, Manager, Barco Inc., Stirling, New Jersey, and learned from him that in May of 1992, their company shipped one H-16 parts sat kit with a sling and magazine to the "Mag-Bag" in the name of David Koresh. The total value of these items was $284.95.

Also on June 8, 1992, I intervieved cynthia Ales, Owner/Manager, Nesard Gun Parts Company, Barrington, Illinois, and learned from her that in May of 1992, her company shipped to the "Nag-Bag", two (2) M-16 machinegun car kits and two (2) H-16 machinegun Ež kits. These kits contain all the parts of an M-16 machinegun, except for the lower receiver unit which is the "firearm" by lawful definition. Ms. Also stated that the total amount of sales to the Mag-Bag was $1227.00. Within the past month, I have spoken with Curtis Bartlett, Firearms Technician with BATT and have learned that Nesard Company has been under investigation in the past by ATF for engaging in a scheme to supply parts which would enable individuals to construct illegal weapons frca various component parts.

On June 9, 1992, I requested that a search of the records of the National Firearms Registration and Transfer Record, Washington, D.C., to determine if Vernon W. Howell and/or Paul G. Fatta, one of Howell's closest followers, had any machineguns or other NFA weapons registered to them. The result of the search was negative. On this same date, June 9, 1992, I requested a search of the records of the Firearms Licensing saction of the Bureau of Alcohol, Tobacco and Firearms, Atlanta, Georgia, to determine if Howell, Fatta or the "Mag-Bag" Corporation were licensed as Firearms dealers or manufacturers. The result of this search was negative. On June 10, 1992, I requested a search of the records of the Firearms Licensing Section of the Bureau of Alcohol, Tobacco and Firearms, Atlanta, Georgia, to determine if David Koresh, Howell's alias name, or David M. Jones, a known associate of Howell, were licensed as Firearms dealers or manufacturers. The result of this

search was negative.

On June 23, 1992, I spoke with ATT compliance Inspector Robert Souza, Seattle, Washington, who inquired about the Mag Bag Corporation, Route 7, Box 555, Waco, Texas. He had received some invoices reflecting a large quantity of upper receivers and AR-15 parts being shipped to "Hag Bag", Waco, Texas, from Olympic Arms Ina., 624 Old Pacific Hwy., 8.E. Olympia, washington. Inspector Souza faxed me copies of invoices, reflecting purchases of twenty the Hag Bag" ́an

(20) AR-15 upper receiver units. with barrels addition to. the

March 26th and 30th, 1992. These items are items referred to abova.

As a result of: xy investigation of shipments to Howell/Koresh and Kike Schroeder at the "Nag-Bag" Corporation, Waco, Texas, through the United Parcel Service, and the inspection of the firearms records of Henry McMahon, dba, Hewitt Hand Guns, Hewitt, Texas, I have learned that they acquired during 1992, the following firearms and related explosive paraphernalia:

One hundred four (104), AR-15/M-16, upper recaiver groups with barrels.

Eight thousand, one hundred (8,100). rounds of 9am and .223 caliber ammunition for AR-15/N-16.

Twenty (20), one hundred round capacity drum sagazines for AK47 rifles,

Two hundred sixty (260), H-16/AR-15, magazines.

Thirty (30) M-14, magazines.

Two (2) M-16 EZ kits.

TWO (2) M-16 Car Kits.

One K-76 grenade launcher.

Two hundred (200) N-31, practice rifle grenades.

Four (4) H-16 parts set Kits "A".

Two (2) flare launchers.

Two cases, (approximately 50) inert practice hand grenades. 40-50 pounds of black gun. powder.

Thirty (30) pounds of Potassium Nitrate.

Five (5) pounds of Magnesium metal powder.

One pound of Igniter cord. (A class ̊C explosive)

Ninety-one (91) AR/15 lower receiver units.

Twenty-six (26) various calibers and brands of hand guns and long guns.

90 pounds of aluminum metal powder. 30-40 cardboard tubas.

The amount of expenditures for the above listed firaara paraphernalia, excluding the (91) AR-15 lower receiver units and the (26) complete firearms, was in excess of $44,300.

From my investigation, I have learned that a number of shipments to the "Mag-Bag" have been from vendors with questionable trade practices. One is presently under investigation by the Bureau of

Alcohol, Tobacco and Firearms, for violations of the National Firearms Act, which prohibits unlawful possession of machineguns, silencers, destructive devices, and machinegun conversion kits.

Because of the sensitivity of this investigation, these vendors have not been contacted by a for copies of invoices indicating the exact: items. shipped to the Mag-Bag.

On November 13, 1992, I intervieved Lieutenant Coy Jones, McLennan County Sheriff's Department; Waco, Texas, and learned from him that he had spoken with an employes-of the United Parcel Service, Waco, Texas, who wished to remain anonymous. This person told Jones that Marshal. Keith Butler, a relative of the person who wishes to remain anonymous, is a machinist: by trade, and is associated with Vernon Hovell.

The records of the Texas Department of Public Safety reflect that Butler has been arrested on seven (7) occasions since 1984 for unlawful possession of drugs. Two of the arrests resulted in convictions- for possession of a controlled substance. Butler's latest arrest and conviction was in January 1992. Butler received 8 sentence of three (3) years in the Texas Department of Corrections. In April 1992 Butler was paroled to McLennan County,

Texas.

On November 13, 1992, I interviewed Terry Fuller, a deputy sheriff for the McLennan County Sheriff's Department, Waco, Texas, and learned from his that on November 6, 1992, at approximately 1:25 p.a., while on routine patrol in the area of the Mount Carmel Center, the property controlled by Vernen Howell, he heard a loud explosion in the area of the north part of the Mount Carmel property. As he drove toward the area where he thought the explosion had occurred, he observed a large cloud of grey smoke dissipating from ground level on the north end of the Mount Carmel property.

On December 7, 1992, I spoke with Special Agent Carlos Torres, Bureau of Alcohol, Tobacco and Firearms, Houston, Texas, who had been assisting me in a portion of this investigation. He related to me the results of his interview on December 4, 1992, with Joyce Sparks, Texas Department of Human Services, Waco, Texas. Special Agent Torres told me that Ms. Sparks received a complaint from outside the state of Texas, that David Koresh was operating commune type compound, and that he was sexually abusing young girls. Ms. Sparks stated that on February 27, 1992, she along with two other employees of the Texas Department of Human Services and two McLennan County Sheriff's Deputies responded to the complaint. They went to the Mount Carmel Center compound located east of Waco in McLennan County. When they arrived at the compound, they were met by a lady who identified herself as Rachel Koresh, the wife of David Koresh.