Southern District of Texas | Houston arms dealer convicted of aiding and abetting illegal arms trafficking

HOUSTON – A 44-year-old Cypress resident has pleaded guilty to aiding and abetting an unlicensed firearms dealership, U.S. Attorney Alamdar S. Hamdani announced.

Nicah Anderson was a federal firearms licensee and former majority owner and operator of NE Guns.

Between December 2022 and March 2023, an individual arranged the purchase of at least 41 firearms from NE Guns. However, that individual never personally purchased the weapons, but instead had front men actually obtain the weapons. The individual then took the weapons from NE Guns and quickly resold them. Anderson knew about the resale before the purchases were arranged.

Some of the firearms included Barret .50 caliber, military sniper rifles; FN SCAR 17S, .308 caliber rifles and 9 millimeter pistols. These weapons are known weapons of choice for Mexican drug cartels.

Police executed a search warrant at NE Guns on July 19, 2023. They seized, among other items, 266 firearms, 138,940 rounds of ammunition, seven silencers, and NE Guns’ business records. The investigation revealed that between October 2022 and August 2023, NE Guns received $115,000 from purchases made by suspected straw buyers.

“Weapons of war, including a .50 caliber rifle, walked out of Nicah Anderson’s gun store into the arms of straw buyers, and he knew it,” Hamdani said. “Investigations like this one stop illegal gun trafficking at its source. With gun violence in major cities like Houston, there is absolutely no place or tolerance for gun dealers like Anderson looking to profit from illegal straw purchases.”

“This investigation is a clear example of the importance of investigating illegal gun trafficking,” said Special Agent in Charge Michael Wedell of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “Gun trafficking is a direct contributor to the gun violence we fight against every day. This defendant chose profit over helping to keep the general public safe and will be held accountable for those repeated decisions.”

U.S. District Judge Keith Ellison accepted the request and set sentencing for Oct. 24. As part of his plea agreement, Anderson is expected to serve a two-year prison sentence. Anderson was allowed to remain on bail pending sentencing.

ATF conducted the investigation. Assistant U.S. Attorneys Kate Suh and John Ganz prosecuted the case.