In a story that’s raising eyebrows across the Southwest, a 65-year-old gun dealer in southern Arizona now faces serious federal terrorism-related charges. Laurence Gray, owner of Grips by Larry in the Hereford-Palominas area near the U.S.-Mexico border, was slapped with a superseding indictment on March 17, 2025. Prosecutors say he attempted to provide material support to foreign terrorist organizations—specifically the Cartel de Jalisco Nueva Generacion (CJNG) and the Cartel de Sinaloa.
These aren’t your average gun-running allegations. The new charges stem from an undercover ATF operation that allegedly caught Gray and associates selling high-powered firearms, including a .50-caliber sniper rifle and military-style belt-fed rifles, with the understanding they were headed south of the border.
How the Sting Unfolded
According to court documents, the investigation zeroed in on “at-risk” gun stores in Arizona—places where large-caliber weapons were moving quickly and showing up in crimes in Mexico within months (often called a short “time-to-crime”).
Gray’s shop reportedly fit the pattern, especially with sales of belt-fed weapons. In the sting:
- A confidential informant first bought a .38-caliber 1911-style pistol.
- On April 14, 2025, the informant returned and purchased three weapons for $42,500: a .50-caliber sniper rifle and two FN M249S belt-fed rifles (civilian versions of the U.S. military’s Squad Automatic Weapon).
- On May 31, 2025, the informant came back with an undercover ATF agent. They bought an Ohio Ordnance M2 SLR .50-caliber belt-fed rifle (modeled after the heavy Browning M2) plus another pistol.
During one deal, Gray allegedly allowed someone else to fill out the required ATF Form 4473 with false information. The informant even mentioned the guns were destined for the CJNG and asked about the nearest border crossing—prompting suggestions for routes into Mexico. In a notable detail, the buyer picked up ornate rooster-embossed grips, a symbol associated with the Jalisco cartel.
.50-caliber rifles aren’t everyday hunting gear. Cartels prize them for their extreme range—accurate beyond 2,000 yards—and their ability to punch through buildings or vehicles. One chilling example cited in reports: back in 2015, the Jalisco cartel reportedly used a .50-cal weapon to shoot down a Mexican military helicopter, killing nine people.
Co-Defendants and Earlier Charges
Gray wasn’t alone in the initial June 2024 indictment. He was charged alongside Barrett Weinberger, 73, of Tucson, and separately David Prince on firearms trafficking, straw purchase aiding, and false statements. Prince has since entered a plea agreement on one count and faces sentencing in June 2025.
The terrorism upgrades only apply to Gray so far. If convicted on the new counts of attempting to provide material support to terrorist organizations and conspiracy, he could face up to 20 years in prison per charge, plus hefty fines.
This case marks the first terrorism prosecution of its kind in Arizona since the U.S. State Department designated the two major Mexican cartels as foreign terrorist organizations in early 2025 under the Trump administration.
Broader Context on Border Gun Trafficking
Arizona has long been a focal point in the debate over guns flowing into Mexico. Federal agents, working with Homeland Security Investigations and the IRS, target stores where patterns suggest trafficking. Independent dealers like Grips by Larry have sometimes been highlighted as sources of “crime guns” recovered south of the border.
Mexico has pushed back hard in recent years, filing lawsuits against U.S. gun manufacturers and dealers, arguing they fuel cartel violence. Meanwhile, defenders of Second Amendment rights often point out that most gun owners and dealers operate lawfully, and stings like this target the bad actors.
Whether this case represents a one-off or part of a larger crackdown remains to be seen. The ATF has described it as part of broader efforts to disrupt illegal firearms pipelines.
What’s Next?
Gray was arraigned on the superseding indictment shortly after it was returned. The case is moving through federal court in Arizona, with potential for more developments as trial approaches.
For gun shop owners, especially those near the border dealing in high-caliber or tactical firearms, this serves as a stark reminder of the scrutiny that comes with every Form 4473 and suspicious buyer. For everyone else, it underscores the complex intersection of legal gun sales, international crime, and evolving national security designations.
