Department of Justice

Richard Schmidt

FBI agents recently warned community leaders in the Detroit area about a possible racist plot by a convicted felon and alleged neo-Nazi sympathizer who was arrested after he was discovered with an arsenal of assault rifles  and other weapons, a law enforcement official tells NBC News.

“The FBI averted a catastrophe in this case, there’s no doubt about it,” Steven M. Dettelbach, the U.S. attorney in Cleveland, said in an interview.  

New details about the case of Richard Schmidt, the owner of a sporting goods store in Bowling Green, Ohio,  dramatically highlight what law enforcement officials say are major loopholes in the nation’s gun laws. Schmidt, 47, is a convicted felon who spent 13 years in Ohio state prison for a homicide after being convicted of killing a man and wounding two others in a shooting during a traffic stop, according to state prison records.  Under federal law, Schmidt, who was released on parole in 2003, is barred from possessing any firearms.

Yet when FBI agents last December searched his home and store, they discovered a cache of 18 weapons that included AR-15 assault rifles, 9 mm Ruger and Sig Sauer pistols, shotguns, high-capacity magazines and more than 40,000 rounds of ammunition. Schmidt was originally reported to have been arrested on charges of trafficking in counterfeit goods, but was indicted last month on four federal charges —including possessing illegal weapons, body armor and ammunition. He has pleaded not guilty to the charges.

“As a matter of policy, I don’t comment on pending cases,” his lawyer,  Andy Hart, a federal public defender in Toledo, said when reached by telephone.

Dettelbach, who is overseeing the case,  said that federal agents have been unable to determine how and where Schmidt obtained  his weapons, prompting officials to conclude he likely acquired them at gun shows or through private sales --  where under federal law no background checks are required. . 

“It’s scary,” he said about Schmidt’s arsenal of weapons. “It’s not … that I won’t say” where Schmidt got his guns. “It’s that sitting here today as a senior federal law enforcement official in northern Ohio, I can’t say.” 

The investigation into Schmidt was conducted by a  FBI Joint terrorism Task Force whose agents said they discovered he was tracking African American and Jewish leaders in the Detroit area.  When agents conducted their search, they said they found  evidence suggesting Schmidt harbored neo-Nazi sympathies, including a video of the 2005 national meeting of the National Socialist Movement — in which speakers  wore  black swastika  arm bands and gave the Nazi “Sieg Heil” salute. “This is a war! This is a battle for our survival!” one speaker shouts on a video of the meeting obtained by NBC News.  Other seized items, according to federal search warrants, included a  list of national Jewish-owned businesses and paraphernalia from the “Waffen SS,” Adolph  Hitler’s military force in Germany.

'Very unsettling, very disturbing'
Two community leaders briefed on the case tell NBC News that agents also found a notebook in which Schmidt had listed the names, addresses and other personal information of Detroit area community leaders. Although Schmidt was already in custody, and remains in jail pending trial, the evidence in the notebook prompted agents to warn the leaders about what they had found.

Rev. Wendell Anthony, president of the Detroit NAACP, said that FBI agents showed him a page of one of Schmidt’s notebooks which included information about members of Anthony’s  family as well as distances between his home, office and his church. They also told him they were concerned about “a possible threat against the NAACP and me in particular,” he said.

“It was mind blowing,” Anthony said. “Very unsettling, very disturbing, and it really kind of made me angry.”  When he was told about Schmidt’s weapons, Anthony said, “I made the comment that this guy is a one man army and they said, ‘Yes, looks like it.’” 

 The FBI gave a similar briefing to Scott Kaufman, the executive director of the Jewish Federation of  Metropolitan Detroit. He said agents also showed him a page of Schmidt’s notebook showing his name and the names of others in leadership positions in his organization, as well as the names of tenants in his building and driving directions to his office.

“When I saw my name on a piece of paper along with information about our organization and our building written by an alleged neo-Nazi, it was certainly unnerving,” he said.

Anthony and Kaufman said the FBI asked them not to share copies of the notebook pages with NBC News because Schmidt’s case is ongoing. They also said agents had no specific evidence of what Schmidt might have been planning  –  or whether he was working with anybody else.  An FBI spokeswoman declined comment.

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Feds investigate how suspected white supremacist -- a felon -- obtained arsenal

Federal law does not require such checks for private sales or gun show purchases. Seventeen states have mandated them for handgun purchases at gun shows, though Ohio is not among them. Only six states require background checks for all firearms purchases.  

A new study by the Johns Hopkins Center for Gun Policy and Research has found that 80 percent of those convicted of gun crimes acquire their weapons through private sales – making it virtually impossible for federal agents to trace where they come from or who is providing them. 

“There’s no documentation required for private transactions. So whatever occurs in that zone is invisible to us,” Charles Houser, the director of the Bureau of Alcohol, Tobacco and Firearms National Tracing Center in Martinsburg, W.Va., said in an interview.

Related coverage: 'Flashpoint: Guns in America,' an NBC News special report

Dettelbach echoed those concerns. “Our current set of laws for how guns get out the community has a lot of holes,”  he said. “It’s almost like Swiss cheese.” 

(Federal prosecutors recently filed court papers showing that reputed Boston mob figure  James “Whitey” Bulger was able to buy at least 15 handguns and a shotgun while he was on the run as one of the FBI’s "Most Wanted" fugitives. Officials believe he acquired them at gun shows or from private sellers. 

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Department of Justice

Richard Schmidt

Federal agents are trying to determine how a suspected Ohio white supremacist with a felony conviction for manslaughter acquired a cache of 18 assault weapons and other firearms, along with high-capacity magazines and more than 40,000 rounds of ammunition, according to federal law enforcement officials and court documents reviewed by NBC News.

The storehouse of weapons was discovered late last  month when FBI agents arrested Richard Schmidt,  47, the owner of a Bowling Green sporting goods store called Spindletop Sports Zone,  on charges of  marketing counterfeit goods -- such as football jerseys with NFL logos -- from China.

Although initially portrayed as a probe into the thriving international market for counterfeit clothing, the case took a surprising turn this week when the U.S. Attorney’s Office in Cleveland unsealed search warrants and an indictment also charging Schmidt with illegal possession of firearms.

According to the documents, FBI agents who searched Schmidt’s sporting goods store and four trailers behind it, found a  stash of weapons that included AR-15 assault rifles, Ruger and Sig Sauer semi-automatic pistols,  bulletproof  body armor and high-capacity magazines as well as ammunition.

The agents also discovered evidence of Schmidt’s ties to the neo-Nazi movement, documents show. Among the evidence seized, according to search warrants, was a video of a national convention of the neo-Nazi National Socialist Movement; bumper stickers of the National Alliance party, another neo-Nazi group; a “Jewish 500” list -- a supposed roster of Jewish-owned businesses -- and paraphernalia from the “Waffen SS,” Adolph Hitler’s Nazi military force in Germany from the early 1930s through World War II, according to the search warrants.

A federal law enforcement official, who spoke with NBC News on condition of anonymity, said that FBI counterterrorism agents involved in the  case  had picked up evidence that Schmidt  may have been planning attacks against Jewish and civil rights groups in the Detroit area. “This is an active investigation,” said another federal law enforcement official when asked if Schmidt was believed to have been working with any others in the neo-Nazi movement.

In the indictment unsealed this week, Schmidt was charged with three counts of illegal possession of firearms, ammunition and body armor and one count of trafficking in counterfeit goods.

Schmidt’s lawyer, federal public defender Andy Hart, did not respond to a request for comment. 

The law enforcement officials said the case appears to illustrate some of the gaps in current  background checks for gun purchasers that President Barack Obama has proposed closing as part of his package of executive actions and legislative proposals released this week aimed at curbing gun violence. Schmidt was charged with murder and felonious assault in 1989 after killing a Hispanic man  and shooting two others with a semi-automatic pistol during a traffic dispute. He later pleaded guilty to voluntary manslaughter and was sentenced to 10 to 25 years in prison. Federal officials were not immediately able to provide information on when he was released from prison.  

Despite a federal law that prohibits convicted felons from buying firearms, Schmidt was still able to acquire his stockpile – though authorities don’t yet know how he acquired them. Federal agents have been trying for weeks to trace the weapons, but officials said they have so far made little progress. This could indicate that Schmidt purchased his weapons from private dealers or gun shows, where background checks are currently not required, one official said. But he also could have obtained them on the black market.

“It is deeply troubling that law enforcement found this man, with a prior homicide conviction, in possession of an arsenal,” said Steven M. Dettelbach, the U.S. attorney for Cleveland.

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Mark Potok, who tracks hate groups for the Southern Poverty Law Center, said the group had found an entry that appeared to be from Schmidt on a neo-Nazi website several years ago, using the Yahoo profile of “Vinlander 101” and declaring his plans to set up a “historical preservation” group. (One of the trailers behind Schmidt’s sporting goods store was registered to the “Vinland Preservation League” -- a now defunct nonprofit.) He noted that the use of the word “Vinland” was likely inspired by the “Vinland Social Club,” a now largely dormant neo-Nazi skinhead group that emphasized the early Vikings role in colonizing the American continent. 

“The sad reality is there are people around this country who are building up enormous arsenals of  weapons because they think the end is coming -- either  a race war, or the new world order … or some other form of apocalypse,” he said. 

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