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Plus, some of the ammunition David Koresh was ordering was for fully automatic rifles, suggesting he might be illegally converting semi-automatic weapons.
The size of these orders was large enough to suggest a substantial operation.
A number of the sheriff's deputies also remembered David Koresh's shootout with the George Roden several years earlier and how he was subsequently trialled for attempted murder.
On Thursday June 4 1992, McLennan County Sheriff's Department reached out to the ATF to request an investigation.
Agent Davy Aguilera began looking into the matter, tracing David Koresh's purchases of firearms and ammunition.
He also interviewed neighbours who lived near the Mount Carmel compound to see if they'd noticed anything strange.
One neighbour, a military veteran, mentioned that in January of 1992 he'd heard machine gun fire coming from Mount Carmel.
After learning that Koresh had purchased weapons from a local dealer named Henry McMahon, Agent Aguilera spoke to him as well.
Henry told the agent that he and Koresh were in business together.
Koresh and his branch Davidians assembled AR-15s from other parts, then Henry sold them at gun shows.
Agent Aguilera informed Henry that this arrangement could make him liable for an 11% federal tax on any proceeds and he'd need to keep meticulous records of every transaction.
This prompted Henry to cancel the arrangement with Koresh as he didn't want the extra cost or hassle.
While he was speaking with Agent Aguilera, Henry called Koresh to tell him that the ATF was there asking questions.
now that Branch Davidians would know they were being investigated.
Well, if there's a problem, tell them to come out here," Koresh replied.
But the agents declined his invitation, as they didn't yet have a warrant to search the compound and doubted Koresh would show them everything they wanted to see.
Agent Aguilera continued working on his investigation, certain that Koresh was involved in illegal firearm activities,
He also sent a report on his discoveries to ATF headquarters, asking for permission to seek a search warrant for Mount Carmel from Federal Court.
While Agent Aguilera was waiting to hear back about his request, news broke of the siege at Ruby Ridge in which two innocent civilians and a US Marshal had been killed.
This led to significant negative publicity for the ATF along with other federal law enforcement agencies.