Founder of Danny’s Pawn avoids prison after unlawfully selling ammunition

McALLEN, TEXAS ( ValleyCentral ) — The founder of Danny’s Pawn and Sporting Goods, who illegally sold ammunition to a federal informant during a sting operation, avoided prison Tuesday.

Daniel Gallegos, 69, of McAllen sold more than 5,800 rounds of ammunition to “A.J.” — a federal informant — in 2020.

“It was a mistake that was made,” Gallegos said Tuesday morning, when he appeared in court for sentencing. “So I carry the cross.”

Gallegos co-owned Danny’s Pawn, which is located in downtown McAllen, and Point Blank Sporting Goods in Pharr.

“In early 2020, Homeland Security Investigations identified a cooperating individual with the initials A.J. who had previously met Gallegos in his role as the proprietor of Danny’s Pawn and Sporting Goods in McAllen, Texas,” Assistant U.S. Attorney Paxton Warner said on July 28, 2022, when Gallegos pleaded guilty.

A.J. was “illegally and unlawfully in the United States,” Warner said, but Gallegos sold him ammunition anyway.

Homeland Security Investigations, which is part of U.S. Immigration and Customs Enforcement, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives set up a sting operation.

“Agents from ATF and HSI jointly conducted controlled purchases at Danny’s Pawn in McAllen, Texas, where A.J. purchased ammunition from Gallegos,” Warner said.

During the sting operation, A.J. purchased 5,800 rounds of ammunition from Gallegos. The sales took place in March, April and May 2020.

“Prior to all of these purchases, Gallegos knew of A.J.’s prohibited status,” Warner said. “And knowingly sold ammunition and magazines to A.J. in spite of his status.”

A grand jury indicted Gallegos on five counts of unlawfully selling ammunition.

After his indictment, Gallegos surrendered his federal firearms license, which allowed him to sell guns, and stepped away from both businesses.

Gallegos pleaded guilty in July 2022.

More details about the sting operation surfaced on Tuesday, when Gallegos returned to court for sentencing.

A.J. told Gallegos he worked for a drug cartel, said Assistant U.S. Attorney Robert Guerra, who prosecuted the case. That didn’t stop Gallegos from selling him ammunition.

Guidelines from the U.S. Sentencing Commission recommended 30 to 37 months in prison. Guerra requested a sentence within the guideline range.

Attorney Crispin “CJ” Quintanilla of McAllen, who represented Gallegos, asked the judge to consider other options.

In March 2020, when the sting operation started, COVID-19 had just struck the United States. Small businesses struggled and many people made irrational decisions.

“He never, ever called the source,” Quintanilla said, referring to A.J. “It was always the source calling him.”

Gallegos is a hardworking, generous person, Quintanilla said, who spent more than two years on bond without any problems.

“Everyone knows him to be a good guy,” Quintanilla said, adding that Gallegos donated to charitable causes and helped people who had fallen on hard times.

Chief U.S. District Judge Randy Crane sentenced Gallegos to time served, citing his lifetime of charitable work and community service.

Crane said he considered the illegal ammunition sales “aberrant conduct.”

Guerra, however, noted that Gallegos hadn’t actually spent any time in custody because prosecutors let him self-surrender. Crane countered that Gallegos had received one day of credit regardless.

When it became clear Gallegos would avoid prison, Guerra pressed for a $25,000 fine. Crane settled on $10,000.

Guerra said that $10,000 wasn’t sufficient for someone like Gallegos, who had about $3 million in assets.

Crane said that number didn’t account for Gallegos losing Danny’s Pawn and Point Blank.

“I feel that’s a significant financial punishment he’s already endured,” Crane said.

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